The relative strength of the U.S. and Chinese markets is forecast to drive healthy market growth of 9.5% in the global industrial automation market to reach $159.8 billion in 2012, according to IMS Research. The global industrial automation market is predicted to reach more than $200 billion by 2015. Market growth will be buoyed by healthy economies worldwide this year, despite individual countries in Europe slipping back into recession.
Industrial automation equipment is purchased largely for manufacturing processes, which is a key element in a country’s GDP and is generally indicative of economic health. Machinery production output drives demand for nearly half of the total industrial automation equipment market. Early indicators for first quarter machinery production output show slowed growth in most regions, with the exception of the U.S. market.
The U.S. economy has improved substantially, and both machinery production and end equipment markets are performing well in the beginning of the year. Machinery production in the U.S. had a very strong first quarter with approximately 8% growth, compared to the first quarter of 2011. The Americas region in total comprised of North and South America, is poised for strong growth in industrial automation equipment in 2012, and performed the best in the first quarter according to quarterly equipment trackers with positive growth across several equipment types compared to the first quarter of 2011.