IMS Research issued a report on industrial automation electronics equipment (IAEE) that indicates the slow but steady economic recovery will continue through 2011 and 2012, according to an IMS analyst.
Jenalea Howell, an project analyst who oversaw the report, says the report, which forecasts 12.9% worldwide growth in the IAEE market in 2011, indicates a global recovery will continue.
"Weve seen a recovery in the IAEE markets in part because major projects that were postponed during the recession are coming back online," Howell said. "Its the combination of machinery production and process automation equipment thats driving this recovery."
In 2009, orders for process automation equipment declined by 16%, Howell said. Throughout 2010, machinery production numbers stayed high, but IMS was expecting it to recede this year while process automation equipment regained its strength. The company was pleasantly surprised when the machinery markets remained strong, Howell said.
"Its that special combination that is fueling this worldwide growth," Howell says. "Its one of those moments where everything falls into place. We believe this will be a peak year where IAEE numbers will surpass their pre-recession levels."
Howell says the IAEE market stood at $24.8 billion in the Americas in 2008. This year that number will reach $25.3 billion in the Americas, and will rise to $97 billion worldwide.
The strongest areas for growth will again come this year from Eastern Europe and China, with machinery production numbers reaching 9.8% in those regions.