Global Distributed Control System Market Analysis

Distributed Control System Market Overview:

Distributed Control System Market size is USD 20.61 Billion in 2024 and is projected to be worth of USD 33.28 Billion, registering a CAGR of 6.12% during the forecast period (2024 - 2032), Initiative by the government to promote renewable energy is expected to drive global Distributed Control System Market.

Distributed Control System Market Synopsis:

DCSs (distribution control systems) are critical in the manufacturing industry since they control and manage processes. There is a dedicated controller that controls each process element set of machines in DCS. It is made up of a large number of local controllers located across the plant control area, all of which are linked by a high-speed communication network. Data acquisition and control functions are carried out in a DCS control system by many DCS controllers, which are microprocessor-based units spread across the plant functionally and geographically.

Over the last few decades, the power sector has seen substantial growth in terms of power capacity increase, with major integration of disruptive technologies to attain clean energy targets around the world. Due to the rising need for energy efficiency, while reducing power disruptions, global investment in the power sector reached USD 757 billion in 2019. One of the primary drivers driving the DCS market is the growing power generation capacity, particularly in developing nations. Rapid population growth and modernization have resulted in a rise in electricity generation. Various power generation components and processes, such as boiler side valves, fans, turbine valves, and boiler coal firing, are controlled by distributed control systems. Municipal spending has also expanded to keep up with the growing urban population shift.

Based on component, software segment held a share of 52.70% of the global distributed control system market segments into hardware, software, and services. Based on application, the Batch-oriented held a 58.90% share of global distributed control system market which segments into intocontinuous and batch-oriented processes. Based on end use, the global distributed control system market has been segmented into oil and gas, powergeneration, food &beverage, chemicals, pharmaceutical, metal &mining, paper &pulp, and others. Oil and gas held a 21.20% share of the global distributed control system market.Based on region, the global distributed control system market has been segmented into North America, Europe, Asia-Pacific, the Middle East & Africa, and South America. The Asia-Pacific held a 31.26% share of the global distributed control system market.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

• Honeywell Expands DCS Portfolio: Honeywell unveils its Experion PKS DCS 4.7.2, offering enhanced cybersecurity features and improved integration with Industrial Internet of Things (IIoT) platforms. (Source: Honeywell, December 2023)

• October 2022- The leader in the digital transformation of energy management and automation, Schneider Electric, has disclosed that it has identified a premiere integrator of process automation and control systems in North America, Delco Automation as a Certified System Integrator Alliance partner with Water & Wastewater (WWW) segment badge distinction. The award recognizes Delco Automation's devotion to operational excellence, application expertise, and customer satisfaction with Schneider Electric Water & Wastewater solutions, showing how a close connection between the programmer and manufacturer can make successful project deliveries efficient executions. The company finished several skills in this expert area and showcased a to earn this distinction and status; Schneider Electric's Alliance Partner Program gets together a web of industrial automation partners to encourage and offer better value to customers for next-gen industries. The Certified Alliance Partner certification permits Delco Automation to give Schneider Electric solutions, knowledge, and training to clients throughout Canada. Delco Automation offers technical capability in process control, control centers, supervisory control, telecommunication systems, SCADA, measurement, distributed control systems (DCS), instrumentation, programmable logic controllers (PLC), and information systems.

Distributed Control System Market Research - COVID-19 Analysis:

COVID-19 has led to severe impact across all the industries around the world. The rapid spread has led governments across the globe to take stricter actions for the operations of industrial plants and offices, leading to stricter lockdowns. The lockdown had a notable impact on the power sector overall as power demand had decreased majorly from commercial and industrial sectors.

• October 2022- The recovery phase after facing significant losses during the pandemic is almost done for the majority of firms across the globe. Honeywell is also one of them. The company has launched its Manufacturing Excellence platform offering real-time end-to-end production visualization and dashboards for several user roles, from operators to management, trends of critical process parameters, detailed equipment status, and process unit timelines. The Manufacturing Excellence platform, developed for Life Sciences applications, lays actionable data in context in one interface. The solution digitizes paper-based batch records, logbooks, and work instructions to ensure steady conformity with standard operating procedures. The range of batch progress and warnings on crucial process factors allow users to react rapidly if batches start trending toward excursion beyond golden batch or expected limits, thus saving batches and enhancing quality.

Distributed Control System Market Dynamics:

Distributed Control System Market Share Drivers:

• Growing Power Sector with Increasing Power Generation Capacities in Asia-Pacific

The power sector has been witnessing significant growth in terms of power capacity addition from the last few decades with significant integration of disruptive technologies to achieve clean energy targets across the globe. According to World Energy Investment Report 2020, the global investment in the power sector was USD 757 billion in 2019 owing to the increased demand for energy efficiency while preventing power outages. The increasing power generation capacity, especially in developing countries, is also one of the major factors driving the DCS market.

