Middle East PLC Market Size

Middle-East Programmable Logic Controller (PLC) Market Analysis

The Middle East PLC Market size is estimated at USD 347.63 million in 2024, and is expected to reach USD 350.60 million by 2029, growing at a CAGR of 0.17% during the forecast period (2024-2029).

The deployment of PLC systems helps identify and rectify errors and can initiate rapid responses without human intervention. Hence, these automated PLC systems can considerably reduce machine downtime. Moreover, a significant rise in industrial automation and IT infrastructure in Israel paves the way for development in the PLC market.

The growth of the oil and gas sector in the region is driving the PLC market. As per the U.S. Energy Information Administration (EIA), the Middle East includes five of the top ten oil-producing countries and is responsible for a significant share of the total oil production in the world. As per EIA, Saudi Arabia alone produces about 11 million barrels of oil per day which is nearly 11% of world output. With such high production, producers are now seeking a better solution, such as a programmable logic controller (PLC), to help them be more efficient and reduce costs. These controllers are modular, scalable, and capable of handling various communications and application support.

Increasing usage of automation systems in different end-user verticals, such as manufacturing and transportation & warehousing, construction, and utilities, is driving the market. PLC is a ruggedized computer used for industrial automation and can automate a specific process, machine function, or even an entire production line. It receives information through connected sensors or input devices, processes the data, and triggers outputs based on pre-programmed parameters.

Moreover, countries such as the United Arab Emirates are installing smart girds in cities like Dubai, which is expected to further expand the demand for PLCs. For instance, in April 2022, the Dubai Electricity and Water Authority launched the next phase of its USD 1.9 billion smart grid strategy, covering the years 2021 to 2035.

With the onset of the COVID-19 pandemic, significant industries in the Middle East, including energy, food & beverage, and oil sectors, among others, were impacted. Oil production and export are major sources of economic stabilization in the Middle East region. The oil exporters of the Middle East countries faced the additional shock of plummeting oil prices due to travel restrictions following the public health crisis. However, with the pandemic-related restrictions easing up, the market is expected to witness renewed growth in the coming years.

However, low manufacturing activities of electronic components in the region have resulted in slow adoption of the devices, which restricts the market's growth.