The automation hardware market is undergoing a significant change as it adapts to the growing digital transformation in manufacturing. Manufacturers are now attempting to identify best-of-breed offerings, leveraging the increasing openness of products and integrating these different assets into a comprehensive overarching solution.
Next-generation Human Interfaces (HMIs), Industrial Personal Computers (IPCs) and Programmable Logic Controllers (PLCs) are essential to deploying modern factory architecture, and each market will see strong growth over the next 10 years. According to an analysis by global technology intelligence firm ABI Research, the automation hardware market is forecast to increase from a current value of $38.7 billion in 2023 to $64 billion in 2033, a Compound Annual Growth Rate (CAGR) of 5.1%.
The PLC market is the largest industrial automation hardware segment with sales projected to reach $30 billion by 2033.
“PLC market growth is driven by new manufacturing requirements, such as for smart connected products, EVs and battery manufacturing," James Prestwood, Industrial and Manufacturing Industry Analyst at ABI Research, said. "New production techniques and a 'digital-first' mindset are also encouraging new automation solutions like software-based PLCs."
Software-based PLCs are an increasingly notable vector of transformation for the PLC market. This trend is best encapsulated by Siemens’ announcement of SIMATIC S7-1500V, a virtual PLC completely independent of hardware that is downloaded and integrated directly into a manufacturer’s IT environment.
Siemens, Mitsubishi Electric, Rockwell Automation, Emerson and ABB are among the largest players in the industrial automation hardware market, representing around 42% of the total market share. However, the market is also characterized by other prevalent market players such as Omron, Phoenix Contact, Honeywell, Bosch Rexroth and Beckhoff.
Following detailed research into the breakdown of the PLC market, ABI Research identifies large PLCs (controllers with over 1024 Inputs/Outputs (I/Os) as having the most robust growth compared to other PLC classes (Micro, Small and Medium), with a CAGR of 6.1% and revenues of US$5.6 billion by 2033.
“As manufacturers continue to adopt automation solutions with complex architectures, which increasingly demand powerful PLC assets, large PLC controllers are the ideal solution, rather than using multiple smaller PLCs to achieve similar results,” Prestwood concluded.
These findings are from ABI Research’s Industrial Automation Hardware Innovation: PLCs, IPCs, and HMIs application analysis and market data reports. These reports are part of the company’s Industrial and Manufacturing Technologies research service, which includes research, data and ABI Insights.