Programmable Logic Controller Market Size, Share & Trends Analysis Report By Type (Hardware and Software, Services), By End-user Industry (Food, Tobacco, and Beverage, Automotive, Chemical and Petrochemical, Energy and Utilities, Pulp and Paper, Oil and Gas, Water and Wastewater Treatment, Pharmaceutical, Other End-user Industries) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global programmable logic controller market size is projected to reach USD 18 billion by 2030, from USD 12 billion in 2021, and is anticipated to register a CAGR of 5% during 2022–2030. 

A programmable logic controller (PLC) is a small computer that can accept data and deliver operational instructions through its inputs and outputs. A PLC's job is to govern the functioning of a system using the underlying logic that has been programmed into it. PLCs are used by businesses worldwide to automate their most crucial procedures.

A PLC receives data from automated data capture points and human input points like switches and buttons. The PLC then selects whether or not to adjust the output based on its programming. The outputs of a PLC can control a wide range of devices, including motors, solenoid valves, lighting, switchgear, safety shut-offs, and more.

The PLCs provide cutting-edge solutions, including automatic production lines, energy consumption control, and security monitoring. This is driving up PLC demand in the industrial automation sector. During the forecast period, the oil, gas, and automotive industries will likely increase their market share revenues. The demand for automation is rising, particularly in the paper and pulp, chemical and pharmaceutical, energy, and utility sectors. Large-scale potential for PLC adoption is likely to result from this.

Market Dynamics

Driver: Ease of Use of PLC to Drive Growth for Global Programmable Logic Controller Market

PLCs are used to control manufacturing operations, including assembly lines and robotic equipment, as well as any activity that requires high-reliability control, programming convenience, and process fault identification.

PLC is used as more than a special-purpose digital computer in numerous sectors and in other control-system domains due to its sturdy construction and functional qualities such as sequential control, ease of programming, reliable controlling capabilities, and ease of hardware usage.

Some industrial plants use automation extensively and can handle a wide range of controllers and equipment, whilst others are unfamiliar with modern technologies.

PLCs are also the dominant automation tool for various industries and applications. They provide dependable, precise, and customizable control while being simple to operate due to their extensive use and familiarity.

In addition, unlike other control units, PLC has a feature that can verify the state of facilities and programs to see if there are any faults or errors and if repairs can be made promptly. On the system, input and output signs are rapidly and easily recognized.

Furthermore, PLCs may operate in harsh industrial environments. They usually function in the presence of voltage variations, temperature, humidity, and background noise.

The ladder logic or other conventional PLC programming languages are well-known among automation technicians and maintenance people who regularly work on PLCs.

Growing adoption of industry 4.0

During the forecast period, a rise in industrial automation or a growing uptake of Industry 4.0 is anticipated to fuel the expansion of the programmable logic controller market. Industry 4.0 is transforming how businesses produce, enhance, and distribute their goods. With the introduction of Industry 4.0, numerous industrial facilities are embracing digital technologies to improve, automate, and modernize the entire process, enhancing the facilities' performance.

Restraint: Demand for Customization of Products to Plummet Demand for Programmable Logic Controller 

Due to modern consumers' demand for personalized products, industries have been moving away from bulk production and toward mass customization.

PLCs are widely used in sectors with consistent processes. However, as end-user demand for product customization grows, manufacturing processes have become more sophisticated and complex, necessitating frequent adjustments. As a result, end-users are increasingly adopting and investing in more flexible systems, such as PC-based and cloud-based controllers, rather than PLCs.

The shift from batch to continuous processing is another critical development in discrete production, particularly in the pharmaceutical industry. With many product variations caused by a mass customization manufacturing process, effective software testing in all supply chain sections is required to help ease this production paradigm shift. This has necessitated increased scalability and the flexibility to change program coding in real-time.

The pharmaceutical industry has been more interested in continuous manufacturing in recent years. The cost savings, regulatory encouragement, and the potential for enhanced final product quality are the primary motivators for adopting continuous production.

