Distributed Control Systems Market Research Report and Outlook by 2028

The global market for distributed control systems (DCS) is projected to expand from approximately US$ 15,982.29 million in 2021 to around US$ 23,108.60 million by 2028, reflecting a compound annual growth rate (CAGR) of 5.4% over the period from 2021 to 2028.

In North America, the manufacturing sector has experienced significant growth recently, driven by substantial investments from the governments of the United States, Canada, and Mexico. The purchasing managers index (PMI) for North American manufacturing reached 62.1 in June 2021, indicating a robust recovery in the sector. This strong PMI suggests notable advancements in Mexico's emerging industrial sector and rising commodity prices across various nations. To sustain their growth and enhance productivity, manufacturing industries are expected to adopt cutting-edge technologies. Additionally, manufacturers are facing intense competition based on factors such as cost, quality, service, and time-to-market, which compels them to concentrate on their core competencies. As the capabilities of equipment, particularly robots, improve, non-automotive sectors are anticipated to increase their reliance on industrial automation. These trends are promising for manufacturers, as they highlight the potential for further adoption of DCS technology. The low current penetration of DCS is likely to drive substantial growth during the forecast period, especially with continued government support for manufacturers. Distributed control systems facilitate remote monitoring and enhance operational efficiencies, leading to increased productivity in manufacturing facilities. The rising trend of automation in the manufacturing sector is significantly boosting the demand for DCS integration, further propelling market growth.

The distributed control systems market is categorized based on components, industry verticals, and geographical regions. In terms of components, the market is divided into hardware, software, and services, with the software segment holding a larger share of the market in 2020. When considering industry verticals, the market encompasses Power Generation, Oil and Gas, Pharmaceuticals, Food and Beverages, Chemicals, and other sectors. The Oil and Gas segment was the largest contributor to the market share in 2020. Geographically, the market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM), with APAC accounting for a significant portion of the global market in 2020.

The COVID-19 pandemic has disrupted numerous industries worldwide, including manufacturing and IT, due to lockdown measures. However, essential sectors such as fast-moving consumer goods (FMCG) and pharmaceuticals continued their operations. Major construction projects, including airport renovations and expansions, were also paused during the pandemic, particularly in the US and Canada. North America is recognized for its high adoption rate of advanced technologies, supported by favorable government policies aimed at fostering innovation and enhancing infrastructure. Consequently, any disruptions affecting industrial performance in this region can impede economic growth. Currently, the US is among the countries most severely impacted by the COVID-19 pandemic, leading to various restrictions on industrial, commercial, and public activities to curb the spread of the virus. The repercussions were felt on both the demand and supply sides. Manufacturing facilities in North America were non-operational for extended periods, resulting in supply chain disruptions and challenges in procuring raw materials. This situation posed significant difficulties for original equipment manufacturers (OEMs) in maintaining quarterly revenue targets. As a result, the financial performance of distributed control systems manufacturers in 2020 was considerably worse than in 2019.

The overall size of the distributed control systems market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data related to the market. This approach also aimed to provide an overview and forecast of the distributed control systems market across all segments. Furthermore, it included forecasts based on the segmentation across five major regions: North America, Europe, Asia Pacific, the Middle East and Africa, and South America. Primary interviews were conducted with industry participants and experts to validate the data and gain deeper analytical insights. Participants included industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the distributed control systems market.

Key players in the global distributed control systems market include ABB Ltd., Emerson Electric Co., General Electric Company, Honeywell International Inc., NovaTech, LLC, Rockwell Automation, Inc., Schneider Electric SE, Siemens AG, Toshiba Corporation, and Yokogawa Electric Corporation.