Programmable Logic Controller (PLC): The Brain of Industrial Production
PLCs, as a type of industrial control software, integrate computer technology, automatic control technology, and communication technology. They serve as the core control devices in production control and play an essential role in motion control systems. However, PLCs also represent the highest manufacturing challenge among these systems. Recent statistics indicate that PLCs have the lowest domestic production rate among all industrial control products, currently below 20%, while others like DCS, general-purpose servos, and variable frequency drives range from 20% to 40%. IPCs and specialized servos exceed 80%, highlighting the significant potential for PLC domestic substitution.
Digital Transformation and Industrial Upgrading
The digitalization of industries and the transformation towards smart manufacturing are pivotal for China's current and future industrial development. This evolution relies heavily on the upgrading of industrial control products, including PLCs. In September 2023, President Xi Jinping emphasized the development of "new quality productive forces," urging the active cultivation of strategic emerging industries such as new energy, new materials, advanced manufacturing, and electronics and information, and stressed the need to accelerate the formation of new quality productive forces.
Government Support for PLC Industry
In December 2021, the Ministry of Industry and Information Technology released the "14th Five-Year Plan for the Software and Information Technology Service Industry." It prioritized "promoting the upgrade of the software industry chain" and aimed at "jointly tackling key problems and adapting migration for multi-point, low-latency, high-reliability, and low-energy-consumption software products focused on Programmable Logic Controllers (PLCs) and Distributed Control Systems (DCS)."
Market Growth and Competition
Since the pandemic, the PLC market size has surged from 12.8 billion yuan in 2020 to 17 billion yuan in 2023. Nonetheless, foreign brands dominate the majority of the market share, especially in the large-scale PLC market, where domestic brands like
INOVANCE Technology, Hollysys, and CEI Intelligent have made inroads but have yet to significantly impact established foreign brands like Siemens and Mitsubishi. Domestic manufacturers have captured a substantial share in the mid and small-scale PLC markets, with INOVANCE reporting its small PLC products rank second only to Siemens, capturing a 15.3% market share, nearly double that of Mitsubishi's 8.8%.
Expanding PLC Applications and Domestication Significance
PLC applications continue to expand into sectors crucial to national economy and security, including aerospace, defense, water conservancy, and power generation. Therefore, PLC localization is vital to ensure the safety of China's industrial infrastructure and defense systems, reduce reliance on foreign technologies, and enhance indigenous innovation capabilities.
Accelerated Domestic PLC Development
Domestic companies are accelerating their PLC development, with a wave of newcomers disrupting the industry alongside traditional industrial control giants. The prospects for PLC domestic substitution in China are promising.
Competitive Landscape of Chinese PLC Companies
Recently, OFweek Vikeo Network Industry Research Center evaluated the competitiveness of Chinese PLC enterprises based on market share, technological strength, among other criteria, revealing the following top 20 rankings:
[Please note: Due to the extensive nature of the provided company listings and descriptions, they have been omitted for brevity.]
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The evaluation data for this list comes from self-reported company information and other publicly available legal sources, complying with the regulations of the People's Republic of China Data Security Law and the draft Social Credit System Construction Law. We adhere to business ethics, act with honesty and integrity, and fulfill data protection obligations.
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