Acceleration of Localization Substitution: China's PLC Market Scale Expected to Reach 16.54 Billion Yuan in 2023
2025-07-02
As the main battlefield in the field of industrial automation control, PLC provides very reliable control applications for various automated control equipment, meeting the current automation needs of industrial enterprises. On the other hand, PLC must also rely on other new technologies to cope with the impact of gradually shrinking market share, especially industrial PCs.
The market size of PLC in China is expected to reach 16.54 billion yuan in 2023.
At present, the basic programming software for PLC can be summarized into four forms:
It has developed from a self-developed PLC kernel based on international standards to an integrated development environment (IDE), but it does not take commercialization as the goal, only serving its own control systems or customized control systems.
It has developed from a self-developed PLC kernel based on international standards to an integrated development environment (IDE), with the main feature of being productized, which can provide commercial software kits for any unit in society with needs.
Cooperating with foreign companies to develop an integrated development environment suitable for the needs of the domestic industrial control market based on their PLC kernels, including providing a complete software environment and development path for domestic embedded chips.
A software platform completely based on self-development and the latest technologies in the IT industry. It is characterized by not only meeting the various requirements of traditional PLC programming, but also adapting to the requirements of modern PLC applications in the industrial Internet environment, and facilitating the introduction of artificial intelligence.
In the market aspect, the domestic PLC market has currently formed a scale of tens of billions of yuan. Under the premise of policy guidance, technological breakthroughs, and continuous release of market demand, the market space and import substitution demand for medium and large PLCs will definitely be opened up, and investment opportunities will also become more and more. Industry authoritative assessments show that it is expected that by 2023, the market size of PLC in China is expected to reach 16.54 billion yuan, among which the market sizes of small PLCs and medium and large PLCs are 8.072 billion yuan and 8.468 billion yuan respectively.
The supply of high-end products in China is insufficient, and the country needs to accelerate the process of PLC localization.
At present, the issues that PLC needs to address still include the adoption of new technologies, system openness, and pricing.
With the expansion of industrial production scale and the improvement of automation levels in the production of general basic products, the cost-performance advantage has become more significant, significantly enhancing competitiveness in the global mid-to-low-end market and driving a rapid growth in export volume. It is noteworthy that China's PLC import volume has also maintained a relatively stable increase, mainly due to the insufficient supply of domestic high-end products. The continuous development of downstream traditional industries and emerging industries has driven growing demand for high-end PLC products, leading to a sustained increase in industry imports.
From the perspective of global supply and demand market trends, in recent two years, affected by factors such as chip shortages and rising raw material prices, the upward trend in PLC market prices has been very evident. Since last year, global PLC giants have successively initiated price hikes. Among them, the price increase range for Rockwell's PLC products has varied from 3% to 36%, with the CLX1756-L8SP series—boasting huge market sales—seeing a 36% price surge. Price increases for products under foreign-funded enterprises such as Omron, Delta, and Emerson have also exceeded 6%.
Domestic brand PLCs account for a very small share of the domestic PLC market and have not yet formed an industrial scale, mainly concentrating in the field of small PLCs. In Q3 2022, the localization rate of small PLCs was approximately 20.2%, that of medium and large PLCs was below 10%, and the localization rate of large PLC systems was only about 1%.
Over the years, China's PLC technology has also made remarkable progress. There are few traces of imitation in both hardware and software directions, and independent development and self-design have become the mainstream.
In the field of domestic industrial infrastructure, the call for localization and intelligence of PLCs, especially medium and large PLCs, is getting louder and louder, which also brings opportunities for the local PLC industry to overtake on a curve. In recent years, with domestic industrial control enterprises continuing to make efforts in product technology research and development and market promotion, many local brands such as Inovance, Delta, SUPCON, HollySys, Yonghong, Ankong, Taian, Fengwei, Aoto, Xinjie, Kewei, Zhenghang and others have actively expanded the market. Kaiyuan Securities said in the latest research report that domestic manufacturers are seizing the market share of Japanese and Taiwanese manufacturers in the small PLC market by virtue of the advantages of high cost performance, short delivery time and rapid response to customer needs. Many of the leading domestic PLC enterprises have been listed on the A-share market. Driven by the continuous development needs of emerging industries and traditional industries, the downstream application fields of the PLC industry are also showing a diversified development trend. In particular, domestic industries such as power batteries, automobiles, semiconductors, as well as traditional manufacturing industries such as textiles and machinery, have become key markets for the future development of the PLC industry
In the era of intelligent manufacturing, PLC technology urgently needs innovative optimization.
