Programmable logic controllers (PLCs) play an integral role in the wave of industrial automation. They are the brains of modern manufacturing, controlling everything from simple mechanical arms to complex production lines. For a long time, this field has been dominated by foreign brands, but now, with the transformation and upgrading of China's manufacturing industry, Chinese PLCs are ushering in unprecedented development opportunities.
Development of PLC in China
Since the end of the 20th century, Chinese PLC has embarked on a journey to catch up. Initially, the domestic market was almost monopolised by international giants such as Siemens and Mitsubishi. However, after nearly two decades of technical accumulation and market cultivation, Chinese PLC began to gain a foothold in the small machine market, and gradually to the medium and large PLC market.
Market status and data analysis
According to the latest market research report, China's PLC market share grew from less than 10 per cent in 2015 to nearly 30 per cent in 2021. This leap not only demonstrates the technological progress of Chinese PLCs, but also reflects the recognition and trust of domestic users in local brands.
In 2022, the domestic medium- and large-sized PLC market will be 8,265 million, up 3.93% year-on-year, while the small-sized PLC market will be 8,341 million, up 5.71% year-on-year.1 Of particular interest is the fact that the small-sized PLC localisation rate has already reached 36.1%, indicating that China's PLCs are beginning to achieve a leading position in certain market segments.
Technology Innovation and Case Studies
Chinese brands have achieved a significant increase in industry penetration in the small PLC market in recent years, thanks to their cost-effective, flexible business model and ability to develop customised models in specific industries. Technological innovation is the core driving force of the rise of China's PLC. Unionscience Technology, for example, the company through sustained investment in research and development, the introduction of high-performance PLC products with fully independent intellectual property rights. These products in metallurgy, transport and many other industries have successfully replaced imported products.
Policy support and future trends
The government's strong support for high-tech industries provides a solid foundation for the development of PLC in China. From "Made in China 2025" to "a new generation of artificial intelligence development plan", a series of policies are encouraging and promoting the localisation of automation products such as PLC.
The Difficulty of China's PLC Rise
The breakthrough of Chinese PLC in the high-end market faces multiple challenges. Technical barriers, industry barriers, product exclusivity and other constraints on the development of China's PLC has become the main bottleneck. For example, many production lines are imported in their entirety from abroad, and foreign brands have had long-term cooperation with these companies, making it difficult for Chinese brands to break in. In addition, replacing PLCs involves a huge amount of work, including redesigning drawings and procedures, facing time costs and the risk of mistakes.
Although China PLC faces many challenges on the way to rise, the development prospect of China PLC is still optimistic with the advancement of technology and the improvement of market recognition. With the continuous progress of technology and the increasingly open market, China PLC can not only meet the needs of the domestic market, but also expected to occupy a place in the global market.
