ARC study finds PLC growth ‘robust’

As the world economy rebounded to a strong year in 2004, the heightening demand from various emerging markets created robust growth for the worldwide Programmable Logic Controller (PLC) market. The worldwide market for PLCs is expected to grow at a annual growth rate of 5.9% over the next five years. The PLC market was nearly $7 billion in 2004 and is forecasted to grow to over $9 billion in 2009, according to a new ARC Advisory Group study.

Many elements of modern information technology are being incorporated into PLCs, raising their attractiveness as a center stage plant floor controller among worldwide manufacturers. “Global manufacturers are challenged to seek automation equipment that supports their business objectives such as improving return on assets, enhancing overall equipment effectiveness, and providing real-time performance management. The PLC, being primarily an automation controller designed with modern IT features, plays a key role in supporting these objectives,” according to senior analyst Himanshu Shah, the principal author of ARC’s “Programmable Logic Controller Worldwide Outlook.”

Although overall capital expenditures have remained flat in previous years, globalization is increasingly causing manufacturers to allocate ongoing investments towards automation in order to drive down costs and raise the quality of manufactured products. A modest turnaround in overall capital spending in 2005 and beyond is expected as manufacturers gear up production to meet rising global demand.

Do you have experience and expertise with the topics mentioned in this content? You should consider contributing to our CFE Media editorial team and getting the recognition you and your company deserve. Click here to start this process.