Research Report on the In-Depth Development and Future Trends of Programmable Logic Controllers PLCs

Research Report on the In-Depth Development and Future Trends of Programmable Logic Controllers (PLCs)

1. Introduction

As the cornerstone of industrial automation, Programmable Logic Controllers (PLCs) have played a core control role in various industrial applications since their inception. With the global manufacturing industry transforming and upgrading towards intelligence, networking, and flexibility, PLC technology is also continuously evolving. This report aims to delve into the technological advancements in PLC in-depth development by current internationally renowned brands (Siemens, Rockwell Automation, Mitsubishi Electric, Beckhoff, ABB, Schneider Electric, Omron) and domestic brands (Inovance, Guangcheng), and analyze the development trends of PLCs in technology, market, and application over the next 1-5 years, with particular focus on key industries such as industrial, automotive, and hydrogen energy, while considering both global and specific regional (China) trends.

2. PLC Market Overview and Competitive Landscape

2.1 Market Size and Growth

The global PLC market maintains stable growth. The global PLC automation market size was estimated at USD 10.2 billion in 2022 and is projected to grow to USD 15.5 billion by 2032, with a Compound Annual Growth Rate (CAGR) of approximately 4.27% from 2024 to 2032. The Asia-Pacific region is a significant growth engine, with a market size estimated at USD 4.57 billion in 2024, expected to reach USD 5.88 billion by 2029, representing a CAGR of 5.20% during the forecast period.

The Chinese market is a crucial component of the global PLC market and is growing faster than the global average. The size of the Chinese PLC market is estimated to reach CNY 16.54 billion in 2023. Although the market size slightly decreased to CNY 16.986 billion in 2022, the Chinese market still holds long-term potential. For instance, in 2020, large and medium-sized PLCs and small PLCs in China achieved growth rates of 18% and 7% respectively. Some reports predict that the size of the Chinese PLC market will grow to CNY 6.92 billion by 2026 (this data may pertain to a specific market segment or have unit discrepancies, requiring interpretation in conjunction with the CNY 16 billion+ data based on the specific report context, but the trend is growth), with a relatively high average annual compound growth rate. Other data shows that the size of the Chinese PLC market grew from CNY 12.131 billion in 2018 to CNY 15.091 billion in 2022, with a CAGR of 5.61%, and reached CNY 17.66 billion in 2024.

The main drivers of market growth include:

• Continuous improvement in the level of industrial automation.

• Rising labor costs prompting enterprises to invest in automation.

• Steady progress of national strategies such as "Made in China 2025".

• Support from policies related to intelligent manufacturing and industrial automation.

• Strong demand for PLCs from emerging industries (such as new energy vehicles, semiconductors, lithium batteries, hydrogen energy). The demand for PLCs in lithium battery production equipment is growing at an annual rate of 34%, becoming the largest incremental market.

2.2 Competitive Landscape

The global PLC market is highly concentrated, dominated by international giants. Siemens holds the top position globally with approximately 40% market share (2023), followed by Rockwell Automation, Omron, and Schneider Electric.

In the Chinese market, the competitive landscape is similar, with European, American, and Japanese brands holding the vast majority of the share. Siemens' share in the Chinese market exceeds 40%, and Mitsubishi accounts for about 14%. European and American manufacturers (Siemens, Schneider, Rockwell) have complete product lines covering the small, medium, and large PLC markets. Japanese manufacturers (Mitsubishi, Omron) excel in small PLCs.

In recent years, domestic brands have made significant progress in the small PLC market, leveraging high cost-effectiveness, flexible business models, and customization capabilities, leading to a continuous increase in localization rates. Inovance Technology is a prominent player, holding leading domestic market shares in the three major components: inverters, servo motors, and PLCs. In the first half of 2023, Inovance Technology's PLC business revenue was CNY 785 million, a year-on-year increase of 17.0%, benefiting from growth in industries such as photovoltaic, energy storage, chemical, automotive, and semiconductor. Other domestic brands such as Supcon, HollySys, and Baoxin Software have advantages in specific fields or technical applications. Nanjing Autrol is a company with a high localization rate, having achieved complete independent intellectual property rights for both hardware and software.

Although domestic brands perform well in the small PLC market, there is still a gap compared to international giants in the medium and large PLC markets and high-end technology fields. In 2020, foreign brands held over 79% of the market share in China's PLC market. However, the trend of domestic substitution has begun, especially in the context of increasing demand for industrial control security.

PLCs can be classified into small (mainly used in the OEM market), medium, and large (mainly used in the project-based market) PLCs based on I/O points; and into block, rack, and modular PLCs based on structure.

3. Technical Trends in PLC In-Depth Development (1-5 Years)

The technical development of PLCs is evolving towards higher performance, greater openness, increased intelligence, and enhanced security, with the core lying in the deep integration of hardware, software, firmware, and emerging technologies.

3.1 Hardware Layer Development

Hardware is the foundation of PLC performance and functionality. Future PLC hardware will be more powerful and flexible.

• Application of Multi-core CPUs: To handle increasingly complex control tasks, data processing, and AI algorithm execution, PLCs are adopting multi-core processors. For example, Beckhoff's TwinCAT software runs a multi-tasking operating system with parallel components, supporting the deployment of various functional loads such as control logic, artificial intelligence, and data processing on multi-core CPUs. This allows a single PLC to simultaneously handle real-time control and non-real-time computing tasks.

• Integration of Edge Computing Capabilities: Integrating edge computing capabilities into PLCs or tightly coupled edge devices is a significant trend. This allows data to be processed and analyzed closer to the production site, reducing reliance on the cloud, improving real-time performance, and lowering network bandwidth requirements. B&R's X-series industrial controllers unify the deployment of real-time systems and general-purpose systems on ARM architecture integrated SoC chips, achieving efficient integration of real-time high-frequency tasks with IT applications such as data storage, artificial intelligence, image recognition, and human-machine interaction. This new type of PLC can be categorized as an IPIC (Intelligent Programmable Industrial Controller).

• Customized Chips and Hardware Acceleration: To enhance the performance of specific functions (such as motion control, AI inference), PLC manufacturers or their partners are developing customized chips or integrating hardware acceleration units. Inovance Technology has independently developed and designed a drive control integrated SIP chip that integrates the main control MCU, storage, motion control algorithms, and industrial real-time Ethernet IP. Chips with built-in NPUs, such as Rockchip RK3588, provide hardware suppo