Industrial control systems (ICS) are computer-based systems or standalone devices that monitor and control industrial processes that exist in various industries. ICS helps industries improve productivity and optimize processes with the use of digital technologies like Industrial Internet of Things (IIoT), programmable logic controllers (PLCs), distributed control systems (DCS), and supervisory control and data acquisition (SCADA) systems for monitoring and data collection. ICS provides better control and visibility across industrial facilities while improving safety, minimizing downtime, and enhancing productivity. The global adoption of technologies like AI, cloud computing, big data analytics is also driving demand for upgradation of existing ICS infrastructure as they enable real-time analysis of data collected from industrial assets and provide predictive maintenance capabilities.
The global Industrial Control Systems (ICS) Market is estimated to be valued at US$ 139879.53 Mn in 2023 and is expected to exhibit a CAGR of 7.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends: One of the major trends observed in the industrial control systems market is the migration towards cloud-based industrial control systems. Public cloud platforms provide scalability, flexibility and ubiquitous access to industrial applications from any location which helps industries reduce capital expenditure and operational expenses associated with on-premise infrastructure. Major industrial control systems manufacturers are extending their product portfolios with cloud-enabled versions to gain market share. For example, in 2020, Siemens unveiled its latest cloud-based industrial IoT solution called MindSphere that allows remote monitoring and management of machines and production processes over cloud.
Threat of new entrants: The threat of new entrants is moderate as the ICS market requires large investments in technology, skilled workforce and operations to gain foothold. However, the demand for technology upgrades provides opportunities for new players to enter.
Bargaining power of buyers: The bargaining power of buyers is high given the availability of various suppliers and buyers can negotiate on price and demand customized solutions as per their requirements.
Bargaining power of suppliers: The bargaining power of suppliers is moderate due to presence of numerous component manufacturers and systems integrators. However, suppliers hold some power owing to their technical expertise.
Threat of new substitutes: The threat of substitute products is low as ICS solutions integrate hardware, software and services making it difficult to substitute the entire system. However, individual components can be replaced.
Competitive rivalry: The competitive rivalry in the market is high owing to presence of numerous global and regional players competing on basis of product offerings, pricing, innovation and customer service.
The Global Industrial Control Systems (ICS) Market Size is expected to witness high growth. The demand is driven by increasing investments in industrial automation and adoption of IoT and cloud computing technologies across industries.
Regional analysis: Asia Pacific region dominates the global ICS market currently owing to rapid industrialization and strong governmental support for adoption of industrial automation technologies especially in China and India. North America is another major market driven by replacement of aging infrastructure with smart and connected systems. Europe is also a key region with Germany, U.K. and Italy making substantial investments in Industry 4.0 initiatives.
Key players: Key players operating in the Industrial Control Systems (ICS) Market are Mitsubishi Electric Corporation, Siemens Ag, Schneider Electric Se, Abb Limited, Yokogawa Electric Corporation, Omron Corporation, General Electric, Emerson Electric Co., Honeywell International, Inc., and Rockwell Automation, Inc. The players are focused on new product launches, partnerships and mergers & acquisitions to gain additional customers and strengthen their presence in the high potential ICS industry.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it