The Global DCS Market by Industry Oil & Gas, Chemicals, Power Generation, Metals & Mining, Pharmaceutical, Paper & Pulp, and Food & Beverage Industry, and by Hardware, Software, & Services Component, and by Application

The Distributed Control System (DCS) market is expected to reach USD 19.82 billion by 2020, at a CAGR of 4.91% from 2015 to 2020

• Published by: Markets and Markets
• Publishing Date: January 2016
• Publishing ID: 3608023

The Distributed Control System (DCS) market is expected to reach USD 19.82 Billion by 2020, at a CAGR of 4.91% from 2015 to 2020. The growth of the market is attributed to the booming power sector & augmented power generation capacities around the world and expanding industrial infrastructure in emerging markets such as the Middle East & Africa. Investments for conventional power generation in the Middle East countries such as Egypt, Oman and renewable power generation investments in Asia-Pacific and African countries such as China and South Africa have been planned to quell the increasing power demand. These investments in turn are going to boost the demand for DCS.

Among the various applications for which DCS solutions are employed, the continuous process industry segment is expected to be the largest market. This segment is also expected to witness the highest CAGR during the forecast period, due to rapid growth of power generation and chemicals end-use industries. Meanwhile, developing economies in Asia-Pacific and South America comprise fast growth markets for the continuous process industry segment.

Software is the largest segment among the components offered as part of DCS solutions. The software market is expected to have the highest growth from 2015 to 2020, owing to increasing demand of upgradation of existing software in distributed control systems with latest versions and technologies. Asia-Pacific is the fastest growing software market.

Asia-Pacific is expected to be the largest market for DCS during the forecast period. The market is expected to exhibit the highest CAGR from 2015 to 2020. There has been a steady rise in the demand for power, as a result of which, substantial investments has been made, especially in the developing economies in Asia-Pacific and the Middle East & Africa to augment power generation capacities. This scenario is expected to further boost the demand for DCS. Asia-Pacific has some of the major companies including Yokogawa Electric Corporation (Japan), Azbil Corporation (Japan), and Toshiba International Corporation Pty Ltd. (Australia).

Off-late, there has been a stagnant growth in global upstream oil & gas industry, owing to decrease in exploration and production activities. Declining oil prices because of an oversupplied market has led to a decrease in exploration & production activities. The focus for industrial growth in countries dependent on oil export is gradually shifting towards other industries, as they are aiming for a diversified revenue stream. Steady increase in energy generation using renewable and alternative sources has also controlled oil production. The oil & gas industry holds a major share of the DCS market. Hence, stagnant growth in this industry is expected to slow the demand for DCS.