China Industrial Computers Industry

An Expert's View about Sourcing in China

Posted on: 26 Mar 2010

China’s young industrial computer market is expanding steadily. Although it remains smaller than the mainstream PC segment in terms of output and number of suppliers, rising adoption in the retail, gaming, banking, education and medical sectors is expected to fuel growth in coming years.

 

Makers are boosting R&D andexpanding the application range in preparation for an increase in demand.The selection now includes interactive touchscreen terminals, kiosks, POS systems, and accessories.

 

In fact, interactive touchscreen terminals, kiosks and POS devices are leading the supply in China and will continue to drive production in the next few years. Their penetration of the retail industry is expected to help spur demand. Worldwide revenue from interactive multimedia kiosks alone is forecast to reach $2.67 billion by 2013,according to Frost & Sullivan. The number of installed units will total 2.6 million next year at a CAGR of 15 percent.

 

To grab a larger share of the market, makers in China are leveraging their price advantage. Many are also acquiring the latest technology to catch up with their overseas competitors. Further, they are sharpening in-house capability and cooperating with software developers.

 

Companies offer turnkey solutions but are also capable of customization services. The bulk of output is exported. High-end products are shipped to the US and Europe, and those in the midrange and entry level go to Asia, South America, the Middle East and Africa. To offset slowing sales in key markets such as the US, several makers are exploring new areas while strengthening their domestic presence.

 

The following are some of the keytrends observed in China’s industrial computer industry:

• Prices are expected to make a down turn under suppliers’ efforts to enhance competitiveness and stimulate demand.

• Product development efforts are leaning toward larger displays with touchscreen capability to improve user experience.

• Designs emphasize durability as more industrial computers target outdoor applications.

• Built-in security is enhanced through the integration of encryption, biometrics or other access-control technologies.

• Wired transmission is the mainstream. For certain productlines, wireless connectivity through  Bluetooth, infrared or WLAN is being tapped for enhanced connectivity. Access through GSM, CDMA and 3G is also supported.

• In addition to price competition,the high technology threshold and manufacturing costs are makers’ biggest challenges this year.

• To reduce outlay, more companies are using locally sourced solutions.Some are developing their own touchscreens.

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The above is extracted from the Executive Summary of China Sourcing Report: Industrial Computers

 

To learn more about this report, visit: http://www.chinasourcingreports.com/csr/industrial-computers

 

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Global Sources Online: Verified suppliers for quality buyers.

 

Download Global Sources e-Magazines (free): For industry-specific news, product information & verified suppliers contact details.


Posted: 26 March 2010

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