The Enduring Principle of Control Systems
“Robust, simple, and reliable”—these three attributes still define the essence of industrial control systems. Despite the rise of smart manufacturing, this foundation has not changed. At the center of it all stands the Programmable Logic Controller (PLC)—arguably one of the most resilient and enduring products in industrial history.
From Breakthrough to Consolidation
The origins of PLC technology are deeply rooted in the United States. In 1969, Modicon, driven by requirements from General Motors production lines, introduced the first PLC. This marked a turning point in industrial automation—what many would now associate with the beginning of “Industry 3.0.”
Even the name “Modicon” reflects a timeless concept: Modular, Digital, Control. More than five decades later, the automation world still operates within this paradigm.
As PLCs proved to be cost-effective and easy to deploy, adoption surged across manufacturing. By the 1970s and 1980s, the market saw explosive growth, particularly in the U.S., Europe, and Japan. Numerous players entered:
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In the U.S.: Allen-Bradley, Reliance Electric, and others
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In Europe: Schneider Electric (via acquisitions), Siemens
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In Japan: Mitsubishi Electric, Omron, among others
This was an era of rapid expansion—and inevitable fragmentation.
The Era of Mergers and Market Control
The 1980s and 1990s marked a decisive shift. As PLC technology matured and became less differentiated, business strategy and execution overtook pure technical innovation.
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Modicon was eventually acquired by Schneider Electric
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Rockwell Automation strengthened its position by acquiring Allen-Bradley (1985) and Reliance Electric (1995)
By the mid-1990s, the competitive landscape had largely stabilized. The early pioneers had either been absorbed or consolidated into larger industrial groups.
Since then, the PLC market has entered a relatively stable and mature phase, with long product lifecycles and deeply entrenched vendor ecosystems.
Why the Leaders Stay on Top
Companies like Siemens, Rockwell Automation, and Mitsubishi Electric have maintained dominant positions for decades. Their advantage is not just technical—it’s systemic:
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rigorous quality systems
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long-term product reliability
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deep integration with customer workflows
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strategic user cultivation
A revealing example: in the 1980s, Siemens reportedly had more personnel dedicated to manufacturing quality and process control than to PLC development itself. This reflects a key truth:
In industrial automation, execution discipline often outweighs raw innovation.
The Real Battlefield: Education and Ecosystems
One of the most underestimated competitive advantages in PLC markets is user habit.
Engineering students trained on a specific platform often carry that preference into their professional careers. Over time, this creates a powerful vendor lock-in effect.
Vendors understand this well:
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Siemens, Rockwell, and others invest heavily in university labs
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Educational programs often focus on vendor-specific tools, rather than standards like IEC 61131-3
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Training materials, certifications, and competitions reinforce brand familiarity
The result?
By the time engineers enter the workforce, their “default choice” is already shaped.
For decision-makers, this has a direct implication:
Workforce familiarity can influence procurement decisions as much as technical merit.
A Case Study in Strategic Failure: GE
General Electric provides a cautionary example.
Despite multiple attempts, GE failed to establish a strong foothold in PLC and control systems:
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1990s “Factory of the Future” initiative
Attempted unified control architecture—failed after significant investment -
Early 2000s PAC (Programmable Automation Controller)
Promoted as a hybrid of PLC and PC-based control
→ Lacked reliability and clear differentiation -
Industrial Internet / Predix platform (2010s)
Ambitious but poorly timed amid market and financial challenges
Ultimately, GE exited much of its automation platform business, selling it to Emerson Electric.
Lesson for executives:
Even with scale and capital, misaligned strategy and timing can outweigh technical ambition.
The Disruptors: PC-Based Control
While traditional PLC vendors dominate, niche players have carved out space through architectural innovation:
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Beckhoff Automation
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B&R Automation (now part of ABB)
Their approach:
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PC-based control platforms
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strong software engineering capabilities
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open interfaces and extensibility
These companies target high-end applications first, then move downward in cost.
Their success highlights a key trend:
The future of automation is increasingly software-defined.
The Hidden Weapon: Software Platforms
Behind every PLC ecosystem lies a critical but often overlooked layer:
the programming environment.
Platforms such as:
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CODESYS Group
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Rockwell Automation (proprietary stack)
play a decisive role in:
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developer productivity
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ecosystem control
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long-term platform strategy
For executives, this raises an important question:
Are you choosing a controller—or committing to a software ecosystem?
Economics: Why PLCs Are Not Always the Profit Center
Despite their importance, PLCs are often low-margin products.
For many industrial companies:
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selling PLC hardware is less profitable
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value lies in systems, integration, and software
This explains why some vendors focus on:
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vertical industry solutions
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integrated platforms (e.g., drives + control + HMI)
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lifecycle services
The Strategic Direction: Integration Platforms
Leading vendors are converging toward platform strategies:
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Siemens: TIA Portal
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Schneider Electric: EcoStruxure
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Rockwell: Integrated Architecture
These platforms aim to unify:
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PLC
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drives
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HMI
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low-voltage systems
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software tools
For decision-makers, this is critical:
The competitive battlefield is shifting from products → platforms → ecosystems.
Final Insight: OT Still Controls the Gate
Despite all the hype around digital transformation, IoT, and industrial AI, one reality remains:
If you don’t control the OT (Operational Technology) layer, you are not in the real game.
PLCs—despite being over 50 years old—remain the entry point to the physical world.
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Industrial IoT depends on them
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Digital twins depend on them
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Smart manufacturing depends on them
They are not being replaced—they are being reinforced.
Closing Thought for Leaders
The PLC market may appear stable, even uneventful. But beneath the surface, it is a strategic battleground shaped by:
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long-term ecosystem control
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education and talent pipelines
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software platform dominance
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integration capabilities
For executives making technology decisions, the question is no longer:
“Which PLC should we choose?”
But rather:
“Which ecosystem are we willing to commit to for the next 10–20 years?”