The market was valued at USD XX.XX billion in 2016 and is expected to reach USD XX.XX billion in 2022, at a CAGR of XX% over the forecast period. PLCs are miniature digital computers used in the automation of typically industrial electromechanical processes, involving multiple arrangements of digital and analog I/Os. PLCs are manufactured to be immune to electric noise, resistant to vibration and impact, and withstand extended temperature ranges. The increased need to reduce machine downtime and growing adoption of automation are some of the factors responsible for the growth of the global PLC market. Installation of PLC systems requires high initial investment, including the hardware, software and service costs involved. In addition, the cost of PLC systems is expected to increase at a rate of around 4-5% per year. The total cost for purchasing, installing, and maintaining PLC systems is considerably high for small companies to invest on process automation; the manufacturers are skeptical about investing large capital on these systems. The cost of installation increases with new systems that are coming into the market, thus reducing the demand for PLCs.
INCREASED NEED TO REDUCE MACHINE DOWNTIME
Machine downtime is one of the major factors affecting the manufacturing efficiency in any industry. Downtime is defined as a halt in the manufacturing, or any other industry process, owing to the unavailability of a machine. Downtime can be caused by a number of unplanned events, such as, machine failure, power outages, and operational error, among others and is one of the major source of production losses. The efficiency of the production is also reduced drastically in the case of machine downtime. Machine downtime also results in additional costs for manufacturers, which increase the production cost, thus resulting in production losses or decreased profit margin. The additional costs include idle labor pay, repair of machinery, additional power costs, additional resources, and overtime running costs. Downtime is expected to be responsible for 20% of the manufacturing losses.
CHEMICAL & PETROCHEMICAL SEGMENT IS ANTICIPATED TO RECORD THE HIGHEST GROWTH RATE
The adoption of PLC in the chemical industry is growing at a fast pace. Although PLC entered the market late, there is a large scope for its use in the chemical industry. This industry requires the most innovative and productive process automation solutions, as it has several advanced and complicated processes. The batch process in chemical industry is sequential in nature and requires the time-of-event-based decisions, which are controlled by PLCs. The industry is governed by strict regulations, which necessitate high level automation to ensure efficiency standards. One of the basic demands of the chemical industry is the cautious use of hazardous explosive substances, medical products, and chemicals. The chemical industry is the building block of many FMCG products, along with pharmaceuticals and automotive, among others. The fuels produced by the petrochemical industry play a key role in meeting the energy and transportation needs. In the United States, the chemical & petrochemical industry segment comprises the third-largest manufacturing sector. Increase in the adoption of PLC for process automation, to meet the productivity requirements, is evident in these industries.
NORTH AMERICAN PLC MARKET EXPECTED TO HOLD THE DOMINANT MARKET SHARE
North America is anticipated to be the fastest growing market for PLCs during the forecast period, while the United States is the major contributor in North America. Automotive manufacturing has been one of the biggest income generators for the country in the manufacturing sector. The emergence of information technology and PLC usage across a wide range of manufacturing, industrial, and automotive applications has added a new dimension in the way of conducting business operations in the country. United States is on the verge of the fourth industrial revolution, where data is being used in an extensive scale for production and integration, with a wide variety of manufacturing systems throughout the supply chain. The United States has also been one of the largest automotive markets in the world and is home to over 13 major automotive manufacturers. Automotive manufacturing has been one of the largest revenue generators for the country in the manufacturing sector.
NOTABLE MARKET DEVELOPMENTS
ABB acquired SVIA Automation Solutions, to expand ABB’s portfolio of advanced and vision-integrated applications, which benefits original equipment manufacturers (OEMs) and computer numeric control (CNC).
The PLC market is fragmented and the key players include:
The players maintained their dominance in the global market, with continuous innovations to meet the changing consumer preferences. In addition, collaborations, partnerships, and business expansions helped the players to increase their penetration further in the market. The key market players have acquired and integrated major strategies of startups, to expand their product portfolio.
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Our report on the global PLC market covers the following: