The Industrial Control Systems (ICS) Market is estimated to be valued at US$ 139879.53 Mn in 2023 and is expected to exhibit a CAGR of 7.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Industrial control systems (ICS) refers to the hardware and software used to monitor and control industrial processes in various industries such as oil & gas, pharmaceutical, food & beverage, energy & power, chemical and manufacturing. ICS are integrated systems that continuously monitor and control industrial operations through feedback loops and include supervisory control and data acquisition (SCADA) systems, distributed control systems (DCS), and programmable logic controllers (PLC). ICS help improve operational efficiency and productivity of industrial facilities by automating tasks that are labor-intensive, hazardous and time-consuming.
Market Dynamics:
The growth of the industrial control systems market is driven by increasing focus on optimizing industrial operations and rising adoption of industrial automation across various industries. Firstly, industrial facilities are increasingly adopting ICS solutions to optimize operations by reducing downtime, minimizing wastage and improving yield. ICS help industries improve productivity, reduce costs and maximize efficiency of production processes through real-time data monitoring and control. Secondly, the adoption of industrial automation through robotics, machine learning and big data analytics is driving the need for advanced ICS to centrally monitor and manage automated industrial operations. This is subsequently fueling demand for ICS in manufacturing plants to integrate automation solutions.
Segment Analysis
The global industrial control systems (ICS) market is dominated by the PLC segment due to its ease of programming, lower network and infrastructure costs, ability to integrate with SCADA, DCS and other systems, and cost effectiveness over dedicated controllers. Other important segments include SCADA, DCS, and others. The PLC segment held more than 30% share of the overall ICS market in 2022 owing to its wide adoption across industries such as oil & gas, chemicals, food & beverages, automotive, and power among others.
PEST Analysis
Political: The governments across major economies are focusing on strengthening cybersecurity of critical infrastructure as modern ICS are increasingly connected to external networks which can lead to cyber attacks. Stringent regulations regarding equipment testing and certification are in place.
Economic: The global economy is recovering from the pandemic induced slowdown. Rising investments in upgrading aging ICS infrastructure, digital transformation of industrial facilities, and growing focus on operational efficiency are driving market growth. High initial costs remains a challenge.
Social: Growing focus on environmental protection is necessitating adoption of sustainable industrial practices. Remote monitoring through mobile devices is increasing due to preference for work-from-anywhere model.
Technological: Advancements in IoT, AI, cloud computing, edge computing, 5G, and cybersecurity are enabling the next generation of intelligent ICS. Adoption of smart sensors and instruments is improving operational visibility.
Key Takeaways
The Global Industrial Control Systems (ICS) Market Size is expected to witness high growth, exhibiting CAGR of 7.5% over the forecast period, due to increasing investments to modernize aging infrastructure and drive operational efficiency. The market size for 2023 is estimated at US$ 139879.53 Mn.
Regional analysis: North America held the largest share in 2022 due to presence of major players and early adoption of advanced technologies. Asia Pacific is expected to witness the fastest growth through 2030 with China and India emerging as high growth markets on account of ongoing industrialization and infrastructure development activities.
Key players analysis: Key players operating in the industrial control systems market are Mitsubishi Electric Corporation, Siemens Ag, Schneider Electric Se, Abb Limited, Yokogawa Electric Corporation, Omron Corporation, General Electric, Emerson Electric Co., Honeywell International, Inc., and Rockwell Automation, Inc. Strategic partnerships, mergers & acquisitions, and new product launches are common in this competitive environment.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
