The PLC market size to cross USD 38 billion by 2020, growing at a CAGR of over 5% during the forecast period. The global PLC market, which is concentrated in five countries – the US, Japan, China, Germany, and Canada – constitutes over half of the global PLC market size, accounting for 48% of the global sales in 2019. There has been a high degree of correlation observed with the extent of industrialization, availability, and investments in the public and private infrastructure and associated private and government spending on automation, constituting a major boost to the demand for PLCs. Further, trade barriers, availability of automation technology, service providers, and implementation models for infrastructural programs determine the extent of demand for PLCs in various geographies. The rise of Augmented Reality and immersive experiences has started to change the interaction with machines and systems slowly, which is likely to increase the scope for implementation of PLCs. Further, PLC-based PACs are likely to gain an edge over conventional types, especially in large-scale applications that warrant a high degree of automation.
The impact of COVID-19 has greatly affected global manufacturing and industrial outlook. The momentum for new orders and the expansion of manufacturing capabilities have declined across the globe in terms of production and stimulation. Stringent government policies and regulations from the local and national governments have restricted the movement of supply-side, production facilities, and finished goods. Such situations have become highly challenging for OEM and PLC vendors.
- The food and beverage segment is expected to grow at the highest CAGR during the period 2019–2025. The growth can be attributed to the high level of automation in F&B companies n developed and developing economies.
- The APAC programmable logic controller market share is likely to reach revenues of over $16 billion by 2025. The growth is on account of strong growth in the field of electrification and moderate growth in industrial automation.
- The modular segment is projected to achieve an incremental growth of over $6.3 billion by 2025. This is due to the increased demand for food & beverages in North America and increased industrialization in APAC.
GLOBAL PLC MARKET SEGMENTATION
This research report includes a detailed segmentation by
INSIGHTS BY TYPE
Modular PLCs are employed in medium to large-scale industries. Increased requirements for automation solutions in several industries, especially in manufacturing and other varied applications among home and building automation end-users, are the major growth boosters for the segment.
Rackmount PLCs are mostly finding applications in the manufacturing industry as they are capable of functioning in the extreme industrial environment. They are mainly used in mining and oil industries, and automation systems, where there is a high level of complexity involved. The rackmount segment continues to witness growth on account of the growing need for data management and processing and increased facelift of the industrial sector due to technology and modernization.
APAC and North America account for shares of 63% of the unitary segment, as most industries incorporate some degree of automation technology. However, due to advances in end-user applications, which demand a high-end range of equipment, modular PLCs are taking over the market in medium-scale industries as well. The growing need for technologically advanced equipment in all types of industry for higher productivity and market credibility is a driving factor for the unitary segment.
INSIGHTS BY END-USERS
A high level of automation technology and product manufacturing is involved in the automobile manufacturing industry, which is increasing the potential of PLC applications. The chemical industry installs PLCs for real-time implementation of load management processes. The chemical and petrochemical industry requires inspections frequently as there are high possibilities of errors at measuring and various other stages. Therefore, automation technology makes the process easy and straightforward, thereby increasing reliability and decreasing the chances of human errors.
In the food industry, PLCs are employed as part of automation in the production line. They have not only transformed the way assembly lines are controlled or sequenced but also made the manufacturing process more efficient. The APAC region will account for one-third of the market with a major demand expected to come from China, Japan, South, and Korea. As these regions are witnessing high automation in the F&B industry, increased demand for PLC in processed and packaged food companies is likely to underpin the market.
INSIGHTS BY GEOGRAPHY
APAC hosts the most robust manufacturing industries, including automotive, construction, chemicals, defense, and aerospace. The region is also home to some of the highly enthusiastic tech-savvy population. For instance, in 2019, China and India had more than 409 million millennials, which is about five times more than in the US. Millennials account for the bulk usages of tech products and the target audience for robotic and automation vendors, especially in B2C segments. Owing to the high demand for tech products, the APAC market holds a key interest of vendors in the manufacturing sector, thus offering high opportunities for the vendors in the industrial and manufacturing sector. The European region is largely driven by the demand from key end-user industries in Germany, the UK, and France. The food and beverage segment is expected to add over $670 million to the regional market revenue.
INSIGHTS BY VENDORS
The global PLC market share is currently witnessing intense competition among major players. The global market is dominated by key players, including Siemens, Mitsubishi, Rockwell Automation, Schneider Electric, and Omron. The rapidly changing market dynamics with regard to product innovation and advancement is acting as a catalyst to intensify the competition among existing players. Consumers have several choices with respect to product availability. The present scenario is driving vendors to alter and redefine their unique value proposition to achieve a strong presence. Major players largely dominate the market. However, smaller vendors are providing products with generic specifications at a relatively low price. Also, the market showcases flexible behavior in terms of the adoption of new innovative products. This develops a major challenge for smaller players as they have limited resources to invest in research and development.
The global programmable logic controllers (PLC) market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
Segmentation by Type
- Food & Beverage
- Mining & Metallurgy
- Oil & Gas
- Paper & Packaging
- North America
- South Korea
- Latin America
- Middle East & Africa