Furthermore, at the technical level, with the continuous deepening of intelligent manufacturing, the algorithms of PLC software need to be further optimized for the production requirements of Industry 4.0. Based on the integration of artificial intelligence and big data, the PLC industry should further optimize software to provide tools more in line with actual industry applications, enhance the problem-solving capabilities of industrial algorithms, and reduce algorithm complexity. Additionally, as a tool to assist industrial manufacturing, the underlying programs of PLC should be further encapsulated into concise and easy-to-use toolkits, providing simple interfaces for technicians to call, so as to simplify the operation of complex production processes.
In recent years, with the continuous popularization and application of cloud computing in the industrial field, the deployment of cloud-based PLCs in 5G base stations has injected new vitality into this traditional PLC technology. Based on their technical advantages in 5G, the three major telecom operators have strengthened cooperation with traditional industrial control enterprises to lay out "5G + cloud-based PLC" solutions, striving to seize the intelligent manufacturing market. In 2020, China Telecom carried out a distributed deployment transformation of traditional factory PLCs for Midea's microwave oven production line, adopting 5G network-based centralized PLC deployment. In 2021, China Unicom, Tongtu Technology, and Sany Heavy Industry joined forces to grandly release the 5G cloud-based PLC application for the global lighthouse factory. In June 2022, the China Mobile Research Institute, China Mobile's Enterprise Business Division, together with Comba Network and Tongtu Technology, launched the industry's first 5G cloud-based industrial base station and completed end-to-end verification.
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Get the Major Events of June in Industrial Control and Automation in One Article
2025-07-01
The month of June has 悄然 (quietly) passed by, accompanied by the drumbeats of Dragon Boat Festival races, the lingering heat from the conclusion of the college and high school entrance exams, and the new news of Chinese players returning to the NBA court. In the field of industrial control, there are also some emerging pieces of information worthy of being known by industry peers. Let's take a look together!
In terms of the industry, a package of 重磅 (heavyweight) policy documents were issued: the first policy document in the manufacturing metrology field was released; and the Implementation Plan for Green and Low-Carbon Standardization Work in Industry and Information Technology was printed and distributed. A number of professional exhibitions gathered and opened: the 2025 South China International Industrial Expo grandly opened; the 2025 WOD Manufacturing Digital Expo kicked off in Shanghai; and the Laser World of Photonics and automatica opened a new chapter in the industry! In addition, industry hotspots also included the Caixin China Manufacturing PMI falling to 48.3 in May, contracting for the first time since October 2024; the launch of the 2025 Smart Factory Gradient Cultivation Action; and the Chinese intelligent manufacturing industry is expected to usher in leapfrog growth by 2030, with three major technological trends worthy of attention...
Enterprise Highlights
1.ABB Accelerator China Week: When AI Meets Hardcore Industry, a Bottom-Up Smart Manufacturing Revolution
Not long ago, at the ABB Accelerator China Week event that concluded in Shanghai, ABB not only systematically demonstrated its in-depth layout and breakthrough progress in the field of industrial AI, but also clearly conveyed to the outside world its firm determination to promote the integration of artificial intelligence into the industrial fabric and reshape the future of industries.
2.Honeywell Acquires Sundyne for $2.2 Billion to Strengthen Technology Layout in Process Industries
Honeywell recently announced that it has acquired Sundyne, one of the large pump and compressor manufacturers in the energy industry, from private equity firm Warburg Pincus for $2.16 billion. In a statement, Honeywell said the company has completed the all-cash transaction with Sundyne. The acquisition of Sundyne will add approximately 1,000 technical employees and a large customer base to Honeywell.
3.Inovance Technology's Jinan Base Officially Starts Production; Government and Enterprise Join Hands to Build a New Highland for Smart Manufacturing
On the morning of June 11, the commissioning ceremony of Inovance Technology's Jinan Base was grandly held. The official operation of Inovance Technology's Jinan Base marks the official implementation of Inovance Technology's grand blueprint to take Jinan as a strategic fulcrum, deeply lay out the northern market, and radiate the national industrial automation field.
3.Emerson Boundless Automation Summit Successfully Concludes
From June 4th to 5th, Emerson held the 2025 Boundless Automation Summit in Nanjing. The summit brought together more than 600 industry leaders and technical experts from the industrial automation field in an unprecedented grand gathering, where they jointly explored the cutting-edge trends of automation technologies and their key roles in promoting enterprise safety, efficiency, and sustainable development.
5.The 2025 Siemens Xcelerator Open officially launches.
Siemens officially launched the 2025 Siemens Xcelerator Open on June 23, with the core themes of "Digital Transformation, Intelligent Upgrading, Green Transition, and AI Enablement". The event sets up two tracks focusing on the digital and low-carbon transformation needs of small and medium-sized enterprises (SMEs), aiming to accelerate the improvement of quality and efficiency as well as business growth for SMEs by converging the power of industrial ecosystems.