• Increased Use of Renewable and Nuclear Energy Generation Resources

The power sector is witnessing the involvement of more renewable energy resources, which would enhance the grid development projects, including distributed control systems and microgrids technologies. For instance, according to the International Renewable Energy Agency Report 2020, Asia-Pacific accounted for 54% of new renewable capacity additions in 2019, increasing its renewable capacity by 95.5 GW. Emerging markets such as India, China, and other South-East Asian countries focus on investing in renewable energy to meet the power demand. For instance, India is forming attractive policies and subsidies to boost solar power projects to achieve 175GW of renewable target by 2022.

• Growing Industrial Infrastructure in Asia-Pacific

Over the last decades, China has become a global manufacturing hub, with many multinational companies setting up high-volume production facilities in the country. Countries such as Taiwan, Thailand, and Indonesia have a great scope for DCS as they are witnessing significant industrialization. Moreover, in these countries, along with the expandingmanufacturing facilities, competition among manufacturers is also growing. China and India are the fastest-growing economies in Asia-Pacific, and the manufacturing industry is expected to grow substantially during the forecast period.

Distributed Control System Market Restraints:

• Low Availability of Low-Cost Substitutes

The distributed control system is a modern and highly interactive integration platform that provides process control functionality and real-time data connectivity between the utilities and the end-users. However, some utilities use programmable logic controllers PLC-based systems instead of distributed control systems. Though DCS is considered the primary solution for process automation, many PLC providers or vendors pursue a single integrated architecture based on PLCs and claim that a PLC-based system is one of the best solutions for power plant automation.

Distributed Control System Market Growth Opportunities:

• Implementation of Internet of Things (IoT) in Oil & Gas Industry for Real-Time Decision Making

Industries such as oil & gas, power, chemicals, and metals & mining, are mature industries, and the technology has paved its way forlong for improving the manufacturing processes with prevalent systems, such as DCS, SCADA, and PLC. The oil & gas industry has an opportunity to redefine its coverage through automation solutions. After the 2014 oil price decline, short-term budgets and investments are attracting stakeholders to gain profits and strengthen their position in the market. Most of the oil & gas operators have been adopting DCS for accelerating the exploration & production processes.

Distributed Control System Market Segment Overview:

By Component:

• Hardware

Hardware components are an integral part of the DCS system, which are physical devices integrated intothe DCS network to perform any action given by the user. Hardware components in DCS include application processors, I/O modules, sensors, actuators, transmission cables, hubs, controllers, data recorders, workstations, and communications networks. These components are distributed on the three-tierethernet to ensure timely data transmission and system integrity.

• Software

Software is the set of programs instructing hardware or electronic device associated with any specific task in the DCS system. Specifically, software in DCS includes embedded controller software, Human-Machine Interface (HMI), systems management software,monitoring,and control system, Plant Information Management (PIM) software, and engineering and configuration software.

• Services

Services form one of the mostcrucialaspects of the DCS. Services include project management, operations, and maintenance of the system to ensure continuous operation. After continuous operation over time, the system response rate becomes slow, resulting in gradual performance degradation, which causes issues in the server. For dealing with and diagnosis of such issues, services of the DCS component are necessary.

By Application:

• Continuous Process

The continuous process is a streamlined process that involves the production of products continuously, that is, 24 hours a day without any interruption. The industries involving continuous processes are petrochemicals, fertilizers, iron & steel, oil & gas, power, chemical,and water treatment system plants.

• Batch Oriented Process

The batch-oriented process is the technique used in manufacturing products in different batches. The batch-oriented processes are ideal for seasonal orders, flexible to produce a variety of different product variations, and involve less inventory. The industries dependent on batch-oriented processes are food & beverages, paper & pulp, and the pharmaceutical industry.

By End Use:

• Oil and Gas

The oil & gas plant or refinery operations consist of numerous complex processes, which always need to be monitored and controlled. Some of the major oil refining processes controlled by DCS are vacuum distillation, hydrocracking, naphtha hydrotreating, and coking.

• Power Generation

Power generation is a continuous production process wherein different operational facilities, which may be distantly placed, need to work together to transmit electricity to consumers efficiently. DCS is installed in the power plant to centralize the control and monitoring of the entire plant in a single location

• Food & Beverage

The demand for food & beverages is growing with the global population growth. The demand for packaged food & beverages is expected to grow during the forecast period, primarily due to urbanization, which has increased the demand for high-quality processed food.

