Worldwide PLC market to grow 7% annually for next five years
Dedham, MA -- According to the ARC Advisory Group, the worldwide market for programmable logic controllers (PLCs) i...
Dedham, MA — According to the ARC Advisory Group, the worldwide market for programmable logic controllers (PLCs) is expected to grow at a compounded annual growth rate (CAGR) of 7.3% over the next five years. The PLC market was worth over US$8.3 billion in 2006 and is forecasted to grow to nearly $12 billion in 2011, according to a new study.
Capital investments for automation are expected to remain strong across many industries during the next five-year period. It is clear that manufacturers have come to rely heavily on automation technology as they work to optimize their operations to maximize productivity and profitability in an increasingly competitive global manufacturing environment. As a result, the demand for PLCs will grow robustly, according to senior analyst Himanshu Shah, the principal author of ARCs Programmable Logic Controller Worldwide Outlook.
Demand-side conditions in the automation marketplace remained strong, with continued heavy investment in China, India, Latin America, Eastern Europe, and the Middle East. Manufacturing companies continue to increase investments in capital expenditures for automation equipment as they clearly recognize the role of automation and its contribution to the profitability and success in the fierce global market.
PLC applications cut across discrete, process, and hybrid automation segments, and are poised for substantial and steady growth across all manufacturing. Manufacturing companies, acutely aware of the need for more automation and the need to be energy efficient, are increasingly using PLCs.
Investments were made in many industrial segments that cater to growing consumer demand, energy generation and conservation, and infrastructure development needs. This environment clearly represents a boon to PLC suppliers, because PLCs are widely used in industrial and building automation industries.
Meeting the challenges of the marketplace requires some advanced strategic thinking. Global manufacturers are implementing strategies to meet the challenges of the “flat world”. The need to act quickly and with agility to emerging market opportunities, increasing pressure to improve financial performance, and globalization are driving manufacturers to use more automation, which is a ticket to be a participant in this flat world.
The market remains fiercely competitive among small and large suppliers who are chasing manufacturing activities around the world by setting up local support facilities. Small and large suppliers continue to innovate and introduce new products that offer higher value propositions to both OEMs and end users. ARC research finds that at the heart of these dynamics is the increasing demand for flexibility and agility in manufacturing operations at the lowest possible lifecycle cost of plant equipment.
In addition to the quantitative assessment of the PLC market, this report provides an insightful analysis of the products and strategies of leading PLC suppliers and explores issues that will impact this business in the future.
For more information on this study, visit www.arcweb.com.