The global distributed control system market size was USD 19.11 Billion in 2022 and is likely to reach USD 29.65 Billion by 2031, expanding at a CAGR of 5% during 2023–2031. The market growth is attributed to the increasing demand for power across various industries.
A distributed control system (DCS) is defined as a specially designed and computerized control system that includes controllers, sensors, and connected computers distributed throughout a machine, plant, factory, or control area. DCSs differ from a centralized control system, which includes a single controller that manages or controls different functions of a plant or a factory.
In distributed control systems, every element in a plant or a machine is controlled by a dedicated controller. Such controllers are connected through a communication network. Each controller or element of the system serves different purposes such as process control, data acquisition, data storage, graphical display, and others. These elements communicate among themselves to make automated decisions based on data gathered in real-time.
DCSs are usually used in large plants or factories with continuous manufacturing processes, such as in the petrochemical and power industries. DCSs are used to supervise complex processes that are carried out in plants. The systems facilitate coordination and adjustments in manufacturing processes. The centralized network of computers deploys instructions throughout a plant and individual controllers or elements.
Distributed control systems are mainly used in large-scale manufacturing plants where the need for continuous monitoring and control is high. DCSs facilitate the continuous operation of the plant, even when any part of the system fails. In DCSs, multiple controllers or control computers are responsible for a certain number of control loops that are distributed throughout the plant. These loops have spare processing hardware units that automatically take over during a failure in a certain part. The system offers safe and efficient control over the plant and advancement in processing capabilities.
COVID-19 Impact on Distributed Control System Market
COVID-19 affected the global distributed control system market negatively. Implementation of the lockdown, social distancing policies, travel restrictions, and other pandemic-related regulations resulted in halts in operations, a lack of raw materials & workforce, suspension of production, a shutdown of several production units, and disruption of the supply chain.
Delays in production and supply chain posed a challenge to the global market. Suspension or slowdown of activities in various industries affected the global market adversely during the pandemic. However, the relaxation of pandemic-related restrictions and regulations in recent years is expected to aid the market to operate at its full capacity.
Distributed Control System Market Dynamics
The research report presents a complete overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The global distributed control system market report has up-to-date insights about market dynamics and market scenarios that can shape the overall market performance and output during the forecast period, 2023 to 2031.
What are the Major Trends in the Global Distributed Control System Market?
Increasing Demand for Renewable Power Generation and Clean Energy
Rapid urbanization and wide industrialization are increasing the demand for energy across the globe. Renewable powers such as solar power and wind are increasingly adopted in power generation to meet the growing demand for power and the exhaustion of fossil fuels. Distributed control systems are used for renewable power generation to increase the efficiency of the process. High demand for power generation using renewable power and clean energy is one of the major market trends.
Which Factors are Driving the Demand for Distributed Control Systems?
Expanding Power Industry and Growing Power Generation Capacities
Increasing demand for power generation in developing countries, due to rapid industrialization, urbanization, infrastructure, and population has boosted the growth of the power industry across the globe. Wide adoption of advanced technologies such as DCSs in the industry results in an increase in the power generation capacity.
Rising Demand for Energy-efficient Technologies
Rising demand for power, significant growth in various industries, and rapid technological advancements are expected to boost the global market during the forecast period. Increasing awareness regarding renewable power generation and emission-free power propel the demand for energy-efficient technologies to be integrated into the power generation process.
Which Factors are Limiting the Growth of the Global Distributed Control System Market?
Growing Availability of Low-cost Alternatives
The emergence of hybrid technologies such as the combination of distributed control systems and programmable logic controllers are expected to hinder the growth of the global market in the coming years. These hybrid technologies combine the beneficial features of both distributed control systems and programmable logic controllers and are comparatively less expensive than these systems. The growing availability of less expensive alternatives restrains the global market growth.
Stagnant Growth of the Oil & Gas Industry
The growth of the oil & gas industry is increasingly becoming stagnant in recent years, due to decreasing exploration and production activities across the globe. These decreasing activities in the industry lead to declining in oil prices and overstocked market. Increasing demand for renewable energy and other alternatives for energy generation results in decreasing oil production. This reduces the demand for distributed control systems, as these systems are usually installed in oil refineries. The stagnant oil & gas industry is anticipated to restrain the growth of the global market in the coming years.
What are the Growth Opportunities in the Global Distributed Control System Market?
Adoption of the Internet of Things and 5G Technology
Increasing usage of the Internet of Things (IoT) in various industries facilitates real-time decision-making based on accurate real-time information. Integration of IoT-based solutions provides quick access to distributed control systems and data that reduces operational costs. The adoption of 5G technology facilitates the smooth functioning of IoT-based systems. IoT-based systems and 5G technology allow users to make prompt decisions, identify errors, and reduce errors. Increasing demand and adoption of these advanced technologies offer growth opportunities to the market players.
Scope of Distributed Control System Market Report
The global distributed control system market research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Distributed Control System Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Component (Software, Hardware, and Services), Application (Batch-oriented Process and Continuous Process), and End-user (Chemicals, Oil & Gas, Power Generation, Food & Beverages, Metals & Mining, Pharmaceuticals, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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Honeywell International Inc.; Schneider Electric; ABB; Nozomi Networks Inc.; Siemens; tempered.io (Tempered Networks); Emerson Electric Co.; Rockwell Automation, Inc.; Yokogawa Electric Corporation; Hitachi, Ltd.; Mitsubishi Electric Corporation; Azbil Corporation.; TOSHIBA CORPORATION; NovaTech, LLC.; General Electric; Ingeteam; Valmet; ZAT a.s.; OMRON Corporation; and Others
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Distributed Control System Market Segment Insights
What Key Factors Contribute to the Significant Expansion of the Software Segment?
