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The programmable logic controller (PLC) market is estimated to grow at a CAGR of 4.1% between 2022 and 2027 and the size of the market is forecast to increase by USD 3,289.73 million. The growth of the market depends on several factors, increasing demand for compact automation solutions, demand for PLCs in renewable power generation, and the requirement for PLCs in smart factories.
This report extensively covers market segmentation by product (modular, unitary, and rackmount), end-user (process industry, discrete industry, and building automation), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Programmable Logic Controller (PLC) Market Customer Landscape
Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
The demand for PLCs in renewable power generation is notably driving the market growth. The monitoring and management of wind turbine operations are done by a PLC. It handles everything from hydraulics to the blade angle of the nacelle. In wind turbines, various sensors for measuring wind speed, wind direction, and shaft rotation speed are installed. These sensors gather and transmit data to the PLC. The wind turbine's main control system, also known as the controller, can use this data to control the turbine and optimize the blades to produce the most power. Due to their design, wind turbines, especially offshore wind turbines, can be installed and operated in a variety of harsh environments. As a result, PLCs can be used for monitoring, which is crucial for low maintenance and optimal power generation.
Many solar panels are arranged in an array to form a solar PV farm. Solar panels must be monitored for current and voltage in order to operate at their best. A data-logging system is also required to monitor environmental and operational parameters. Consumers can store data and retrieve it from this data logger as needed, which keeps them informed about the behavior and performance of the solar panels. Due to improvements in power generation technology and regulatory support for renewable energy projects, both solar and wind power have seen rapid growth. Therefore, the need for the proper handling of these energy sources will augment the demand for PLCs for efficient data handling, monitoring, and control capabilities, which will drive the growth of the global programmable logic controller market during the forecast period.
The increasing focus on expanding the capability of micro PLCs is an emerging trend in market growth. For controlling standalone machinery in the process and discrete industries, micro PLCs are rapidly turning into an essential tool. The use of micro-PLCs is growing as a result of advantages like flexible programming, ease of use, communication capability within a small structure, and affordability compared to traditional PLCs. Recent improvements in product features and design have also expanded their capabilities and end-user industrial applications.
Micro-PLCs were initially created specifically as a low-cost method of controlling small machinery using simple serial communication. However, as technology has advanced, vendors have created micro-PLCs with multiple communication channels and high-speed communication capabilities to control large machines. These micro-PLCs also have a large program memory. Additionally, some vendors are adding extra features to already released products to boost their efficiency, such as analog and temperature I/O expansion modules. Micro-PLCs can now be used for more machine and process control applications thanks to this. Therefore, such factors are expected to have a positive impact on the growth of the global programmable logic controller market during the forecast period.
The growing market for industrial PC and DCS as substitutes are major challenges impeding market growth. There has been a transition from rackmount PLCs to more open-ended PC-based platforms due to the rising demand for automation. PLC control, motion control, and SCADA are all integrated into one high-performance controller platform with a PC-based control system. Industrial PC-based control systems are now in higher demand as a result of this. New-generation industrial PCs, which can combine the functionality of a PLC and an operator panel into one device, have been made possible by developments in open embedded operating systems.
Similar to PLCs and industrial PCs, DCS is another control system that provides distinct advantages over distributed systems. The enhancement of DCS's application areas is another priority for DCS vendors. For the discrete manufacturing, petrochemical, oil and gas, and life sciences industries, which must rely on complex, non-integrated PLCs with limited capabilities, they are launching new PLCs. Hence, such factors will be a major challenge for the growth of the global programmable logic controller market during the forecast period.
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ABB Ltd. - The key offerings of the company include an AC 500 programmable logic controller, which is designed to be used for high-speed machinery and networking solution applications.
Emerson Electric Co. - The key offerings of the company include the RX3i CPE330 automation controller, which is designed with a single control engine and universal programming to provide application portability across multiple hardware platforms.
We also have detailed analyses of the market’s competitive landscape and offer information on 15 market vendors, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The modular segment will contribute a major share of the market, as modular PLCs comprise distinct modules that can be coupled together to build a customized controller. The segment showed a gradual increase in market share with USD 4,775.73 million in 2017 and continued to grow by 2021. Modular PLCs allow for the addition of multiple systems, making each module multi-functional.