• Chemicals

Chemicals are primary inputs for many industries, such as construction, retail, energy, defense, aerospace, information technology, healthcare, hospitality, transport, and plastics. These related industries are growing globally due to the growing population, which has led to an increase in demand for chemicals.

• Pharmaceutical

The pharmaceutical industry has evolved substantially in the last century. It is expected to grow rapidly during the forecast period due to a rise in demand for medicines and the pharmaceutical industry. However, the manufacturing of pharmaceutical products involves great precision as the constituents in medicines, and their amounts can impact human life and health.

• Metal & Mining

The pricing mechanism in the metal & mining industry is highly reliant on other end-use industries, such as construction and manufacturing. In these conditions, the metal & mining industry needs to operate at maximum efficiency to generate profits even during market slumps.

• Paper & Pulp

Paper & pulp are major parts of the packaging industry, and their demand is growing globally due to the increasing use of pulp-derived products for packaging. Additionally, the growing number of students at educational institutes and habitual readers also increases the demand for the paper segment.

• Others

Some of the other major industries that use DCS include textile, cement, water treatment, glass, sugar, and automotive. The production process in all these industries is well developed, and industrial automation is the way forward to further improve efficiency and the overall output of the industry.

• October 2022- One of the largest companies devoted to industrial automation and digital transformation, Rockwell Automation and Rockwell's joint venture with Schlumberger, Sensia, are set to demonstrate industry-leading and innovative technology and services coupled with other industry partners at Adipec 2022, October 31 to November 3 in Abu Dhabi, UAE. Over the four days of Adipec, Rockwell Automation will demonstrate its end-to-end solutions to boost efficiency and sustainability along the entire oil and gas value chain.

Distributed Control System Market Insights - Regional Analysis:

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  North America

  
  

North America is a prominent region in the distributed control system market. The growth of the regional market can be attributed to the rapid growth of the oil & gas industry and the rising demand for power generation.

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  Europe

  
  

Europe is one of the key regional markets driving the overall demand for distributed control systems. The key factors driving the distributed control system market in Europe are the increasing investments in adding renewable energy power in the power system and the focus on decentralizing power distribution.

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  Asia-Pacific

  
  

Asia-Pacific is one of the largest markets for distributed control system market in the world and is expected to be one the fastest-growing markets during the forecast period, mainly due to industrialization and urbanization.

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  Middle East & Africa

  
  

An increase in power generation capacity in the Middle East & Africa is a major factor driving the use of DCS in power plants, contributing to the growth of the distributed control system market in the forecast period. Middle Eastern countries are focused on meeting power generation targets from renewable energy.

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  South America

  
  

The demand for DCS is expected to grow substantially during the forecast period, primarily due to the increasing need for power generation and the rising South American demand for an efficient manufacturing process. South America has some of the most important natural resources in the world.

• April 2022- ABB renovated three grinding units at Star Super Cement in Dubai, UAE, and guaranteed improved operations with the Star Cement clinkerization plant in Ras Al Khaimah, UAE, with the deployment of ABB Ability System 800xA, a distributed control system (DCS) automation platform.

Distributed Control System Market Outlook - Competitive Landscape:

In the competitive landscape, the report covers growth strategies adopted by the companies between 2020 and 2021. Companies adopted various strategies to achieve leading positions in the global distributed control system market. The key strategies followed by most companies within the global distributed control system market were product development and contracts & agreements.

The growth of the vendors is dependent on market conditions, government support, and industrial development. Thus, the vendors should focus on expanding their presence and improving their service. General Electric (US),ABB (Switzerland), Siemens AG (Germany), Honeywell International Inc. (US), Yokogawa Electric (Japan), Emerson Electric Co (US), Schneider Electric (Japan), Hitachi, Ltd (Japan), Rockwell Automation Inc. (US), ABB (Switzerland), Toshiba Corporation (Japan), Azbil Corporation (Japan), and Mesto (UK).

Distributed Control System Market Economic News

• ABB and Tempered Networks teamed with Nozomi Networks in April 2021. To answer the growing demand for superior operational technology, ABB has integrated Nozomi's technology into its distributed control system (DCS) (OT).


• SEPCO hired Honeywell to offer software-based control, telecommunications, power management, security technologies, and fire and gas safety for the King Salman International Complex for Maritime Industries and Services in February 2021.


• Emerson bought Open Systems International, Inc. in October 2020. Emerson's software program portfolio was enlarged as a result of this acquisition, allowing for a faster transition to smart grid capabilities.