February 25, 2024

Rising investments in renewable energy projects to fuel growth of the Distributed Control Systems Market

 

Distributed control systems (DCS) are computer-based control systems used to monitor and control various industrial processes. Such as manufacturing, production, and fabrication processes. DCS allows controlling an entire plant from a centralized location. It helps to improve efficiency, productivity and product quality. DCS helps reduce maintenance costs and downtime. It also provides flexibility, easily reconfiguring processes without affecting existing operations.

The global Distributed Control Systems Market is estimated to be valued at US$ 35.24 Bn in 2023 and is expected to exhibit a CAGR of 6.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the major trends in the market is increasing investments in renewable energy projects worldwide. As renewable energy projects require advanced control and monitoring systems, the demand for DCS is increasing from renewable energy industry. For instance, according to the International Renewable Energy Agency, global investments in renewable energy were over US$ 272.9 billion in 2019. Moreover, continuous technological advancements in DCS such as cloud computing, artificial intelligence, and smart sensors are making these systems more efficient and easy to use. This is prompting various industries to adopt advanced DCS.

Key players analysis:

Key players operating in the distributed control systems market are ABB Group, Yokogawa Electric Company, Honeywell International Inc., Toshiba, Siemens AG, Azbil Corporation, Schneider Electric, Novatech LLC, Mitsubishi Electric, Omron Corporation, Rockwell Automation, METSO, and Emerson Electric Company. ABB Group and Schneider Electric are the leading suppliers with strong global presence and wide product portfolio in DCS market.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate as the distributed control systems market requires large capital investments and strong technical expertise. However, new regional players are emerging by adopting new technologies at lower costs.

Bargaining power of buyers: The bargaining power of buyers is moderate. However, buyers demand increased efficiency, reliability and scalability at competitive prices which increases their bargaining power.

Bargaining power of suppliers: A few large multinational companies dominate the supply market. However, the availability of alternatives provides some bargaining power to buyers.

Threat of new substitutes: The threat of substitutes is low as distributed control systems have distinct advantages over centralized and decentralized control systems in terms of increased efficiency, reliability and reduced operational costs.

Competitive rivalry: The competitive rivalry is high due to the presence of numerous global and regional players offering a range of products. Players compete based on product features, pricing, services and technical support.

Key Takeaways

The global distributed control systems market size is expected to reach US$ 35.24 Bn by 2023, exhibiting a CAGR of 6.1% over the forecast period. The increasing demand for enhanced operational efficiency and productivity across process industries is expected to drive the market during the forecast period.

Regional analysis: North America dominated the global market in 2022, accounting for around 30% of the total share, followed by Europe and Asia Pacific. Asia Pacific region is projected to witness the fastest growth over the forecast period, fueled by the growing process manufacturing industries in China, India and other developing nations coupled with declining costs of DCS solutions.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it