ARC research says cutting-edge machine control system benefiting from rapid Asian industrialization

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ARC Research, says high-tech machine control system, called Distributed Control System (DCS), sales, hit by global sliump, is benefiting from rapid Asian industrialization.

  • What exactly is DCS?

DCS, is a type of automated control system that is distributed throughout a machine to provide instructions to different parts of the machine. Instead of having a centrally located device controlling all machines, each section of a machine has its own computer that controls the operation. For instance, there may be one machine with a section that controls dry elements of cake frosting and another section controlling the liquid elements, but each section is individually managed by a DCS. A DCS is commonly used in manufacturing equipment and utilizes input and output protocols to control the machine.

A DCS typically uses custom designed processors as controllers and uses both proprietary interconnections and communications protocol for communication. Input and output modules form component parts of the DCS. The processor receives information from input modules and sends information to output modules. The input modules receive information from input instruments in the process (or field) and transmit instructions to the output instruments in the field. Computer buses or electrical buses connect the processor and modules through multiplexer or demultiplexers. Buses also connect the distributed controllers with the central controller and finally to the Human–machine interface (HMI) or control consoles. See Process automation system.

The elements of a DCS may connect directly to physical equipment such as switches, pumps and valves or they may work through an intermediate system such as a SCADA system.

But what is fundamentally driving Asian’s industrialization?

In the book, The Four Little Dragons: The Spread Of Industrialization In East Asia, Ezra F. Vogel, a book review sums up Vogal by saying that Vogal argues that in the last four decades Japan and the four “little dragons”-Taiwan, South Korea, Hong Kong and Singapore-which together constitute less than four percent of the world’s population, have become with Europe and North America one of the three pillars of the modern industrial world order.

How did those “dots on the eastern periphery” achieve such a transformation? This is not the first effort to try to answer that question, but it is surely one of the most concise, readable and penetrating.

One of the nation’s leading scholars on East Asian affairs, Vogel sees several “situational factors”-U.S. aid, the destruction of the old order, a sense of political urgency, an eager and plentiful labor supply and familiarity with the Japanese model of success-as one cluster of factors.

But success, Vogel says, also came from a complex of institutional and cultural practices rooted in the Confucian tradition but adapted to the needs of a modern society-“industrial neo-Confucianism.” This cultural cluster includes a meritocratic bureaucracy, the entrance examination system, the importance of group consciousness and the goal of self-improvement.

  • The following is from ARC:

DCS Market growing in Asia

December 21, 2012 – The major growth in Distributed Control Systems (DCS) revenues continues to come from developing nations. Growth in countries such as India and China is conspicuous because of sluggish growth rates in other regions of the world. While developed nations are just holding their own (at best) in DCS investments, in developing countries, several recent trends are becoming increasingly important for success in the DCS business.

These two countries are undergoing rapid growth and industrialization in Asia. At the time of this report, however, China’s growth is slowing. Even with a slowdown in China, Asia remains a leading growth engine for the global DCS marketplace, representing almost 35 percent of the world market.

ARC expects the top five growth industries in Asia to be oil & gas, mining & metals, cement & glass, water & wastewater, and electric power, in that order, with associated increases in DCS revenues. The growth of these industries is expected to be above average.

Demand for oil will continue to increase in the long term despite short-term demand shortfalls. Oil exploration and production is taking the industry into increasingly remote and hostile regions, increasing demand for remote operations and subsea production. The power industry is also growing at a healthy rate over the forecast period.

Developing economies, such as India and China, continue to invest in new power capacities and world-class power generation facilities. While pent up demand for mining & metals and cement & glass investments caused sizeable increases from 2010 to 2011, the growth is expected to return to a more moderate level over the forecast period.

ARC Foresees the Robust Growth of DCS in Asia

According to ARC Advisory Group’s research, the total distributed control systems market in Asia will exceed $6,300 million in 2016. ARC’s latest study, “Distributed Control Systems for Asia Market Research Study” provides an in-depth analysis of the DCS business in Asia. In addition to market analysis and forecasts, the study also covers the current market nuances, strategic issues, and the future outlook. The report also highlights the factors that influence the DCS market in Asia and its dynamics.

G. Ganapathiraman, Country Manager, ARC Advisory Group, India and co-author of this study says, “The trends that drive the DCS business in Asia vastly differ from those in developed nations. Due to the economic growth in China and India along with the other BRIC countries, investments in infrastructure, oil and gas production, and in refining are rising, leading to increased demand for DCS.”

In 2011, ARC saw a much larger increase in revenue over 2010 than previously anticipated. The order book started improving at the end of 2009 and was quite strong throughout 2010 and the first half of 2011. Because the DCS business is primarily project based with an average nine month lag time from order book to recognized revenue, this strong order book translated into an excellent revenue year for 2011 with Asia’s revenue up over 4.5 percent from 2010.

About ARC: Founded in 1986, ARC Advisory Group is the leading research and advisory firm for industry. Our coverage of technology from business systems to product and asset lifecycle management, supply chain management, operations management, and automation systems makes us the go-to firm for business and IT executives around the world. For the complex business issues facing organizations today, our analysts have the industry knowledge and first-hand experience to help our clients find the best answers.

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