Increases in demand for motion control products in manufacturing, as well as the growing shift of machinery production to Southeast Asia is expected to deliver a total compound annual growth rate (CAGR) of 7.5% by 2017 to affiliated countries.
According to the report "The Southeast Asia Market for Motion Controls – 2013" from IHS, the Southeast Asian general motion controls (GMC) market is forecast to grow to more than $90 million by 2017, and the computer numerical control (CNC) motion controls market to more than $70 million.
The food and beverage and packaging machinery sectors are not expected to see any negative effects of the economic downturn, allowing the sectors to provide sustainable growth opportunities to motion control products over the upcoming years.
Singapore and Malaysia are currently leaders in semiconductor equipment and electronic machinery manufacturing, with Thailand, Philippines and Vietnam being primary end-users of this equipment. “Industry sectors such as semiconductor, electronic and electronic assembly, machine tools, packaging, rubber and plastics, accounted for more than 80% of the Southeast Asian motion controls market in 2012 in terms of revenue,” said Wilmer Zhou, senior market research analyst for IHS. “These industries use many motion control products, and will continue to dominate the South East Asia motion controls market in the coming years.”
Since the decline in 2009 and 2010 to the electronics and electronics assembly and semiconductor markets, the sectors rebounded back in 2011, placing Southeast Asia high in semiconductor and electronics production ranking. Much of China's production has been lost to Indonesia, Vietnam and the Philippines due to rising product costs. These three countries have provided stable groundwork for motion control sales long-term.
Automotive manufacturing and related industries, such as machine tools and plastics and rubber are also utilizing motion controls which in turn are driving demand.
Thailand produced 5.245 million motor vehicles in 2012, housing well known automakers, assemblers and parts manufacturers such as Ford, General Motors, BMW, Daimler-Chrysler, Mitsubishi, Mazda, Toyota, Honda and Nissan.
Driven by the fast growth of automotive industry, demand is increasing for machine tools, such as laser-cutting machines, machining centers, milling machines, drilling machines, lathes, shearing machines, and stamping and forging machines, all of which drive high demand for CNC motion controls product, according to IHS.