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Country Industry Forecast - Political & Policy Analysis for the Chinese Automation and Electronics Industry
Frost & Sullivan, June 2006
The automation and electronics industry is one of the leading manufacturing sectors in all industrialized and industrializing countries of the world. Due to its pervasive applicability, the industry is strongly linked to macroeconomic conditions and is also considered a vital indicator of the health of an economy. Growth in the automation and electronics area affects other end-user industries such as consumer electronics and computers. Due to its strong influence on the economy and other industries, trends in this space are conscientiously tracked. Over the years, the production base of semiconductors has shifted from developed countries in North America and Europe to developing countries in Asia Pacific and Latin America. Low labor costs and unsaturated markets combined with steady economic recovery have made the Asia Pacific region attractive to semiconductors manufacturers. With some of the world’s fastest growing economies such as China and India, the Asia Pacific region is expected to exhibit accelerated growth in demand for electronic components and applications in the future.
The Chinese semiconductor industry is the fastest growing in the world. The country has excelled in the production and designing aspects of the semiconductor value chain since 2000. It is striving to further speed up its production of chips to reduce dependence on imports, as it is already the largest consumer of chips. The Intellectual Property Rights (IPR) issue will have to be sorted out for the high-tech sector to flourish. China is also a growing market for industrial automation, since the expansion of industries such as refining, infrastructure, and power will require greater automation.
The Chinese Government has issued favorable policies and provided incentives and subsidies to attract foreign investors as well as promote private investment - especially in Shanghai and Beijing. The Government has promoted nanotechnology as one of the key technologies for the future. The Government and associated ministries are also encouraging industry-academia collaboration and are setting aside funds for research and development.
Frost & Sullivan’s Automation & Electronics Country Industry Forecast service provides vital inputs for evaluating the attractiveness of a country and its A&E industry. Besides enabling decision makers to assess the impact of non-market forces, it also helps in identifying new market opportunities. This service provides a strong base for preparing contingency plans. In addition, investors can assess industry-specific risk factors as well as conduct a more in-depth micro research.
Benefits of this Service
Identify New Market Opportunities
The future trends of the political and policy environment of China have been analyzed along with their impact on the A&E industry. This analysis will provide in-depth information to industry participants on market opportunities in specific segments of the industry in China.
Understand Future Industry Trends
The study gives an insight into the Chinese A&E market, discusses its dependence on the prevailing political and policy scenario, and forecasts the future of the same. This will enable industry participants to gauge the future direction of the market, enabling them devise appropriate market strategies to improve market share.
Understand Policy and Regulatory Environment
A detailed analysis of the policy and regulatory framework of the Chinese A&E industry is provided in the study, which will help industry participants by providing insights into the regulatory environment as it exists and the future direction of the same.
Devise Country Entry Strategies
The study provides valuable information and analysis of the strengths and weaknesses of the political and policy environment of China, which are relevant for the A&E industry. This is particularly useful in devising country specific strategies for industry participants.
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