Market Trends of Asia-Pacific Programmable Logic Controller Industry
This section covers the major market trends shaping the APAC Programmable Logic Controller Market according to our research experts:
Automotive Industry Driving Significant Growth
- PLCs are used in the automotive sector to replace hard-wired relay logic systems with flexible, durable, and easily programmable controllers. For instance. According to Japan Automobile Manufacturing Association, In 2021, Japanese automakers are expected to produce roughly 16.46 million automobiles outside of Japan, up from 15.38 million in the previous year. This was more than double the amount produced in the United States. Such Huge production will create an opportunity for the studied market to grow in the region.
- Successful integration of different automation stages in the automobile manufacturing industry leads to value creation in the supply chain, which ensures a long-term competitive edge and price reduction for the domain. India's EV finance industry is expected to reach INR 3.7 lakh crore (USD 50 billion) by 2030, according to Rocky Mountain Institute (RMI) and NITI Aayog. According to a survey by the India Energy Storage Alliance, the EV market in India is expected to grow at a CAGR of 36% until 2026.
- A brand like Hyundai has been investing heavily in smart mobility solutions to stay ahead of its competitors. With cars becoming smarter and more connected, having a company specializing in robotics and AI can be a great asset in the long run. In June 2021, Hyundai Motor Company recently confirmed that they had bought a controlling interest in Boston Dynamics from SoftBank. According to the deal, the American robotics developer has been valued at USD 1.1 billion, and Hyundai has 80 % shares while SoftBank still owns 20%. This will provide local players to develop new products or incorporate new features in the existing products to cater to the need of the customer.
- Machine downtime is one of the significant factors that impact the automobile manufacturing efficiency of an industry. According to data from ISA.org ( International Society of Automation), it has been observed that downtime is responsible for 5-20% of the manufacturing losses incurred during operation. Machine downtime can be reduced from 20% to 4% by using automated PLC systems. The increased need for reducing system downtime is driving the growth of the market studied. Their capabilities make PLCs more exclusive than conventional personal computers (PCs) and workstation arenas. The PLCs can share data rapidly within and between companies. This rapid data sharing has helped reduce downtime as PLCs can automate the FTP and web servers, international databases, and email sending.
- I/O modules are devices that transfer data to or from a computer, such as a PLC. The growing field devices such as sensors and actuators drive the need for I/O modules. The sensor signal representing a process variable such as liquid flow is converted by an Input I/O module and stored in the PLC. The actuator receives an operating signal from an I/O module.
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China is one of the Region Driving the Market
- The Firms in the region are developing new products to carter the wide range needs of the customer. For instance, in July 2021, Shanghai Baosight Software Co Ltd launched a huge programmable logic controller product that was created in-house. Baosight Software independently studied and created the huge PLC product, a crucial component in industrial control systems. Baosight has finally conquered the technology problems in precise control and high-speed communication after a decade of dedicated research.
- Furthermore, The companies in the region are enhancing their product portfolio to meet the demands of different end users. For Example, SINOVO PLC is a programmable logic memory controller with many applications. Machine tool, textile, package, printing, plastic cerement, paper-making, pharmacy, petroleum, chemical industry, elevator, hoisting machines, cables, ceramics, building automation, fan pumps, vehicles, rail transit, CNC machine tools, and other systems and control equipment all use SINOVO electric products.
- The market studied is strongly impacted by the industrial output and the investment funneled into computers and software. These PLC systems have traditionally been the foundation of process and discrete factory automation. The growing adoption of Industry 4.0 across the industrial verticals augmented the market studied.
- The demand for factory automation includes the demand for automated production lines and supply chain and has driven it towards the factory automation sphere and has been supported by favorable investments. Several investments mark the country to further the growth of the studied market, with major key players expanding into the region and the injection of funds by venture capitalists into the emerging start-ups with potential. For instance, in April 2021, Youibot, a start-up company that makes industrial robots, closed an investment of USD 15.47 million in the funding round led by SoftBank Ventures Asia alongside others. The company generates 80% of its annual revenue in China and has plans to spend the raised funds on research and development.
- In a drive to boost the sector's technology and market competitiveness in a new phase of severe global competition in advanced manufacturing, In December 2021, China launched a five-year plan for smart manufacturing, promising that large manufacturers will complete digitalization by 2025. According to the plan, more than 70% of large-scale Chinese firms should be digitalized by 2025, and more than 500 demonstration manufacturing facilities will be created around the country. Also, according to the strategy, intelligent manufacturing equipment and industrial software's technological level and market competitiveness should be significantly increased, with market satisfaction rates exceeding 70% and 50%, respectively.
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