PLC (Programmable Logic Controller, programmable logic controller) is the core component of electrical automation, widely used in a variety of industrial automation processes, in the field of industrial control plays a crucial role.

Several research reports predict that China’s PLC market size will reach 16.54 billion yuan in 2023, of which the market size of small PLC and medium and large PLC is 8.072 billion yuan and 8.468 billion yuan respectively. In the market of 10 billion scale, how is the market performance of domestic PLC? Let’s find out.

“Small, medium and large” three types of PLC

In order to classify products, the industry generally divides PLC into “small, medium and large” three categories according to its structural form, functional differences and the number of I/O points.

Specifically, the total number of input and output points of small PLC is generally below 256 points, its function is mainly controlled by switching quantity, and the user program memory capacity is below 4K words. This kind of PLC is characterized by small size, relatively low price, suitable for single-machine control.

The total number of input and output points of medium-sized PLC is between 256 and 2048 points, and the storage capacity can reach 2 to 8K. With stronger digital computing capabilities, it can complete complex operations such as trigonometric functions and exponents, and has more powerful communication functions and analog processing capabilities.

Large PLC generally refers to I/O points greater than 2048 points, the use of dual cpus or multiple cpus (16 or 32 bit), the user program memory capacity of 8 to 16KB or larger PLC. Large PLC can carry out PID operation, matrix operation and other more complex calculation tasks. In addition to being directly used in industrial control, the powerful processing performance of large PLCS also supports the monitoring of multiple subordinate PLCS to form a distributed production process control system.

It should be noted that there is no particularly clear unified standard for the specific division of large and small PLC, and the manufacturing process and classification standards of PLC are in a state of dynamic development, and the classification data mentioned above is only for reference at this stage.

Small PLC further localization

In the small and medium-sized PLC market, domestic PLC has obvious price advantages and supply chain advantages compared with foreign brands, and it is more flexible in customized development and other businesses.

At present, the main installed capacity of the domestic PLC market is small and medium-sized PLC, especially the small PLC mainly used in the OEM market, such as textile machinery, packaging machinery, food machinery, etc., the OEM market accounts for about 75% of the total market size of PLC.

Due to the low profit of most OEM foundries, OEM manufacturers are extremely sensitive to the price of equipment. The advantages of domestic PLC, such as ultra-high cost performance, rapid and stable supply, are of great appeal to such customers, which is also a major reason why small PLC quickly turns to domestic alternatives.

With the support of multiple factors such as favorable policy direction and ultra-high cost performance of products, the domestic penetration rate of small PLC has increased significantly this year. According to the statistics of the China Economic Research Institute, in the first quarter of 2023, the localization rate of domestic small PLC was as high as 36.1%, among which the head manufacturers included Huichuan Technology, Xinjie Electric and so on.

Among them, the domestic market share of small PLC products of Huichuan Technology is about 15.4%, ranking second (the first is Siemens). In contrast, in 2021, Huichuan Technology’s small PLC market share is only 7%.