Programmable Logic Controllers Market
Programmable Logic Controllers Market Size, Share & Industry Analysis, By Type (Modular PLC, Compact PLC, Rack PLC), By Industry (Automotive, Oil & Gas, Power, Water & Wastewater, Pharmaceuticals, Food & Beverage, Others), By end-user (process industry, discrete industry), By Region (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa) -- Share, Size, Outlook, and Opportunity Analysis, 2024-2031.
Market Overview:
The Programmable Logic Controllers (PLC) Market is expected to develop at a 5.7% CAGR from 2024 to 2031. The market's worth is predicted to increase from XX USD in 2024 to YY USD by 2031. Asia-Pacific now dominates the industry, with China making a significant contribution. Key criteria include industry adoption rates, developments in PLC technology, and integration with Industrial Internet of Things (IIoT) platforms.
The PLC market is growing steadily, owing to increased industrial automation, the requirement for effective process control systems, and the growing demand for smart manufacturing solutions. The advancement of PLCs to include sophisticated features such as built-in safety functions, expanded communication capabilities, and increased programming flexibility is driving market growth.
Market Dynamics:
Market Trend: Integration of PLCs with IIoT and cloud technologies
The PLC sector is seeing a growing trend of integration with Industrial Internet of Things (IIoT) and cloud technology. This convergence is transforming classic PLCs into intelligent, networked devices capable of real-time data analytics and remote management. The integration enables greater operational efficiency, predictive maintenance, and better decision-making in industrial operations.
Many PLC manufacturers now provide cloud-connected PLCs that can communicate easily with higher-level systems and cloud platforms. Businesses can use big data analytics and machine learning algorithms to optimise their production processes. For example, Siemens' SIMATIC IOT2050 gateway connects PLCs to cloud services, enabling edge computing and data processing at the machine level.
Furthermore, the need for IIoT integration is propelling the development of more open and interoperable PLC systems. This move allows for better connection with third-party devices and applications, resulting in a more adaptable and scalable automation environment. As a result, industries see increased productivity, less downtime, and better overall equipment effectiveness (OEE).
Market Driver: Increasing demand for industrial automation across various sectors
The increased usage of industrial automation across various industries is a major driver of the PLC market. Automotive, oil and gas, power generation, and food and beverage industries are all embracing automated technologies to boost production, save operational costs, and improve product quality. PLCs play an important part in these automation endeavours because they provide dependable control and monitoring of industrial processes.
In the automotive industry, for example, PLCs are widely utilised in assembly lines, robotic systems, and quality control procedures. According to the International Federation of Robotics (IFR), global industrial robot sales will reach 384,000 units in 2020, with PLCs controlling a large share of these robots.
Another area seeing a surge in the use of PLCs for process automation is food and beverage. The necessity for tight quality control, adherence to food safety laws, and the desire for consistent product quality are pushing the use of PLC-based automation systems in this industry.
Furthermore, government initiatives encouraging smart manufacturing and Industry 4.0 concepts are driving up the need for PLCs. For example, China's "Made in China 2025" effort and Germany's "Industrie 4.0" strategy encourage industries to use advanced automation technology, such as PLCs.
Market Restraint: High initial investment and complexity in PLC programming
One of the most significant obstacles in the PLC business is the large initial expenditure necessary to establish PLC-based automation systems. PLCs, associated gear, software licenses, and installation can be costly, particularly for small and medium-sized businesses (SMEs). This high initial cost may dissuade some organisations from implementing PLC technology, especially in emerging markets where budget limitations are more severe.
For example, a typical mid-range PLC system for a medium-sized manufacturing company can cost between $10,000 and $50,000, excluding installation and programming fees. When other costs like sensors, actuators, and human-machine interfaces (HMIs) are considered, the total investment can be substantial.
Another constraint is the complexities associated with PLC programming and maintenance. Despite advances in user-friendly programming interfaces, PLC systems still require specialised knowledge and skills to efficiently program and troubleshoot. This complexity can lead to longer implementation timeframes and greater reliance on trained experts, potentially raising operational expenses.
The shortage of skilled PLC programmers and automation engineers in some areas exacerbates the problem. According to a Deloitte and The Manufacturing Institute analysis, the United States manufacturing industry alone might face a 2.1 million skilled job deficit by 2030, with many of them requiring competence in industrial automation and control systems.
To solve these issues, PLC makers are working to create more cost-effective solutions and user-friendly programming interfaces. Furthermore, the sector is witnessing an increase in training programs and certifications aimed at closing the skills gap in PLC programming and maintenance.
Segment Overview:
Modular PLCs dominate the market, offering flexibility and scaleability for diverse industrial applications.
