Industrial Controls in China to 2015

Industrial Controls in China to Reach 259 Bil. Yuan in 2015

This study analyzes China's industrial controls market. It presents historical demand data (2000, 2005, 2010) and forecasts for 2015 and 2020 by control type (e.g., adjustable speed drive, computer numerical, programmable logic, proximity and positioning sensors, general-purpose conventional controls, special-purpose conventional controls) and market (e.g., durable goods, nondurable goods, nonmanufacturing). The study also considers market environment factors, details industry structure, evaluates company market share and profiles industry participants.

Additional Information

Demand for industrial controls in China is projected to rise 13.6 percent annually through 2015 to 259 billion yuan. Gains will be supported by increases in durable goods output, as well as by expanding investment in key industries such as chemicals, utilities and construction. Demand growth will also be aided by continuing product development and technological advances in solid-state controls that will enable end-users to improve their productivity. However, gains are expected to be restrained by competition from personal computers programmed to perform control-related functions.

Demand for advanced control products is expected to continue to rise faster than demand for conventional controls, as advanced types provide superior performance and production capabilities, according to Freedonia. As these products become more technologically intricate, Freedonia predicts demand for systems integration services and industrial control software will grow rapidly.  Adjustable-speed drive controls will remain the largest advanced industrial control product segment, primarily bolstered by the superior energy conservation performance they provide. Demand for special-purpose controls is expected to continue to outpace that for general-purpose products through 2015, benefiting from the application-specific nature of these devices that allows them to sell at higher prices than general-purpose controls.

Durable goods industries accounted for the largest share of demand in 2010, making up 78 percent of the total. Industrial controls are especially utilized by electrical and electronic equipment and machinery manufacturers, according to Freedonia. Original equipment manufacturer (OEM) applications are expected to provide better prospects for growth than maintenance/repair/operations (MRO) applications, benefiting from solid advances in durable goods manufacturing output in China. Electrical and electronic equipment is expected to be the fastest growing market for industrial controls through 2015, supported by strong increases in manufacturing output, as well as rising use of control devices in electrical and electronic equipment.

Table of Contents

SECTION PAGE

INTRODUCTIONx

I.EXECUTIVE SUMMARY1

II.MARKET ENVIRONMENT4
General4
Economic Overview5
Recent Economic Performance5
Economic Outlook7
Industrialization & Manufacturing Trends11
Gross Fixed Capital Formation Trends14
Currency Exchange Rates16
Pricing Patterns19
Technology Trends21
Conventional Functionality22
Communication/Systems Integration23
Legal & Regulatory Environment25
The Twelfth Five-Year Plan26

III.OVERVIEW29
Overview29
Industrial Control Demand by Sector31
International Environment33
World Supply & Demand34
Foreign Trade36

IV.ADVANCED INDUSTRIAL CONTROLS39
General39
Supply & Demand40
Adjustable Speed Drive Controls42
Demand42
Product Innovations & Producers45
Computer Numerical Controls46
Programmable Logic Controllers48
Demand50
Product Innovations & Producers51
Proximity & Positioning Sensors52
Other Solid-State Controls55
Parts & Accessories58
Control Systems Integration Services59
Industrial Control Software61

V.CONVENTIONAL INDUSTRIAL CONTROLS65
General65
Supply & Demand66
General-Purpose Controls67
AC & DC Starters & Contactors69
Industrial Control Relays72
Motor Control Centers74
Industrial Control Clutches & Brakes76
Pushbutton Controls78
Limit Switches & Related Products80
Other General-Purpose Controls82
Parts & Accessories84
Special-Purpose Controls85
Material Handling Controls87
Application-Specific Starters & Contactors89
Metal Mill Controls91
Other Special-Purpose Controls92
Parts & Accessories93

