Representative End User Clients
Representative Automation Clients
Representative Software Clients
As discussed in a previous ARC Insight, the downturn in the overall automation market in 2015 was caused by a number of complex and structural reasons. ARC Advisory Group believes that this trend will continue to represent the "new normal" until the next business cycle emerges.
China's process automation market, in particular, has entered a unique stage. The growth rate is likely to be modest and a more mature market will reorient itself away from a capex-driven business model to one that focuses on maximizing the performance of installed automation and production assets through operational excellence. This will require a collaborative effort between automation end users and suppliers. Those automation suppliers that can quickly adapt to this new business model, are likely to be the ones that will enjoy the most success in China in the coming years.
Adapting to the New Normal
As China's previously red-hot economy continues to cool down to a more sustainable level of growth, it's likely that the manufacturing sector will be a less substantial contributor to overall GDP. Due to insufficient demand and overcapacities, the heavy process industries have been hit particularly hard by the downturn. At the same time, they face increasing cost pressure due to the tax burden as well as the rising cost of labor, land, and raw materials.
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Keywords: China, Process Automation Market, Sustainability, Distributed Control Systems, Control Valves, Collaborative Production Management, Process Safety Systems, Field Instruments, Aftermarket Services, ARC Advisory Group.