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2016

Distributed Control Systems (DCS) Market

Distributed Control Systems (DCS) Market Size, Share, Competitive Landscape and Trend Analysis Report, by Component Type, Industry Verticals - Global Opportunity Analysis and Industry Forecast, 2014 - 2022

SE : Sensors and Controls

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Author's: Seapee Bajaj | Sonia Mutreja
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Distributed Control Systems (DCS) Market Overview:

Global Distributed Control Systems Market is expected to reach $24,609.1 million by 2022, growing at a CAGR of 5.2% during the forecast period 2016 - 2022.

The emerging process industries are merely operated by advanced automation technologies such as distributed control systems (DCS). These systems are used as an extension of traditional controllers across diversified range of industries. The main concept of DCS application is derived by the idea of decentralizing the control unit and establishing a common network between the engineering stations. In addition, integrating DCS with process plants enables it to control, report, and monitor the components individually, while providing flexibility and simplicity to the plant operation. DCS uses a set of configuration tools to manage the database, graphics, control logic, and system security. Moreover, it supports modification, upgrade, and integration to the existing architecture of any industry.

 

Distributed Control Systems Market

So far, the hardware, software, and services are the major component types of DCS in the distributed control systems market. DCS operations are performed in industrial plants by synchronizing all the devices with each other. Hardware components includes controller, I/O interfaces, power supply, server, remote workstations, and relays etc. The entire DCS architecture consist of heterogeneous devices such as valves, actuators, motors, and control elements. Software interface provides a common platform for all the devices to communicate and perform their actions. The customized architecture of DCS always require an expert supervision in case of any modification. The real time operation of DCS faces obstructions that has to be addressed by the expert professionals along with the scope of enhancement.

Distributed Control Systems Market by component

Factors such as increasing demand in power and energy sectors, emergence of open source DCS solutions, and cost and time effectiveness are expected to fuel the DCS market growth. However, sluggish industrial growth in developed economies are expected to hinder the market growth. Furthermore, developing industrial infrastructure in emerging markets and growing inclination towards public or private cloud are expected to offer lucrative opportunities for the market globally.

Distributed Control Systems Market by industry vertical

The report highlights Porter’s five forces analysis of the global distributed control systems market, which encompasses the impact of suppliers, industry rivals, substitute products, and buyers of the market. Large number of suppliers paired with technological expertise lead to moderate bargaining power among suppliers. On the other hand, availability of substitutes and low threat of backward integration lead to moderate bargaining power among buyers.

The leading players profiled in the distributed control systems market report are Siemens AG, ABB Ltd., Honeywell International, Inc., Yokogawa Electric Corporation, General Electric Company, Rockwell Automation, Inc, Emerson Electric Co., Metso Corporation, Schneider Electric SA and NovaTech Process Solutions LLC. These companies have adopted strategies, such as expansion, product launch, and research & development, to increase their DCS market share and expand its geographical presence.

Segment Overview:

The DCS market size is segmented on the basis of component type, industry vertical and geography. The segmentation done under component type is hardware, software and services. In 2015, software contributed the highest revenue in the market globally.

Based on industry verticals the market is segmented into chemical, oil and gas, pharmaceutical, petrochemical, food and beverage, power generation and others (manufacturing, metal & mining, paper & pulp and automation). Among the industry verticals segments, oil & gas dominated the market in terms of spending in 2015 and is projected to continue its dominance throughout the forecast period.

The geographical regions considered in the report are North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific contributes the highest revenue among other regions.

Progression of power and energy sector

Growing population is creating huge demand of power and energy to support sustainable developments and low carbon future. Power plants use various automation technologies to generate electricity efficiently, where in the application of DCS in mega power plants enables the operators to control and monitor the operations precisely. It also equips them with centralised management facility. For instance, Hong Kong a majestic city known for its contribution in delivering the best electricity supply system in the global. The city is planning various strategies to deal with its 43 terawatt-hours power requirements. To address this the city is developing many wind and solar power plants there by creating a great opportunity for distributed control systems applications.

