INDUSTRIAL CONTROL SYSTEMS (ICS) MARKET ANALYSIS

The global industrial control systems (ICS) market size was valued at USD 130,060 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 7.55% from 2023 to 2030.  This is mainly due to the growing demand for energy-efficient and safe operations. A major driver for the global industrial control systems (ICS) market is increasing focus on automation and digitization in various industries, as well as the development of smart technologies. These factors are driving the adoption of industrial control systems and thereby, creating lucrative opportunities for the industry.

Global Industrial Control Systems (ICS) Market: Regional Insights

North America is expected to gain major share in the global industrial control systems (ICS) market over the forecast period. The U.S. is witnessing the fourth industrial revolution, where data is utilized on a bigger scale for production while integrating the data with various manufacturing systems across the supply chain. Moreover, the country has the largest automotive markets, and these factors in turn are driving the demand for industrial control systems in the country. Along with this, the resurging economy of Canada is also expected to drive growth of the global industrial control systems (ICS) market over the forecast period.

Moreover, Asia Pacific is also anticipated to witness substantial growth in the global industrial control systems (ICS) market over the forecast period. This can be attributed to presence of one of the largest manufacturing industry in China, which is rapidly undergoing a transformation, as companies are increasingly adopting automation. Moreover, the growing consumer spending and increasing urbanization in India leading to rise in industrialization across the country is expected to drive demand for ICS solutions. Thus, aforementioned factors are expected to augment growth of the market in Asia Pacific in the coming future.

Figure 1. Global Industrial Control Systems (ICS) Market Share (%), By Region, 2022

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Global Industrial Control Systems (ICS) Market Drivers:

Increasing adoption of Industry 4.0 to boost the market growth

The adoption of Industry 4.0 is increasing all over the world. The concept of Industry 4.0 comprises a novel generation of low-cost wireless sensors, control systems, and improved real-time data analytics, along with developments in high-fidelity process modeling. Such innovations will be including systems that can improve the efficiencies of industrial manufacturing, and integrate as well as network subsystems in manufacturing processes. With the strategic move of Industrial 4.0 adoption, the efficiency is increasing through analytical insight, as it reduces system failures by predicting analytics, and optimization of the cost by reducing wastage. This in turn is expected to drive growth of the global industrial control system (ICS) market over the forecast period.

Rise in installation of smart grid to augment the market growth

A smart grid is an automated power distribution system that can monitor use and voltage levels, while it makes constant adjustments in order to keep all the functions running at optimal levels.  Supervisory control and data acquisition (SCADA) is the core of smart grid decision-making; and line sensors and other connected equipment on a smart grid offer a stream of data back to a central control room, in which the information gets analyzed and decisions are made automatically. This further regulates voltage levels and optimizes efficiency, generation, and routing. Thus, increasing use of smart grid is expected to augment growth of the global industrial control systems (ICS) market over the forecast period.

Global Industrial Control Systems (ICS) Market Opportunities:

Increasing focus of companies on integrating cyber security solutions with industrial automation is expected to create multiple growth opportunities in the global industrial control systems (ICS) market over the forecast period. The growing industrial automation is leading to technological developments in fields related to nanotechnology and nanoscale assembly systems, pervasive Internet and machine-to-machine networking, and MEMS and nanotech sensors. Companies are thus increasingly focusing on integration of cybcer security solutions to tackle with the increasing cyber security threats. This in turn is likely to create several opportunities for players in the global industrial control systems (ICS) market over the forecast period.

Increasing integration of automation with Internet of Things (IoT) by companies is expected to provide market players with multiple business opportunities in the global industrial control systems (ICS) market over the forecast period. Along with the emergence of industry 4.0, the integration of automation with IoT may lead to all the sensors integrated into the plant generating huge amounts of data. This many cause companies to leverage on adoption of data analytics for enhancing plant performance, which will pave the way for integration of Ai to industrial automation. This in turn is expected to benefit the global industrial control systems (ICS) market over the forecast period.

Global Industrial Control Systems (ICS) Market Trends:

Increasing growth of automotive industry is a growing trend

Industrial control systems offer several opportunities to the automotive industry, as it allows them to fast react to market demands, enhances the supply chain efficiency, reduced downtimes in manufacturing, and increases productivity. The production facilities of several automakers are automated for maintaining efficiency. The increasing trend of replacement of conventional vehicles with Electric vehicles is likely to drive demand of the automotive industry in the near future. Thus, this trend is expected to continue in the global industrial control systems (ICS) market over the forecast period.