Regulatory agencies, particularly the Food and Drug Administration (FDA) in the United States, have acknowledged that continuous processing has the potential to improve product quality and are urging the industry to change its positions. Furthermore, the FDA predicts that some medications that take three to four weeks to manufacture in a batch approach can be made every day using continuous processing.

Products are getting extremely complicated, individualized, and sophisticated due to innovation. The production of parts for automotive and industrial applications is being revolutionized by advanced technology.

What Are Future Growth Opportunities in Global Programmable Logic Controller Market?

• Growing Adoption of Automation Systems to Create Lucrative Opportunities in the Programmable Logic Controller Market

One of the primary factors driving the PLC market growth is industrial automation. Automation is described as automated processing systems that maximize resource use, reduce human intervention, and boost efficiency.

Industries have finally grasped the reliability and long-term profits that automated systems can provide. PLC systems can automate conveyor systems and packing systems, among other things.

Manufacturing process automation can provide several advantages, including easy monitoring, waste reduction, and increased production speed. Customers benefit from enhanced quality, uniformity, and trustworthy products delivered on time and at a cheaper cost.

Additionally, automation helps the sector save money on additional labor expenditures. It also helps to improve manufacturing scale because these systems can function around the clock. These systems are more efficient and dependable, and they make the best use of available resources. PLC-based automation systems also aid in the reduction of industrial pollutants. According to estimates, automation might reduce CO2 emissions by roughly 34 million metric tons each year.

The mix of digital and physical parts of manufacturing has revolutionized the automation business, resulting in maximum performance. Furthermore, the industry's growth has been boosted by focusing on zero waste production and shorter time to market.

The use of automated technologies can also help to cut energy use. Energy costs are predicted to drop by 70% because of automation. According to studies, automation has been shown to save 20-25% of overall energy. To boost production capacities and efficiency, businesses are increasingly resorting to automated technologies.

PLC systems are used in automated systems to monitor and control the systems. The PLC controls the automated machine as the principal computing system.

Demand for clean energy

Players in the global programmable logic controller market should see considerable growth potential due to rising clean energy demand or renewable energy capacity. For instance, ABB delivered PLC-based solar plant automation solutions in India in March 2021, surpassing the cumulative 5GW milestone. Solar power plants can operate effectively thanks to ABB's SCADA technology, which enables operators to monitor and evaluate power facilities continuously.

Regional Analysis

Based on region, the global programmable logic controller market share is divided into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.

Is Asia-Pacific and Europe Likely to Dominate the Global Programmable Logic Controller Market?

The Asia-Pacific region dominated the global programmable logic controller market, with revenue forecasted to grow at a CAGR of 6% to USD 7 billion by 2030.

The manufacturing sector is an essential portion of China's economy. It is undergoing rapid transformation due to the recent expansion in IIoT due to the global adoption of Industry 4.0 across industrial industries. This massive shift has propelled the country to the forefront of the global PLC market.

China has recently announced several industrial policies as part of its advanced manufacturing push. The guidelines support the country's objective of becoming a high-tech superpower during the next quarter-century.

India's pharmaceutical business is a step ahead in automation, with major corporations like Zydus Cadila, Torrent Pharma, and Cipla concentrating on automating their medication production processes, particularly in areas where total integration of machines and equipment is required.

The Europe region accounts for the second-largest share of the global programmable logic controller market, at a CAGR of 5%, expected to generate USD 5 billion in sales by 2030.

Germany is a significant player in the creation and consumption of renewable energy worldwide. According to BDEW, the country's gross renewable energy generation in 2019 was 225.9 terawatt-hours, with wind power accounting for most of that. PLCs are useful in wind turbines because they improve performance and save maintenance costs by allowing for better sensor measurements.

Apart from manufacturing, numerous countries in the rest of Europe region are lowering their reliance on fossil fuels and boosting their efforts to adopt renewable alternatives. Sweden is an example of a low-carbon economy and has established a goal of obtaining 100% of its electricity from renewable sources by 2040. To help the world fulfil critical climate targets, the country has a highly decarbonized power grid.

