The global programmable logic controller market size was valued USD 11.15 billion in 2020 and is projected to expand at a CAGR of 5.3% during the forecast period, 2021-2028. The growth of the market is attributed to rising demand for automation across various industries.
Programmable logic controller (PLC) continues to be the preferred choice among manufacturers and end-users, not only for machine control, but also for infrastructure applications. PLCs are valued for their speed, repeatability, reliability, and ease of deployment and maintenance. The industrial Internet of things (IIoT) is transforming how industrial processes are controlled and monitored. On the other hand, PLCs are adapting to new challenges rather than being replaced by alternative technologies.
PLCs have gained a lot of speed and new functionality over the last decade, allowing end-users to downsize to a one-size-smaller PLC. This strategy is particularly popular among cost-conscious manufacturers. The market for PLCs and PLC-based PACs, including hardware, software, and services, is mature and established, but a lot of innovation is expected to unleash in the coming years.
As automation technology found its way into a variety of new applications, the era before COVID-19 pandemic was stable and predictable. The market is expected to recover by end of 2021, but the recovery is estimated to differ depending on region and industry. Manufacturers are looking to gain a competitive advantage and are increasing their investment in smart and connected manufacturing equipment.
Market Trends, Drivers, Restraints, and Opportunities
- Increasing demand for PLCs among manufacturers to aid in production processes is estimated to fuel the market.
- The third wave of Covid-19 pandemic can hinder the market growth.
- Rising technological advancements in PLCs is anticipated to create immense opportunities for the market players during the forecast period.
Scope of the Report
The report on the global programmable logic controller market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Programmable Logic Controller Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Types (Hardware and Software and Services), End-user Industries (Food, Tobacco, Beverages, Automotive, Chemical & Petrochemical, Energy & Utilities, Pulp & Paper, Oil & Gas, Water and Wastewater Treatment, and Pharmaceutical)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
ABB Ltd.; Mitsubishi Electric Corporation; and Schneider Electric SE
Programmable Logic Controller Market Segment Insights:
Hardware and software segment to account a major market share
Based on types, the market is segregated into hardware and software and services. The hardware and software segment is estimated to hold a major market share owing to rising demand for customization of PLCs in regard to specific applications. A PLC is an industrial computer control system that continuously monitors the state of input devices and makes decisions to control the state of output devices based on the program. Thus, one can combine different types of input and output devices to best suit the application.
Automotive segment is anticipated to expand at a robust CAGR
On the basis of end-user industries, the programmable logic controller market is segregated into food, tobacco, beverage, automotive, chemical & petrochemical, energy & utilities, pulp & paper, oil & gas, water and wastewater treatment, and pharmaceutical. PLC has been used in manufacturing to meet the rapid growth of the automotive industry. It was initially used in the automotive industry as a relay replacement equipment.
According to the Center for Automotive Research (CAR) at the University of Duisberg-Essen, the global annual car growth is estimated to be 2.2%. Better production facilities equipped with automation are required for the potential growth, which is expected to fuel the demand for PLCs in the automotive segment. With technological advancements, PLCs can replace nearly 100 relays, allowing for better space and man management. Various advanced technologies are also being integrated into automobiles, such as machine vision, collaborative robots, artificial intelligence for driverless/autonomous cars, and cognitive computing in IoT-connected cars. This, in turn, is anticipated to proliferate the segment growth.
North America is projected to hold a significant market share
In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to hold a significant share in due to increasing industrial investment in the mining and oil & gas sectors, which is estimated to fuel the demand for PLCs, thereby propelling market growth in the region.
SCADA is widely used in the US’ upstream, midstream, and downstream oil and gas sectors. Its role in the upstream sector is to primarily support the remote data transmission. However, the widespread and diverse application of SCADA has propelled the demand for PLC in the country. Smart manufacturing initiatives, such as the Smart Manufacturing Leadership Coalition (SMLC), which drives and facilitates the widespread adoption of manufacturing intelligence and automation, also contribute to the market expansion. Rising use of IoT with Industry 4.0 applications is further driving the growth of the market in the region. The government in the US is concentrating on smart city development, which is anticipated to fuel the demand for industrial digital computers in the coming years.
Segments Covered in the Report
The global programmable logic controller market is segmented on the basis of
- Hardware and Software
- Chemical & Petrochemical
- Energy & Utilities
- Pulp & Paper
- Oil & Gas
- Water and Wastewater Treatment
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
- ABB Ltd.
- Mitsubishi Electric Corporation
- Schneider Electric SE
The major players in the programmable logic controller market include ABB Ltd., Mitsubishi Electric Corporation, Schneider Electric SE. Companies are engaging in mergers, acquisitions and partnerships to expand their market share.
In April 2019, Schneider Electric announced the opening of an office facility in Maharashtra, India. As a result of this expansion, the company expects to solidify its market leadership and revenue for its diverse range of energy management products and solutions.