6.The OPT2025 Product Launch Conference Successfully Concluded
On June 18, the OPT2025 Product Launch Conference successfully concluded. Meanwhile, the OPT East China Vision Industrial Park was officially put into operation, and the dual-track strategy of "from industrial automation to intelligent robotics" was released.
7.Yaskawa Electric Launches Largest-Ever Expansion Plan in the Americas
Recently, Yaskawa Electric is accelerating its layout in the U.S. market and proceeding with the construction of new business infrastructure. The company plans to invest approximately $180 million (about 26 billion yen) to build a new factory in Franklin, Wisconsin, integrating products such as industrial robots and motors. It will also relocate the production functions of its U.S. headquarters in Illinois and some existing facilities in Wisconsin to this new base
8.The Phoenix Contact China Full-Value Chain Super Factory Project Officially Commences Construction
On June 18, the groundbreaking ceremony for Phoenix Contact China's Second Base Full-Value Chain Super Factory Project and the unveiling & signing event of Nanjing Nordic Industrial Park were held. The construction of Phoenix Contact China's Second Base Full-Value Chain Super Factory includes the Phase II of Intelligent Factory for Industrial Components, Intelligent Factory for Device Connection, Digital Workshop for Parts, and Intelligent Logistics Center for Finished Products, etc.
9.HMS 2025 Global Industrial Network Market Share Forecast Report Released
HMS Industrial Networks recently released its annual industrial network market report, outlining key current market trends. Following the explosive growth in 2023, the market showed slight weakness in 2024, with the number of newly deployed nodes decreasing by approximately 10-11%. This decline is mainly attributed to the tightening economic environment, increased global uncertainties, and overcapacity in the European automotive and manufacturing industries.
10.The 3rd Global Partners Conference of Rothe Robot was successfully held!
From June 17th to 18th, the "2025 Shandong Intelligent Robot Industry Ecology Cooperation and Development Conference 暨 the 3rd Global Partners Conference of Rothe Robot" was successfully held. With the theme of "Gathering Strength to Empower・Uniting for a Far-reaching Future", the conference focused on key topics such as the development trends of intelligent robots, the construction of industrial ecology, and the collaborative development of industries in different regions.
11.Rockwell Automation Releases Tenth Edition of "State of Smart Manufacturing Report"
Rockwell Automation recently released the tenth edition of its annual State of Smart Manufacturing Report. The global survey, conducted in March 2025, covered more than 1,500 manufacturers from 17 major manufacturing countries and regions.
12.The 2025 Schneider Electric Intelligent Computing Summit was successfully held.
The 2025 Schneider Electric Intelligent Computing Summit with the theme of "AI Navigation • Power & Computing Symphony" was held in Ya'an, Sichuan on June 26. Schneider Electric brought together industry experts, customers, and partners to discuss energy challenges and opportunities brought by AI technologies, and held discussions on hot topics such as the cutting-edge development trends of data centers and enterprise sustainable development.
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China's 84% tariff on the US has officially taken effect, and what will happen to American brands? Germany's Siemens, Japan's Mitsubishi, Omron, are eyeing?
2025-04-10
Introduction: An unexpected tariff storm is causing waves in the industrial sectors of instruments, valves, automation, and sensors. As China's 84% additional tariffs on U.S.-made goods officially take effect, numerous American brands deeply rooted in China are facing unprecedented challenges. Meanwhile, non-U.S. industrial giants represented by Siemens (Germany), Mitsubishi (Japan), and Omron (Japan) are keenly capturing this shift in market dynamics, potentially ushering in a strategic opportunity for accelerated expansion. This article deeply analyzes the impact of the tariff policy, explores coping strategies for American brands, and forecasts the potential market competition landscape.
Tariffs Take Effect: U.S. Brands Face Challenges in China's Market
During the Trump administration, the U.S. imposed 84% tariffs on Chinese goods exported to the U.S., to which China responded with a tougher stance—levying 84% punitive tariffs on all imports originating from the U.S. This undoubtedly imposes enormous operational pressure on American industrial brands that hold a significant position in the Chinese market.
According to the reference information provided, these include:
Emerson, whose portfolio includes Leroy Somer, Control Techniques (CT), ASCO, AMS, AVENTICS, Anderson Greenwood, Fisher, Rosemount, Flexim, Sempell, TopWorx, and National Instruments.
Rockwell Automation, with its Allen-Bradley and FactoryTalk brands highly influential in the industry.
Fortive Group, not to be underestimated, with 旗下 (subsidiaries) such as Industrial Scientific, Fluke, Setra (Fortive Sensing & Control), Tektronix, and Qualitrol, each boasting a large user base in their respective niches.