VI.INDUSTRIAL CONTROL MARKETS95
General95
Durable Goods97
Machinery  100
Industry Outlook  101
Industrial Control Market  102
Electrical & Electronic Equipment  105
Industry Outlook  106
Industrial Control Market  108
Primary & Fabricated Metals  109
Industry Outlook  110
Industrial Control Market  111
Motor Vehicles & Parts  112
Industry Outlook  113
Industrial Control Market  114
Other Durable Goods  115
Nondurable Goods  117
Chemicals  120
Industry Outlook  121
Industrial Control Market  122
Petroleum Refining  123
Industry Outlook  124
Industrial Control Market  125
Pulp & Paper  126
Industry Outlook  126
Industrial Control Market  128
Other Nondurable Goods  129
Nonmanufacturing  130
Utilities  132
Industry Outlook  132
Industrial Control Market  133
Construction  135
Industry Outlook  135
Industrial Control Market  137
Mining  138
Industry Outlook  139
Industrial Control Market  140
Services  141

VII.INDUSTRY STRUCTURE  143
General  143
Industry Composition  144
Market Share  146
Product Development & Manufacturing  151
Marketing & Distribution  152
Cooperative Agreements  153
Foreign Participation in China  156
Legal & Regulatory Issues  157
Joint Ventures  159
Wholly-Owned Foreign Enterprises  161
Representative Offices  162
Company Profiles  163
ABB Limited  164
Actuant Corporation  168
Baldor Electric, see ABB
Beijing Leader Harvest Power Technologies, see Schneider Electric
Bosch (Robert) GmbH  170
CHINT Group Corporation  172
Citect Controls Systems Shanghai, see Schneider Electric
Custom Sensors & Technologies Asia Shanghai, see
Schneider Electric
Danaher Corporation  174
Daqo Group Company Limited  178
Delixi Electric, see DELIXI Group and Schneider Electric
DELIXI Group Company Limited  180
Dynapar, see Danaher
Eagle-Signal, see Danaher
Eaton Corporation  182
Emerson Electric Company  185
FANUC Limited  187
Fuji Electric FA Components & Systems, see Schneider Electric
Fujitsu Limited  189
GE Consumer and Industrial China, see General Electric
General Electric Company  190
GSK CNC Equipment Company Limited  194
Guodian Nanjing Automation Company Limited  195
Hollysys Automation Technologies Limited  196
Honeywell International Incorporated  198
Huyu Group Company Limited  201
Invensys plc  202
Joslyn Clark Controls, see Danaher
Lanzhou Great Wall Electrical Company Limited  204
Microsoft Corporation  206
Mitsubishi Electric Corporation  208
Namco Controls, see Danaher
Nanjing Intelligent Apparatus, see Daqo Group
Nanjing Nari-Relays Electric Company Limited  210
NARI Technology Development Company Limited  211
OMRON Corporation  212
Panasonic Corporation  215
Partlow, see Danaher
People Electric Appliances Group  217
Prozeß-und-Maschinen Automation, see Danaher
Rockwell Automation Incorporated  218
Schneider Electric SA  220
Shaanxi Qunli Electric Company Limited  225
Shanghai Automation Instrumentation Company Limited  226
Shanghai Hi-Tech Control System Company Limited  227
Shanghai Sailfar Electric Technology, see Daqo Group
Siemens AG  229
TE Connectivity Limited  232
Tengen Group  233
Tianshui Great Wall Control Electric, see Lanzhou Great
Wall Electrical
Tyco Electronics, see TE Connectivity
Wuhan Huazhong Numerical Control Company Limited  235
Xiamen Hongfa Electroacoustic Company Limited  236
XJ Electric Company Limited  237
Yaskawa Electric Corporation  238
Zhenjiang Klockner-Moeller Electrical Systems, see
Daqo Group and Eaton
Other Companies Mentioned in the Study  240

List of Tables

TABLE NUMBER PAGE

SECTION I -- EXECUTIVE SUMMARY
Summary Table 3

SECTION II -- MARKET ENVIRONMENT
1 Gross Domestic Product of China11
2 Manufacturing Value Added in China14
3 Gross Fixed Capital Formation in China16
4 Currency Exchange Rate, 2000-201018
5 Selected Industrial Control Pricing in China21

SECTION III -- OVERVIEW
1 Industrial Control Supply & Demand in China30
2 Industrial Control Demand in China by Sector32
3 World Industrial Control Demand by Region36
4 Chinese Foreign Trade in Industrial Controls38

