Programmable Logic Controller (PLC) Market Size 2024-2028

The programmable logic controller (PLC) market size is forecast to increase by USD 3.83 billion, at a CAGR of 4.56% between 2023 and 2028. The growth rate of the market depends on several factors. Increasing demand for compact automation solutions is a significant driver, as industries seek efficient and space-saving technologies. Additionally, the demand for PLCs in renewable power generation is rising, driven by the global shift towards sustainable energy sources. The need for PLCs in smart factories is also crucial, as these technologies enhance operational efficiency and integrate advanced automation systems. Together, these factors are propelling the market forward, fostering innovation, and meeting the evolving needs of various industries. The synergy of these demands is shaping a dynamic market landscape, encouraging the adoption of advanced PLC technologies.

Market Forecasting and Size

Market  Forecast 2024-2028

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Market Dynamics

The market encompasses a wide range of applications in various sectors, including the steel industry and energy industry. These advanced electronic device enable the automation of industrial processes by serving as the central component of computer control system. PLCs integrate input devices, such as sensors and switches, and output devices, like relays and actuators, to ensure the smooth operation of automated machines. In the context of industry automation, PLCs play a crucial role in managing conveyor systems and packaging processes. The integration of dual-core microcontroller, like those with Cortex-M4 cores, enhances the multi-functionality of PLCs, allowing them to process complex control algorithms and data handling tasks. The PLC market is driven by the increasing demand for machine efficiency and productivity in industries. However, the growing reliance on these systems also exposes them to cyber threats, such as malware, ransomware, and phishing attacks. As a result, the market is witnessing significant investments in securing industrial control systems against these cybersecurity risks. PLCs are essential components of Information Technology (IT) systems in industries, and their integration with IT infrastructure necessitates a robust approach to cybersecurity. The market is expected to grow as industries continue to adopt advanced automation technologies to optimize their operations and reduce machine downtime.  The PLC Software Market represents the sales and growth of software solutions designed to operate and manage industrial automation systems. Our researchers studied the market research and growth data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.

Key Market Driver - Increasing demand for compact automation solutions

The market is experiencing notable growth due to the integration of Industrial Internet of Things (IIoT) systems in various industries. IIoT's advantages, including real-time communication and reliability, have led to increased efficiency in industrial automation control systems. However, the market faces challenges in reducing costs and ensuring the benefits of factory automation for manufacturers and system integrators. PLCs are integral to numerous sectors, including aerospace and defense, chemical, energy utilities, food and beverages, healthcare, and others. Modular, compact, and rack-mounted PLCs cater to diverse industry requirements.

Despite the advantages, security concerns, such as industrial espionage, pose a significant threat to IIoT systems and PLCs. In the chemical industry, for instance, IIoT-enabled PLCs facilitate predictive maintenance and optimize production processes. In energy utilities, they ensure efficient power management and grid stability. In healthcare, they enhance patient care and safety. The integration of IIoT systems and advanced PLCs in these industries is transforming operations and driving market growth during the forecast period.

Significant Market Trends - Increasing focus on expanding capability of micro-PLCs

Micro Programmable Logic Controllers (PLCs) have gained significant traction in the process and discrete industries due to their advantages, including programming flexibility, user-friendliness, communication capabilities, and cost-effectiveness compared to conventional PLCs. Initially, micro-PLCs were primarily utilized for controlling small machinery with basic serial communication. However, recent technological advancements have expanded their applications in various industrial sectors, such as aerospace and defense, chemical, energy utilities, food and beverages, healthcare, and IIoT systems. Companies have engineered modular, compact, and rack-mounted micro-PLCs to cater to diverse industrial requirements. These advanced micro-PLCs boast high-speed communication capabilities, enabling them to control large machines and support multiple communications.

