Distributed Control System Market

[272 Pages Report] The global distributed control system market is estimated to grow from USD 19.9 Billion in 2023 to USD 26.7 billion by 2028; it is expected to record a CAGR of 6.1% during the forecast period. There has been an increase in demand for distributed control systems recently due to a rise in investment towards automation of process industries aimed at sustainability, increased operation performance, and improved efficiency. The increasing use of distributed control system across various end-use sectors will be very advantageous for the distributed control systems market.

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Distributed Control System Market Dynamics

Driver: Growing use of renewable energy for power generation

Growing demand for energy and the increasing stringency of environmental regulations have resulted in an increased demand for unconventional sources of energy. Alternative and renewable energy sources are gaining importance, with the use of solar, wind, biomass fuels, and gasification plants expected to rise. Nuclear energy is also likely to go up steadily in the long run. Asia Pacific is estimated to witness the highest growth rate in power generation from renewable sources due to increased investments by China. Consistent governmental efforts in nonconventional energy generation are also expected to fuel the changing trends in the power sector, which is a key market for distributed control systems. Moreover, the US utilities have geared up to the strict pollution and environmental standards that have been imposed on coal power plants through switching to natural gas power generation. Another thing that is driving this phenomenon is the recent shale gas boom in North America. The American Council for an Energy-Efficient Economy (ACEE) is a source of incentives and tax rebates for the installation of distributed control systems.

Restraint: Sluggish response time of distributed control system

Distributed control systems have slower response times than the major alternatives such as PLC and hybrid PLC. The response time of PLC is one-tenth of a second. In contrast, a distributed control system takes a longer time to process data, and therefore, is unsuitable for applications where response time is a critical issue. Hence, distributed control systems are not used for safety systems and other critical discrete manufacturing processes. This is hampering the growth of the DCS market in end-use industries such as paper & pulp, automotive, and fine chemicals.

Opportunities:  Development of power grid market

Along with opening markets for new entrants, the development of the power grid market is likely to create opportunities for traditional energy infrastructure vendors. New aspirants, such as IT hardware providers, software solution providers, telecommunication and networking companies, semiconductor manufacturers, and system integrators, would pose a challenge to the traditional players/vendors. A service-oriented business model to offer a set of products and services fulfilling the basic requirements of customers could help new entrants strengthen their position in the DCS market. However, participants would need to make their presence felt during the entry into the market to effectively face the competition from traditional vendors.

Challenges: Slowdown in mining industry in Asia Pacific, Americas, and Africa

The mining sector is in a downward spiral in countries like Australia, the US, Argentina, and large African nations causing a steep fall in the output of the industry. Labor strikes, tough regulations, and escalating operational expenses are the key challenges that the sector is dealing with. Some of the large companies are in the process of finding some measures to reduce costs, addressing smaller projects, and selling non-performing assets to gain profitability. This depression is anticipated to continue, which, on the other hand, would be a challenge for the DCS market.

Distributed Control System Market Ecosystem

Major companies working in the DCS market include well-established and financially stable manufacturers of distributed control systems. These enterprises have been actively participating in the industry for quite a few years and are accompanied by a multi-product portfolio with the latest technology applications, as well as, very active across the globe in terms of sales, marketing networks, and many more. Siemens (Germany), ABB (Switzerland), Schneider Electric (France), Emerson Electric Co. (US), and Honeywell International Inc. (US) are the major players in the distributed control market.

Services, by component, is expected to be the fastest growing segment during the forecast period.

This report segments the distributed control system market based on component into three types: software, hardware, and services. The services segment is expected to be the fastest growing segment during the forecast period. Distributed control system services include maintenance, installation, upgrades, plant asset management, alarm management, lifecycle services, migration services, consulting services, simulation and training services, and technical assistance. The need for plant optimization across industries is one of the key factors driving the services segment of the distributed control system market.

By application, the continuous process is expected to be the largest segment during the forecast period

This report segments the distributed control system market based on application into two segments: continuous process and batch-oriented process. The continuous production process is used in oil & gas, chemicals, power generation, and water & wastewater treatment industries. It is one of the more efficient and profitable methods of production. The use of distributed control systems in nuclear and renewable sectors in the power generation industry and upstream and downstream activities in the oil & gas industry are the major factors driving the continuous process segment. The increasing production of chemicals and the growing demand for distributed control systems in the refining industry also contribute to the segment’s growth.

"Asia Pacific": The largest in the distributed control system market"

In distributed control systems market Asia Pacific is expected to have the largest market share between 2023-2028 and is followed by North America and Europe. Due to the population boom and the urbanization poor infrastructure has developed which, in turn, amped up the power demand throughout the region. As per the Indian Electrical and Electronics Manufacturers' Association (IEEMA), the electricity generation capacity in India is expected to increase from 200 GW in 2010 to over 800 GW by 2032 to fulfill the increasing demand for power. Thus, there is a need for a huge investment of approximately USD 300 billion in the next 3-4 years in power generation industry, which will increase the demand for distributed control systems in this region. Moreover, the automation is increasing in APAC across various industries because of the rising need for high-quality products and increasing production rates.

Key Market Players

The distributed control system market is dominated by few of the major players that have a wide regional presence. The major players operating across the regions in the distributed control system market include Siemens (Germany), ABB (Switzerland), Schneider Electric (France), Emerson Electric Co. (US), and Honeywell International Inc. (US). Between 2018 and 2022, strategies such as contracts, agreements, partnerships, Product launches, mergers, acquisitions, and expansions are followed by these companies to capture a larger share of the distributed control system market.

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Scope of the Report

This research report categorizes the distributed control system market based on shipment scale, component, application, end-use industry, and region.

On the basis of shipment scale:

• Large
• Medium
• Small

On the basis of component:

• Hardware
• Software
• Services

On the basis of application:

• Continuous process
• Batch-oriented process

On the basis of end-use industry:

• Oil & Gas
• Power Generation
• Chemicals
• Food & Beverages
• Pharmaceutical
• Metals & Mining 
• Paper & Pulp
• Others

On the basis of region:

• North America
• Europe
• Asia Pacific
• South America
• Middle East
• Africa

Recent Developments

• In February 2023, ABB has recently launched the ABB Ability Symphony Plus distributed control system (DCS) in order to support digital transformation in the power generation and water industries.  The latest Symphony Plus version will further enhance customers digital journey, through a simpler and secure OPC UA1 connection.
• In October 2022, Emerson have signed a five-year agreement with LANXESS, a specialty chemicals company. Emerson will help drive the adoption of advanced automation technologies and enable more efficient project implementation that will allow LANXESS to achieve shorter time-to-market for new products.
• In October 2022, Emerson has introduced a new version of its DeltaV distributed control system (DCS). DeltaV DCS Version 15 assists facilities in digitally transforming operations through increased production optimization and improved operator performance.
• In December 2022, Valmet will deliver the Valmet DNA Automation System (DCS) and the Valmet IQ Quality Control System (QCS) to Schumacher Packaging's Myszków facility in Poland for the repair of the board machine 2. The aim is to increase the plant's output efficiency and product quality. The installation is set to begin in May 2023.
• In November 2022, Rockwell Automation launched the FLEXHA 5000TM I/O family, which provides high availability and continues the advancement of the PlantPAx Distributed Control System (DCS). It provides easily integrated design, allowing clients to observe more efficient engineering time, consistent operations, and optimized footprints.

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