Distributed Control System Market Size, Share and Industry Analysis, By Component (Hardware, Software, and Services), By End-User (Oil & Gas, Chemicals, Power Generation, Pharmaceutical, Food & Beverage, and Others), and Regional Forecast 2019-2032

The global distributed control system market size was valued at USD 16.18 billion in 2018 and is projected to grow worth USD 34.38 billion by 2032, growing at a CAGR of 5.58% during the forecast period. The distributed control system (DCS) market is propelled by rising industrial automation, demand for operational efficiency, advancements in networking technologies, and the need for real-time monitoring and control in various industries drives market growth.

The power industry plays a crucial role in a country’s economy, which is under the transition phase owing to the growing energy demand and increasing government investment. To maintain the quality of living and the economic development of a society, continuous access to electricity at an affordable price is necessary. Power generation from the renewable sector is contributing at large, which would cater to the increasing energy demand. Moreover, advancement in technology is playing an essential role in integrating power in the power stations. A distributed control system is a digitally automated industrial control system (ICS) that uses geographically distributed control loops throughout a factory, plant, machine, or control area. This system is used to control industrial processes and increase their safety, cost-effectiveness, and reliability. This is primarily used in continuous or batch-oriented applications in the manufacturing Industry. It is used in various applications which include agriculture, chemical plants, petrochemical (oil) and refineries, nuclear power plants, sewage treatment plants, water treatment plants, food processing, and automobile manufacturing. The North America distributed control system market was valued USD 5.10 billion in 2018.

MARKET TRENDS

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Rising Demand for Clean Energy and Renewable Power Generation

Energy demand is increasing day-by-day owing to the growing industrialization and increasing urbanization rate. To cater the growing energy demand and increasing depletion of fossil fuel it has enabled to produce renewable power at a large scale globally. Solar & wind plants are geographically spread in a large area. Hence, the deployment of distributed control system in the solar field with local controller panels offer robustness and high-reliability solutions. Consequently, the growth in renewable power generation is se to increase the demand during the forecast period.

Increasing Investment in Manufacturing and Processing Industry

Growing investments from the industrial sector such as metallurgy, mining and metal, food & beverage, and electronics in the developing economies would fuel the demand for adoption of DCS system. The networking capabilities of a distributed control system are useful in process management and the inputs or resulted outputs can be an analog signal or discrete signal in the manufacturing and processing industry which enhances the operational efficiency of the industry. According to the World Investment Report 2018, Asia Pacific exhibited an investment worth USD 476 billion of inflow from foreign direct investment in the year 2017, which was majorly contributed by China and Singapore. Hence, increasing investment from the industrial sector emerges the need for deploying the DCS system in various end-use industries and manufacturing industries, which propels the market growth during the projected period.

MARKET DRIVERS

Increase in Power Demand and Energy-Efficient Technologies to Propel Growth

Significant growth in industries and development in technology from developing as well as developed countries have increased the demand for power globally. According to IEA, renewable energy generation increased by 7% globally, which is majorly contributed by wind and solar PV technologies accounting for 60% of renewable energy generation. Hence, growing energy demand from end-users and increasing awareness regarding emission-free power would drive the application of distributed control system in the global market. According to the International Renewable Energy Agency (IRENA), renewables can contribute to 60% or more in many developing economies of the total final energy consumption. For instance, China would increase the share of renewable energy in its energy use from 7% in 2015 to 67% in 2050. In the European countries, the share could grow from about 17% to over 70%. Whereas the U.S. and India could increase the share to two-third of the power generation. Hence, increasing power demand, which in turn, is set to upsurge the power generation capacities, would enable the growth of the distributed control system market.

Advancement in Automation Technology To Uphold Market Growth

Advancement in technology in the power industry is playing a crucial role in enhancing productivity, efficiency, and reliability in the power sector. Significant investments in developing new automation technologies in the power plant, manufacturing industry, and processing industry would drive the market. The proliferation of digital networks and the demand for I/O in the process control system are changing the role in the field level.  Significant changes in technologies such as physical I/O, control networks, and field networks are transforming with advanced emerging technologies such as the Industrial Internet of Things (IIoT), cloud computing, virtualization, big data, analytics, and smart IIoT-connected sensors for asset condition monitoring and ethernet-based networks. For instance, ABB upgraded its 800xA 6.1 Distributed Control System in May 2019, which has shortened timescales for project execution, enhance the scalability of the system, and reduce the impact of late changes which helped to improve the feasibility and efficiency of the system. Hence, advancement in automation technology has increased the demand in various applications in the global market during the forecasted period.

