Distributed Control System Market Analysis by Component (Hardware, Software, Services); and by End User (Power Generation, Oil & Gas, Chemicals, Refining, Healthcare, Paper and Pulp) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 4802 | Published Date: Apr 08, 2023
The global distributed control system market is estimated to garner a revenue of ~USD 54 Billion by the end of 2035 by growing at a CAGR of ~8.80% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of ~USD 20 Billion in the year 2022. The market growth is mainly owing to the growing acceptance of smart applications and IoT technologies. As the adoption of smart devices increases, the demand for multifunctional microelectronics with reduced time delays and improved performance is also increasing. Users of smart phones and devices are growing rapidly across the globe. The number of connected IoT devices worldwide is projected to reach nearly 76 billion by 2025. As of the year 2021, Android is the most popular smartphone operating system, with a share of nearly 72% in the whole industry.
In addition to this, IoT application is helpful to improve the efficiency and durability of distributed control system resources. These applications are used to assist utility providers to manage their business and reach their goals. IoT applications are used to manage the distribution of general utilities such as, gas, water, and electricity. For instance, more than 5 trillion kWh of energy is consumed in China every year while in the USA, the annual electricity consumption rate is projected to be around 3 trillion kWh. Additionally, factors such as, rising demand for electricity grid management and escalating need for IoT in water distribution and generation are further projected to expand the global distributed control system market size over the forecast period.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~8.80% |
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Base Year Market Size (2022) |
~ USD 20 Billion |
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Forecast Year Market Size (2035) |
~ USD 54 Billion |
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Regional Scope |
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Growth Drivers
Rising Funding by the IoT Companies to Boost the Market Growth - In the year 2022, about 3 thousand European organizations were observed to be making a significant funding in the internet of things.
Increasing Demand from the Power Generation Sector - The power generation sector is expected to account for the largest share of the DCS market. Demand of electricity is notably increasing all over the globe. According to the International Energy Agency (IEA), global electricity demand is projected to increase by 4% in 2021 and by another 3.5% in the year 2022.
Rise in Research Spending – Growth in the global market during the forecast period can be further attributed to increased investment in research and development activities to continuously find more viable solutions for distributed control system. Research reports show that global R&D spending has more than tripled in real terms since 2000, rising from about USD 680 billion to more than USD 2.5 trillion in 2019.
Higher Utilization in the Development of Smart Cities- Revenue generated from the smart city project was estimated to be about USD 100 billion in the year 2021.
Spiking Demand for IoT in Supply Chain Management- In 2022, nearly 55% of the organization believed that robust supply chain management could assist their business to reach higher levels while around 65% admitted that supply chain is the major factor to enhance customer service quality.
Challenges
The global distributed control system market is segmented and analyzed for demand and supply by end user into power generation, oil & gas, chemicals, refining, healthcare, paper and pulp. Out of the six types of end users, the healthcare segment is estimated to gain the largest market share of about ~35% in the year 2035. The growth of the segment can be accredited to the presence of large number of patients in the healthcare industry, which is expanding notably. The hospitals are also growing rapidly in number. For instance, by the year 2022 it was noted that there were approximately 6,100 hospitals in the United States. Hospitals provide a wide range of medical care. Physicians, called hospital doctors, typically specialize in internal medicine, pediatrics, or general practice. They have the knowledge to solve common problems and the resources to solve more complex medical problems. Hospitals may also offer specialized care, such as neurology, obstetrics and gynecology, and oncology. By definition of a hospital, a county hospital is typically a primary medical facility in a region with numerous intensive care and mobile beds for patients requiring long-term care.
The global distributed control system market is also segmented and analyzed for demand and supply by component into hardware, software, services. Amongst these three segments, the software segment is expected to garner a significant share of around ~30% in the year 2035. The growth of the segment can be accredited to the expansion of the software industry. Software components refer to pre-built, reusable software modules or libraries that can be easily integrated into larger software applications to add functionality or improve performance. These components are typically developed by third-party vendors and are designed to be compatible with a wide range of programming languages and platforms, making them highly versatile and adaptable to various software applications. The growth of the software component segment can be attributed to several factors, including the increasing complexity of software applications, the need for faster time-to-market, and the growing trend towards modular software development. By leveraging pre-built software components, developers can significantly reduce the time and resources required to build new software applications, while also improving overall quality and performance. Additionally, the rise of cloud computing and the increasing popularity of software-as-a-service (SaaS) models have created new opportunities for software component vendors to provide scalable and flexible solutions that can be easily integrated with cloud-based applications. This has further fueled the growth of the software component segment, as more organizations are adopting cloud-based technologies and looking for ways to streamline their software development processes. This, as a result, is anticipated to create numerous opportunities for the growth of the segment in the coming years.
