ARC Advisory Group: PLC Market to Grow to $12B in 2011
August 2, 2007 // Published as a news service by IHS
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Manufacturing growth is resulting in growth for programmable logic controllers (PLCs) and all segments of automation products and services, according to ARC Advisory Group.
The worldwide market for PLCs is expected to grow at a compounded annual growth rate (CAGR) of 7.3% over the next five years. The PLC market was more than $8.3 billion in 2006 and is forecast to grow to nearly $12 billion in 2011.
ARC predicted that capital investments for automation will remain strong across many industries during the next five-year period.
"It is clear that manufacturers have come to rely heavily on automation technology as they work to optimize their operations to maximize productivity and profitability in an increasingly competitive global manufacturing environment. As a result, the demand for PLCs will grow robustly," said Himanshu Shah, ARC senior analyst.
Demand side conditions in the automation marketplace remained strong, with continued heavy investment in China, India, Latin America, Eastern Europe and the Middle East.
Manufacturing companies continue to increase investments in capital expenditures for automation equipment as they recognize the role of automation and its contribution to the profitability and success in the global market.
PLC applications cut across discrete, process and hybrid automation segments and are poised for substantial and steady growth across all manufacturing, ARC reported. Manufacturing companies, aware of the need for more automation and the need to be energy efficient, are increasingly using PLCs.
Investments were made in many industrial segments that cater to growing consumer demand, energy generation and conservation and infrastructure development needs. This environment represents a boon to PLC suppliers because PLCs are widely used in industrial and building automation industries, ARC said.
The market remains competitive among small and large suppliers that are chasing manufacturing activities around the world by setting up local support facilities. Small and large suppliers continue to innovate and introduce new products that offer higher value propositions to both OEMs and end-users. ARC research found that these dynamics are driven by the increasing demand for flexibility and agility in manufacturing operations at the lowest possible lifecycle cost of plant equipment.
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For more information about the report, titled Programmable Logic Controller Worldwide Outlook, visit http://www.arcweb.com.
Source: ARC Advisory Group.