Other notable brands: Ametek EIG, Honeywell, Baker Hughes, GE (General Electric), Eaton (including Cutler-Hammer, Westinghouse, Powerware, Moeller, Phoenixtec, SANTAK, Bussmann, Cooper Industries, Power Distribution Inc., Abunayyan Holding, etc.), Belden (with Hirschmann, Lumberg Automation, ProSoft Technology), Flowserve, Thermo Fisher Scientific, Johnson Controls, Parker Hannifin, Banner, Regal Rexnord (including Kollmorgen, Warner Electric, Wichita Clutch, Thomson), and the so-called "Big Three U.S. pressure switches"—Custom Control Sensors (CCS), United Electric (UE), and SOR Controls (SOR). These brands together form a powerful U.S. brand matrix in related fields, long dominating important positions in global markets, especially in mid-to-high-end segments.
The 84% tariff means the prices of these U.S. brands' products will rise significantly, directly undermining their competitiveness in China's price-sensitive market. Particularly in the mid-to-low-end market, where Chinese local brands have already gained a foothold through cost advantages, the tariffs will undoubtedly accelerate the loss of market share for U.S. brands in this sector.
Not an All-Out Defeat: U.S. Brands Still Have Buffer Space
However, it is noteworthy that the tariffs do not target all product lines of U.S. brands. Key information from internal correspondence reveals the following:
Precision Strike on Domestic Manufacturing: The tariffs only apply to products manufactured in the U.S., not those produced in global bases outside the U.S. (such as China, Poland, Singapore, Mexico, Indonesia, Vietnam, etc.). This provides a buffer for U.S. brands with global footprints.
Transit Irrelevance: Origin is Key: Even if products are transshipped through the U.S., they are exempt from tariffs if their origin is not the U.S., avoiding extra costs from logistics routes.
Global Production as a Moat: Many large U.S. industrial brands have established global production systems. By adjusting supply sources for Chinese markets—e.g., relying more on factories in China or other Asian countries—they can effectively evade high tariffs.
Pre-Stocking for a Time Window: As stated in some company letters, firms significantly increased shipments from the U.S. to China before April 10, building tariff buffer inventories. This allows short-term price stability and buys time for long-term strategies.
Lagged Price Adjustments: Despite tariff implementation, pre-stocked inventories may delay drastic price hikes, giving channel partners and end-users an adaptation period.
German, Japanese, and European Giants Eyeing Opportunities: Mid-High-End Market May Shift
While U.S. brands have buffer strategies, the 84% tariffs will inherently weaken their long-term competitiveness in China. Although the mid-to-high-end sector is currently dominated by European and American brands, non-U.S. industrial giants like Siemens (Germany), Mitsubishi (Japan), Omron, and Keyence have long coveted this market.
China’s tariffs on U.S. goods present strategic opportunities for these brands:
Enhanced Price Competitiveness: Compared to U.S. rivals bearing high tariffs, German, Japanese, and European products will be more price-attractive, especially among cost-sensitive mid-to-high-end customers.
Substitution Effect: In fields with similar technical indicators, users may prefer cheaper non-U.S. brands, accelerating market share shifts.
Accelerated Channel Expansion: Facing U.S. brands’ potential 困境 (difficulties), non-U.S. players may increase market investment in China to seize market gaps.
Elevated Brand Image: Amid the "de-Americanization" trend, the technical strength and reliability of German, Japanese, and European brands will gain easier recognition from Chinese users, boosting brand influence.
U.S. Brands’ Responses and Future Trajectories
Facing these challenges, U.S. industrial brands are not without countermeasures. Possible directions include:
Supply Chain Restructuring: Accelerating investment in global production bases and shifting China-bound products to non-U.S. factories to avoid tariffs.
Deepened Localization: Increasing R&D and manufacturing investment in China, launching products tailored to local needs, and enhancing self-reliance in the local supply chain.
Differentiated Competition: Focusing on unique technical advantages and high-end product lines to differentiate from non-U.S. brands and target price-insensitive premium users.
Flexible Pricing: In the short term, maintaining price stability by reducing profit margins or sharing costs with channels to prevent customer loss. Long-term strategies may require adaptive pricing based on market dynamics.
Strengthened Local Collaboration: Partnering with Chinese firms through joint ventures, technology licensing, or other means to integrate into the Chinese market and mitigate policy risks.
Conclusion: Change and Opportunity Coexist
The 84% tariffs on U.S.-made goods have posed significant challenges to U.S. industrial brands in China. However, this does not signal their total defeat. With global layouts and technical edges, they retain room to adjust and respond.
Concurrently, non-U.S. giants like Siemens, Mitsubishi, and Omron are seizing opportunities to capture market share. In the coming years, China’s instruments, valves, automation, and sensor markets may witness a new round of competitive realignment.
For all players, understanding policy shifts and adjusting strategies flexibly will be key to seizing opportunities in this transformation. China’s massive market potential continues to attract global attention, and those who adapt and integrate best will ultimately prevail. The profound reshaping of the industrial landscape is underway.
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