Industrial Automation & Sensors Blog

Why the South China Sea is the Fastest Growing Region for Data Acquisition and Automation


Throughout history small bodies of water surrounded by multiple trading partners have acted as bastions of economic growth. The Mediterranean Sea is the premier example, followed by similar regions such as the Great Lakes, The Persian Gulf, and also the Black Sea to some extent. The South China Sea will have the highest amount of economic activity for at least the next 20 years. This hotly contested region is dominated by China, but Cambodia, Indonesia, Japan, Malaysia, Singapore, The Philippines, Thailand, and Vietnam all lay some claim to the geographic region. At stake is one of the largest deep water oil reserves left in the world as well as control of the world’s new economy. If DAQ and Automation component suppliers are looking for a place to grow their business, this is certainly it.

                Over the past year there has been much consternation about the slowing growth of China, and what effect that will have on the surrounding trading partners. While this event is important, it should not deter investment in the area. If one were to look at the percentage of global growth in terms of GDP from this region, it would become very obvious that this is the sweet spot. While percentage growth is slowing, the base number has now swelled to become quite large. The overall pie is double the size or more from just 10 years ago and this has been skewing people’s interpretations of what that means in terms of global economic activity.

                Applications and opportunities for revenue capture definitely center around Oil & Gas, Logistics and Transportation, distributed power, as well as a host of manufacturing applications, most notably Semiconductor and electronics.

                Any global DAQ manufacturer who is looking to grow should be investing heavily in sales teams, warehousing, and corporate infrastructure in this region. Developing something like an Asian Headquarters should be a priority especially as growth in Brazil, Russia, and India is stagnating. The opportunity density in this area is unlike anywhere else in the world right now and companies who embrace this trend will capture the largest percentage of revenue growth in the world. Similar to the Mediterranean during the Renaissance, and the Great Lakes during the Industrial Revolution, The South China Sea will be the center of economic opportunity, trade, and wealth creation for many years to come.