MARKET RESTRAINT

Stagnancy In Oil & Gas Industry Is Likely To Hamper The Market Growth

Distributed control systems are deployed in the oil & gas industry as it is a process-based industry which is characterized by continuous operations, complex monitoring processes, and improved control over the production process. DCS includes HMI and controller systems, which helps to automate safety processes, such as alarm management system and predictive maintenance of equipment, and undertakes corrective measures in the oil & gas sector. Variation in oil prices and a slowdown in the economy would affect the production and exploration projects. Inconsistency in supply may hamper the production. Additionally, a decline in shale oil and under investment in exploration and infrastructure would also adversely affect the oil & gas industry, which is anticipated to contribute to the stagnant growth in oil & gas industry.

SEGMENTATION

By Component Analysis

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Software Segment to Gain Momentum During the Forecast Period

Based on component, the market is segmented into hardware, software, and services. The software segment is accounting the maximum share owing to the wide deployment of the software solution in the integration of this system for intelligent control, easy operation, and maintenance. Software tools include system management tool, operator interface, system configurator editor, and equipment simulator, which are leveraging the application more effectively and efficiently. The hardware segment is also likely to increase its market share in the projected period owing to the increasing deployment rate of controllers to monitor individual operations in industries and plants. The service segment is also increasing the demand for DCS, owing to a wide application in maintenance, installation, alarm management, upgradation services, plant asset management, lifecycle services, consulting services, migration services, simulation, and training services. Hence, the growing energy demand and significant development in technology would leverage the demand for the software segment among others during the forecast period.

By End-User Analysis

Power Generation Segment to Account for Maximum Share During the Projected Period

By end-user, the market segments include oil & gas, chemicals, power generation, pharmaceutical, food & beverage, and others. The power generation segment is holding the largest share in the global market owing to the increasing energy demand, which is leading to increasing usage of renewable energy. It is, in turn, augmenting the deployment of DCS in the power plants at a large scale. The oil & gas and chemicals industries are process-based and are operated by continuous working and complex monitoring processes. Increasing deployment for controlling and improving the production process in the oil & gas industry drives the market demand. The pharmaceutical industry primarily comprises of continuous process control applications and optimize batch and sequence-oriented applications which is scalable from a single PC and controller to multiple stations. The food & beverage industry is deploying the DCS system for smart manufacturing and yielding productivity, which would drive the demand during the projected period.

REGIONAL ANALYSIS

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The findings based on our research study indicate North America is set to hold the largest market share during the forecast period. The U.S. and Canada are increasing their power consumption year-on-year, which increases the need for power generation. According to the EIA report 2019, the total consumption of electric power increased to 4,004 billion kilowatt-hours in 2018 from 3,864 billion kilowatt-hours in 2017. Hence, increasing power consumption and the growing oil & gas sector would accelerate the market demand during the forecast period.

As per our market research, Europe is expected to exhibit healthy growth of the market. Countries in Europe, such as Germany, Italy, and Spain, are majorly contributing to the global oil & gas production, which led to the growth in production and exploration activities. Increasing demand for oil & gas and growing power consumption of renewable energy from the European countries would drive the demand. For instance, according to the renewable energy world report 2019, Germany produced 54.5% of electricity from renewable energy in March 2019. Whereas, Endesa, a Spanish energy group,  planned to invest USD 5.7 billion in the net capital expenditure in renewables such as wind and hydropower. Hence, increasing energy demand and growing investments in the power sector would lead to increasing in demand for distributed control systems in the forecast period.

