Distributed Control System Market Research Report – Forecast to 2023

Distributed Control System Market Report: Information By Component (Hardware, Software, Services), By Application (Continuous, Batch-Oriented), By End-Use (Oil & Gas, Power Generation, Chemicals, Pharmaceutical, Metal & mining) - Global Forecast till 2023

ID: MRFR/E&P/1166-CR | March 2019 | Region: Global | 111 pages

Market Overview


Global Distributed Control System Market is poised to expand at a 5.30% CAGR during the review period (2018 – 2023).


A distributed control system (DCS) is an automated control system primarily used to control industrial plant processes, allowing flexibility and easy monitoring with a central operator supervisory control. Distributed control systems reliably control complex machineries integrated to a control center like a SCADA, the core of the system processors in a programmable logic controller (PLC) system. DCS systems found applications in many industries, including oil & gas, chemical, power generation, metals & mining, food processing units, and others.


COVID-19 Analysis


The COVID-19 outbreak pushed various industries worldwide to close down several manufacturing facilities, leading to huge revenue losses. The lockdown imposed to control the coronavirus spread has put a brake on DCS production, spiking the product prices and lowering the market demand. DCS manufacturers also faced various problems ranging from obtaining components and delivering end products to attracting workers from quarantines due to pandemic related issues


However, the good news is that the distributed control system industry is rapidly getting back to normal due to the steadily increasing energy demand, especially from manufacturing sectors. Also, it is expected that the product demand in end-use sectors could pick up following the uplift of the lockdown in numerous countries. 


Market Dynamics 


Drivers


Rising Industrialization Worldwide to Bolster the Market Growth


The expanding population and escalating urbanization rate across emerging regions drive the market growth. As the global population rises, the energy demand soars high, becoming an earnest necessity. Besides, rapid industrialization worldwide creates a substantial energy demand. Especially, major cities with the increase in industrial infrastructures are witnessing huge demand for distributed control systems. 


The global electricity demand is estimated to grow significantly during the next few years due to the ever-increasing population, rapid urbanization, and industrialization. Moreover, the rising focus on nuclear and renewable energy generation impact the distributed control system market growth. Conventional energy generation sources, such as fossil fuels, coal, and natural gas, substantially contribute to carbon emission. 


As power generation industries worldwide seek to reduce carbon footprint, they have been focusing on raising renewable energy sources in total power generation. Growing ecological concerns promote renewable/clean energy generation to reduce pollution levels. Therefore, environmental safety awareness fosters the distributed control system market share, increasing renewable energy generation capacities. 


Opportunities


Increasing Share of Renewable Energy to Present Robust Opportunities


Over recent years, renewable energy generation has been growing rapidly due to the mounting energy demand. The rising awareness for clean energy/ green energy generation using renewable sources, such as solar, biomass, and wind & tide energy, offers significant growth opportunities. The global electricity demand is estimated to grow at a significant rate during the next few years due to the ever-increasing population, rapid urbanization & industrialization. 


This, as a result, would provide growth opportunities in the DCS market. Additionally, emerging markets across the globe present untapped opportunities for DCS uses. Significant rise in pollution levels due to the rapid industrialization and urbanization in emerging countries offer lucrative opportunities for international players. The growing government mandates & updated policies and increasing renewable power generation increase the distributed control system market size. 


The introduction of open source DCS solutions and the rising preference for private or public cloud offers attractive opportunities for the leading market vendors in the nearing future. Furthermore, nuclear and renewable power plant systems integrated with synchronous machines, battery-based energy storage systems, and wind turbine generators boost the demand for DCS, managing and controlling the whole power plant system.


Restraints & Challenges


Costs Associated with Initial Installment and Maintenance of DCS to Restrain Market Growth


Prohibitive costs associated with the initial installment and maintenance of DCS could restrain the ongoing market growth, negatively impacting the sales. As a result, manufacturers are focusing on reducing the overall manufacturing cost of the distributed control systems. Also, substantial investments required to increase the network capacity pose challenges for market growth. 


Cumulative Growth Analysis


Adaptation to Technology, IoT and Industry 4.0/5.0 Automation 


Manufacturing sectors worldwide are preparing themselves for Industry 5.0 changes. Adaptation to technology, IoT, and Industry 5.0 automation remain a major factor projected to foster market growth. Also, challenges, such as limited industry knowledge and the shortage of skilled workers, are projected to offer the much-required impetus to the market growth.


Segment Overview


O&G Industry Creates Significant DCS Demand 


The distributed control system market is segmented into component, application, end-use, and region. The component segment is further bifurcated into Hardware, Software, and Services. By application, the market is sub-segmented into continuous process and batch-oriented process. Based on end-use, the market is sub-segmented into power generation, oil & gas, food & beverage, pharmaceutical, chemicals, metal & mining, paper & pulp, and others.


The oil and gas segment by end-use dominates the overall market share due to the rising uses of DCSs to centralize the comprehensive control system. Increasing need for centralized control systems and optimizations of oil & gas production monitoring drives the DCS demand in the O&G industry. By region, the market is bifurcated into Americas (US, Canada, Mexico, Rest-of-North America), Europe (Germany, UK, France, Italy, and Rest-of-Europe), Asia Pacific (China, Japan, India, South Korea, and Rest-of-the-APAC), and Rest-of-the-World.


Regional Analysis


The Asia Pacific Region to Maintain its Winning Streak in the Global Market


The Asia Pacific region has remained the market leader since 2016 and could continue to maintain its leading position, accounting for a 31.40% share throughout the assessment period. Factors such as the growing production and competition among DCS manufacturers in the region positively impact the regional market growth. Besides, the rapid urbanization and industrialization in the region create substantial market demand, prompting the necessity for higher operational efficiency, minimizing production cost, and process control industries.


