China is buying DCS systems

The DCS market in China is expected to grow at a very robust 15.1% compounded annual growth rate (CAGR) over the next five years. The market is $531 million in 2003 and is forecasted to be $1074 million in 2008, according to a new ARC Advisory Group study.

China, the fastest growing economy in the world, is witnessing massive investments in new projects and plant upgrades in almost all process industry segments. The country is emerging as a destination of choice for global manufacturers.

The power industry continues to contribute the major share of DCS revenues in China and this will continue. However, industries such as oil and gas and petrochemicals hold excellent growth prospects that are defined in the study.

While China offers growth opportunities for DCS suppliers, it also presents numerous challenges. The marketplace continued to remain intensely competitive in 2003. Global DCS suppliers face competition from home-grown Chinese suppliers. Domestic control system suppliers are able to offer DCSs at highly competitive prices because of emerging open standards and similar factors. Presently their territories are delineated, but in the future, the lines are bound to become blurred, according to ARC.