According to a recent report published by Allied Market Research, titled,"Distributed Control Systems (DCS) Market by component, and industry vertical: Global Opportunity Analysis and Industry Forecast, 2016 - 2022,"the global DCS market was valued at $16,843.6 million in 2014, and is projected to reach at $24,609.1 million by 2023, growing at a CAGR of 5.2% from 2016 to 2022.
Distributed Control Systems (DCS) is a decentralized control methodology that is used by various industry verticals to manage their operations. The control system is distributed throughout the operational network of an organization where each sub-system is managed by more than one controller. It is a computerized control mechanism where all the controllers are connected through a network for communication and management.
The DCS industries is primarily driven by the increasing demand in the power and energy sectors, cost and time effectiveness, and the emergence of open source DCS solutions. However, slow industrial growth in developed economies, and relatively slow growth in the oil & gas industry are some of the restraints of the market. The impact of these factors would be nominal due to the introduction of new techniques in distributed control systems.
The DCS market size is segmented on the basis of component type, industry vertical, and geography. The segmentation under component type includes hardware, software, and services. Software interface constitute the highest market share among other component types due to increased use of DCS in cloud computing technology. Nonetheless, DCS service is estimated to grow at the fastest rate owing to the growth in skid-mounted DCS technology.
The oil & gas industry is projected to dominate the market, pertaining to the increase in demand for oil, gas, petrochemical, and refined products paired with deregulation of energy markets. However, the food & beverage industry is expected to depict fastest growth, owing to the introduction of vision inspection systems used for bottling and packaging application for increased efficiency.
Asia-Pacific is expected be the largest market for DCS during the forecast period. LAMEA is estimated to grow at the highest CAGR on account of growth in South Africa and increase in rate of adoption in traditional industries in LAMEA such as metals, minerals, petrochemicals and chemicals.
Key Findings of Distributed Control Systems (DCS) Market Study:
- Software interface segment is expected to exhibit a remarkable growth during the forecast period, due to growth in cloud computing technology and commercial off-the-shelf (COTS) technology.
- Oil & gas industry contributes the highest market share pertaining to the requirement of increased safety in manufacturing plants and environmental policies.
- Asia-Pacific is expected to exhibit a promising growth during the forecast period.
- Industry participants focus on expansion to innovate their product offerings and to improve their market share.
The leading players profiled in DCS market report are Siemens AG, ABB Ltd., Honeywell International, Inc., Yokogawa Electric Corporation, General Electric, Rockwell Automation, Inc., Emerson Electric Co., Metso Corporation, Schneider Electric SA, and Novatech Process Solutions LLC. These companies have adopted strategies such as partnerships, expansion, product launch, and research & development, to increase their DCS market share and expand their geographical presence. For instance, Siemens entered into a global strategic partnership with BASELAYER Technology, LLC, a U.S. based manufacturer of infrastructure management software and software-defined modular data centers. This partnership intended to reduce complexity and improve efficiency in data centers. Yokogawa adopted product launch strategy and announced the development of CENTUM VP R6.03, a new version of the companys integrated production control system. Moreover, Honeywell decided to provide process automation and safety systems to a new liquefied natural gas facility in Canada. Honeywell would serve as an integrated main automation contractor (I-MAC) for processing North American natural gas for international export.