The Middle East & Africa & Latin America are continuously focusing on increasing energy production from renewable as well as fossil fuel to cater to the growing demand for power. Significant growth in the demand for renewable power and dominating oil production would drive the global market. For instance, according to BP Statistical Review of World Energy 2019, the Middle East remains the largest oil-producing region and second-largest gas producer, which accounted for 36% of the global liquid production and 20% of global gas production. Hence, increasing oil production and growing energy demand would fuels the demand for deployment of the DCS in the oil & gas and power industry at large scale, which is set to propel the market during the projected period.

KEY INDUSTRY PLAYERS

ABB Focuses on Developing Advanced Distributed Control System

• In March 2019, ABB, a pioneering technology leader company upgraded the 800xA 6.1 DCS system, which is equipped with advanced technologies to shorten timescales for project execution, reduce the impact of late changes, and enhance the scalability of the system, bringing substantial value to capital projects. This development helped the company to leverage the demand in the global market

LIST OF KEY COMPANIES PROFILED:

• ABB (Switzerland)


• Schneider Electric (France)


• Emerson (US)


• Siemens (Germany)


• Honeywell Process Solutions (US)


• GE Power (US)


• Rockwell Automation (US)


• Toshiba Corporation (Japan)


• Hitachi (Japan)


• Valmet (Finland)


• Yokogawa (Japan)


• Azbil Corporation (Japan)


• NovaTech LLC (US)

Key Players Are Investing in Technological Advancement to Maintain Strong Positions

The competitive landscape of distributed control system market depicts a strong competition among the leading players. Achieving more number of contracts, along with constant innovations by the leading companies, are few of the prominent factors responsible for the dominance of the company.

At present, the global market is prominently dominated by the players mentioned above, holding more than half of the share. The dominance of key players is dependent on innovative strategic partnerships and acquisitions, spendings in research & development activities, and incorporation of advanced technologies with the existing technology.

Key players are primarily focused on developing technologies, such as integration of virtualization, cyber security, mobility, cloud computing, and the Industrial Internet of Things (IIoT). These are some of the technological advancements that are majorly provided by the key players in the global market.

KEY INDUSTRY DEVELOPMENTS:

• In January 2021, Tenova, a global metal plant solution provider chooses ABB Automation to supply and install a compressive drive and automation package for its new tinning plant in Southeast Asia. The project comprises of ABB Ability system 800xA distributed control systems (DCS) equipped with control, electrical, and communication system for stable production and efficient use of raw material and energy.


• In June 2020, Siemens helps Birla Carbon to modernize the distributed control systems (DCS) to optimize the production of carbon black powder and minimize the plant and hardware replacement cost.


• In June 2020, Emerson has executed Ovation distributed control systems (DCS) technology at Redbud combined-cycle power plant, in Oklahoma Gas and Electric (OG&E) to upgrade and unify control systems across four of its units. This resulted in the ability to a faster cold start, the quick generation of megawatts with reduced fuel costs.


• In February 2020, Rockwell Automation helps the City of Tacoma with upgrading distributed control systems (DCS) to enhance the visibility in wastewater treatment.  The DCS provides the plant a wide solution with pre-defined use of operations.

FUTURE OUTLOOK

Technological advancements have enabled the oil & gas and power industries to enhance their productivity and power generation more accurately, efficiently, and reliably. A DCS system provides lower exposure to component or subsystem failure allowing central control, monitoring, and reporting of individual components and processes. It is designed to control complex processes that are geographically distributed using networked control elements. Controllers are distributed geographically in various sections of control area and are connected to operating and controlling stations which are used for data monitoring, data logging, alarming, and controlling purpose through a high-speed communication bus. Hence, a significant transition in technology and increased efficiency, and operational ability is holding promising opportunities for the deployment of this system.

REPORT COVERAGE

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The report offers qualitative and quantitative insights on the distributed control system and the detailed analysis of market size & growth rate for all possible segments in the market. Along with this, the report provides an elaborative analysis of market dynamics, emerging trends, and competitive landscape. Key insights offered in the report are the development in technology for distributed control system by individual segments, recent industry developments such as partnerships, mergers & acquisitions, consolidated SWOT analysis of key players, Porter’s five forces analysis, business strategies of leading market players, macro and micro-economic indicators, and key industry trends.

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