Ease in Operation and Maintenance
In terms of component, the global distributed control system market is divided into software, hardware, and services. The software segment is expected to register a key market share during the forecast period, owing to the high integration of distributed control system (DCS) software for its easy operation and maintenance. DSC software solutions include an operator interface, system management tool, equipment stimulator, and system configurator editor that offer intelligent control to users to operate the system efficiently.
The hardware segment is anticipated to expand in the coming years, due to increasing demand for DCS controllers across various industries. These controllers are used to monitor individual operations across various plants. DCS hardware solutions include transmission cables, data recorders, sensors, applications processors, communication networks, and others that perform any action given by users effectively.
Why is the Batch-oriented Process Segment More Prevalent than the Continuous Process Segment?
Increasing Demand for Manufacturing Seasonal Products
Based on application, the global distributed control system market is bifurcated into batch-oriented process and continuous process. The batch-oriented process segment is estimated to register a significant CAGR during the forecast period, as the batch-oriented processes are used in need of low production volume and high-quality products.
A batch-oriented process includes production information management, unit supervision, process management, production planning, and basic control. Batch-oriented process technique is used to manufacture products in different batches, seasonal products, and product variations.
The continuous process segment is anticipated to register growth in the coming years, as the continuous process is a streamlined process used for continuous production. Several industries such as fertilizers, petrochemicals, oil & gas, power, chemical, water treatment, and iron & steel adopt the distributed control systems for continuous process requirements.
Which Major Factors influence the Substantial Growth of the Oil & Gas Segment?
To Control and Monitor Several Complex Processes
On the basis of end-user, the global distributed control system market is segregated into chemicals, oil & gas, power generation, food & beverages, metals & mining, pharmaceuticals, and others. The oil & gas segment held a large market share of around 25% in 2020, and it is projected to dominate the market during the forecast period.
The oil & gas segment is further divided into sectors such as upstream, midstream, and downstream. Distributed control systems are extensively used in all three sectors in the oil & gas industry. Oil & gas operations consist of several complex processes such as hydrocracking, vacuum distillation, coking, and naphtha hydrotreating. Distributed control systems are used to control and monitor these processes.
The power generation segment is expected to register a significant CAGR in the coming years, owing to the increasing adoption of DCS to centralize monitoring and controlling systems of a power plant in a single location. DCS facilitates various operational facilities, which are placed distantly to work together to transmit electricity to consumers.
Why is Asia Pacific dominating the Global Distributed Control System Market?
Rapid Industrialization and Urbanization
In terms of region, the global distributed control system market is segmented into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in Asia Pacific is expected to register a high CAGR during the forecast period, due to growing industrial infrastructure, rising power generating capacities, and increasing use of nuclear and renewable energy for power generation in the region.
The infrastructure expansion in countries such as India, China, South Korea, and others boosts the adoption of distributed control systems in these countries. Rapid urbanization, rising power generation projects, and rapid technological innovations in these countries spur the market in Asia Pacific.
China is considered one of the fast-growing economies and a large market for distributed control systems. Rising government support for clean energy projects and increasing demand for power are the two major factors boosting the demand for DCS in China. Increasing automation in Asia pacific spurs the growth of the market in the region.
The market in North America is estimated to expand rapidly in the coming years, owing to increasing power consumption in countries such as the US and Canada. Increasing power consumption boosts the demand for power generation in the US and Canada, which accelerates the market growth in the region.
Segments
The global distributed control system market has been segmented on the basis of
Component
- Software
- Hardware
- Services
Application
- Batch-oriented Process
- Continuous Process
End-user
- Chemicals
- Oil & Gas
- Power Generation
- Food & Beverages
- Metals & Mining
- Pharmaceuticals
- Others
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Honeywell International Inc.
- Schneider Electric
- ABB
- Nozomi Networks Inc.
- Siemens
- tempered.io (Tempered Networks)
- Emerson Electric Co.
- Rockwell Automation, Inc.
- Yokogawa Electric Corporation
- Hitachi, Ltd.
- Mitsubishi Electric Corporation
- Azbil Corporation.
- TOSHIBA CORPORATION
- NovaTech, LLC.
- General Electric
- Ingeteam
- Valmet
- ZAT a.s.
- OMRON Corporation
- Others
Competitive Landscape
Key players competing in the global distributed control system market are Honeywell International Inc.; Schneider Electric; ABB; Nozomi Networks Inc.; Siemens; tempered.io (Tempered Networks); Emerson Electric Co.; Rockwell Automation, Inc.; Yokogawa Electric Corporation; Hitachi, Ltd.; Mitsubishi Electric Corporation; Azbil Corporation.; TOSHIBA CORPORATION; NovaTech, LLC.; General Electric; Ingeteam; Valmet; ZAT a.s.; OMRON Corporation; and others. Some of these major companies have adopted various business development strategies including acquisitions, mergers, collaborations, partnerships, product launches, and production capacity expansion to expand their consumer base and enhance their market share.
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In September 2022, Emerson Electric Co., a US-based multinational corporation, entered an agreement with DRAGOS, INC., an ICS/OT technology-enabled threat intelligence platform. The agreement allows the company to accept Dragos Platform into its DeltaVTM distributed control system, which offers enhanced ICS OT cybersecurity to organizations.
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In April 2021, ABB and tempered.io (Tempered Networks) entered a partnership with Nozomi Networks Inc., a leading OT, ICS, and IoT security company. ABB integrates advanced technology by Nozomi Networks Inc. into its distributed control systems to meet the growing demand for enhanced operational technology.
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In July 2020, Siemens, a Germany-based multinational conglomerate corporation, facilitates the modernization of the distributed control systems by Birla Carbon. It helps Birla Carbon to optimize carbon black powder production and cost minimization.
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