Automation Market PLC, PAC & Controller

PLC and PLC-based PAC Latin American Market Features Dynamic Growth Driven by an Emerging Economic Region

Pinterest LinkedIn Tumblr

The economic growth that had started in 2010 continued in 2011. While demand for automation remained strong for PLCs and PLC-based PACs during the first half of 2011, the pace of growth slowed as the year progressed. Latin America’s strategic importance is increasing, and the countries in the region performed well throughout the global economic crisis and are making the structural macroeconomic adjustments to achieve sustainable economic growth in the future. The region’s largest economies, Mexico and Brazil, are members of the G20 and are among the dynamic drivers of both global and regional growth.

This globalization environment drives manufacturers and other industrial operations to address initiatives for energy cost savings and reducing energy consumption, as well as for safety and sustainability needs. “To offset rising energy costs and meet stricter environmental requirements, most industries want to steadily improve their productivity and efficiency in the area of energy consumption, in particular. This will drive the overall market growth positively in 2012 and beyond,“ according to Senior Analyst Himanshu Shah, the principal author of ARC’s “Programmable Logic Controllers and PLC-based PACs for Latin America Market Research Study”.


Globalization is driving fundamental changes in how industry leaders set their business objectives. The objectives, such as improving plant or machinery utilization, yield, product quality, availability, safety, and delivery performance, strongly influence capital investments in automation. Automation suppliers, especially PLC and PLC-based PAC suppliers, are well positioned in this environment as this equipment is widely employed across all industrial segments as companies face challenges to raise productivity, lower product costs, reduce plant operating expenses, and increase return on investment.

Emerging Economies and Increased Infrastructure Investments Will Fuel Market Growth

The case for growth in Latin America remains strong. Rich in industrial commodities, the region is in great position to benefit from industrial expansion in China and other emerging markets. The region is using the wealth generated from its resources to fund desperately needed infrastructure projects, ranging from basic services such as electricity, water, and transport to broadband communications. As China and emerging markets continue to demand their commodities, Latin America should be able to generate the cash necessary to continue its own infrastructure development. As a result, investments in automation equipment, such as PLCs and PLC-based PACs, will continue in sectors such as electric power generation and water & wastewater. The food & beverage, pharmaceutical, and consumer packaged goods industries, as well as renewable energy applications, will also make investments in automation equipment.


Comments are closed.