ARC Advisory Group has published its quarterly update on the industrial and automation markets. The report provides a comprehensive overview of the key trends and growth figures in the automation, machinery, and end-user industries. Here are the key findings from the report:
– Global automation markets experienced low-single-digit growth of around 4% in Q3 2023, the lowest growth figure since the markets began to recover in Q1 2021.
– The growth in the discrete automation segment was mainly driven by backlogs, higher volumes, and prices. Demand from process and hybrid industry segments remained strong.
– The Americas saw good growth rates compared to Europe and Asia on a seasonally adjusted basis. However, most companies in the Americas experienced declines in orders for discrete automation on a year-over-year basis.
– Automation markets in Europe continued to expand, although at a very low level. The market saw growth of about 5% in Q3 2023, the lowest since the market recovery started in Q1 2021. Demand from discrete industries was weak, but strong demand from the Americas and the defense sector supported growth.
– Asia’s automation market saw double-digit growth rates for the past six quarters, but growth slowed down to around 7% in Q3 2023. China experienced slower growth due to weaker domestic and external demand, while India saw strong demand in machine building, process industries, and infrastructure sectors.
– In Japan, the economy continued to expand, driven by consumer spending and strong demand in the electric power and electrical equipment sectors.
– The report also provides an outlook for China in 2023, expecting mid to high single-digit growth in the automation market. Process and hybrid industries are expected to see strong demand, while the discrete automation segment is expected to recover in the latter half of the year.
– The report highlights strong growth opportunities in aerospace & defense, chemicals, data centers, metals & mining, oil & gas, and renewables sectors.
Overall, the report suggests that while global automation markets experienced slower growth in Q3 2023, there are still growth opportunities in various industries and regions.