PROGRAMMABLE LOGIC CONTROLLER MARKET ANALYSIS

Programmable Logic Controller Market Size and Trends

The programmable logic controller market is estimated to be valued at USD 11.89 Billion in 2024 and is expected to reach USD 15.81 Billion by 2031, exhibiting a compound annual growth rate (CAGR) of 4.1% from 2024 to 2031.

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The programmable logic controller market is expected to witness considerable growth over the forecast period. The growing industrial automation and adoption of digital technologies across industries will boost the adoption of PLC systems. Further, the need for improved operational efficiency and reducing production costs is increasing the deployment of automation equipment. Advancements in PLC like cloud connectivity, embedded IoT, and edge computing are expanding their application areas. Also, the development of 5G network infrastructure will enable more real-time analytics solutions leveraging PLC systems. The demand from food & beverages, oil & gas, automotive and other process industries will continue driving opportunities for vendors. However, threat from software-based controllers may hamper hardware PLC revenues to some extent. Overall, rapid industrialization globally is expected to propel the programmable logic controller market forward.

Increasing adoption of industrial automation across industry sectors

The global manufacturing sector has been adopting industrial automation technologies at a rapid pace over the past decade. This is mainly driven by the need to enhance productivity and operational efficiency of production processes across industries. Programmable logic controllers (PLCs) form an integral part of industrial automation systems as they provide the processing and control capabilities needed to automate industrial processes and machinery. PLCs are increasingly being used to automate a wide range of manufacturing activities including assembly line operations, material handling equipment, machine tools, and packaging machinery.

The growing complexity of manufacturing operations is propelling the demand for PLCs that can handle more advanced control functions with ease. More factories are leveraging PLCs to achieve enhanced flexibility in production with capabilities like feedback control, motion control, and communication with other hardware. Industries that involve repetitive and mechanized processes like food and beverage, automotive, semiconductors and electronics have significantly increased their adoption of PLC controlled machines and equipment over the past few years. This trend is anticipated to continue as more machinery across industries integrates latest digital technologies. The rising need for mass customization is also driving manufacturers to install PLC controlled flexible manufacturing systems. The stringent quality and reliability standards across industries further strengthen the case for automation with advanced PLC systems.

For instance, in January 2020, Hitachi Ltd. a Japanese multinational conglomerate, acquired a robotic system integration provider, JR Automation, to enhance its automation solutions for the manufacturing industry, aiming to offer seamless integration processes to customers.

Evolving application areas within process industries

Another key factor driving the Programmable Logic Controller Market is the increasing applications of programmable automation within various process industries. Process control has traditionally relied more on dedicated controllers and networked control systems. However, PLCs are now often preferred over alternative control system choices in many process automation uses due to their rugged nature and capacity to handle a diverse range of control requirements with ease.

PLCs are playing a greater role in optimizing complex processes within industries like chemicals, mining, oil and gas, pharmaceuticals, pulp and paper, and food and beverage. For example, in oil refineries, PLCs are used for controlling a wide array of critical unit operations and machinery. Their open architecture enables the easy integration of advanced process control and safety instrumentation functions. PLCs also offer advantages in the maintenance and diagnostics of process control systems. The rising demand for mass customization even within batch process manufacturing is driving more plants to deploy PLC controlled flexible processing systems. Mining operations also depend greatly on PLC automated heavy machinery for various on-site activities.

For instance, in July 2022, Omron Corporation a electronics company, developed CP2E Micro PLC designed for small devices, supporting data collection and machine-to-machine communication. CP2E is a highly effective solution for standalone machines where cost performance is crucial. This series of controllers offers an excellent option for flexible production environments that require machine monitoring and traceability.