Product Code: 52779
The distributed control systems market is expected to grow by registering a CAGR of 6.1% during the forecast period. The distributed control system market will be driven in the future by the tendency for manufacturers in the process industry to implement the best automation technologies in order to obtain a competitive edge in the current competitive environment.
- The growing adoption of smart applications and IoT technologies are the key drivers for the market. With the increased adoption of smart devices, there is an increase in the demand for multifunctional microelectronics with reduced time delays and improved performance.
- The process industry currently operates in a very complex environment, and the requirements for its control technology are correspondingly demanding. Control technology is a key lever for gaining a competitive edge in the process industry, all the more so if it can meet the tremendous challenges of both today and tomorrow. The latest iterations of DCS systems provide marked improvements over their predecessors regarding security, compatibility with the latest technology, and operator effectiveness, which drives the distributed control systems market.
- The latest iterations of DCS systems provide marked improvements over their predecessors regarding security, compatibility with the newest technology, and operator effectiveness, which is a market driver for distributed control systems. Modern DCSs include new capabilities, such as asset diagnostics, performance monitoring, fleet management, alarm handling during the fault, prioritizing messages, and simplifying actions to be taken in the event of a failure. The purpose of the newer DCSs is to serve the entire lifetime of the power plant. The DCSs can be updated online, where updates and security patches are installed, and new features can be added without shutting down the plant.
- Moreover, DCS is often employed in batch-oriented or continuous method operations, such as oil purification, power generation, organic compound manufacturing, craft, food and drink manufacturing, pharmaceutical production, and cement. DCSs can control various instrumentality types, including variable speed drives, quality control systems, motor control centers (MCC), kilns, manufacturing equipment, and mining equipment.
- One of the significant benefits of DCS systems is that the digital communication between distributed controllers, workstations, and other computing elements follows the peer-to-peer access principle. To achieve greater precision and control in process industries, like the petrochemical, nuclear, and oil and gas industries, there is an increasing demand for controllers which offer specified process tolerance around an identified set point.
- These requirements have driven the adoption of DCS, as these systems provide lower operational complexity, project risk, and functionalities, like flexibility for agile manufacturing in highly demanding applications. The ability of DCS to integrate PLCs, turbomachinery controls, safety systems, third-party controls, and various other plant process controls for heat exchangers, feedwater heaters, and water quality, among others, further drives the adoption of DCS in the energy sector.
- According to Wind Europe, due to COVID-19, delays were expected in many new wind farm projects, causing developers to miss the deployment deadlines in the auction systems and face financial penalties. The International Renewable Energy Agency stated that despite the pandemic threatening global supply chains in the power sector, it would not stop the industry from transitioning to net-zero CO2 emissions. The pandemic also showed how essential manufacturing automation is to modern industry functioning, with some fueled by social distancing and some by cyber threats. Social distancing measures have had a greater impact as they led the manufacturers to restructure their operations to rely more on robotics.
Key Market Trends
Services Constitute a Considerable Market Share
- The services market in the DCS industry is the most intriguing of all the revenue stakeholders among the other components included in the report's scope.
- Moreover, the top market suppliers continue to emphasize expanding capabilities for both project services and operations and maintenance services for continuous market expansion. The different components in the scope of services covered in the market report include project management services, non-contract maintenance, retrofits, and upgrades.
- Due to an enormous increase in the number of distributed antenna systems service providers in the industry, the services market, which currently holds a significant part of the DCS market, is anticipated to develop at the fastest rate over the projection period.
- With the rising awareness, industry players are focusing on deploying and executing IIoT strategies to enhance the DCS network services. Currently, the relationship has changed because sensors and other edge devices are far more capable, with some processing and communications abilities similar to a PC. Instead of acting in a passive listen-and-respond role, each device can perform more as a peer.
- In addition, the main automation contractor (MAC) concept is increasingly becoming important in project services, where the supplier is responsible for all automation-related systems of the project.
- The trend is growing in the majority of the large DCS projects. The services market encapsulates entities from the bottom of the pyramid, i.e., the spare parts and repairs, which prove to be helpful in system productivity, cost curtailment, and extension of the product life cycle and systems by reducing the uptime of production units, thus, efficiently delivering operational excellence.
North America Holds Significant Market Share
- The rapidly growing shale gas industry in North America is expected to be a major driver of the Distributed Control Systems market in the region.
