Asian DCS market to boom

The market for distributed control systems (DCSs) in Asia is expected to grow at a 9% compound annual growth rate (CAGR) from just under $4 billion in 2005 to more than $6 billion in 2010, according to a recent study by ARC Advisory Group.

Strong economic activity is spurring growth of Asian manufacturing, which is propelling growth of the region’s automation market. Large greenfield projects are paralleling large investments in many of Asia’s vertical industries, such as chemical, electric power, oil and gas and refining.

“Robust demand, massive investments and increasing affluence result in a cycle of wealth creation, and Asia is experiencing this transformation,” states the report, Distributed Control Systems (DCS) Outlook for Asia. “Growth in the manufacturing industry is leading to a thriving DCS market in the Asian region. To compete globally, manufacturers realize that high productivity and quality are necessary. They’re embracing current technologies to a greater extent and the trends are very positive.”Distributed Control System (DCS) Business in Asia

For instance, growing demand for electricity is prompting massive investment in Asia’s power industry, with coal-fired facilities emerging as the biggest users of DCSs in China, India, and Southeast Asia. Many Asian nations also are planning to increase their nuclear generating capapcity. Meanwhile, rapid urbanization and expansion in manufacturing across many verticals provide further impetus for power industry growth. In the next five years, while China will add around 25,000 MW of generating capacity, India will add more than 50,000 MW, while Asia’s other emerging economies also are expected to add large capacities.

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