Despite their compact size, they offer extensive program memory and capabilities, making them a valuable asset in industries susceptible to industrial espionage and requiring stringent data security. In summary, the micro-PLC market is witnessing substantial growth due to the increasing demand for advanced automation solutions in various industries, including aerospace and defense, chemical, energy utilities, food and beverages, healthcare, and IIoT systems. The development of modular, compact, and rack-mounted micro-PLCs with high-speed communication capabilities, large program memory, and robust data security features is driving their adoption and expanding their applications. Hence, such factors are driving the market during the forecast period.

Major Market Challenge - Growing market for industrial PC and DCS as alternatives to PLCs

The market has experienced significant transformation due to the increasing trend towards automation and the integration of Industrial Internet of Things (IIoT) systems. This shift has resulted in a decline in the usage of traditional rackmount PLCs in favor of more versatile PC-based control systems. These advanced platforms enable the convergence of PLC control, motion control, and Supervisory Control and Data Acquisition (SCADA) functions on a single high-performance controller. Industries such as Aerospace and Defense, Chemical, Energy Utilities, Food and Beverages, Healthcare, and others have embraced this technology due to its modularity and compact design. Modular PLCs and Compact PLCs offer greater flexibility and ease of installation, making them an attractive choice for various applications.

Moreover, industrial espionage and security concerns have also driven the demand for advanced control systems, as they provide enhanced data protection and secure communication channels. Moreover, the development of open embedded operating systems has given rise to new-generation industrial PCs, which can combine the functionality of a PLC and an operator panel into one unit. This innovation has led to increased efficiency and reduced complexity in industrial control systems. Despite the growing popularity of PC-based control systems, rack mounted PLCs continue to play a crucial role in large-scale industrial applications that require high processing power and extensive I/O capabilities. Such factors are expected to limit the market growth during the forecast period. 

Market Segmentation

Product Segment Analysis:

The modular segment is estimated to witness significant growth during the forecast period. The market encompasses a wide range of solutions, including those based on relays and switch boxes, as well as advanced multi-functional controllers. These controllers are integral to various industries, including manufacturing, where they facilitate automation of processes in sectors such as automobile sales, auto assembly, and smart factories. In conveyor systems and packaging processes, PLCs ensure efficient operation and minimize machine downtime. PLCs offer versatility, accommodating various industrial applications. They can be arranged in cabinets or rail-mounted for safety and security.

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The modular segment was the largest and was valued at USD 5.11 billion in 2018.  While larger and more expensive than unitary PLCs, modular PLCs provide the capability to add multiple systems, enhancing their functionality. Industry automation continues to evolve, with advancements in technology leading to the adoption of PC-based and cloud-based controllers. Macroeconomic factors, such as the electrification of vehicles and the rise of artificial intelligence (AI), are driving market growth. Major players in the PLC market include Scotiabank, Arduino, Opta, and various other manufacturers. These companies offer controllers with advanced software capabilities, such as Floating-point unit (FPU), Chrom-ART accelerator, Hardware JPEG accelerator, and large Flash and RAM memory. Dual-core microcontrollers, like those with the Arm Cortex-M7 core and Arm Cortex-M4 core, are increasingly popular due to their enhanced processing power. However, the increasing use of PLCs in industrial applications also presents challenges, such as cyber threats, malware, and ransomware attacks. As the market continues to grow, it is crucial for manufacturers to prioritize security measures to protect their systems and maintain business continuity. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.

End-user Segment Analysis:

The process industry segment holds a dominating share in the global market owing to the increasing use of PLC in industries such as oil and gas, chemical and petrochemical, power, water and wastewater treatment, and food and beverage. In the oil and gas industry, PLCs are used in upstream oil and gas activities such as drilling, mooring, and positioning, and in platforms as well as in the midstream sector for monitoring spillage and leaks during oil or gas transportation. Remote terminal units (RTUs) are typically the first choice of control systems in the upstream oil and gas industry owing to their rugged design, low power consumption, and ability to handle the lower-bandwidth communication networks between the Supervisory Control and Data Acquisition (SCADA) and the production site. All these factors will significantly drive the growth of this segment, which, in turn, will drive the growth of the market during the forecast period.

