Tim has over 20 years’ experience in technology market intelligence with expertise across a broad range of industrial automation technologies and industries. Tim is now Senior Research Director and Principal Analyst for the Interact Analysis Industrial Technology team, using his considerable experience to develop best-in-class research for the manufacturing sector.
The most important factor driving demand for PLCs is the continued growth in machine building sectors and manufacturing in general. Despite some futurists predicting their demise, we believe PLCs will continue to be an integral component of any automation system, so as manufacturing continues to expand, so will demand for these products. Following three years of above average growth in 2015, 2016 and 2017, the downturn forecast for manufacturing in 2019 will cause the PLCs market to stall – a net effect of a slowdown in China (which contributes close to half of global manufacturing output), coupled with declines in other important PLC consuming countries.
More details about the PLCs market can be viewed in our Infographic, here:
The Infographic can be downloaded here
- Worth just over $9.7bn in 2017, Interact Analysis predicts the PLCs market will reach nearly $11.5bn by 2022, growing with a CAGR of 3.0%. In unit shipment terms, the market was projected to grow at a faster pace of nearly 4%.
- A revenue decline in 2019 (-0.2%) will stunt growth of the global PLCs market. The Americas enjoyed the best outlook in 2019 (+1.1% growth), while the EMEA and Asia Pacific (including Japan) suffered small declines (of -0.9% and -0.4% respectively).
- China generated over 20% of global revenues in 2017, and saw strong growth in 2018 (over 6%); while in unit terms it represented over 27%, and grew by nearly 11%.
- Modular and high-end modular PLCs represented >70% of the market in revenue terms; whereas compact PLCs were dominant in unit shipment terms – representing >45% of units.
- Machine building customers generated two-thirds of PLC revenues, whilst end-users generated the remaining third. Packaging machinery, machine tools and materials handling equipment were the largest machinery sectors for PLCs; whilst the automotive and food & beverage sectors were the largest end-user customers.
- Growing with a CAGR of 6.2%, the market for safety PLCs will increase from just under $650 million in 2017 to over $860 million in 2022 (representing nearly 9% of the market). Its growth is nearly twice as fast as the market for standard PLCs. Safety regulations are helping to drive market growth, especially in emerging markets where their use was previously more limited.
- The big 4 (Siemens, Rockwell Automation, Mitsubishi Electric and Schneider Electric) continue their dominant position in the PLC market, accounting for nearly three-quarters (74.3%) of the global market.
- Siemens had a dominant share in Europe, Rockwell Automation in the Americas and Mitsubishi Electric in Japan – each with market shares of >50% respectively.
The above analysis is taken from a new Interact Analysis report – “Industrial Controls & Remote I/O – 2019“. The research is the culmination of extensive primary research – interviews with over 40 key industry personnel – coupled with the most detailed country-level forecast model ever produced. Our “tertiary” level model measures and predicts demand for eleven product types in 32 countries, by predicting demand in each of these countries for 27 machinery/end-user sectors. The underlying source data for the tertiary model comprises in excess of 157,000 data points, in effect providing 32 dedicated country studies.