Programmable logic controllers (PLC) are electronic devices used for monitoring, controlling, and automation of industrial processes. A PLC can vary in size and complexity from a compact, embedded controller with a few inputs/outputs (I/Os) to controllers with thousands of I/Os responsible for the coordination of complex industrial processes. PLCs allow effective management of assembly lines, controlling machines, manufacturing processes, and collection of data. They are used across industries such as food and beverage, oil and gas, automotive, and chemical. The food and beverage industry is increasingly adopting PLCs for controlling processes related to packaging, sorting, and quality inspection. Ability of PLCs to handle a wide variety of control functions and interface with other industrial components has significantly boosted their adoption.
The global Programmable Logic Controller Market is estimated to be valued at US$ 12.89 Bn in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Cloud-based PLCs are gaining increasing traction in the market. Cloud connectivity in PLCs allow remote access and monitoring of industrial processes from any location. This brings advantages such as reduced maintenance costs and quick troubleshooting. Major PLC providers are focusing on developing cloud-based PLC solutions to capitalize on the growing demand. For instance, in 2020, Mitsubishi Electric Corporation launched io-eXtreme EtherCAT PLC with built-in IoT features such as edge computing for on-site analytics and cloud connectivity for remote maintenance.
Porter’s Analysis
Threat of new entrants: The threat is moderate as substantial capital investment is required to manufacture PLCs and establish distribution channels and this creates barriers to entry.
Bargaining power of buyers: The bargaining power of buyers is moderate as there are many established players in the market offering substitutable products at competitive prices.
Bargaining power of suppliers: The bargaining power of suppliers is low as there are numerous component suppliers and switching costs are relatively low.
Threat of new substitutes: The threat of new substitutes is low as PLCs have become an integral part of industrial automation over the years and alternatives lacks key functionality.
Competitive rivalry: The rivalry is high among the global players to gain market share through product innovation, partnerships and geographic expansion.
Key Takeaways
Global Programmable Logic Controller Market Demand is expected to witness high growth. The global Programmable Logic Controller Market is estimated to be valued at US$ 12.89 Bn in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030.
North America currently dominates the PLC market owing to early industrialization and continuous technological advancements in factories and industrial processes. The Asia Pacific region is expected to witness the fastest growth during the forecast period led by continuous modernization of manufacturing facilities in China, India, Japan and South Korea.
Key players operating in the Programmable Logic Controller market are ABB Ltd, Toshiba International Corporation, Hitachi Ltd, Emerson Electric Company, Robert Bosch GmbH, Panasonic Corporation, Omron Corporation, Honeywell International Inc., Siemens AG, Rockwell Automation, Schneider Electric SE, and Mitsubishi Electric Corporation. These players are focusing on new product launches, partnerships, and geographic expansion to gain market share.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
