24 Jul 2024

AUTOMATION FOR MANUFACTURING

Automation market growth forecast is upgraded to 12.9%

The global market for industrial automation electronic equipment (IAEE) will expand by 12.9% this year to reach a value of $97bn, according the market analyst, IMS Research, which has upgraded its previous forecasts based on reports of a strong first quarter for the sector. The new forecast growth rate is more than double the historic annual average of 6.2% and is faster than growth rates in the sector before the recession .

The expansion is being driven by strong growth last year in the machinery production industry, on which the IAEE market relies heavily.

“Initial indicators show that the strength in machinery production during 2010 has continued into 2011, and the outlook remains positive,” says IMS Research market analyst, Andrew Robertson. “The strongest performances will again come from Eastern Europe and China, leading to global growth of 9.8% for machinery production during the year.”

By contrast, key process equipment markets that depend on capital investment declined in 2010, due to continued tight lending conditions. In addition, order books in the process sector were strong when it entered the downturn, creating a lag in recovery. However, IMS’ latest quarterly report indicates that the sector had a good first quarter, suggesting that capital expenditure levels will be strong in 2011.

IMS believes that 2011 will be a peak growth year for the IAEE market.