Programmable logic controller Market

The programmable logic controller market is projected to expand from US$ 12.15 billion in 2024 to US$ 17.55 billion by 2031, with an estimated CAGR of 6.7% during this period.

Analyst Perspective:

In recent years, there has been a notable rise in the adoption of industrial automation within the global industrial sector. Programmable logic controllers (PLCs) are electronic devices designed to execute tasks such as monitoring and control. PLC-based automation offers numerous advantages over traditional industrial automation systems. Products in the programmable logic controller market are not only more efficient but also less costly to maintain compared to older technologies. Additionally, they provide greater flexibility and functionality, making them ideal for the dynamic requirements of today's industrial landscape. As awareness of the benefits of PLC products increases, their adoption is expected to rise in the forthcoming years. A PLC is essentially a computer that monitors and manages a wide range of industrial processes, from simple machinery to complex production lines. These controllers can connect to sensor and control networks, enabling them to operate autonomously or in conjunction with other devices. Consequently, products in the programmable logic controller market are vital for the seamless and efficient operation of industrial automation systems.

Effective production and marketing strategies are essential for manufacturers aiming to establish an intelligent factory, which simplifies the production process, reduces manual intervention, facilitates timely data collection from production lines, and enhances production scheduling and planning. A variety of digital and analog control devices available in the market include PLCs that manage motor operations, solenoid valve actions, product counting, and the regulation of temperature, pressure, and flow, among other functions. Products in the programmable logic controller market are now extensively used across various industries, including steel, petroleum, chemicals, electric power, building materials, machinery manufacturing, automotive, textiles, transportation, environmental protection, and entertainment. For example, in June 2023, Siemens introduced a fully virtual PLC, the Simatic S7-1500V, which enhances the existing Simatic range and supports virtual PLC computing.

Programmable Logic Controller Market Overview:

The implementation of programmable logic controllers (PLCs) in industrial automation is anticipated to grow and evolve as industries transition towards Industry 4.0 and the Industrial Internet of Things (IIoT). Historically, products in this market have functioned as standalone devices. However, with the increasing trend of connectivity, these systems can now communicate with other devices and systems through Ethernet and various networking protocols. This capability allows for real-time data sharing, as well as remote monitoring and control. The integration of PLCs with other industrial control systems is becoming more prevalent as companies strive to optimize processes and enhance efficiencies.

The influence of industrial control and automation technologies is extending beyond the manufacturing sector. For instance, in March 2021, ABB implemented automation systems for a 5-gigawatt (GW) solar plant in India using programmable logic controllers. ABB's SCADA system, an automation control solution, enables plant operators to monitor and analyze project data from a centralized location.

Strategic Insights

Programmable Logic Controller Market Driver:

The Growing Role of PLCs in Industry 4.0 Fuels the Expansion of the Programmable Logic Controller Market

Technological innovations such as artificial intelligence, cloud computing, advanced sensors, and big data analytics are significantly influencing the industrial sector. These advancements are collectively referred to as Industry 4.0. PLCs serve as crucial control hubs, input centers, and interfaces for human operators in this new industrial landscape. PLC technology is being further developed to enhance connectivity with numerous input sensors via the Industrial Internet of Things (IIoT), allowing them to act as core processors in real-time manufacturing operations. Consequently, PLCs can now effortlessly capture vast amounts of data and relay it to machine learning systems. For instance, data from input sensors and other devices can be integrated with PLC data to provide a comprehensive overview derived from big data. Plant managers and data analysts can utilize analytical tools to better track big data, optimize resources, manage logistics, schedule tasks, and coordinate supplier timing to create highly efficient manufacturing processes. Moreover, big data can be monitored and analyzed for optimal machine and equipment performance and preventive maintenance within industrial systems.

PLCs, along with other essential components that facilitate machine interfacing and process automation, have been pivotal in the digitization of manufacturing in recent years. They are expected to continue playing a significant role as the primary control, input center, and human-machine interface (HMI) for workers during the Industry 4.0 revolution. Future smart factories are anticipated to thrive on the integration of PLCs, automation, and robotics. Thus, the strengthening role of PLCs in Industry 4.0 supports the growth of the programmable logic controller market.

Programmable Logic Controller Market Segmental Analysis:

The programmable logic controller market is categorized based on offerings into hardware-based PLCs and software-based PLCs. PLCs are fundamental to control systems in industrial automation, enabling efficient monitoring and control of processes. They consist of both hardware and software components that work together. In industrial environments, software components are increasingly replacing their hardware counterparts. Software-based programmable logic controllers (soft PLCs) are reliable, powerful, and versatile. In September 2017, 3S-Smart Software Solutions, a developer of manufacturer-independent Codesys IEC 61131-3 automation software, announced that its SoftPLC software is now available as a runtime environment for open Linux-based control systems, such as Wago's PFC 100 and Siemens' Simatic IOT2000.

Programmable Logic Controller Market Regional Analysis:

North America, particularly the United States, leads the industrial automation sector due to its technological advancements. The US is a global industrial hub, with thriving automotive, chemical, food & beverages, oil & gas industries, which are among the primary end users of programmable logic controller systems. The US is one of the largest automotive markets in the world, with light vehicle sales estimated at 14.5 million units in 2020. In terms of vehicle sales and production, it ranks as the second-largest market globally. According to Autos Drive America, foreign manufacturers are projected to produce 5 million vehicles in the US by 2020.

The chemicals sector in the US processes raw materials into over 70,000 products essential for modern living, catering to the needs of more than 750,000 end consumers nationwide. Numerous chemical facilities across the country, ranging from petrochemical producers to chemical wholesalers, utilize, manufacture, store, transport, or deliver chemicals throughout a complex global supply chain. Therefore, the extensive presence and operational scope of various industries create a strong demand for programmable logic controller systems in the US.

Programmable Logic Controller Market Report Scope

Programmable Logic Controller Market Key Player Analysis:

The analysis of the programmable logic controller market includes profiling companies such as Siemens, Rockwell Automation, Mitsubishi Electric Corporation, OMRON Corporation, Schneider Electric, ABB, Eaton, Honeywell International Inc., Emerson Electric Co., and Hitachi, Ltd.

Recent Developments in the Programmable Logic Controller Market:

Companies in the market are actively pursuing both inorganic and organic strategies, such as mergers and acquisitions. Below are some of the recent key developments.

1. In April 2023, Siemens launched a complete virtual PLC at Hannover Messe 2023. The Simatic S7-1500V enhances the existing Simatic range while addressing specific market needs, such as virtual PLC computing.
2. In September 2019, Siemens announced the introduction of a module that integrates AI capabilities into the Simatic S7-1500 controller and ET 200MP I/O system. This offering was unveiled in the United States at PACK EXPO Las Vegas, laying the groundwork for a future portfolio that will enable AI across all levels of Siemens' Totally Integrated Automation (TIA) architecture, which seamlessly connects hardware and software.

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