SECTION IV -- ADVANCED INDUSTRIAL CONTROLS
1 Advanced Industrial Control Supply & Demand in China41
2 Adjustable Speed Drive Control Demand in China45
3 Computer Numerical Control Demand in China48
4 Programmable Logic Controller Demand in China51
5 Proximity & Positioning Sensor Demand in China55
6 Other Solid-State Control Demand in China58
7 Advanced Control Part & Accessory Demand in China59
8 Control Systems Integration Service Demand in China61
9 Industrial Control Software Demand in China64

SECTION V -- CONVENTIONAL INDUSTRIAL CONTROLS
1 Conventional Industrial Control Supply & Demand in China67
2 General-Purpose Industrial Control Demand in China69
3 AC & DC Starter & Contactor Demand in China72
4 Industrial Control Relay Demand in China74
5 Motor Control Center Demand in China76
6 Industrial Control Clutch & Brake Demand in China78
7 Pushbutton Control Demand in China80
8 Limit Switch & Related Product Demand in China82
9 Other General-Purpose Control Demand in China84
10 General-Purpose Control Part & Accessory Demand in China85
11 Special-Purpose Industrial Control Demand in China87
12 Material Handling Control Demand in China89
13 Application-Specific Starter & Contactor Demand in China90
14 Metal Mill Control Demand in China92
15 Other Special-Purpose Control Demand in China93
16 Special-Purpose Control Part & Accessory Demand in China94

SECTION VI -- INDUSTRIAL CONTROL MARKETS
1 Industrial Control Demand in China by Sector & Source97
2 Durable Goods Industrial Control Demand in China
by Industry & Type99
3 Machinery Shipments in China  102
4 Machinery Industrial Control Demand in China  105
5 Electrical & Electronic Equipment Shipments in China  107
6 Electrical & Electronic Equipment Industrial Control Demand
in China  109
7 Primary & Fabricated Metal Shipments in China  111
8 Primary & Fabricated Metal Industrial Control Demand
in China  112
9 Motor Vehicle Production in China  114
10 Motor Vehicle & Parts Industrial Control Demand in China  115
11 Other Durable Goods Industrial Control Demand in China  117
12 Nondurable Goods Industrial Control Demand in China
by Industry & Type  119
13 Chemical & Pharmaceutical Shipments in China  122
14 Chemical Industrial Control Demand in China  123
15 Petroleum Indicators in China  124
16 Petroleum Refining Industrial Control Demand in China  126
17 Paper Product Shipments in China  127
18 Pulp & Paper Industrial Control Demand in China  129
19 Other Nondurable Goods Industrial Control Demand in China  130
20 Nonmanufacturing Industrial Control Demand in China
by Industry/Sector & Type  131
21 Selected Utilities Sector Indicators in China  133
22 Utilities Sector Industrial Control Demand in China  134
23 Construction Expenditures in China  137
24 Construction Sector Industrial Control Demand in China  138
25 Mining Production in China  140
26 Mining Sector Industrial Control Demand in China  141
27 Services Industrial Control Demand in China  142

SECTION VII -- INDUSTRY STRUCTURE
1 Selected Industrial Control Company Revenues, 2010  145
2 Selected Cooperative Agreements  155

List of Charts

CHART NUMBER PAGE

SECTION II -- MARKET ENVIRONMENT

1 Currency Exchange Rate, 2000-201019

SECTION III -- OVERVIEW
1 Industrial Control Demand in China by Type, 201031
2 Industrial Control Demand in China by Sector, 2000-202033

SECTION VI -- INDUSTRIAL CONTROL MARKETS
1 Durable Goods Industrial Control Demand in China
by Industry, 2000-2020  100
2 Nondurable Goods Industrial Control Demand in China by
Industry, 2000-2020  120
3 Nonmanufacturing Industrial Control Demand in China
by Industry/Sector, 2000-2020132

SECTION VII -- INDUSTRY STRUCTURE
1 Industrial Control Market Share in China, 2010