As the economy continues to recover from the recession, the globalization environment has also resumed, driving strong growth of automation expenditures in the automotive industry in 2011.
Automation expenditures will grow at a compound annual growth rate (CAGR) of 3.6% over the next five years, according to the ARC Advisory Group report "Automation Expenditures in Automotive Industry Global Market Research Study."
The globalization environment drives manufacturers to improve energy consumption, safety and sustainability initiatives while also reducing cost. More automotive companies are choosing to invest in new automation equipment as they are faced with the challenge of raising productivity.
"Automotive companies continue to demand energy efficiency, higher productivity, better quality and flexibility in their operations," says Sal Spada, research director for ARC. "These demands directly benefit the automation suppliers and help foster their faster recovery from the past recession."
Developing companies remain the major growth driver for the global automation market because they need the most improvements made to their infrastructure. Investments in roads, water and wastewater facilities, airport facilities and power plants will drive the direct use of automation equipment in these industries, according to ARC.
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