ARC Launches MarketMap Study on I/O Modules for Discrete Automation

ARC’s new MarketMap will evaluate supplier capabilities, deployment readiness, and strategic positioning in the discrete automation I/O module market.

ARC Advisory Group has initiated a new MarketMap research study focused on I/O Modules for Discrete Automation, providing a structured evaluation of technology suppliers that serve factory automation and machine control applications. The MarketMap will benchmark supplier capabilities, deployment readiness, and strategic positioning to help end users and suppliers better understand competitive dynamics in this important segment of industrial automation.

As discrete manufacturing environments become more modular, data-driven, and software-centric, I/O architectures are gaining renewed strategic importance. ARC’s MarketMap will offer decision-grade insight into how suppliers are addressing evolving customer requirements for flexibility, scalability, and seamless integration with modern control platforms.

Market Context and Significance

Discrete automation systems are under increasing pressure to support higher levels of productivity, customization, and operational resilience. Labor shortages, growing use of robotics, and the need for faster changeovers are driving manufacturers to modernize machine architectures and standardize automation building blocks.

Within this context, I/O modules play a critical role as the physical and logical interface between machines, sensors, actuators, and control systems. Advances in PLC processing power, backplane architectures, and distributed automation have expanded the functional scope and strategic relevance of discrete automation I/O. Industries such as automotive, electronics, packaging, food and beverage, and general machinery are all seeing renewed investment in flexible and scalable I/O solutions.

Defining the Technology

For the purpose of this MarketMap, ARC defines I/O Modules for Discrete Automation as modular input/output components used primarily in discrete, or factory, manufacturing applications, particularly for machine-level control. These modules form part of a broader I/O system architecture and are tightly integrated with PLC-based control platforms.

The scope of the research includes digital and analog input/output modules across typical industrial voltage ranges, as well as combination modules and intelligent modules that share a common chassis and backplane architecture. It also includes local I/O extension modules used with micro or small PLCs and drives or motor starters that mount directly onto an I/O system via a shared backplane. Supporting elements such as chassis, power supplies, terminal blocks, and system-specific cabling are included when they are explicitly part of the I/O system.

Excluded from scope are PLCs and other controllers with built-in control functionality, standalone application-specific controllers, I/O modules with onboard logic control, and drives or motor starters that communicate only through industrial networks rather than a shared I/O backplane.

Market Drivers and Industry Adoption

Several factors are accelerating adoption and innovation in discrete automation I/O. Manufacturers are seeking more compact and modular machine designs, driving demand for integrated and backplane-mounted I/O solutions. The shift toward distributed control and decentralized architectures is increasing interest in flexible I/O configurations that can be easily scaled or reconfigured.

At the same time, end users expect tighter diagnostics, improved availability, and easier engineering and commissioning. Suppliers are responding with smarter I/O modules, broader portfolio integration, and closer alignment with automation software ecosystems. However, the market remains fragmented, with varying levels of maturity across regions, industries, and supplier offerings.

ARC MarketMap Perspective

ARC’s MarketMap will assess suppliers based on a consistent and transparent framework that examines product capabilities, system architecture, deployment readiness, ecosystem integration, and long-term strategy. The analysis will highlight relative strengths, differentiation strategies, and gaps in supplier portfolios.

The goal is to provide both end users and suppliers with clear, objective insight into the competitive landscape and the direction of discrete automation I/O technology.

“The market for discrete automation I/O modules is evolving, but it remains fragmented and uneven in terms of capability and integration,” said Siddhartha Maiti, Senior Analyst at ARC Advisory Group. “This MarketMap is designed to help the industry understand where suppliers truly differentiate today and how I/O architectures are likely to evolve as machine automation becomes more modular and data-centric.”

Call for Supplier Participation

ARC invites technology suppliers active in the discrete automation I/O market to participate in this MarketMap. Participation includes structured data submission and analyst briefings to ensure accurate and comprehensive representation in the research.

Suppliers interested in participating or learning more about the MarketMap process should contact ARC Advisory Group directly.

About ARC Advisory Group

ARC Advisory Group is the leading technology research and advisory firm for industry, infrastructure, and cities. ARC analysts have the industry knowledge and firsthand experience to help clients find the best answers to complex business issues. ARC provides technology supplier clients with strategic advice and marketing support to guide product and market development. ARC advises end user clients on technology selection, operational performance, and digital transformation strategies.