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For safety and security, modular PLCs can be mounted on rails or organized in cabinets. Compared to unitary PLCs, these are more expensive and larger in size. These are primarily utilized in applications that require a large number of inputs and outputs, such as process control in the manufacturing sector to regulate process lines. The primary end-users of modular PLCs are end-user industries with highly complex processes, like oil, gas, and mining. Modular PLCs are also used in sectors like the automotive industry to increase material handling capacity by adding I/O modules. End users are rapidly adopting modular PLCs for future expansion due to the increasing complexity of plants. Additionally, the enhanced memory module provided by modular PLCs facilitates faster work for end users. Hence, all these factors will significantly drive the growth of this segment during the forecast period.
Due to the growing use of PLC in sectors like oil and gas, chemical and petrochemical, power, water and wastewater treatment, and food and beverage, the process industry segment commands the largest share of the global PLC market. PLCs are used in the oil and gas industry for upstream tasks like drilling, mooring, and positioning as well as on platforms and in the midstream sector for tracking spills and leaks during oil or gas transportation. Due to their robust construction, low power consumption, and capability to handle the lower-bandwidth communication networks between the Supervisory Control and Data Acquisition (SCADA) and the Remote Terminal Units (RTUs), Remote Terminal Units (RTUs) are typically the first choice of control systems in the upstream oil and gas industry and the production site. PLCs are also used in the downstream oil and gas industry to automatically detect and verify the integrity of field sensors as well as to continuously monitor safety-critical operations. This is one of the major factors driving the chemical and petrochemical industry's demand for PLCs. Hence, all these factors will significantly drive the growth of this segment during the forecast period
APAC is estimated to contribute 32% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
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The APAC programmable logic controller market is anticipated to expand significantly over the course of the forecast. Countries like China, Japan, India, Vietnam, South Korea, Malaysia, and Australia will be the ones driving the market's growth. Due to their rapid industrialization, growing need for medium- and low-voltage motors, and rising investments in power, water and wastewater treatment, food and beverage, and other industries.
PLCs in the automotive industry in APAC are expanding due to government initiatives, a robust industrial base, and rising regional demand for vehicles. Both passenger and commercial vehicle demand has been rising in the area. Automobile-related trade policies are anticipated to encourage investment in APAC. Furthermore, due to a significant increase in offshore and onshore oil and gas activities as a result of the stability of the crude oil price during the forecast period, the oil and gas industry in APAC is also anticipated to expand. Numerous new mining and oil and gas exploration projects are being launched by nations like China and India. Additionally, the demand for food safety and inspection systems in the region has also increased as a result of the expansion of operations of international food and beverage companies in APAC. In order to compete with international vendors, many SMEs have begun implementing automated material handling and packaging systems. Major food and beverage companies are drawn to APAC by the region's rapidly expanding food and beverage market. Therefore, all the abovementioned factors will fuel the regional programmable logic controller market during the forecast period.
In 2020, the PLC market was negatively impacted due to the COVID-19 pandemic. However, the market regained momentum in 2021 due to the initiation of large-scale vaccination drives and the resumption of business operations. Thus, the growing applications from various end-user industries are expected to drive the growth of the programmable logic controller market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Programmable Logic Controller (PLC) Market Scope |
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Report Coverage |
Details |
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Page number |
183 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.1% |
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Market growth 2023-2027 |
USD 3,289.73 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
3.3 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 32% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ABB Ltd., Beckhoff Automation GmbH and Co. KG, Beijer Electronics Group AB, Eaton Corp. Plc, Emerson Electric Co., Festo SE and Co. KG, Fuji Electric Co. Ltd., IDEC Corp., Keyence Corp., Lenze SE, Mitsubishi Electric Corp., OMRON Corp., Panasonic Holdings Corp., Parker Hannifin Corp., Robert Bosch GmbH, Rockwell Automation Inc., Schneider Electric SE, Siemens AG, Toshiba Corp., and Infineon Technologies AG |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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