Flat World Drives PLC Market Growth

Sept. 27, 2007
The worldwide market is expected to grow at a compounded annual growth rate (CAGR) of 7.3% over the next five years.

PLC applications cut across discrete, process and hybrid automation segments, and are poised for substantial growth across all manufacturing, according to the “Programmable Loci Controller Worldwide Outlook” report by the ARC Advisory Group, Dedham, Mass.

The robust economy created buoyant demand, which spurred manufacturing companies to invest in creating new capacities in various industries, says the report.  The worldwide market for PLCs is expected to grow at a compounded annual growth rate (CAGR) of 7.3% over the next five years.  The PLC market was over $8.3 billion in 2006 and is forecasted to grow to nearly $12 billion in 2011, according to a the study. 

Programmable Logic Controller Business Worldwide ($Millions)

Global demand across descrete, process and hybrid manufacturing is driving PLC market growth.

Courtesy of ARC Advisory Group

“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,” says Senior Analyst Himanshu Shah, the principal author of the report. 

Global Demand for Automation

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. 

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. 

The market remains fiercely competitive among small and large suppliers who are chasing manufacturing activities around the world by setting up local support facilities, says the report.  Small and large suppliers continue to innovate and introduce new products that offer higher value propositions to both OEMs and end users.