As a latecomer in the industry, China’s domestic PLC sector began its initial development in the 1970s. However, due to constraints in capital, technology, and talent, the industry developed slowly and remained at a relatively low level until the 1990s. With increasing government attention to PLC development, the industry began to accelerate in the mid-to-late 1990s. The formal establishment of the PLC Branch of the China Electromechanical Integration Technology Application Association marked a turning point, ushering in a new phase of growth. Since the beginning of the 21st century, continuous advancements in computer, communication, and automation control technologies have gradually lowered the barriers to PLC development and reduced product costs. Coupled with strong demand driven by the rapid growth of the manufacturing sector, China’s PLC industry has entered a period of rapid development.

In recent years, competitive domestic enterprises such as Inovance Technology (300124.SZ), Xinje Electric (603416.SH), and Megmeet (002851.SZ) have risen rapidly. Driven by strong demand from emerging industries such as semiconductors, lithium batteries, and photovoltaics, local PLC companies are now benchmarking against leading international players and expanding aggressively. Data shows that China’s PLC production has grown rapidly, increasing from 43 million units in 2019 to 65 million units in 2021.

Benefiting from favorable market conditions, more companies are leveraging capital markets to further consolidate resources. According to the STAR Market Daily, many leading domestic PLC companies have already been listed on the A-share market. Meanwhile, driven by both emerging and traditional industries, downstream application areas of PLCs are becoming increasingly diversified. Key future markets include power batteries, automotive, semiconductors, as well as traditional manufacturing sectors such as textiles and machinery.

At the policy level, China’s Ministry of Industry and Information Technology released the “14th Five-Year Plan for Software and Information Technology Services Industry Development” last year, clearly emphasizing the vigorous development of the PLC industry and accelerating its integrated application in key sectors. During this year’s National Congress, the strategic goals of advancing new industrialization and building a strong manufacturing nation further highlighted the importance of PLCs. Currently, China’s PLC market has reached a scale of tens of billions of RMB. With policy support, technological breakthroughs, and continuously growing market demand, the market space for medium and large PLCs, as well as import substitution opportunities, is expected to expand significantly. Industry estimates suggest that by 2023, China’s PLC market size is expected to reach RMB 16.54 billion, with small PLCs accounting for RMB 8.072 billion and medium-to-large PLCs for RMB 8.468 billion.