Pressure Transmitter Market Prime for Boom in China

Heavy investment in key industry sectors will drive robust growth of the pressure transmitters market in China, according to a survey by ARC Advisory Group (www.arcweb.com). The China market is expected to grow at a Compounded Annual Growth Rate (CAGR) of 11.4 percent over the next five years. The market was nearly $135 million in 2004 and is forecast to be over $231 million in 2009, according to the study, titled " Pressure Transmitter Outlook for China ." The study says demand for pressure transmitters in China remains strong as efforts to build infrastructure and a manufacturing base continue. 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," said Paula Hollywood, ARC field systems analyst and the study”s author, in a prepared statement. "This trend is expected to continue as China transforms itself from a big manufacturing country to a strong one." According to the study, most opportunities in China are greenfield projects, which are unencumbered by the burden of legacy systems and are open to installing state-of-the-art automation products and systems. The study says manufacturers are recognizing the value of adopting new technologies such as digital communication protocols and asset management solutions. With the increasing use of digital communication, demand for pressure transmitters is expected to grow as well. Although the China pressure transmitter market has traditionally been extremely price sensitive, ARC says 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. ARC acknowledges it may require a bit of a cultural change for manufacturers in China to accept that increased functionality and intelligence come at a higher price tag, so the research firm believes suppliers will need to strike a balance between price and intelligence. Meanwhile, 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, ARC believes the Chinese government must rigorously tighten the protection of intellectual property. — Flow Control Staff