I/O Modules for Discrete Automation

The I/O Modules for Discrete Market Research Report delivers current market analysis plus a five-year market and technology forecast. The report is available in multiple editions including worldwide, all regions, and most major countries. The market is expected to grow at a single-digit CAGR during the forecast period due to the uncertainties ushered upon by the novel coronavirus across the globe.

I/O Modules for Discrete Market Influenced by Popularity of Programmable Logic Controllers

The I/O Modules for Discrete market took a strong hit in 2020 due to the coronavirus pandemic and is expected to revive in 2021 onward, subject to how global economies deal with the existing pandemic situation. 

Discrete automation I/O module shipments dipped significantly worldwide in 2020 as a majority of the discrete industries have been impacted by the ongoing pandemic worldwide. All major economies witnessed strong decline in 2020. EMEA held the maximum share, followed by Asia, North America, and Latin America. While revenue in the Americas declined by double digits in 2020, EMEA and Asia experienced single-digit decline in revenue.

Technological trends include digitalization of industrial operations. Industrial operations have begun to focus on smart data, instead of just Big Data, that combines product know-how and process expertise with data analytics.  This helps reduce unplanned downtimes and improve operational efficiency and enables better decisions.   

The market for discrete I/O modules is dominated by Siemens, Rockwell Automation, Mitsubishi Electric, Phoenix Contact, and OMRON. Overall, ARC’s analysis suggests that broad automation portfolios clearly enable suppliers to garner defensible leadership positions.

I/O Modules Strategic Issues

In addition to providing a five-year market forecast, the IO Modules Discrete market research report provides detailed quantitative current market data and addresses key strategic issues as follows.

Strategic Issue for Vendors: Adoption of Industrial Internet of Things (IoT)

The trend toward Industrial IoT-capable IO modules used in PLCs is changing the latter’s role in automation architectures. Virtualization and edge computing are exerting influence on the shape of future automation architectures, and industrial 5G will also drive this evolution. Cloud connectivity and linking to Industrial IoT platforms are becoming “must haves.” As architectures evolve, PLCs will connect to edge devices with cloud connectivity, or PLCs may become edge devices themselves. The need for flexible machinery and data transparency is driving demand for smart sensing devices, which in turn is growing demand for more input and output channels. 

Strategic Issue for Users: Modular Type Package 

Modular type package (MTP) is an emerging concept for process industries. The NAMUR organization is working to standardize modular architectures for production units that allow users to scale their production capacity up and down according to changing needs. The modularity of machinery and process plants will shift demand toward smaller controllers.

Strategic Issue for All Market Participants: COVID-19 Pandemic

The COVID-19 outbreak has caused disruptions to global supply chains and business operations.  While the pandemic significantly impacted the 2020 demand for IO modules, the market projections do take into account industry trends with ARC’s best estimates for how COVID-19 will impact the IO modules market in different discrete industries.