Industrial Electronic Temperature Controllers Losing Ground to DCS, PC, and PLC Loop Implementations
Natick, Massachusetts - February 16, 2005 - A market study by VDC finds growth in the electronic temperature controller market is continuing to slow. While the worldwide market for these products was about $760 million in 2002 and increased to almost $836 million in 2005, the study forecasts that the market will increase to only about $869 million in 2010, at a 1.8% compound annual growth rate (CAGR). A major factor in this trend is displacement of electronic temperature controllers in applications by the implementation of temperature control loops in distributed control systems (DCSs), personal computers (PCs) and programmable logic controllers.
Estimated and Forecast Shares of Existing Worldwide Industrial Temperature Controller Loop Implementations by Hardware Types (Percent of Loops)
A) In 2005
Temperature Controllers: 69.6%
PLCs: 17.8%
DCSs: 7.2%
Personal Computers: 5.4%
B) Expected in 2010
Temperature Controllers: 58.2%
PLCs: 26.5%
DCSs: 9.1%
Personal Computers: 6.2%
VDC investigated the relative implementation of temperature control loops in 12 major OEM applications and with end users in 11 major industries. This was done for new implementations in 2005, and new implementations expected in 2010. Significant differences were found in implementations by the various control means in these applications and industries. Some of the findings were:
Among OEMs:
o The largest share for electronic temperature controllers in 2005 was in oven applications, where these accounted for about 59% of loop implementations.
o The most significant share decline in use of electronic temperature controllers is expected to be for plastics manufacturing equipment, at about 19% over the forecast period.
o Implementation shares for electronic temperature controllers are expected to decline in 11 of the 12 applications, with only a fractional gain for the 12th, HVAC.
Among End Users:
oThe largest share for electronic temperature controllers in 2005 was in the plastics industry, where these accounted for about 66% of loop implementations.
o The most significant share decline in use of electronic temperature controllers is expected to also be in the plastics industry, at about 16% over the forecast period. Nonetheless the electronic temperature controller implementation share is still expected to be the largest here in 2010, as shares for all the other industries also decline.
Clearly the largest share of displacement is expected by implementation of temperature control loops in PLCs. PLCs tend to be used in applications where there is a lot of machinery using a lot of general loops in addition to temperature control loops. Electronic temperature controllers may be the more likely choice where this may be the only loop controlled, or where there are many temperature control loops in relation to other control loops. Temperature controller vendors also claim higher performance from their temperature controllers than from PLCs, and that the choice favors temperature controllers where there is a need for tight control.
"More business becomes available to electronic temperature controller suppliers as more users automate processes and seek more features and performance than is available from the use of thermostats," says Jim Taylor, Director of VDC's Industrial Automation and Control Practice. "Likewise as users seek to obtain more features and functions, and better overall integration of controls, there is analog controller business lost to MP-SL controllers, MP-SL controller business lost to MP-ML controllers, and MP-ML business lost to suppliers of DCSs, PCs, and PLCs."
About VDC
Venture Development Corporation (VDC) is an independent technology market research and strategy consulting firm that specializes in a number of industrial, embedded, component, retail automation, RFID, AIDC, datacom/telecom, and defense markets. VDC has been operating since 1971, when the firm was founded by graduates of the Harvard Business School and Massachusetts Institute of Technology. Today, we employ a talented collection of analysts and consultants who offer a rare combination of expertise in the market research process; experience in technology product and program management; and formal training in engineering and marketing. VDC's clients include thousands of the largest and fastest-growing tech suppliers in the world and the most successful investors participating in the markets we cover.
For further information about: "Industrial Electronic Temperature Controllers: Global Market Demand Analysis, Ninth Edition" or any other VDC service, contact:
Jim Taylor, Director, Industrial Automation and Control Practice, 508-653-9000 ext. 121, jimt@vdc-corp.com
Marc Regberg, Vice President, 508-653-9000 ext. 111, msr@vdc-corp.com
