The development of the programmable logic controller (PLC) and PLC-based programmable automation controller (PAC) market over the last years presents a sobering picture. In 2013, the market was at the same level as in 2011 and will stay at this level in 2014. While previous growth levels approached 7 percent per year and some sub-segments of the market still show extraordinary growth; in the last three years the overall PLC market has stagnated.
In this situation, PLC suppliers search for new opportunities to gain market share, triggering both price pressure and innovation. Many suppliers work closely with OEMs and end users to further develop their technology and gain an advantage over their peers. “The technological developments increasingly shift away from PLC-centric hardware. The differences in cycle time, scalability, or CPU become marginal. This is why suppliers increasingly invest in software to achieve differentiation and avoid cutthroat price competition,” commented Florian Güldner, the principal author of ARC’s “PLCs and PLC-based PAC Global Market Research Study”.
Engineering Tools Support Users and OEMs
One of the most important criteria for choosing a PLC has become the engineering tool, which has become a key point of differentiation for PLC suppliers. Nearly all major players have invested in their software in recent years.
Engineering tools are even more important in countries with limited local engineering resources. Next to software, suppliers increasingly support OEMs and users with customized code, function blocks, and support during the engineering phase.
Increased Integration and Functionality
In recent years, suppliers have integrated more functionality into their PLCs, many of which have developed to become PACs, which provide expanded control functionality, an integrated engineering environment, and increased connectivity with both the plant and the enterprise. According to ARC market research, while PACs accounted for around 40 percent in 2007, they account for around 60 percent in 2013 and will account for over two-third in 2018.
Integrated safety has emerged to become one of the most important drivers and differentiators. With the latest changes in regulation, the trend was developed further, especially in Europe. ARC predicts that PACs without integrated safety are likely to become a niche over the next decade.
We now observe a similar development with cyber security and energy management. Starting in 2009, suppliers began to integrate energy management functionality into their PACs. This includes the ability to switch off consumers and to collect, pre-process, and pass on data from sensors and devices. While energy management is still a priority two topic, its priority will increase over the next years.
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