- The shale gas percentage is expected to reach nearly 45% by 2035, which is likely to result in a parallel growth of the tightly integrated DCS market, which provides sustainability of the process through redundant controls in high-risk environments.
- In addition, this market is currently challenged by reducing oil prices globally but can be relied upon to be a sizeable industry in the future. The requirement of a large amount of water in Shale gas extraction has created a market for DCS systems in water treatment facilities, resulting in a significant rise in the overall market.
- Moreover, the chemicals sector in North America is benefiting from improved dependability, simplified remote monitoring, and lower installation costs. Additionally, several businesses in the chemicals sector are switching from outdated DCS systems to more advanced ones to improve production, efficiency, and safety and decrease human error.
- The oil and gas industry in North America is process-driven, with ongoing operations and intricate monitoring methods. It is challenging for operators to keep an eye on and regulate the operation of the machinery used in the sector. Many North American businesses are implementing the usage of an HMI and a controller, or DCS, which enables operators to manage operations. These systems automate safety procedures, including alarm management systems, and perform equipment maintenance and repair tasks.
- Distributed control systems have proven vital in managing nuclear power plants, further helping their market in the United States and continuously increasing its nuclear power plant capacity and numbers.
There are several significant competitors in the competitive distributed control system market. Few of the big competitors now control the majority of the market in terms of market share. Major firms with a sizable market share are concentrating on growing their consumer base internationally. To improve their market share and profitability, many businesses are relying on strategic collaboration projects.
- July 2022 - Emerson announced validating the Dragos Platform within its DeltaVTM distributed control system (DCS), providing organizations with greatly enhanced ICS/OT cybersecurity.
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
TABLE OF CONTENTS
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Value Chain Analysis
- 4.3 Market Drivers
- 4.3.1 Growing Energy Demand from Major Emerging Economies
- 4.3.2 Growing Adoption for Smart Applications and Iot Technologies
- 4.3.3 Modernization of Existing DCS Solutions will Contribute to the Growth Of Service Sector
- 4.4 Market Restraints
- 4.4.1 Growing Availability of Alternative Technologies in the Field of Process Automation
- 4.5 Industry Attractiveness - Porter's Five Forces Analysis
- 4.5.1 Threat of New Entrants
- 4.5.2 Bargaining Power of Buyers
- 4.5.3 Bargaining Power of Suppliers
- 4.5.4 Threat of Substitute Products
- 4.5.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 By Component
- 5.1.1 Hardware
- 5.1.2 Software
- 5.1.3 Services
- 5.2 By End-User Vertical
- 5.2.1 Power Generation
- 5.2.2 Oil & Gas
- 5.2.3 Chemicals
- 5.2.4 Refining
- 5.2.5 Mining and Metals
- 5.2.6 Paper and Pulp
- 5.2.7 Other End-User Verticals
- 5.3 Geography
- 5.3.1 North America
- 184.108.40.206 United States
- 220.127.116.11 Canada
- 5.3.2 Europe
- 18.104.22.168 Germany
- 22.214.171.124 UK
- 126.96.36.199 France
- 188.8.131.52 Italy
- 184.108.40.206 Rest of Europe
- 5.3.3 Asia-Pacific
- 220.127.116.11 China
- 18.104.22.168 Japan
- 22.214.171.124 India
- 126.96.36.199 Rest of Asia-Pacific
- 5.3.4 Latin America
- 188.8.131.52 Brazil
- 184.108.40.206 Mexico
- 220.127.116.11 Rest of Latin America
- 5.3.5 Middle East and Africa
- 18.104.22.168 UAE
- 22.214.171.124 South Africa
- 126.96.36.199 Rest of Middle East & Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 ABB Ltd.
- 6.1.2 Honeywell International Corporation
- 6.1.3 Siemens AG
- 6.1.4 Schneider Electric
- 6.1.5 Mitsubishi Motors Corporation
- 6.1.6 Rockwell Automation
- 6.1.7 Emerson Electric Company
- 6.1.8 Metso (Valmet Oyj)
- 6.1.9 Omron Corporation
- 6.1.10 Novatech Llc (Weir Group)
- 6.1.11 Azbil Corporation
- 6.1.12 Toshiba International
- 6.1.13 Yokogawa Electric Co.
7 INVESTMENT ANALYSIS
8 FUTURE TRENDS