Regional Analysis

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APAC is estimated to contribute 32% to the growth by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The market in APAC is projected to expand substantially due to various factors. Key drivers include the increasing adoption of automation in industries such as China, Japan, India, Vietnam, South Korea, Malaysia, and Australia. These countries are the primary markets for PLCs, fueled by their robust industrial bases and rising demand for machine automation in sectors like power, water and wastewater treatment, food and beverage, and automotive. Relays and switch boxes are integral components of PLC systems, enabling machine downtime reduction and improved efficiency. Multi-functionality is a crucial factor driving the market, with PLCs integrating conveyor systems, packaging systems, PC-based controllers, and cloud-based controllers. Macroeconomic factors, such as government initiatives and industrial growth, are also contributing to the market's expansion. PLCs play a significant role in the automotive industry, with the auto assembly process and smart factories benefiting from their capabilities. Hence, such factors are driving the market growth in APAC during the forecast period.

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

ABB Ltd. - The company offers programmable logic controllers such as AC500 eCo, AC500, AC500 XC and AC500 S.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including ABB Ltd., Beckhoff Automation GmbH and Co. KG, Eaton Corp. Plc, Emerson Electric Co., Ependion AB, Festo SE and Co. KG, Furukawa Electric Co. Ltd., IDEC Corp., Keyence Corp., Lenze SE, Mitsubishi Electric Corp., OMRON Corp., Panasonic Holdings Corp., Parker Hannifin Corp., Robert Bosch GmbH, Rockwell Automation Inc., Schneider Electric SE, Siemens AG, Toshiba Corp., and Infineon Technologies AG

Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Segment Overview

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• Product Outlook  
  • Modular
  • Unitary
  • Rackmount

• End-user Outlook 
  • Process industry
  • Discrete industry
  • Building automation

• Region Outlook  
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile
    • Brazil
    • Argentina 
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

You may also interested in below market reports:

•  Asia-pacific (APAC) - Programmable Logic Controller (PLC) Market: Asia-pacific (APAC) - Programmable Logic Controller (PLC) Market by End-user and Product - Forecast and Analysis 
• Micro Programmable Logic Controller (PLC) Market: Micro Programmable Logic Controller (PLC) Market by Product, End-user, and Geography - Forecast and Analysis
• PLC Software Market: PLC Software Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, China, Japan, Germany, UK - Size and Forecast

Market Analyst Overview 

Programmable Logic Controllers (PLCs) are essential components in industrial automation systems. These devices enable the automation of various industrial processes by providing real-time control and data acquisition. The PLC market is driven by the increasing demand for automation in various industries, including manufacturing, oil and gas, water and wastewater treatment, and power generation. PLCs offer several advantages, such as flexibility, ease of use, and high reliability. They can be programmed to control a wide range of processes and can communicate with various sensors and actuators. Moreover, PLCs can be integrated with other automation systems, such as Human-Machine Interfaces (HMIs) and Supervisory Control and Data Acquisition (SCADA) systems. The PLC market is expected to grow significantly due to the increasing adoption of automation in various industries. The Market represents a significant and growing segment in the automation industry. 

The market is also driven by the development of advanced technologies, such as the Internet of Things (IoT) and Industry 4.0, Static RAM which are transforming industrial automation. PLCs are used in various applications, such as process control, machine automation, and motion control. They are also used in complex systems, such as power distribution and traffic control. The growing demand for automation in these applications is expected to drive the growth of the PLC market. In conclusion, the market is expected to grow significantly due to the increasing demand for automation in various industries and the development of advanced technologies. PLCs offer several advantages, such as flexibility, ease of use, and high reliability, making them an essential component in industrial automation systems. The Micro Market represents the global industry for advanced automation solutions utilizing programmable logic controllers with microprocessor technology.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the market growth and trends and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Market growth and forecasting across APAC, North America, Europe, Middle East and Africa, and South America
• A thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market  companies

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