Market Trends of China Factory Automation and Industrial Controls Industry
This section covers the major market trends shaping the China Factory Automation & Industrial Controls Market according to our research experts:
Distributed Control System is Expected to hold a Significant Market Growth
- DCS are process-oriented platforms that depend on a network of interconnected sensors, controllers, terminals, and actuators to act as a centralized master controller for a facility's production operations. Thus, a DCS focuses on controlling and monitoring processes and offering facility operators the ability to see all facility operations from one place.
- One of the significant benefits of the DCS system is that the digital communication between distributed controllers, workstations, and other computing elements follows the peer-to-peer access principle. To achieve greater precision and control in process industries, like the petrochemical, nuclear, and oil and gas industries, there is an increasing demand for controllers which offer specified process tolerance around an identified set point.
- Moreover, many requirements have driven the adoption of DCS, as these systems provide lower operational complexity and project risk, as well as functionalities like flexibility for agile manufacturing in highly-demanding applications. The ability of DCS to integrate PLCs, turbomachinery controls, safety systems, third-party controls, and various other plant process controls for heat exchangers, feedwater heaters, and water quality further drives the adoption of DCS in the energy sector.
- The growth in electric power generation in China is developing demand for distributed control systems (DCS). According to China Electricity Council (CEC), China's overall power consumption reached 7,510TWh, increasing by 3.1% during 2021 and by 5.7% over the average annual growth rate during the 13th Five-Year Plan.
- Various end-users are adopting DCS systems to automate their operations. For instance, in January 2021, Northern Copper Industry Co. Ltd (NCI), a part of the prominent producer of raw material copper stock in North China, announced that it had selected ABB to supply and install a complete electrical and automation system for its new cold rolling mill, which is scheduled for start-up in 2021.
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Oil and Gas Sector to hold a Significant Market Share
- The geographically dispersed oil and gas platforms require proper communication systems. Growth in solutions like PLC, SCADA, DCS, and safety automation is attributed to the enormous development of industries in China. It is also expected to create a massive demand for automation products that include DCS systems.
- In August 2021, Sinopec, China's state-owned energy company, announced the discovery of a new 100-million-tonne oil and gas field in the Tarim Basin's Shunbei area in Xinjiang province. The company's Northwest China unit drilled an exploration well that produced 865 tonnes (6,315 barrels) of crude oil and 590,000 cubic meters of natural gas per day.
- Moreover, the oil and gas industry is subject to several government regulations for safety, reliability in the plant, and efficiency, owing to which ICS finds applications in remote terminal units (RTU) and pumping and compression stations for ensuring safety.
- The industry is increasingly adopting ICS solutions to maintain safety and environmental integrity without compromising production efficiency. Automation helps integrate information and control, power, and safety solutions to meet the requirement of affordable energy and stringent government regulations.
- Moreover, owing to the high demand for automation in the oil and gas industry, Seeq expanded its support for the oil and gas industry by introducing new connectors to CygNet enterprise Supervisory Control and Data Acquisition (SCADA) Wellsite Information Transfer Markup Language (WITSML) data storage systems. This enables advanced analytics and faster data-based decision-making in the current challenging environment in the industry.
- Over the past few years, oil and gas companies have invested heavily in cybersecurity technologies, such as incident response solutions and software capable of collecting logs in ICS environments to enhance visibility and segmenting networks, prevent lateral movement, and eliminate imminent threats.
- The industry is increasingly adopting ICS solutions to maintain safety and environmental integrity without compromising production efficiency. Automation helps integrate information and control, power, and safety solutions to meet the requirement of affordable energy and stringent government regulations.
