Dedham, MA; April 27, 2005: Heavy investment in key industry sectors where pressure transmitters are used extensively will contribute to the robust growth of the Pressure Transmitters market in China. The China market is expected to grow at a Compounded Annual Growth Rate (CAGR) of 11.4% over the next five years. The market was nearly $135 million in 2004 and is forecasted to be over $231 million in 2009, according to a new ARC Advisory Group study, Pressure Transmitter Outlook for China.
The demand for pressure transmitters in China remains strong as efforts to build infrastructure and a manufacturing base continue. This growth is expected to be strongest early in the outlook period as the government feverishly prepares to host the 2008 Olympic Games.
"The product mix of pressure transmitters is changing as conventional transmitters slowly give way to more intelligent devices. This trend is expected to continue as China transforms itself from a big manufacturing country to a strong one," according to field systems analyst Paula Hollywood, phollywood@arcweb.com, the study''s principal author.
Digital Communication Protocols Will Drive Pressure Transmitter Growth
Most opportunities in China are greenfield projects. Unencumbered by the burden of legacy systems, such projects are open to installing state-of-the-art automation products and systems. Manufacturers are recognizing the value of adopting new technologies such as digital communication protocols and asset management solutions and are implementing them. With the increasing use of digital communication, the market for pressure transmitters looks bright.
Suppliers Must Strike a Balance Between Price and Intelligence
Although the China pressure transmitter market is extremely price sensitive, the government has acknowledged the intent over the next 20 years to become a more efficient producer and is advocating for the use of high technology as means to achieve that goal. It may be something of a cultural change for manufacturers to accept that increased functionality and intelligence come at a higher price tag, making the challenge for suppliers to strike a balance between price and intelligence. To make it more attractive for foreign process automation suppliers to produce the latest generation of pressure transmitters as well as other products in the country, the Chinese government must rigorously tighten the protection of intellectual property.