Market Trends of Europe PLC Industry
Oil and Gas Industry to Hold Significant Market Share
- The oil and gas industry has been using various systems, such as SCADA, which needs PLCs for better control. The oil and gas end-user sector is expected to witness significant growth in the following years, owing to plans for its development in Europe. The industry has been fluctuating, in terms of oil prices, in the past two to three years, and it has been looking forward to saving various costs in the domain. The industry is adopting automation in multiple processes due to these cost-cutting activities.
- The sector has also been suffering from needing a more skilled workforce and expertise in the domain. This limitation has also been one of the primary causes behind automation. The safety systems in the oil and gas industry have also been adopting the use of PLC devices to ensure quality and performance. According to Office for Budget Responsibility, in 2023, In the United Kingdom, oil prices are expected to reach 81.9 British pounds per barrel.
- According to GP Systems GmbH, Automation in the oil and gas industry imposes stringent demands on programmable logic controllers' reliability and technical specifications (PLCs). The company's Regul RX00 PLC meets all industry requirements, provides stable and continuous operation control, resists multiple system failures, and provides flexible system design and communication between field interconnected subsystems.
- The United Kingdom government, as part of its new energy strategy, announced licensing several oil and gas projects in the North Sea (United Kingdom) to begin soon. For instance, in May 2022, BP intended to invest up to EUR18 billion (USD 19.18 billion) in the United Kingdom's energy system by the end of 2030, demonstrating BP's firm commitment to the United Kingdom and helping the United Kingdom to deliver on its strong ambitions to boost energy security and reach net zero. The United Kingdom as one of the largest oil and gas producers in the United Kingdom, BP intended to continue investing in North Sea oil and gas projects while driving down operational emissions. Such instances are expected to drive the market's growth in the region.
Understand The Key Trends Shaping This Market
Download Sample
Germany to Witness the Significant Growth
- Germany is a significant consumer of automation equipment and a major manufacturer of automation equipment in Europe. Several important automation and control equipment players, such as Siemens, Schneider Electric, and KUKA, are based out of Germany, thus driving a high flow of investments toward R&D activities. Due to the increasing demand for automation solutions, automation companies in the country are also one of the major reasons for the market's growth. According to Statistisches Bundesamt, the predicted revenue development of the automobile industry in Germany is expected to reach EUR 594.3 Billion (633.39 USD Billion) in 2023.
- The electricity grid in the country needs help to cope with the extent of renewable and distributed energy in the country, and many major power projects are on hold. Similarly, the government attempts to adapt the grid to the new demands. The measures by national grid operators to boost power transmission capacity are likely to escalate PLC usage to accumulate data and further take successive steps, thereby fueling the market studied.
- The country is also globally recognized for its automobile industry. According to the BMBF, the German automobile industry expenditure on innovation in the automobile industry is EUR 49.54 Billion (USD 52.80 Billion) in 2022. Various automobile manufacturers are adopting automation, primarily due to the labor costs and increasing safety measures. Owing to such developments, the country is expected to hold significant demand for the PLC market.
- Major companies are also focused on expanding business in the country. For instance, Hitachi Drives & Automation GmbH in Dusseldorf is the German subsidiary of Hitachi Industrial Components & Equipment Ltd. Its core business is the distribution of propulsion components and automation technology. For instance, it offers frequency converters, programmable logic controllers (PLC), AC servo drives, electrical / geared motors, operator control units (HMI), and industrial inkjet printers (CIJ) / laser coders.
Get Analysis on Important Geographic Markets
Download Sample
