The global market for PLCs (programmable controllers) is continuing to grow, despite intense competition which is cutting revenues and eroding margins. The market analyst ARC, which has just produced a revised study* of the market predicts that sales, which exceeded $6.2bn last year, will reach $7.3bn by the end of 2005, representing a compound annual growth rate of 3.4%.

Among the strategies that suppliers are adopting to boost revenues are to offer more powerful products, to use common software architectures across many platforms, and to encroach into process applications.

As each level of PLC becomes more powerful it is capturing some of the market previously occupied by the next level, ARC reports.

One of the strongest growth areas in the next five years is expected to be for low-end nano and micro PLCs which are opening up new application areas.

Despite a decade of strong merger and acquisition activities that have left 90% of the global PLC market dominated by a handful of suppliers, ARC expects further takeovers and alliances to occur.

• PLC worldwide outlook, market analysis and forecast through 2005. Details from ARC on (44) 01767 652310.