Modular PLCs are the largest segment in the worldwide PLC market, accounting for a major portion of total market revenue. The popularity of modular PLCs arises from their adaptability, scalability, and capacity to be tailored to a wide range of industrial applications. These systems enable users to add and remove modules as needed, making them suitable for both small-scale operations and big, complicated industrial processes.
The modular PLC industry has grown significantly in recent years, owing to an increased demand for customisable automation solutions across a wide range of industries. According to our analysis, the modular PLC category will maintain its leading position, with a projected market share of more than 40% by 2031.
One of the primary benefits of modular PLCs is their flexibility to enable future growth and technology improvements without necessitating a full system overhaul. This functionality is especially useful in businesses with growing automation requirements, such as car manufacturing and process industries.
To address rising demand, major PLC manufacturers have been focussing on expanding their modular PLC solutions. For example, Rockwell Automation's ControlLogix platform provides a selection of modular PLCs that can be easily combined with a variety of I/O modules, communication interfaces, and motion control systems. Similarly, Siemens' SIMATIC S7-1500 modular controller family offers scalable solutions for various performance needs ranging from standard to high-end applications.
The modular PLC industry has also profited from developments in communication technology. Many modern modular PLCs now handle many industrial communication protocols, including EtherNet/IP, PROFINET, and Modbus TCP, allowing for smooth integration with various industrial devices and systems.
Furthermore, the movement towards IIoT and Industry 4.0 has accelerated the development of modular PLCs with improved communication capabilities. These modern PLCs can readily integrate with cloud platforms and analytics software, allowing for data-driven decision-making and predictive maintenance plans.
As companies prioritise flexibility and scalability in automation systems, the modular PLC segment is projected to maintain its market lead. The continued development of increasingly powerful, compact, and energy-efficient modular PLC solutions is likely to encourage broader usage across a variety of industrial industries.
Regional Outlook:
Asia-Pacific leads the global PLC market, with China being the primary contributor to regional dominance.
The Asia-Pacific region has emerged as the largest market for programmable logic controllers, with China driving the expansion. The region's dominance is due to growing industrialisation, increased adoption of automation technology, and supportive government efforts fostering smart manufacturing.
China, the world's largest manufacturing hub, has been a major driver of PLC adoption in the region. The country's "Make in China 2025" plan, which aims to improve the industrial sector using innovative technologies, has greatly increased demand for PLCs. According to the China Machinery Industry Federation, the country's industrial robot installations, many of which are PLC-controlled, will exceed 140,000 units by 2020, showing the strong automation trend.
Japan and South Korea, with their advanced manufacturing sectors, particularly in the automotive and electronics industries, contribute significantly to the region's PLC market growth. These countries are at the forefront of implementing Industry 4.0 concepts, resulting in increased demand for modern PLC systems with IIoT capabilities.
India is emerging as a rapidly growing market for PLCs, owing to its expanding manufacturing sector and government initiatives such as "Make in India" and "Digital India." The automotive, pharmaceutical, and food and beverage industries are increasingly implementing PLC-based automation solutions to improve productivity and quality control.
Major worldwide manufacturers have made large investments in PLC production and R&D centres in Asia-Pacific. For example, ABB has increased its PLC production capacity in China to suit rising local demand. Similarly, Mitsubishi Electric has expanded its PLC development and production capabilities in Japan to meet the changing demands of the Asian market.
The region's PLC market is characterised by a mix of foreign and domestic producers. While multinational businesses such as Siemens, ABB, and Rockwell Automation have a prominent presence, local players such as Delta Electronics (Taiwan) and LS Electric (South Korea) are gaining ground with low-cost PLC solutions suited to regional needs.
Looking ahead, the Asia-Pacific region is likely to maintain its dominance in the worldwide PLC market. Factors such as ongoing industrial modernisation, increased emphasis on energy efficiency, and the expanding use of smart manufacturing concepts are projected to generate sustained demand for PLCs in the area.
Competitive Intelligence:
The global Programmable Logic Controllers market is fiercely competitive, with a mix of established international firms and smaller players. To sustain their competitive advantage, key industry leaders are prioritising product innovation, strategic collaborations, and regional expansion.
Siemens AG, a major player in the PLC market, has been at the forefront of technical advancement. The company's SIMATIC PLC line, particularly the S7-1500 series, has grown significantly in market share due to its sophisticated features and integration possibilities with IIoT platforms. Siemens is also actively extending its position in emerging areas, particularly Asia and Africa.
