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Industrial Ethernet set to increase strongly in China’s booming sectors
Date: 04 May 2011

The market for Ethernet infrastructure components in Chinese industry is set to grow strongly, but the opportunity will vary with the strength of the vertical sector.

According to a newly published report “The Chinese market for industrial Networking & Ethernet” from IMS Research, nearly $120 million of industrial Ethernet infrastructure components were sold in China in 2009 and growing with estimated 20% more in 2010. “The Chinese market is still far from saturation compared with the industrialized world as a whole”, comments analyst Alex Hong. “With many new plants and projects started recently, the demand for Ethernet components will continue to grow explosively.”

The vertical industry sector is important when projecting growth prospects. More than 30% of the revenues in China are coming from the power & energy industries. Chinese Government policy, such as the Strong and Smart Grid Plan and strong support for renewable energy development, helps rapid growth in this industry sector. Transport and traffic is also an important vertical sector, the stimulation plan for infrastructure construction still having an effect on sales of industrial Ethernet components.

Without doubt, the success of vendors of these components will depend on the sectors they best serve. Vendors with a focus in electric power generation and transmission or in transportation will win large revenues, if they keep in mind that the Chinese market, as always, is very price-conscious.

Oil & gas could also be an interesting sector in the future. Although it is considered to be virgin territory for industrial Ethernet components in China, with a relatively small user base, potential market growth is very promising. However, certification is important in these applications, which may prove an obstacle for the Ethernet vendors in this market.

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Editors Note :
Press Contact: Yvonne Zhang,
Press Manager: Yvonne Zhang,
IMS Research,
Tel: +86 21 62701823,
Press contact email: Yvonne.Zhang@imsresearch.com
About IHS Inc. (www.ihs.com)

IHS (NYSE: IHS) is the leading source of information, insight and analytics in critical areas that shape today’s business landscape. Businesses and governments in more than 165 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS employs more than 5,600 people in more than 30 countries around the world.

About IMS Research:
IMS Research is the leading independent provider of market research and consultancy to the global electronics industry. The company’s headquarters is in the UK, with offices in the US, China, Japan, South Korea and Taiwan. IMS Research regularly publishes detailed research on the industrial automation markets, among others.