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Programmable Logic Controller (PLC) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

·7-min read

The global programmable logic controller (PLC) market (hereafter referred to as the market studied) was valued at USD 12. 04 billion in 2021, and it is expected to reach USD 15. 79 billion by 2027, registering a CAGR of 4.

New York, June 13, 2022 (GLOBE NEWSWIRE) -- announces the release of the report "Programmable Logic Controller (PLC) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" -
56% during the period of 2022-2027 (henceforth, referred to as the forecast period).

Key Highlights
The deployment of PLC systems enables the identification and rectification of errors and can initiate rapid responses even without human intervention. Hence, these automated PLC systems are estimated to assist in reducing machine downtime from 20% to almost 4%.
The market studied is strongly impacted by the industrial output and the investment funneled into computers and software. These PLC systems have traditionally been the foundation of both process and discrete factory automation. The growing adoption of Industry 4.0 across the industrial verticals has augmented the market studied.
A major growth indicator for PLCs in the discrete-manufacturing sectors is the amplified deployment of robots across the automotive manufacturing, electrical, and electronics industries.
Moreover, the increasing demand for improved control, secured connectivity, and enhanced performance has pushed PLC manufacturers to bank on IIoT technologies, such as machine-to-machine communication, smart sensors, industrial cloud, and cybersecurity. Also, to accommodate advanced features, cost-effectiveness, and interoperability, PLC manufacturers have begun to innovate and integrate conventional PLC systems with modern and contemporary technologies. Furthermore, increasing demand from North America, competing with the Chinese and European markets, is creating a considerable market for PLCs in the region.
With a growing number of I/O points in the industry, there is a growing preference for DCS over PLCs due to the limited number of I/O points in a PLC system.
For instance, in the process industries, such as chemicals, paper and pulp, and power generation, a PLC can operate only with a few hundred I/O points. The DCS can conveniently handle more than a thousand I/O points.
The demand for automation equipment in the industry is primarily driven by the rising need to enhance productivity and improve workers’ safety. The outbreak of COVID-19 has driven the demand for automation and is expected to increase over the long run, primarily to cope with the shortage of labor and increasing costs.

Key Market Trends

Hardware and Software Segments to Hold Largest Market Share

Various industrial and civil applications include power, chemical, metallurgy, energy, transportation, hydropower, coal, textile, food, pharmaceuticals, intelligent buildings, and network monitoring, among others. The industries that are at the forefront in implementing automation control solutions have already transitioned from the use of relay control panels to high-end large PLCs that could handle complex tasks. With the increasing demand for more extensive data memory, higher processing speeds, fewer additional modules, and more integrated functionalities, such as motion control and PID loops, the adoption of high-end modular large PLCs is on the rise.
Considering the production output trends across the discrete industries, such as automotive and electronics, and their investments in new establishments, the large PLCs are estimated to grow moderately over the forecast period.
Like large PLCs, small PLCs are well suited to handle complex sequencing functions. However, the trade-off between these two devices is cost and size. The expandability of the I/O module for these devices is limited to one or two modules, and it uses a logic instruction list or relay ladder language as a programming language.
In response to market demands, many features and functions are now provided by lower-end PLCs. Furthermore, it is expected that small PLCs will continue to evolve to include many of the features associated with higher-level PLCs, while at the same time, mid-level and high-end PLCs will start to offer smaller, more compact, and customized solutions to meet users’ needs.
Furthermore, the need for high-voltage operating devices has led to Nano PLCs becoming a popular choice among the discreet industries and the small industries. For instance, fixed nano PLCs are used in electronic applications, such as converters, inverters, and other basis controllers, due to the ease of control at high voltages. Furthermore, the ability to perform a single set of tasks with superior reliability and performance, except under real-time constraint, coupled with their capability to withstand extreme temperatures, humidity, vibration, and electrical noise, proliferating PLCs’ growth in several industrial applications.

Asia Pacific to Hold the Largest Market Share

The Asia Pacific region holds the largest market share and is also expected to register the highest growth.
The manufacturing sector forms a significant part of China’s economy, which is undergoing a rapid transformation with the recent growth in IIoT due to the rise in Industry 4.0 across the manufacturing industries globally. This large-scale transformation has put the country in one of the leading positions of the PLC market globally.
Recently, China has released multiple industrial policies as part of its advanced manufacturing drive. The guidelines support the country’s objective of becoming a high-tech superpower during the next quarter-century. For instance, the Chinese government has been pushing for industrial use of the next-generation wireless technology amid a steady stream of directives focused on transforming the country’s manufacturing.
Factory automation and employment of PLC-based systems in India have been driven by initiatives taken by the Government of India (such as Make in India) to increase the manufacturing sector’s share in the GDP. The Government of India is aiming to increase the manufacturing sector’s share in the gross domestic product (GDP) to 25% by 2022. Thus, manufacturers are likely to incorporate Industry 4.0 and other digital technologies to achieve this target.
According to the Central Electricity Authority of India, about 50% of the country’s power supply will be generated by renewable energy sources by 2030. The south Asian country’s government was committed to increased use of clean energy sources and has already witnessed a linear growth in renewable energy capacity. As of now, India’s highest energy capacity came from thermal energy, amounting to an installed capacity of over 234 thousand megawatts as of March 2021.
Japan also aims to achieve ’Society 5.0"by fully utilizing the action of technological innovation, including IoT, AI, and Big Data, derived from the fourth industrial revolution. To attain this, the government had announced ’Connected Industries’ as a new framework in which industries are likely to create new solutions to various problems in society through the connectedness of various parts of modern life, including humans, machines, systems, and companies.

Competitive Landscape

The PLC market is highly competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. These major players with a prominent share in the market are focusing on expanding their customer base across foreign countries. These companies are leveraging on strategic collaborative initiatives to increase their market share and increase their profitability.

February 2021 - FANUC America and Rockwell Automation officially formed a coalition to initiate accelerated work and learn apprenticeship programs designed to upskill current and future workers for jobs in advanced manufacturing, robotics, and automation. The coalition has developed new apprenticeship programs offering people opportunities to gain credentials that include fundamental robotics (Robot Operator) and automation (PLC Operator). The program offers a second level of credentials for Robot and PLC Technicians.
January 2021 - Siemens entered into an agreement with Britishvolt, to provide access to its electrification solutions, automation, and Digital Twin manufacturing execution technology. The initiative would enable Britishvolt to optimize design and efficiencies, simulate its production processes and flows ahead of construction completion, and speed up delivery times. Siemens may also provide Britishvolt with its simulation development tools and latest design to reduce the time taken for production at a large scale.

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report:

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