Another significant participant, Rockwell Automation, has reinforced its market position with its Allen-Bradley line of PLCs. The company's ControlLogix and CompactLogix systems have been widely used across a variety of sectors. Rockwell has been working on improving its software products, such as the Studio 5000 Logix Designer, to enable integrated development environments for PLC programming and system design.
ABB Ltd. has been gaining market share with its AC500 PLC series, which provides scalable solutions for a variety of industrial applications. The company has been actively seeking acquisitions and collaborations to broaden its automation offering. For example, in 2017, ABB acquired B&R (Bernecker + Rainer Industrie-Elektronik GmbH), which greatly expanded its PLC and industrial PC solutions.
Mitsubishi Electric Corporation has a prominent presence in the Asian market, particularly in Japan and China, with its MELSEC series of PLCs. To address the demands of smart production settings, the business has prioritised the development of compact, high-speed PLCs with expanded communication capabilities.
Schneider Electric has been using its Modicon PLCs to meet a wide range of industrial demands. The company's EcoStruxure platform, which combines PLCs with IIoT solutions, is gaining popularity in the industry. Schneider has also been aggressively seeking agreements with software businesses to improve its automation-related digital services.
In terms of market strategies, key trends include:
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Focus on developing PLCs with enhanced cybersecurity features to address growing concerns about industrial system vulnerabilities.
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Increasing emphasis on edge computing capabilities in PLCs to enable faster data processing and decision-making at the machine level.
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Development of more intuitive and user-friendly programming interfaces to address the skills gap in PLC programming.
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Expansion of service offerings, including remote monitoring and predictive maintenance solutions, to provide added value to customers.
Regional dynamics also have an impact on the competitive environment, with local competitors such as Delta Electronics (Taiwan), OMRON Corporation (Japan), and Toshiba Corporation acquiring market share in their respective regions by providing cost-effective PLC solutions suited to local market requirements.
As the industry moves towards more connected and intelligent automation systems, companies that can effectively integrate PLCs with IIoT platforms, provide comprehensive cybersecurity solutions, and provide user-friendly programming environments will have a competitive advantage in the global PLC market.
Analyst Opinion:
The market for programmable logic Controllers are changing dramatically as traditional industrial control systems and digital technology merge. This evolution is transforming PLCs from simple control devices into intelligent, connected nodes in the larger Industrial Internet of Things (IIoT) ecosystem.
One of the most exciting trends in the PLC market is the incorporation of edge computing capabilities. As industrial processes create massive amounts of data, there is an increasing demand for real-time processing and decision-making at the machine level. PLCs with embedded edge computing capabilities may do complicated analytics and machine learning activities locally, lowering latency and allowing for faster responses to changing production conditions.
Another area with high promise is the development of software-centric PLC solutions. While hardware remains important, the future of PLCs is in their software capabilities. We are witnessing a shift towards more adaptable, software-defined PLCs that can be readily upgraded and modified to suit changing production demands. This development is consistent with the manufacturing industry's overall shift towards software-defined automation.
The increasing emphasis on cybersecurity in industrial control systems is also influencing the PLC industry. PLCs grow more networked and integrated with IT systems, making them more vulnerable to cyber attacks. Manufacturers are reacting by designing PLCs with built-in security features and collaborating with cybersecurity companies to provide comprehensive protection for industrial control networks.
Sustainability is another issue that influences PLC development. Energy-efficient PLCs that can optimise power use in industrial processes are gaining popularity, particularly in energy-intensive sectors. Furthermore, PLCs play an important role in the integration of renewable energy sources and smart grid technology, which contributes to the overall trend of sustainable manufacturing.
Finally, the PLC market continues to face challenges due to a skills gap in industrial automation. To address this, there is a growing emphasis on providing more user-friendly programming interfaces and simulation tools that help reduce the barriers to PLC implementation and maintenance. The advent of low-code and no-code platforms for industrial automation has the potential to democratise PLC programming, making it more accessible to a broader audience.
While obstacles exist, notably in terms of standardisation and interoperability across multiple PLC platforms, the long-term outlook for the PLC sector is encouraging. As businesses throughout the world continue their digital transformation journeys, PLCs will play an increasingly important role in bridging the gap between physical processes and digital systems, enabling efficiency and creativity in industrial automation.
Major Players:
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Siemens AG
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Rockwell Automation, Inc.
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ABB Ltd
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Mitsubishi Electric Corporation
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Schneider Electric SE
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Omron Corporation
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Emerson Electric Co.
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Honeywell International Inc.
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Yokogawa Electric Corporation
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General Electric Company
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Fanuc Corporation
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Delta Electronics, Inc.
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Bosch Rexroth AG
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Toshiba Corporation
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IDEC Corporation
Key Developments:
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July 2023: Siemens launched its new SIMATIC S7-1500 TM NPU module, integrating artificial intelligence capabilities directly into PLCs for enhanced edge computing and machine learning applications.
