Asia-Pacific Market for PLCs will exceed $3.6 billion in 2016
Revenues in the Asia-Pacific PLC market, excluding Japan, will rise to $3.6 billion in 2016, according to a new study, conducted by IMS Research, now part of IHS Inc.
According to "World Market for PLCs – 2012," the EMEA market for PLC hardware and associated software and services — the largest market in the world — was estimated to have been worth $4.2 billion million in 2011. Compared with 2010, revenues grew by 23.1 percent. They are forecast to grow much slower from 2012, mainly because of the Eurozone debt crisis. Overall, the total market is forecast to grow at a CAGR of 7.8 percent from 2010 to 2016, according to the report from the research firm, which is based in Wellingborough, UK.
After a strong recovery in 2010, the American PLC market entered a period of modest growth, according to the report. Due to domestic spending, economic performance in the United States has gradually been recovering throughout 2012. The market in the Americas is projected to grow at a modest rate from 2012 to 2016.
Further, the report notes that Japan's post-earthquake recovery and reconstruction boom has stopped. Having increased by 30 percent in U.S. dollars in 2010, growth of Japanese PLC revenues slowed to an estimated rate of 9.6 percent in 2011. The slowdown is largely due to tepid private domestic demand and significant
headwinds for exports.
PLC revenues grew 8.6 percent in Asia-Pacific in 2011, falling sharply from more than 50 percent in 2010, due to weakening external demand and the tightening monetary and fiscal policy against inflation, says IMS Research. Growth in China appears to be stabilizing as government stimulus measures take hold. The report predicts that the long-term opportunities for the Asia-Pacific market remain strong, especially in China and India. China was estimated to account for 52.3 percent of the revenues in the region in 2011. India followed with 18.8 percent.