August 7, 2013 - The Asia-Pacific region accounts for more capital expenditures on industrial automation products than anywhere else in the world, with 46 percent of global investments in 2012, equivalent to $76.6 billion. The power industry represented approximately one-fifth of total industrial capital expenditures attributed to industrial automation products, the largest of all industries in Asia-Pacific, as presented in the attached figure. This is according to a study from IMS Research. The report tracks industrial capital expenditures and analyzes how investment is allocated.
Investment in power has grown significantly in recent years—particularly in developing regions as demand for domestic, commercial and industrial use has grown. China, for instance, is now the world’s biggest consumer of electricity. However, China’s per-capita consumption remains far behind most Western countries, leaving plenty of room for further growth. “Although domestic production has caught up with demand in China, further opportunities for continued investment will come through continued growing demand from an increasing and more affluent population, and also through a trend toward cleaner and more efficient energy production,” said Andrew Robertson, senior analyst for Industrial Automation for IHS.
“The study estimates that of total power capital spending in 2012 for Asia-Pacific, approximately 5 percent went into automation products. This trails America and Europe, again illustrating the potential for further growth in automation products going into this sector in Asia-Pacific.” Power in Asia-Pacific is overwhelmingly provided by fossil fuels, with China alone producing about half the world’s coal. But in the future, significant growth will come from the renewable and nuclear energy sector, both of which will provide major opportunities for automation component suppliers. “Take wind turbines, for example,” Robertson said.
“These turbines require a whole array of automation components, such as sensors, encoders, actuators, motors and drives—just for pitch and yaw control of the blades.” With demand in Asia-Pacific for power expected to continue expanding, the endeavor to move away from fossil fuels and governments striving for cleaner, safer, more efficient and reliable plants, the outlook for industrial automation products in its biggest market appears to be strong.
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