Report considers the future for PLC and PAC global markets

Paul Boughton

According to new research from ARC, the global market for programmable logic controllers (PLCs) and programmable automation controllers declined significantly across all regions of the world in 2009. The market declined in emerging economies as well, but the decline was much less severe in those regions due to substantial infrastructure stimulus funding, fewer financial institutional issues, and a more rapid turnaround in local consumer demand for goods and services. While it is difficult to view any market growth through the lens of the recent economic environment, there are many dynamics that will drive market growth over the next five-year forecast period.
 
Industries will continue to invest in automation, hence ARC predicts that the worldwide market for PLCs and PLC-based PACs will grow over the next five years. Senior analyst Himanshu Shah, the principal author of ARC's 'Programmable Logic Controller (PLC) and PLC-based Programmable Automation Controller (PAC) Worldwide Outlook,' comments: "Growing demands for energy savings, higher infrastructure productivity, increased production accuracy, better product quality, greater machine agility, tighter process control, and additional safety are some of the crucial factors that will fuel market growth."
 
New stimulus packages from various governments added more investments in the infrastructure industries, including new road construction, water and wastewater infrastructure, and electric power generating plants. Globalisation has also created a large demand for modern infrastructure, especially in emerging economies. Airport facilities and new road construction are driving demand for products from the metals and mining, cement and glass, and oil and gas industries. Emerging economies know that their current infrastructure is a huge bottleneck for their continuing high economic growth. PLCs and PLC-based PACs will benefit in this environment, as it is a key component for any infrastructure development and operation.
 
Europe, the Middle East and Africa (EMEA), the largest PLC and PLC-based PAC market, was hit hard compared to other world regions. Within EMEA, Germany suffered heavily during the 2009 economic turmoil, as its export activities were reduced and the automotive industry all but stopped investing in capital equipment.
 
The North American market had started declining even before that in EMEA. With the automotive market already depressed and the entire financial infrastructure under pressure, the PLC and PLC-based PAC market declined at a rapid pace.
 
In Asia, Japan also faced a huge contraction. While the market in China experienced strong growth over the past few years, future growth is expected to be more modest. The electric power and pharmaceutical industries will invest heavily in PLCs and PLC-based PACs, but the export market will grow at a somewhat slower pace than in the past.
 
In addition to market analysis and forecasts, ARC's study also covers the strategic issues that influence the market today and in the future. In addition to the quantitative assessment of the PLC and PLC-based PAC market, this report provides an analysis of the products and strategies of leading PLC and PLC-based PAC suppliers and explores issues that will impact this business in the future.
 
For more information, visit www.arcweb.com

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