Moreover, rapidly growing industries, such as power generation, oil & gas, chemicals, and pharmaceuticals, support the regional increase the APAC distributed control system market share. China, Japan, and India are the major DCS market in the region, where the manufacturing industry is growing tremendously. China held the largest market share in 2017, valuing USD 1,523.5 million.


The increase in renewable energy sources shares and government initiatives to promote DCS installation drive the market growth. Moreover, the increase in the generation capacity of renewable energy sources across the region is expected to increase the demand for DCS in the years to come.


The US Distributed Control System market has been growing at a significant pace over the past few years. Furthermore, a well-grown economy, technological innovations, and a growing population drive market growth. The US government has taken up a number of initiatives (policies & incentives), such as USDA- Rural Energy for America Program (REAP) Grants, Residential Renewable Energy Tax Credit, and corporate tax incentives, which boost the market growth, promoting the installation of DCS in the country.


North America Seizes Second Highest Share in Global Market 


North America has captured the second biggest share in the global market. The market growth is driven by the growth in oil & gas sector and rise in total O&G investments. Increasing renewable energy generation in the region is leading to increasing grid development projects, comprising DCS and microgrids technologies. 


Additionally, the rising focus on boosting renewable energy generation capacities in major countries led by the growing awareness regarding environmental safety influence the growth of the DCS market. Furthermore, the significant expansion of the industrial sector and the presence of leading global players lead to increasing the DCS market size throughout the region. 


Competitive Landscape


Players Focus on M&A Activities and R&D Investments to Gain a Larger Competitive Share


The market appears extremely fragmented due to the strong presence of well-established industry players. Global vendors are increasingly facing fierce competition from each other and from local firms, who are growing aware of the regulations and suppliers in the industry. Therefore, eminent players seek opportunities to integrate across the extended value chain while focusing on expanding production facilities, R&D investments, and M&A activities to gain a larger impetus. 


ABB (Switzerland) is a well-reputed electric devices manufacturer in the power industry, focusing on expanding its product range. ABB offers an extensive range of distributed control systems compatible with advanced and high-efficiency technologies. ABB has been named as a DCS market leader for a consecutive 21 years now.


ABB has increased its DCS market share by 1.8% per year since 2008 and has grown it to 20% by now, giving it the lead for the 20th year in a row. ABB's strong presence in many vertical industries using DCSs is a primary reason for its success. These verticals include water & wastewater, oil & gas, chemicals & refining, pharmaceuticals & biotech, and food & beverage.


ABB plans to continue to invest in developments that extend the power of the DCS to combine electrical and process automation, helping its customers leverage the era of digitalization with cloud and edge-based applications & services.    


Key Companies



  • Emerson (USA)

  • ABB (Switzerland)

  • Schneider Electric (France)

  • Rockwell Automation (US)

  • Siemens (Germany)

  • General Electric (US)

  • Yokogawa (Japan)

  • Honeywell International Inc. (US)

  • Toshiba (Japan)

  • Azbil Corporation (Japan)

  • Hitachi (Japan)

  • Metso Corporation (Finland)


Recent Developments



  • December 17, 2020 ---- ABB (Switzerland) announced that together with Claro and Nokia, it has carried out satellite telematics tests in Chile with Gold Fields' Salares Norte. ABB used satellite connectivity between the Gold Fields' Salaries Norte gold mining project located near Copiapo level and Chilean capital Santiago. ABB's 800xA Distributed Control System was used in this test, which proved to be more than an Electrical and Safety Control System, proving its efficiency as collaboration facilitator, improving processes, operator performance, and asset usage.


The tests presented the possibilities to connect technologies located thousands of kilometers away, with totally isolated areas, within reach of the satellite, and with mobile equipment with minimal relative latency.



  • November 27, 2020 ---- ABB (Switzerland) announced that it has helped Europe's biggest utility Enel and Ansaldo, to extend the lifecycle of a gas turbine unit at a combined-cycle power plant in Italy by utilizing its cutting-edge control automation.


Report Overview 


The report features unique and relevant factors expected to significantly impact the sensor market during the forecast period. The detailed and considerable amount of information in the report would help industry players understanding the market better. The MRFR report elaborates on the historical and current trends boosting the growth of the DCS market. Besides, the analysis of COVID-19 impact on the sensor market is also included in the report. 


This report examines the demand-supply scenario, pricing structure, profit margins, production, and value chain analysis influencing the DCS market growth. Regional assessment explained in this report unlocks a plethora of untapped opportunities in regional and domestic market places. Detailed company profiling in the region enables users to evaluate company shares analysis, emerging product lines, the scope of the product in new markets, pricing strategies, innovation possibilities, and much more.


Segmentation Table


By Component 



  • Hardware

  • Software

  • Services 


By Application



  • Continuous

  • Batch-Oriented


By End-Use



  • Oil & Gas

  • Power Generation

  • Chemicals

  • Pharmaceutical

  • Metal & Mining


By Region 



  • North America

  • Europe

  • Asia Pacific

  • Rest-of-the-World (RoW) 



Frequently Asked Questions (FAQ) :


The market valued USD 112 billion in year 2016.

The market will be valuing USD 4,411 billion in the period.

The increasing use of renewable energy sources to lead the enhancement of grid development projects, including DCS and microgrids technologies are the main factors of the market.

Asia-Pacific, North America, Europe, the Middle East & Africa, and South America are the main regions gaining the most of the market.

Asia-Pacific is to hold the largest share in the global DCS market in the forecast period.