Manufacturing sector boosts ASEAN motion

IHS has revealed that the Southeast Asian general motion controls (GMC) market is set grow to more $90 million by 2017, and the computer numerical control (CNC) motion controls market to more than $70 million, with a total CAGR of 7.5 per cent from 2012 to 2017. According to the market research company, the growth will be driven by the increasing demand for motion control products used in manufacturing, along with the gradual shift of machinery production to Southeast Asia.

If Southeast Asia were a single entity, it would rank as the eighth largest economy in the world, with a population of more than 600 million people, or 8.8 per cent of the world's citizens. Sectors such as food and beverage and packaging machinery, which are closely tied to the booming consumer markets in Southeast Asia, will be less affected during the economic downturn and ultimately will drive demand for motion controls products, providing substantial growth opportunity.

Semiconductor equipment and electronic machinery were estimated to be the two largest industry sectors in 2012. Singapore and Malaysia are leading manufacturers of specialised semiconductor and E&E equipment, while Thailand, Philippines and Vietnam are the end-users of this equipment.

"Industry sectors such as semiconductor, electronic and electronic assembly, machine tools, packaging, rubber and plastics, accounted for more than 80 per cent of the Southeast Asian motion controls market in 2012 in terms of revenue," said Wilmer Zhou, senior market research analyst for IHS. "These industries use many motion control products, and will continue to dominate the South East Asia motion controls market in the coming years."

Being a cyclical industry, the electronics and electronics assembly and semiconductor markets experienced a huge decline in 2009 and 2010, following a strong rebound in 2011 and a flat year in 2012. Southeast Asia is one of the world's most important semiconductor and electronics production bases. Rising production costs in China have shifted manufacturing and production momentum to Indonesia, Vietnam and the Philippines, providing stability to sales of motion controls into these sectors over the long term.

Another market driver is the increasing utilisation of motion controls in automotive manufacturing and related industries, such as machine tools and plastic & rubber.

Thailand is one of the biggest automotive manufacturing centres, with 2.45 million motor vehicles produced in 2012, 68 per cent more than in 2011. Numerous well known automakers, assemblers, and parts manufacturers are located in the country, such as Ford, General Motors, BMW, Daimler-Chrysler, Mitsubishi, Mazda, Toyota, Honda and Nissan.

Driven by the fast growth of automotive industry, demand is increasing for machine tools such as laser-cutting machines, machining centres, milling machines, drilling machines, lathes, shearing machines, and stamping and forging machines, all of which drive high demand for CNC motion controls products.

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