U.S. demand for industrial controls is expected to reach $15.4 billion in 2011, says the Freedonia Group in a recent report. Estimated annual sales growth rate for these products: 2.9 percent.

Gains will be supported by the continual technological advancement of solid-state control products that will enable manufacturers to improve their productivity and remain competitive on a global scale. Growth will also benefit from increasing strength in the aerospace and motor vehicle industries, as well as from a projected upturn in electrical and electronic product shipments through 2011.

Advances will be restrained, on the other hand, by a relatively mature US

market for these products, as well as competition from personal computers

that perform control-related functions. Shipments of industrial controls are projected to grow 2.3 percent annually through 2011 to $13.7 billion, a slower pace than that of demand. Nevertheless, U.S. exports of industrial controls have increased significantly in recent years, as rapid development in nations such as China and India spurs demand for industrial controls and provides sales opportunities for U.S. manufacturers that supply more sophisticated products.

Service industries to be fastest growing market

Durable goods industries accounted for the largest share of demand in 2006, with 61 percent of the total. Industrial controls are highly utilized by electrical and electronic equipment and machinery manufacturers. Original equipment manufacturer (OEM) applications are expected to provide better prospects for growth than maintenance/repair/operations (MRO) applications, due to a rise in nonresidential fixed investment through 2011.

Report: Industrial Controls: U.S. Industry Study with Forecasts for 2011 & 2016

Study #2269

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