IMS Research: Strong investment drives industrial PC growth in China

Despite the worldwide recession, sales of industrial PCs are showing healthy growth in the Chinese market, according to a report from IMS Research.

Despite the worldwide recession, sales of industrial PCs are showing healthy growth in the Chinese market, according to the results of the latest China-focused market report from IMS Research (Shanghai, China).

Market analyst Alex Hong says, “In order to sustain economic growth, the Chinese Government put forward an economic stimulus plan for 4 trillion yuan (US$586 billion), more than 35% of which is planned to be used to develop public infrastructure." Infrastructure investments are being spent largely on railway construction, which is becoming the biggest driving force for industrial PC market development. The total revenues of industrial PCs in the Chinese market is forecasted to grow to near US$330 million by 2013, with a five-year CAGR of about 10%.

The market in traffic, transportation, and infrastructure is forecasted to grow fastest. The “Medium and Long-term Term Development Plan of a Multi-modal Transport Network” proposed by the Department of Transportation of National Development and Reform Commission describes future Chinese railway construction. By 2020, it is expected the construction mileage for high-speed railway will exceed more than 18,000 km. Driven by this plan, demand for industrial PCs is potentially large in the applications of railway ticket gates, terminal displays, telecommunications systems, etc.

The report further shows that the power and energy market appears to show potential for industrial PCs. The Chinese government will put more focus on promoting the development of large-scale recyclable power generation; this includes nuclear, wind, and solar power plants, where industrial PCs will be possibly applied.

However, affected by the downturn of export markets, established China automation markets, such as those in the textile machinery and machine tool sectors, are facing a significant reduction in demand. More industrial PC manufacturers are now planning to expand their business outside their traditional automation market, says IMS Research.

-- Posted by Vision Systems Design

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