Total Automation Business to Discrete Industries to Exceed $38 Billion

ARC: The worldwide automation market for the discrete industries experienced robust growth as the global economy enjoyed a strong year of expansion with heightened demand from various emerging markets. The worldwide automation market for the discrete industries is expected to grow at a Compounded Annual Growth Rate (CAGR) of 7.0 percent over the next five years. The market was over $27 billion in 2004 and is forecasted to grow over $38 billion in 2009.

Manufacturing companies increased expenditures for automation equipment to set up new plants in Asia and expand production capacities globally. A primary factor contributing to market growth during the next five years is the continued infusion of capital for automation in many industries and regions driven by globalization. “Although overall capital expenditures have remained flat in previous years, globalization is causing manufacturers to allocate increased investments in automation in order to drive down costs and raise the quality of their manufactured products.

New Regional Dynamics Are Driving Growth: China continues to be the primary country driving automation market growth, while India is also providing increasingly bright prospects for automation. In most Asian countries end users continue to build new infrastructure, expand their manufacturing base, and modernize many existing plants which have less sophisticated or limited automation. New dynamics in Japan also made an unexpected resurgence, returning to higher growth rates after many years of lagging performance.

Eastern Europe is also experiencing a surge in automation investment with increased consumer demands due to rising real wages in a number of countries, and a stabilizing labor market. New activities in the OEM machine builders segment are pushing high growth also in Latin America.

Total Automation Business for Discrete Industries Worldwide Outlook Publ 20051220