Report

The Middle East Programmable Logic Controller market is estimated to grow at a CAGR of about 4.6% from 2022 to 2027. The deployment of PLC systems helps identify and rectify errors and can initiate rapid responses without human intervention. Hence, these automated PLC systems can considerably reduce machine downtime. Moreover, a significant rise in industrial automation and IT infrastructure in Israel paves the way for development in the PLC market.

� The growth of the oil and gas sector in the region is driving the PLC market. As per the U.S. Energy Information Administration (EIA), the Middle East includes five of the top ten oil-producing countries and is responsible for a significant share of the total oil production in the world. As per EIA, Saudi Arabia alone produces about 11 million barrels of oil per day which is nearly 11% of world output. With such high production, producers are now seeking a better solution, such as a programmable logic controller (PLC), to help them be more efficient and reduce costs. These controllers are modular, scalable, and capable of handling various communications and application support.

� Increasing usage of automation systems in different end-user verticals, such as manufacturing and transportation & warehousing, construction, and utilities, is driving the market. PLC is a ruggedized computer used for industrial automation and can automate a specific process, machine function, or even an entire production line. It receives information through connected sensors or input devices, processes the data, and triggers outputs based on pre-programmed parameters.

� Moreover, countries such as the United Arab Emirates are installing smart girds in cities like Dubai, which is expected to further expand the demand for PLCs. For instance, in April 2022, the Dubai Electricity and Water Authority launched the next phase of its USD 1.9 billion smart grid strategy, covering the years 2021 to 2035.

� With the onset of the COVID-19 pandemic, significant industries in the Middle East, including energy, food & beverage, and oil sectors, among others, were impacted. Oil production and export are major sources of economic stabilization in the Middle East region. The oil exporters of the Middle East countries faced the additional shock of plummeting oil prices due to travel restrictions following the public health crisis. However, with the pandemic-related restrictions easing up, the market is expected to witness renewed growth in the coming years.

� However, low manufacturing activities of electronic components in the region have resulted in slow adoption of the devices, which restricts the market's growth.

Middle-East Programmable Logic Controller Market Trends

Oil Segment Accounts for Significant Market Share

� The Middle East accounts for many energy reserves, among the world's top crude oil-producing regions. For instance, the United Arab Emirates holds significant energy reserves. About 30% of the country's Gross Domestic Product is directly based on oil and gas output, per the Organization of the Petroleum Exporting Countries (OPEC). Thus, large-scale oil and gas industries created a sizeable market for PLC.

� In oil and gas pipeline transportation, the application of automation systems is essential to realize the process parameters while monitoring the operation of the whole line. It is directly related to the safety and stability of pipeline transmission.

� Oil refinery automation systems are intended to automate crude oil atmospheric distillation processes to residual, diesel, and gasoline fractions and their shipment to customers. These systems are realized using a set of programmable logic controllers (PLC) and distributed control architecture.

� Vista Automation is one of the leading Industrial Automation solutions providers in the Middle East and covers a wide range of applications and processes, including Oil & Gas. The company offers PLC/SCADA-based and DCS-based solutions for discrete, batch, and continuous processes.

� Further, in May 2022, Abu Dhabi National Oil Company (Adnoc) announced the discovery of 650 million barrels of onshore crude oil reserves in Abu Dhabi, including a significant oil find at Bu Hasa, its largest producing onshore oilfield. Such developments will enhance the demand for PLC in the coming period.

Renewable Energy to Witness Significant Market Growth

� The PLC market in Saudi Arabia has mostly benefited from the government and private players' investment in energy and utilities, like GE, Eaton, ABB, and Emerson, due to which there was high penetration of automation in the industries.

� In addition, UAE's Energy Strategy 2050 aims to increase the contribution of clean energy in the total energy mix from 25% to 50% by 2050 while reducing the carbon footprint of power generation by 70%.

� The Middle East is expected to spend heavily on upgrading smart grids in the coming decade as utilities seek to improve efficiency and reduce system losses and carbon emissions. A smart grid is a dynamic solution that effectively manages and distributes renewable energy sources such as solar, wind, and hydrogen.

� Smart Meters form an important component of the smart grid. The smart meter is realized by incorporating the PLC within an electrical meter. Using a PLC within a smart meter improves communication bandwidth, lowers processor scan-time, and improves code efficiency and effectiveness by optimizing throughput.

� Further, the trends toward the dual-axis solar tracking system have been implemented using a programmable logic controller (PLC). This proposed system keeps the solar panels aligned with the sun during sunrise to maximize solar power extracted from the sun. In this work, an open-loop control system has been designed and carried out using PLC and direct current motors for solar cell sun tracking. With future investment in renewable energy, Saudi Arabia caters to high demand.

Middle-East Programmable Logic Controller Market Competitor Analysis

The Middle East Programmable Logic Controller market is moderately competitive and consists of several major players. In terms of market share, few major players currently dominate the region. These major players, with a prominent share in the market, are focusing on expanding their customer base across the middle east regions.

� September 2021 - Honeywell introduced a new robotic technology designed to help warehouses and distribution centers automate the manual process of unloading pallets, reducing the operational risks of potential injuries and labor shortages. The Honeywell Smart Flexible Depalletizer uses machine learning and advances in perception and gripping technologies to break down pallet loads.

� April 2021 - Rockwell Automation announced its partnership with Precast FZCO, a leading provider of industrial automation solutions in the Middle East. With this agreement, Precast FZCO is authorized to distribute Rockwell Automation's software solutions in the region.

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