I. Core Views

1.1 Definition and Importance of Hard PLC

Hard PLC, or hardware programmable logic controller, is a digital computing and operating electronic device designed specifically for use in industrial environments. It plays a vital role in the field of industrial control. With the continuous development of industrial automation, the status of Hard PLC has become increasingly prominent. It can accurately control various machines or production processes and realize the execution of logical operations, sequential operations, timing, counting and arithmetic operations. Whether in traditional industries such as manufacturing, petrochemicals, and electric power, or in the emerging field of intelligent manufacturing, Hard PLC has broad application prospects. It provides strong technical support for enterprises to improve production efficiency, reduce costs and improve product quality.

1.2 Features lead the new trend of industrial automation

Hard PLC has many unique features. First, it has extremely high reliability and anti-interference ability. Using modern large-scale integrated circuit technology, the internal circuit and production process adopt advanced anti-interference processing technology to ensure stable operation in complex industrial environments. For example, the average failure-free time of Mitsubishi F series PLC can reach 300,000 hours. Secondly, Hard PLC is widely practical. It can be applied to electrical control occasions of various sizes. It not only has basic logic processing functions, but also has powerful data computing capabilities. It can be applied to digital control fields, such as temperature control, position control and CNC and other control fields. Moreover, it is simple and universal. As an industrial control device directly facing enterprises, it has the characteristics of easy interface and programming language that is easy for engineering and technical personnel to accept. It can be proficiently applied in electrical control through a small number of switch logic control instructions.

1.3 Case demonstration value and potential

Take a certain automobile manufacturing company as an example. After the company introduced Hard PLC, it realized the automation upgrade of the production line. Through precise logic control and sequential control, all links of automobile production can be efficiently coordinated. Not only has it improved production efficiency, but it has also greatly reduced quality problems caused by human operation errors. At the same time, the self-diagnosis function of Hard PLC can detect faults in time and issue alarms, which provides great convenience for equipment maintenance and reduces maintenance costs. In another chemical production company, Hard PLC is used for precise control of temperature and pressure to ensure the safety and stability of the production process. These actual cases fully demonstrate the value and potential of Hard PLC and provide a successful example for the intelligent upgrade of enterprises.

II. Market Analysis

2.1 Industrial Automation Market Trends and Demands

2.1.1 Overview of Industry Status

Currently, Hard PLC occupies an important position in the industrial automation market. According to relevant data, the global PLC industry market size will continue to expand in 2022, and Hard PLC, as an important part of it, will also gradually increase its market share. From the perspective of market development trends, with the continuous improvement of industrial automation, the demand for Hard PLC continues to rise. Taking the manufacturing industry as an example, the output of my country's PLC controller industry increased from 43.375 million to 65.729 million from 2019 to 2021, and the market demand also grew steadily and rapidly. In 2019, the demand for my country's PLC industry was about 24.618 million, and it reached 39.638 million in 2021. This shows that Hard PLC has broad application prospects in manufacturing and other fields.

2.1.2 Demand drivers

Economic growth is one of the important factors driving the demand for Hard PLC. With the development of the global economy, companies have increasingly higher requirements for production efficiency and product quality, which has prompted them to increase their investment in automation equipment. As the core equipment for industrial automation control, the demand for Hard PLC has also increased. In addition, technological progress has also brought new demands for Hard PLC. For example, with the development of technologies such as the Internet of Things and artificial intelligence, factory digitization and intelligence have become the rigid needs of the industry. Hard PLC needs to carry more and more rich connotations, such as logic control, high-precision motion control, process control, data processing and analysis, intelligent algorithms, high-speed real-time Ethernet and other technologies to meet the requirements of smart devices.

2.2 Insights into the competitive landscape

2.2.1 Comparison between traditional manufacturers and emerging companies

Traditional PLC manufacturers have rich experience and technical accumulation in the field of Hard PLC. Traditional manufacturers represented by Siemens, Schneider, ABB, etc. have complete product lines, outstanding technological innovation capabilities, and high market share. Their advantages lie in their strong brand influence, reliable product quality, and perfect after-sales service. However, emerging companies are also emerging in the field of Hard PLC. Emerging companies are usually more flexible and can respond quickly to market changes and launch innovative products and solutions. For example, domestic Inovance Technology can compete with imported brand manufacturers in the field of small and medium-sized PLCs, and has achieved rapid business growth through continuous technology investment and domestic substitution strategies.

