IMS Research has upgraded its forecast to 12.9% market growth in 2011, following initial reports of a strong first quarter for industrial automation electronics equipment (IAEE).
According to a new report, "The World Market for Industrial Automation Electronics Equipment" from IMS Research, the global IAEE market is now projected to be worth $97 billion in 2011.
Growth in the IAEE market relies heavily on machinery production, which performed well in 2010.
According to IMS Research market analyst Andrew Robertson, "initial indicators show that the strength in machinery production during 2010 has continued into 2011, and the outlook remains positive. The strongest performances will again come from Eastern Europe and China, leading to global growth of 9.8% for machinery production during the year."
In contrast, key process equipment markets dependent upon capital investment declined in 2010, due to continued tight lending conditions. In addition, order books were strong on entering the downturn, creating a lag in recovery. However, IMS Research's latest quarterly service indicates an impressive first quarter, suggesting that capital expenditure levels will be strong in 2011.