According to the ARC Advisory Group, robust investments in manufacturing industries pushed the general motion control (GMC) market growth worldwide in 2007. While economic expansion is expected to continue, future growth will be at a slower pace, says the firm. The GMC market reached nearly $6.0 billion in 2007 and is forecasted to grow to over $8.2 billion in 2012, according to a new ARC Advisory Group study. That represents a compounded annual growth rate (CAGR) of 6.7% over the next five years.
The industrial machinery market is a good reflection for the overall GMC market, says the firm. “While there has been a steady demand for machinery in the highly developed regions, many machinery builders are experiencing unprecedented demand from developing countries, including China, India, as well as the countries of Eastern Europe,“ says Senior Analyst Himanshu Shah, the principal author of ARC’s “General Motion Control Worldwide Outlook.”
The ARC Advisory Group cites a number of factors that are influencing the GMC market growth:
Manufacturers will continually face challenges to raise productivity, lower product costs, reduce plant operating expenses, and increase return on investment (ROI) in order to compete in the global market. Consequently, capital investments for GMC systems are expected to remain strong across many industries during the next five year period.
Globalization is causing manufacturing companies to invest in creating new capacities in various industries, such as CPG, automotive, food & beverage, and electronics & semiconductor. GMC systems will be increasingly more vital as manufacturers continue to face challenges to satisfy market demands, compete in the growing economy, and keep their businesses profitable.
The rapidly expanding middle class in Asia, Eastern Europe, and Latin America is creating massive demand for automobiles, resulting in new local factories and increases in capacity at the existing production facilities. Additionally, more and more parts for the automotive industry are being sourced from Asia.
Global automotive manufacturers that set up plants in Asia are held to the same high standards of production and quality as they are in the developed economies. This will drive increase in demand for more GMC products and services.For more information on this study, see www.arcweb.com/res/gmc