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April 2023: Rockwell Automation introduced the Allen-Bradley Micro870 PLC, designed for small to midsized applications, featuring enhanced communication capabilities and a more intuitive programming environment.
1. INTRODUCTION
1.1. Market Definitions & Study Assumptions
1.2. Market Research Scope and Segment
1.3. Research Methodology
2. EXECUTIVE SUMMARY
2.1. Market Overview & Insights
2.2. Segment Outlook
2.3. Region Outlook
3. COMPETITIVE INTELLIGENCE
3.1. Companies Financial Position
3.2. Company Benchmarking—Key Players
3.3. Market Share Analysis -- Key Companies
3.4. Recent Companies Key Activities
3.5. Pricing Analysis
3.6. SWOT Analysis
4. COMPANY PROFILES (Key Companies List by Country) (Premium)
5. COMPANY PROFILES
5.1. Siemens AG
5.2. Rockwell Automation, Inc.
5.3. ABB Ltd
5.4. Mitsubishi Electric Corporation
5.5. Schneider Electric SE
5.6. Omron Corporation
5.7. Emerson Electric Co.
5.8. Honeywell International Inc.
5.9. Yokogawa Electric Corporation
5.10. General Electric Company (*LIST NOT EXHAUSTIVE)
6. MARKET DYNAMICS
6.1. Market Trends
6.1.1. Integration of PLCs with IIoT and cloud technologies
6.1.2. Development of software-centric PLC solutions
6.1.3. Increasing emphasis on edge computing capabilities in PLCs
6.2. Market Drivers
6.2.1. Increasing demand for industrial automation across various sectors
6.2.2. Growing adoption of smart manufacturing and industry 4.0 concepts
6.2.3. Advancements in PLC technologies enhancing functionality and ease of use
6.3. Market Restraints
6.3.1. High initial investment and complexity in PLC programming
6.3.2. Cybersecurity concerns in connected PLC systems
6.4. Market Opportunities
6.5. Porter's Five Forces Analysis
6.5.1. Threat of New Entrants
6.5.2. Bargaining Power of Buyers/Consumers
6.5.3. Bargaining Power of Suppliers
6.5.4. Threat of Substitute Products
6.5.5. Intensity of Competitive Rivalry
6.6. Supply Chain Analysis
6.7. Value Chain Analysis
6.8. Trade Analysis
6.9. Pricing Analysis
6.10. Regulatory Analysis
6.11. Patent Analysis
6.12. SWOT Analysis
6.13. PESTLE Analysis
7. BY TYPE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
7.1. Modular PLC
7.2. Compact PLC
7.3. Rack PLC
7.4. Software PLC
7.5. Others
8. BY INDUSTRY (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
8.1. Automotive
8.2. Oil & Gas
8.3. Power
8.4. Water & Wastewater
8.5. Pharmaceuticals
8.6. Food & Beverage
8.7. Chemicals
8.8. Metals & Mining
8.9. Others
9. BY END-USER (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
9.1. Process Industry
9.2. Discrete Industry
10. REGION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
10.1. North America
10.1.1. United States
10.1.2. Canada
10.1.3. Mexico
10.2. South America
10.2.1. Brazil
10.2.2. Argentina
10.2.3. Rest of South America
10.3. Europe
10.3.1. Germany
10.3.2. United Kingdom
10.3.3. France
10.3.4. Italy
10.3.5. Spain
10.3.6. Russia
10.3.7. Rest of Europe
10.4. Asia-Pacific
10.4.1. China
10.4.2. Japan
10.4.3. India
10.4.4. Australia
10.4.5. South Korea
10.4.6. Rest of Asia-Pacific
10.5. Middle-East
10.5.1. UAE
10.5.2. Saudi Arabia
10.5.3. Turkey
10.5.4. Rest of Middle East
10.6. Africa
10.6.1. South Africa
10.6.2. Egypt
10.6.3. Rest of Africa
*NOTE: All the regions mentioned in the scope will be provided with (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%, YOY GROWTH)--2020-2031.
Programmable Logic Controller Market Segmentation:
By Type:
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Modular PLC
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Compact PLC
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Rack PLC
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Software PLC
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Others
By Industry:
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Automotive
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Oil & Gas
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Power
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Water & Wastewater
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Pharmaceuticals
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Food & Beverage
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Chemicals
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Metals & Mining
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Others
By End-User:
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Process Industry
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Discrete Industry
By Region:
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North America
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Europe
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Asia-Pacific
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Latin America
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Middle East & Africa
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