Industrial Distributed/Remote I/O Market to Grow at Moderate Rate

10/7/2003 - A new study from Venture Development Corporation (VDC) titled "Global Market Demand and User Requirements for Industrial Distributed/Remote I/O-Third Edition" finds the combined worldwide market for these products totaled about $2.5 billion in 2002. A little over 50% on the total was in products for use with Programmable Logic Controller (PLC) systems, with 36.5% for use with Distributed Control Systems (DCSs), and 13.4% for use with personal computer (PC)-based control systems.

Distributed/remote I/O for PC-based control systems is the smallest segment, but is forecast to have the highest growth rate. Products for DCS applications are forecast to have the lowest growth rate as these are being displaced by both PC-based control systems and PLC systems. Some market displacement for PLC systems by those for PC-based control systems also is expected during the forecast period.

Additional factors influencing the forecasts in this report include:

Declines in the average selling prices for all three product classes are expected. Factors contributing to these trends include increasing standardization of products, declining prices of electronic components, stronger price competition, and increasing pressure from larger OEM customers seeking lower-priced products.

The overall growth forecast for the market, and some of the more significant trends, are more moderate in the current study than in VDC's last study conducted in 2001:

Both suppliers and users have reeled in their previous over optimistic projections about growth rates and these usage trends. Contributing to this is the overall economic climate that is limiting adoption of new or different technologies. It is unclear at this time to what extent these forecasts represent long term slowing in the market growth rate and these trends, versus more short term impact of unfavorable economic conditions.

About VDC
Venture Development Corporation is a technology research and management consulting firm serving the worldwide industrial automation, instrumentation, electronic components, computers and peripherals, communications, and consumer electronics industries. The firm was founded in 1971 by graduates of the Harvard Business School and MIT. VDC offers in-depth market research, as well as custom strategic planning and consulting services.

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