Keywords: DCS, Aftermarket Services, China Market Research Study, China Market
China’s DCS market recovered well in 2013 from the bottom in 2012 according to a new ARC market research study. Most multinational suppliers had very good performance, although they face challenges as local DCS suppliers continue to gain market share.
The electric power generation, oil & gas, and chemical industries are the three largest industry sectors for DCS shipments. The oil & gas industry experienced the fastest growth, while the mining & metal, cement & glass, paper & pulp industries remain a little uncertain in the foreseeable future. ARC forecasts that refining & petrochemicals will experience moderate growth.
The DCS market is still price sensitive and driven by new construction projects, but aftermarket service has bigger potential. Mega projects are limited in the chemical and power generation industries. Due to the softening domestic market, many domestic DCS suppliers look to increase their export business through EPCs as a key driver for business growth.
According to ARC Advisory Group’s research, the total distributed control systems market in China is forecasted to maintain moderate growth in the next five years. ARC’s latest study, Distributed Control Systems for China Market Research Study, provides an in-depth analysis of the distributed control systems business in China, including quantitative assessment of market size, segmentations, and forecast trends.
DCS Suppliers Aim at Aftermarket Services
According to the principal author of ARC’s study, Rex Sun, “DCS is a good product with good service tail in total process automation product lines. Major end users are now reevaluating their overall automation and control system migration and evolution strategies. All DCS suppliers are focusing on aftermarket services to drive both revenue and margin growth, leveraging their installed base in China.”
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