Perceptible amount of reduction in cost and time

The process industries are very dynamic towards adaption of latest automation technologies. DCS consists of various digital devices equipped with smart components which helps to enhance the performance of the plant with reduced time consumption. These smart components help to improve productivity. The use of network systems in DCS supports the troubleshooting in a stress free and rapid way. This in turn saves plenty of time while reducing the cost. Further, DCS is made up of digital electronic devices that uses smart technologies and there is a noticeable amount of decrease in the price of digital devices which in turn decreases the cost of ownership of DCS that includes manufacturing and initial purchase cost along with the service costs.

Stagnant development in oil and gas sector

Oil and gas industry contains mega infrastructures. This industry faces the highest impact of regulations, emerging economies, interest rates and most importantly fluctuating oil and gas price globally. Due to the unstable energy policies across the global hinders the development in this sector. The risk associated with the industry restricts the big investment and innovation in oil and gas industry.

Distributed Control Systems (DCS) Market Key Benefits:

  • This study comprises analytical depiction of the global DCS market forecast, with current trends and future estimations to depict the imminent investment pockets.
  • The overall market potential is determined to understand the profitable trends for gaining a stronger coverage in the market.
  • The report presents information regarding key drivers, restraints, and opportunities with a detailed impact analysis.
  • The current market is quantitatively analyzed from 2014 to 2022, which is provided to highlight the financial competency of the market.
  • Porter’s five forces analysis illustrates the potency of the buyers and suppliers.
  • Value chain analysis provides a clear understanding of the roles of stakeholders involved.

Distributed Control Systems (DCS) Market Report Highlights

Aspects Details
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By COMPONENT TYPE
  • Hardware components
  • Software interfaces
  • Service
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By INDUSTRY VERTICAL
  • Chemicals
  • Oil & Gas
  • Food & beverage
  • Pharmaceutical
  • Power Generation
  • Others (Automation, Metal & Mining, Paper & Pulp)
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By GEOGRAPHY
  • North America
    • U.S
    • Canada
    • Mexico
  • Europe
    • UK
    • Germany
    • France
    • Russia
    • Rest of Europe
  • Asia-Pacific
    • China
    • Japan
    • India
    • Australia
    • Rest of Asia-Pacific
  • LAMEA
    • Latin America
    • Middle East
    • Africa
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Key Market Players

Siemens AG, Emerson Electric Corp, Schneider Electric SE, NovaTech Process Solutions LLC, Rockwell Automation, Inc, Metso Corporation, General Electric Company, Yokogawa Electric Corporation, ABB Ltd, Honeywell International Inc

Analyst Review

Significant growth in world distributed control systems market is attributed to the technological advancements in hardware, software, and services and increased adoption in emerging economies. Furthermore, integration with cloud computing technology and increase in demand from energy and power sectors drive the growth of DCS market. However, sluggish industrial growth in developed economies hampers the growth of global DCS market to a certain extent.

Distributed control systems have been increasingly deployed in Asia-Pacific, followed by North America, Europe, and LAMEA. Asia-Pacific occupied the highest market share owing to the increasing adoption in the emerging economies in the region. 

Software is the dominant segment due to rise in the adoption of commercial off-the-shelf (COTS) and cloud computing. The oil & gas industry also dominated the market owing to the requirement of advanced safety in oil & gas plants on the basis of environmental regulations. 

Manufacturers in the market focus on product innovation with exceptional product offerings to lead the market. General Electric, Siemens, and Honeywell International Inc. are the leading market players that occupy a prominent revenue share. These players adopt expansion, R&D, product launch, and acquisition as their key strategies to sustain in the market.

 

Author Name(s) : Seapee Bajaj | Sonia Mutreja

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Distributed Control Systems (DCS) Market

Global Opportunity Analysis and Industry Forecast, 2014 - 2022