Increasing cyber-security threats is a major trend in the market

Due to rise in cyber security threats, the industrial control systems solutions are expected to gain traction. Most of the OT endpoints are unpatched legacy systems as they make use of particular communication protocols. These solutions are increasingly becoming interconnected with external systems, and they are highly vulnerable to cyberattacks. This, in turn is creating demand for ICS solutions among several industries. This trend is thus expected to augment growth of the global industrial control systems (ICS) market over the forecast period.

Global Industrial Control Systems (ICS) Market Restraints:

High cost associated with adoption of automation to hinder the market pace

High capital expenditure is required for automated equipment, and it also requires higher maintenance compared to machines that are manually operated. It usually offer lower degree of flexibility in terms of possible products compared to manual systems. Thus, the high cost of maintenance of connections, could be leading to slow adoption of industrial IoT technologies. This factor in turn is expected to hamper growth of the global industrial control systems (ICS) market over the forecast period.

Lack of skilled professionals to obstruct the market growth

The industrial expansion of the global industrial control systems (ICS) market is hindered by dearth of cyber security training among workers. The number of people, who undergo cyber security training among maritime sector crew is very small. The awareness regarding the different cyber threats to which systems can be vulnerable is also low. This in turn is expected to hinder growth of the global industrial control systems (ICS) market over the forecast period. However, with increasing awareness as well as expertise are likely to help companies overcome these limitations, which in turn is expected to support growth of the market.

Figure 2. Global Industrial Control Systems (ICS) Market Share (%), By System, 2022

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Global Industrial Control Systems (ICS) Market Segmentation:

The global industrial control systems (ICS) market report is segmented into System and End-User.

Based on System, the market is segmented into Supervisory Control and Data Acquisition System, Distributed Control System, Programmable Logic Controller, Machine Execution System (MES), Product Lifecycle Management (PLM), Enterprise Resource Planning (ERP), Human Machine Interface (HMI), and Others. Out of which, Supervisory Control and Data Acquisition (SCADA) is expected to dominate the global market over the forecast period and this is attributed to the growing demand for SCADA systems in various industries such as buildings, manufacturing, environmental applications, and facilities. These applications require gathering remote data through potentially unreliable or intermittent high-latency links/low bandwidth. These systems are utilized for automating complex industrial operations where human control is not efficient. Thus, the segment is expected to witness strong growth in the coming future.

Distribution Control System (DCS) segment is also expected to witness significant growth in the near future and this is owing to the growing adoption of DCS systems, as they offer lower operational complexity and predict risk, along with functionalities such as flexibility for agile manufacturing. These systems are used for controlling manufacturing process in the oil and gas, power generation, petrochemical, food and beverage, pharmaceutical, and manufacturing industry among others. The demand for DCS systems is increasing for achieving high control and precision in process industries. Thus, the segment is likely grow at rapid pace in the coming years.

Based on End-User, the market is segmented into Automotive, Chemical and Petrochemical, Oil and Gas, Utilities, Pharmaceutical, Food and Beverage, and Others. Out of which, Automotive is expected to dominate the global market over the forecast period and this is attributed to the increasing automation among automotive industries across the world. Several automakers in recent times have adopted automation of their plants for reducing the number of issues on the work floor, to improve efficiency and reduce the cost of operations. The adoption of industrial control systems is thus increasing in automotive sector, and this in turn is expected to drive growth of the segment.

Utilities segment is also expected to witness significant growth in the near future and this is owing to the growing use of ICS solutions in different applications such as power generation facilities, like wind energy plants, hydroelectric power plants, and thermal energy generation plants. Several companies are using automation in hydroelectric power plants for reducing motor and generator downtime, improve the plant efficiency, and support higher capacity. This in turn is driving the demand for ICS solutions in utilities segment.

Global Industrial Control Systems (ICS) Market: Key Developments

In September 2022, Cisco, an IT and networking company that specialises in switches, routers, cybersecurity, IoT, and other products, has partnered with Radiflow, a provider of technology solutions in the domain of cyber security, for its experience in OT security Radiflow would provide IDS in Cisco-run OT facilities.

In August 2021, Fortis partnered with Darktrace to identify and respond to threats across the whole digital infrastructure, including cloud, SaaS, corporate networks, IoT, and industrial control systems, using Darktrace's cyber-AI.

In July 2020, Dragos and Fortinet partnered to improve visibility and detection of IT and ICS threats.

Global Industrial Control Systems (ICS) Market: Key Companies Insights

The global industrial control systems (ICS) market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global 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.

*Definition: Industrial Control System (ICS) is a term for many different systems and connected devices that are used to monitor, control, and automate the manufacturing processes found in a wide range of industries. This type of technology is becoming increasingly common, and it's important for anyone looking to get involved in the field to understand why these systems are so prevalent.