Our in-depth analysis of the global distributed control system market includes the following segments:
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By End User |
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By Component |
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The distributed control system in the North America region, amongst the market in all the other regions, is projected to hold the largest market share of about ~35% by the end of 2035. The regional growth can majorly be attributed to the increasing government initiatives to improve communication technology, which is expected to fuel the growth of the market in the region in the coming years. Moreover, the North American market is expected to account for the largest share during the forecast period owing to heavy R&D investments in new optical satellite communication technologies and strong presence of market players in the region. According to data released by the Census Bureau as part of the 2018 Annual Survey of Manufacturing, more than 30% of workers in the North American region require technical assistance for a variety of purposes, including transportation equipment, primary metals, plastics and rubber products, and used robots. Moreover, increasing adoption and implementation of advanced technologies in the form IOT solutions in distributed control system is projected to boost the market growth in the region.
The distributed control system in the Asia Pacific region, amongst the market in all the other regions, is projected to hold the second largest share of about ~24% during the forecast period. The growth of the market in this region can primarily be attributed to the increasing number of digital satellite broadcasting and internet services in the region. According to the World Bank, 35.331% of South Asia's total population used the internet in the year 2019, up from 18.785% in 2018 and 17.085% in the year 2017 respectively. China, which will boost the growth of the Asia-Pacific market, is expected to increase further. Moreover, increasing spending on technology and expanding government initiatives for development are among the major factors expected to contribute to the growth of the market in the region. A distributed control system (DCS) is a type of control system that is used to control and monitor complex processes or systems. Unlike a centralized control system, where all control functions are carried out by a single controller, a DCS uses multiple controllers distributed throughout a system. These controllers communicate with each other and with other devices in the system through a network.
Further, the distributed control system in the Europe region, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the increasing demand for automation in various industries and the need for improved efficiency, safety, and reliability. The European DCS market is projected to reach nearly USD 7 billion by the year 2025. Germany, the UK, France, and Italy are some of the leading countries in the European DCS market. The demand for DCS in the region is driven by factors such as the presence of a large number of manufacturing facilities, strict government regulations related to safety and emissions, and the increasing adoption of Industry 4.0 technologies. However, the market is expected to face challenges such as the high cost of DCS implementation and the lack of skilled professionals. To overcome these challenges, companies are focusing on developing cost-effective solutions and offering training programs to improve the skills of their workforce.
ABB has announced that it has received a new order from DS Smith to realize its vision of highly automated, connected and safe operations at its plant in Kemsley, UK. The Kent mill is his second largest waste paper mill in Europe, with an annual production capacity exceeds 840,000 tons. ABB supports the development of the company with the ABB Ability System 800xA control system (DCS). Also, paper machine drives are upgraded via PM3, PM4, and PM6.
Emerson has announced the validation of Dragos platform within his DeltaVTM control system, “DCS,” which provides organizations with significantly enhanced ICS/OT cybersecurity.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Payel Roy, Dhruv Bhatia
Ans: Increasing demand from the power generation sector is the major factor driving the market growth.
Ans: The market size of distributed control system is anticipated to attain a CAGR of ~8.80% over the forecast period, i.e., 2023 – 2035.
Ans: The requirement of high initial investment is estimated to be the growth hindering factors for the market expansion.
Ans: The market in the North America region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are ABB Ltd, Honeywell International Inc., Siemens AG, Schneider Electric, Mitsubishi Motors Corporation, Schneider Electric SE, Rockwell Automation, Inc, Metso Corporation, NovaTech Process Solutions LLC, Emerson Electric Co.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by component, end-user, and by region.
Ans: The healthcare segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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