Keywords: Programmable Logic Controller (PLC), Programmable Automation Controller (PAC), Industrie 4.0, Market Research Study, Market Shares, Market Forecast
The market for PLC and PLC-based PACs in China will be driven by multiple factors, such as the “Made in China 2025” strategy and increased capabilities of PLC and PLC-based PACs, as per ARC Advisory Group’s new study.
ARC also noticed that there are some constraints inhibiting the growth, e.g. overcapacity of more and more PLC and PLC-based PAC served industries, China’s weakened manufacturing competency, low oil prices, environmental protection pressure, and others. ARC estimates that the China market for PLC and PLC-based PACs is likely to maintain a slow growth rate during the forecast period (2014-2019).
“The PLC and PLC-based PAC market in China has changed – both in terms of industrial requirements and customer expectations. If the suppliers want continuous success in this market, they need to gain a better understanding of the market dynamics and respond quickly. Identifying the good industries, gaining market entry, and succeeding are important factors for suppliers,” according to David Cao, Country Manager, ARC Advisory Group China, co-author of ARC’s new “PLCs and PLC-based PACs for China Market Research Study”.
Growth at a Slower Pace
The PLC and PLC-based PAC market in China has seen a lot of fluctuations in recent years. Growth in some years was high, while in others there was a decline. The softening global economy and reduced exports impacted China’s business climate. ARC believes that these market constraints will not change in the near or medium terms, and we estimate China’s PLC and PLC-based PAC market will grow at a slow pace during the forecast period. The largest driver of this market will be the “Made in China 2025” strategy – its key purpose is to improve the competency of China’s manufacturing by leveraging the latest smart manufacturing technologies.
Software and Services Increase in Importance
Software and services are becoming increasingly important for PLC suppliers and end users. PLC-related services are also getting more important. PLC purchasers are looking for more than just computing power and specific cycle times. Overall, with hardware alone, there is little room left for differentiation. Suppliers can often improve their growth prospects by clearly positioning their offering’s respective strengths (best-of-breed technology, comprehensive portfolio, low price, easy to work with, etc.).
For more information on this study, please visit our Market Research section.