LONDON--(BUSINESS WIRE)--Technavio research analysts are forecasting positive growth for many segments of the global automation market over the next four years as several markets including micro programmable logic controller (PLC), plant automation solutions, and industrial automation control, will witness an increase in revenues.
A detailed study carried out by Technavio research analysts exhibit the global market for micro PLCs to grow at a steady CAGR of over 8% during the period 2016-2020. Compact automation solution is a primary driver for the growth of the market. The report predicts the demand for compact automation solutions to increase among industries in the coming years as these solutions help companies to have more control over their inventory, reduce transportation costs, and economize logistics.
The end-user segment of the micro PLC market includes automotive, oil and gas, power, food and beverage, and water and wastewater industry. The automotive industry is the biggest end-user in the global micro PLC market and is envisaged to generate revenues of almost USD 2 billion by 2020.
Apart from micro PLCs, the global industrial automation control market is also predicted to grow steadily at a CAGR of close to 8% during the forecast period. High capital expenditure in industries such as oil and gas, power, and automotive contributed to the growth of this market. For instance, capital investment by Ford Motors surpassed USD 7 billion in 2015, and a portion of this investment was used for building new plants, where automation solutions such as DCS, PLC, sensors, and drives were installed. “The emergence of IoT, integrated with modern industrial automation control systems is also expected to boost market growth in the coming years,” says Bharath Kanniappan, a lead analyst at Technavio for industrial automation research.
The global industrial automation control market is segmented into the following products: distributed control systems (DCS), PLC, drives, and sensors. As of 2015, the DCS segment dominated the market with a market share of close to 30%. The DCS market relies heavily on retrofit orders from developed economies that are replacing their old DCS to maintain overall production efficiency. DCS manufacturers are also tapping the opportunities created by the capacity expansion drives in the power industry in India and China.
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The rising need to enhance productivity, improve safety, and reduce production costs has fostered the growth of the global plant automation solutions market, which is another fast-trending automation market. Technavio’s market research analyst predicts the global plant automation solutions market to grow at a CAGR of around 6% during the forecast period. The augmented adoption of plant automation solutions, such as DCS, PLC, supervisory control and data acquisition (SCADA), and manufacturing execution system (MES), is enabling industries to control, monitor, and manage various plant operations on a real-time basis.
Another factor driving the growth of the plant automation solutions market is the rising demand for cyber secure automation solutions as there have been considerable cyber threats to plant automation solutions over the past decade. For instance, Stuxnet cyber worms attacked Siemens’ PLC in 2010, affecting the security of a whole plant. Such attacks are not limited to PLC, but also to other plant automation solutions such as DCS, SCADA, and MES. Therefore, vendors have been compelled to develop foolproof cyber secure plant automation solutions.
Some of the key vendors for automation technology include Mitsubishi, OMRON, and Rockwell Automation for micro PLC, ABB, Emerson, and Honeywell for industrial automation control, and Siemens and Schneider for plant automation solutions.
Browse related reports:
- Global SCADA Market in the Oil and Gas Industry 2016-2020
- Global PLC Market 2016-2020
- Global Industrial Automation Market in Life Sciences Industry 2016-2020
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