Middle East &Africa

The Middle East and Africa are anticipated to experience consistent growth. The businesses are focused on sustainable infrastructure and the environment thanks to government initiatives, including the UAE Vision 2021, Dubai Plan 2021, and Saudi Vision 2030. Latin America is also anticipated to accelerate the demand for programmable logic controllers.

Segmental Analysis

By type, the market is segmented into hardware and software, and services. The hardware and software type accounted for the largest shareholder in theprogrammable logic controller market and is anticipated to grow at a CAGR of 4%, generating revenue of USD 14 billion by 2030.

Which End-User Industry of Programmable Logic Controller is Most Prominent in the Market?

Based on end-user industry, the global programmable logic controller market is divided into food, tobacco, and beverage, automotive, chemical and petrochemical, energy and utilities, pulp and paper, oil and gas, water and wastewater treatment, pharmaceutical, and other end-user industries. Food, tobacco, and beverage led the programmable logic controller market and are projected to grow at a CAGR of 6%, generating a revenue of USD 4 billion by 2030. 

The industry is also having difficulty hiring high-level employees, which is unusual for the food industry. These developments are prompting the food and beverage industry to adopt automation.

Knowing the specific source of the raw material is critical when deciding whether or not to recall products, especially food products. Robots, machine vision systems, and different technologies, including supervisory control and data acquisition (SCADA) and programmable logic controllers (PLC), are being used to address these difficulties.

PLCs are critical components of every manufacturing line, and as the fourth industrial revolution progresses, more internet-connected sensors and systems are interacting with PLCs. It is necessary to track all chemicals in a mixture and monitor critical occurrences, such as a defective boiler, in a food and beverage manufacturing facility that creates chocolate ingredients or baking.

Impact of covid-19

COVID-19 had an unfavorable effect on the market development. Many businesses have been severely impacted by the outbreak, which has resulted in a global recession. This compels banks all across the globe to put initiatives into action. Numerous core banking, deposit accounting, and loan accounting systems are not intended for functional versatility. As a result, globally, banks and financial institutions emphasize business continuity planning. They are mainly responsible for ensuring that customer relations activities and branch distributions are not disrupted.

In many businesses, the outbreak substantially affected the working environment. Due to the constraints, many financial institutions and banks have been obliged to let their staff work from home. The finance system is dealing with late lease payments and rapid interest rate fluctuations, which has resulted in an enormous reconfiguration of the global financial system.

Market Recovery Timeline and its Challenges

The post-pandemic period will be significant for the global core banking software market. The market's growth is likely to be hampered due to privacy concerns, security of data, and skilled professionals working with advanced technologies. On the other hand, factors like the rising demand for cloud-based solutions from banking corporations and the growing demand for managing customer accounts from a single server will likely continue to drive the market growth over the forecast period. Overall, the recovery of the global core banking software will be quick.

Recent Developments

• In July 2022, The CP2E Micro PLC was created by Omron Corporation for small equipment and provided data gathering and machine-to-machine communication. One of the potent and successful options for single, mass-produced machines where cost performance is crucial is CP2E. The CP2E series controllers offer an effective solution for flexible manufacturing when machine monitoring and traceability are crucial.
• In June 2022, Toshiba teamed with Farnell, a distributor of electronic components, to strengthen the supply chain for a broader range of new and cutting-edge goods. PLCs are one of the products in Toshiba's product portfolio. The alliance showcases Toshiba's industry-leading technologies for various industries and sectors, including automotive, industrial, Internet of Things (IoT), motion control, telecoms, networking, consumer, and white goods applications. More emphasis will be placed on Toshiba's advantages, notably its power solutions.
• In December 2022, Lithium-Ion Batteries Will Be Provided for Lucid Air Luxury EVs Under a Deal Announced by Panasonic Energy and Lucid Group.
  In December 2022, Panasonic Connect and Yokohama City will test the world's first beyond-5G network demonstration aimed at automated driving.
• In December 2022, Mitsubishi Electric will broaden its lineup of Ku-band GaN-HEMTs.
• In December 2022, The performance of the new Emerson valves provides proportional flow control in precise applications.