Domestic PLC market analysis

Automation is becoming an indispensable part of modern society with ultra-fast growth trends, and it is also the key to manufacturers' rapid service to the global market. Imanshu Shah, senior analyst at ARC Consulting Group, said: "It is clear that in an increasingly competitive global manufacturing environment, manufacturers must rely on automation to increase production and profitability."
Compared with industrial developed countries, China's industrial development and automation application level has been lagging behind for decades. According to the current economic situation, China will usher in a period of rapid growth of PLC market. Based on the current and stable growth of China's economy, China's PLC market will continue to grow at a high speed in the next few years. Relevant data shows that the total amount of PLCs currently sold in China is estimated to be RMB 3 to 4 billion (excluding PLCs supplied with imported main equipment), with an annual growth rate of 15-20%. The huge market demand provides a rare historical opportunity for the development of PLC business. Domestic powerful automation companies should make full use of the accumulation in the market, technology, industry influence and brand, and vigorously expand the PLC business, so that the domestic PLC will become China PLC as soon as possible. One of the main players in the market.

For a long time, programmable controllers have always been the main battlefield in the field of industrial control automation, providing a very reliable control solution for a variety of automation control equipment, forming a three-pronged trend with DCS and industrial PC. At the same time, PLC is also suffering from the impact of other technology products, especially the impact of industrial PC.

ARC Consulting Group's latest research shows that in the next five years, capital investment in automation products will continue to be strong in all industries. The PLC China market is expected to grow at a compound annual growth rate (CAGR) of 12.4%, with market share expected to grow from nearly $750 million in 2006 to $1.3 billion in 2011.

In recent years, Chinese OEM machinery manufacturers have been busy improving the automation level of domestic machinery and reducing their dependence on high-end foreign machinery products. Therefore, as a typical control product, PLC is widely used in textile machinery, plastic machinery, printing machinery, food machinery, packaging machinery, lifting machinery, machine tools and chemical machinery.

Due to the economic downturn, demand has declined, and it has experienced a negative growth in applications such as elevators, textile machinery, construction machinery, power equipment, paper machinery, electronic manufacturing equipment, material handling, machine tools, HVAC, plastic machinery, and rubber machinery. The metallurgical industry is the most popular project-oriented market for PLCs. It is dominated by large and medium-sized PLCs. Due to overcapacity, shrinking demand and falling prices, PLC has continued to remain sluggish in the industry.

At present, there are more than 200 manufacturers in the world producing more than 300 varieties of PLC products, mainly used in automobiles (23%), grain processing (16.4%), chemical / pharmaceutical (14.6%), metal / mining (11.5%), pulp / paper (11.3%) and other industries.

Throughout 2009, PLC's application in most OEM industries will remain in a sluggish state. Only a few industries such as food machinery and packaging machinery that are not affected by the economic cycle can still maintain a certain growth. However, some industries such as automobiles, public facilities, mining, municipalities, etc. are directly driven by national stimulus policies, and PLC demand is not reduced, becoming the backbone of PLC's steady growth.

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