Market Overview

The Saudi Arabian programmable logic controller (PLC) market is projected to generate approximately USD 139.05 million in 2024, with a modest CAGR of 0.37% expected until 2030, reaching USD 142.20 million. A major driver of this market is the increasing demand for data integration and advanced automation in industrial processes.

PLCs facilitate seamless communication between sensors, control systems, and devices, aligning with the interconnected nature of the industrial internet of things (IIoT). This collaboration enhances scalability, efficiency, and real-time decision-making in various industrial applications, including production processes, assembly lines, and robotic operations, which require reliable control. Essential features for these systems include large memory, high-speed Ethernet, integrated wireless capabilities, and scalability.

The integration of wireless technologies into PLC systems is a key trend, especially in industries like automotive, oil and gas, and packaging. Wireless PLCs help overcome previous challenges and costs associated with wired communication, offering flexibility, mobility, affordability, and ease of installation and maintenance.

Saudi Arabia is launching extensive infrastructure projects across sectors such as utilities, housing, commercial buildings, and warehouses, creating significant demand for advanced monitoring and control systems where PLCs play a crucial role. In the oil and gas sector, PLCs are utilized to automate upstream facilities, manage pipelines, and enhance refinery operations, as well as update power generation and distribution systems.

Key Insights

·         The hardware category is projected to dominate the market, contributing approximately 50% of total revenue in 2024, driven by essential requirements and ongoing industry expansions.

·         The continuous cycle of replacing and upgrading hardware is a significant factor supporting the revenue growth in the hardware segment.

·         The software category is expected to experience a modest CAGR of 0.42% from 2024 to 2030, with growth fueled by evolving software integration trends and digital transformation efforts.

·         Customization and flexibility in software solutions are becoming increasingly important for businesses, driving demand in the software market.

·         The oil and gas sector is set to account for 35% of market revenue in 2024, supported by Saudi Arabia's vast reserves and ongoing industry developments.

·         The integration of new technologies into exploration and production (E&P) operations within the oil and gas sector enhances efficiency and drives growth.

·         The energy and utilities category is expected to grow at a CAGR of 0.43% between 2024 and 2030, largely due to the increase in infrastructure projects in Saudi Arabia.

·         Major infrastructure initiatives, including smart cities and transportation modernization, are significant contributors to the growth of the energy and utilities segment.

·         The Eastern region of Saudi Arabia will capture the largest market share, at 40% in 2024, due to its concentration of petrochemical facilities and oil and gas infrastructure.

·         The high employment of PLC systems in the oil and gas industry further solidifies the Eastern region's dominance in the market.

·         Al-Riyadh is anticipated to be the fastest-growing market with a CAGR of 0.45% from 2024 to 2030, driven by various large-scale projects and initiatives.

·         Projects such as King Salman Park and Green Riyadh will require advanced PLC systems for automation and improved control mechanisms.

·         The market is characterized by consolidation, with a few key players, including General Electric, Eaton, and Bosch, leading the industry.

·         These major companies are forming partnerships with local businesses in Saudi Arabia to enhance their portfolios and distribution networks.

·         Significant investments in research and development by these players aim to introduce innovative features and technologies in PLC systems, driving sales growth.

Source: P&S Intelligence