Global Programmable Logic Controller

On the Rise
The global programmable logic controller (PLC) market is forecasted to expand at a
CAGR of 9% over 2013-18. This growth is expected to be largely driven by the evolution of
PLCs into programmable automation controllers (PACs)*.

What is
PLC?

An industrial computer control system that

continuously monitors the state of input devices
and makes decisions, based upon a custom
program, to control the state of output devices.

CAGR 9.2

10.5

2013

Global
PLC Market
(USD Billion)

12.5

11.5

2014e

2015e

14.9

13.7

2016e

2017e

16.3

2018e

The PLC market grew in 2013 due to the

develoment in the process-based industries; the
hydraulic fracturing boom bolstered PLC sales for the
oil and gas industry in North America.
Nano and small PLCs are expeced to grow at a
faster pace than medium or large PLCs, as
end users look for large-scale functionality.
Further, power industry in the EMEA region
witnessed predominant use of PLCs in 2013.
North America and Europe would drive the service
component of the market, which is also expected to
grow globally.

9%

Global PLC
Market Share,
2013

14%

31%

22% 24%
Others

Increased need among companies to reduce

machine downtime.

Key
Drivers

Increasing demand for cyber-secured PLCs and

enhanced efficiency in manufacturing.
Increase in demand for the automation
of mechanical processes.

Exposure of PLCs to threats from viruses and

malware originating from the Internet.

Challenges

High cost of switching to new and improved

PLC suppliers for end-users.
High vulnerability of the market to
economic cycle.

* PAC is a two or more processor-based device like a personal

computer (PC) it is a PC merged with a PLC using multitasking
capabilities to automate control of one or more
pieces of equipment.
Source : Credit Suisse, Businesswire, Arcweb, Desk Research

Arancas Views
Investments in the manufacturing and infrastructure sectors are forecast to drive growth in the
global PLC and PLC-based PAC markets over the next five years. PLC technology-based PACs are
projected to continue increased use in process industries, with PACs gradually replacing large
distributed control systems (DCS), especially in emerging economies.
The oil & gas and food & beverage industries would represent the fastest growing end-use
sectors of PLCs. The market for PLCs in the US is expected to be positive, owing to the recovering
housing market, rising consumer spending, improving export markets and growth in capital
spending. With Europe gradually coming out of recession, the region is expected to continue
leading PLC sales in terms of revenue; China and India would lead the Asia-Pacific PLC market in
the near future.
Compiled by: Manan Shah
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