India’s domestic demand driven market propels rapid industrialization and economic growth. Growth is further regulated by monetary and fiscal policies. While the economy of India has slowed down due to weakening external demand, the robust domestic demand continues to remain strong. Due to its domestic-demand-driven economy, India has emerged as one of the fastest growing economies in the world. Considering the promising growth prospects in India, ARC forecasts the robust growth of the Distributed Control Systems (DCS) market.
While the expanding electric power industry provides the best growth opportunity for DCS suppliers in India, the growth in metals & mining, refining, oil & gas, petrochemical, and chemicals industries is also alluring suppliers. These industries are growing and numerous companies are planning to expand their existing capacities through greenfield and brownfield projects. Modernizations of production facilities along with process automation system revamps are also creating excellent opportunities for DCS suppliers in India. However, suppliers face challenges in India due to the high price-sensitivity of the market.
The DCS Market Will Continue to Grow in India
According to ARC Advisory Group’s research, the total distributed control systems market in India will exceed $800 million in 2016. ARC’s latest study, “Distributed Control Systems for India Market Research Study” provides an in-depth analysis of the DCS business in India. 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 India and its dynamics.
In 2010, ARC saw DCS revenue in India increase over 25 percent from 2009. The first half of 2011 showed signs of robustness returning to the economy. However, by midyear, markets reflected lack of confidence and indicators showed the overall economy remaining sluggish. The strong order books in 2010 and the first half of 2011 generated a good DCS revenue year in 2011, with revenue increasing in double digits over 2010.
According to G. Ganapathiraman, Country Manager, ARC Advisory Group, India and co-author of this study, “India’s economy continues to grow despite external headwinds. The growth of industries, such as electric power, chemicals, and oil & gas are leading reasons for growth in the DCS business in India.”