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Asia Pacific region leads the way in automation CAPEX

Hydrocarbon Engineering,

During 2012, the Asia Pacific region accounted for more CAPEX expenditure on industrial automation products than anywhere else in the world. Asia Pacific led the way with 46% of global investments, the equivalent of US$ 76.6 billion. The data is taken from a new report by IMS Research, part of IHS, titled ‘Capital Expenditure in Process & Factory Automation.’


The power industry represented 1/5 of total industrial CAPEX associated to industrial automation products. This is the largest proportion of all industry spending in Asia Pacific. Investment in power has grown significantly over the last few years with particular increases in domestic demand and commercial and industrial sectors.

‘Although domestic production has caught up with demand in China, further opportunities for continued investment will come through continued growing demand from an increasing and more affluent population, and also trough a trend toward cleaner and more efficient energy production,’ said Andrew Robertson, senior analyst for Industrial Automation for IHS. ‘The study estimates that of total power capital spending in 2012 for Asia Pacific, approximately 5% went into automation products. This trails America and Europe, again illustrating the potential for further growth in automation products going into this sector in Asia Pacific.’

Fossil fuels

Power in Asia Pacific is overwhelmingly provided by fossil fuels, with China alone producing nearly half the world’s coal. But in the future, there is likely to be significant growth in the renewable and nuclear energy sectors, both of which will provide major opportunities for automation component suppliers.

‘Take wind turbines, for example,’ said Robertson. ‘These turbines require a while array of automation components, such as sensors, encoders, actuators, motors and drives, just for pitch and yaw control of the blades.’

With the demand in Asia Pacific for power predicted to increase and continue expanding, the endeavor to move away from fossil fuels and governments striving for cleaner, safer, more efficient and reliable plants, the outlook for industrial automation products in its biggest market appears to be strong.

Adapted from press release by Claira Lloyd.

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