PLC and DCS are fundamentally different:

(1) PLC is a “control device” for factory automation; DCS is a “control system” for process automation; In industrial production control, PLC is an important bottom control component, DCS on the basis of PLC control and monitoring.

(2) SPIPT800 The focus of PLC is logic control, can control the number of points from a few to tens of thousands, the most prominent application for factory automation (production line). Compared with PLC, which focuses on local logic control, DCS pays more attention to analog control, so DCS system has stronger data transmission and management capabilities, and is widely used in large-scale projects.

Application areas: DCS downstream areas have a high concentration, and chemical applications account for the largest proportion. DCS products are mainly used in the process industry’s three core downstream chemical, petrochemical, power, the three areas accounted for more than 80%, according to Rui industry statistics, in 2022, the chemical field accounted for 43%, is the largest application field of DCS, petrochemical and power are also close to 20%.

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Market size: In 2022, the global market size exceeded 17.2 billion US dollars, and the Chinese DCS market size exceeded 8.6 billion yuan. DCS, as the basis of large-scale process industry, is another important component of the shop-to-site level industrial control system. According to Gminsights data, the global DCS market size reached about $17.2 billion in 2022, and is expected to reach $30.3 billion in 2032, with a compound annual growth rate of 5.8%; According to Rui Industry data, in 2022, China’s DCS market size reached 8.66 billion yuan, and is expected to reach 11.84 billion yuan in 2025.

SPIPT800 Source: Rui Industry, Star Can capital collation

Competitive landscape: DCS has high barriers and high thresholds, the industry pattern is showing a gradual trend of concentration, according to Rui industry statistics, the CR5 of the domestic DCS market in 2011 was 59.9%, reaching 73.8% in 2022, and the market share of China’s DCS industry leader in control technology also increased from 13.0% in 2011 to 30.2% in 2022. Zhejiang Zhongkong, Hollysys and Guoneng Zhishen three domestic companies combined share of 48%, has been close to half. Compared with PLC, DCS will be closer to the industry-specific program, the downstream of the industry is concentrated, and the inter-industry barriers are stronger, with the attributes of consulting and implementation, industry experience and past cases dominate in its customer decision-making, which makes the industry a strong and constant strong pattern.