2.2.2 Core Competitiveness Analysis

In the Hard PLC market, the core competitiveness of each company is mainly reflected in technological innovation and product quality. Traditional manufacturers improve product performance and competitiveness by continuously launching new technologies and functions. For example, Beckhoff's XFC technology is 1,000 times faster than "Hard PLC" technology and has been successfully applied in many industries. Emerging companies improve the cost-effectiveness and market competitiveness of their products through technological breakthroughs and domestic substitution. In addition, the company's after-sales service and brand awareness are also important factors affecting market competitiveness. For example, Inovance Technology has won the trust of customers by increasing the localization rate of parts and components, ensuring the stability of product supply.

III. Product Research

3.1 Technical Characteristics of Hard PLC

3.1.1 Hardware Structure Analysis

The hardware structure of Hard PLC is mainly composed of central processing unit (CPU), memory, input and output interface (I/O), power supply and other parts. The central processing unit is the core of the Hard PLC, responsible for executing user programs and processing various data. The memory is used to store user programs and data, including random access memory (RAM) and read-only memory (ROM). The input and output interfaces are channels that connect the Hard PLC to external devices to realize the input and output of signals. For example, the input interface can receive signals from sensors, and the output interface can control the actions of actuators.
The internal circuit of the Hard PLC adopts modern large-scale integrated circuit technology, which has a high degree of integration and reliability. In order to improve the anti-interference ability, the internal circuit usually adopts isolation technology to isolate the input and output signals from the internal circuit. At the same time, filtering technology is also used to filter the input signal and remove interference signals.

3.1.2 Performance Index Interpretation

Response time is an important performance index of Hard PLC. The shorter the response time, the faster the Hard PLC reacts to external signals and can better meet the requirements of real-time control. For example, in some high-speed motion control situations, the response time needs to reach milliseconds or even microseconds. According to relevant data, the response time of some high-performance Hard PLCs can reach less than 1 millisecond.
Precision is also a key performance index of Hard PLC. The higher the precision, the more accurate the Hard PLC's control of the controlled object. In some industrial control occasions with high precision requirements, such as precision machining, pharmaceutical and other industries, the precision of Hard PLC needs to reach a very high level. For example, in precision machining, the control accuracy of Hard PLC for position can reach less than 0.01 mm.
Performance indicators such as response time and accuracy have an important impact on industrial control. Short response time can improve production efficiency and reduce equipment downtime. High accuracy can improve product quality and reduce scrap rate. At the same time, these performance indicators also determine the application scope of Hard PLC in different industries.

3.2 Functions and application scenarios

3.2.1 Functional advantages

Hard PLC has powerful logic operation functions, which can realize logical operations such as AND, OR, and NOT, as well as complex logic control. For example, in an automated production line, Hard PLC can make logical judgments based on signals from various sensors, control the actions of various devices, and realize automated operation of the production line.
Hard PLC also has timing and counting functions, which can realize precise time control and counting control. For example, in packaging machinery, Hard PLC can control the action of the packaging machine according to the set time and counting parameters to achieve accurate packaging.
In addition, Hard PLC also has data processing functions, which can process and analyze input signals to monitor and optimize the production process. For example, in the energy industry, Hard PLC can collect and analyze various parameters of the power system to achieve intelligent control and optimized operation of the power system.

3.2.2 Industry application cases

In the manufacturing industry, Hard PLC is widely used in industries such as automobile manufacturing and electronic product manufacturing. For example, in automobile manufacturing production lines, Hard PLC can realize automated control of automobile assembly processes and improve production efficiency and product quality. In the manufacturing of electronic products, Hard PLC can control various automation equipment, such as SMT machines, plug-in machines, etc., to achieve efficient production of electronic products.
In the energy industry, Hard PLC can be used for the control and monitoring of power systems. For example, in power plants, Hard PLC can control the operation of generator sets to achieve stable control of power output. In substations, Hard PLC can achieve automatic control and monitoring of power equipment to improve the reliability and safety of power systems.
In the petrochemical industry, Hard PLC can be used for the control and monitoring of chemical production processes. For example, in refineries, Hard PLC can control the operation of various chemical equipment to achieve precise control of the refining process. In chemical production, Hard PLC can monitor and control parameters such as temperature, pressure, and flow in real time to ensure the safety and stability of the production process.

IV. Competition Landscape

4.1 Major Manufacturers and Market Share

Hard PLC market competition is fierce, and many manufacturers are showing their capabilities in different fields.

4.1.1 Global Leading Companies

Globally, Siemens, Mitsubishi, Omron and other companies are leaders in the field of Hard PLC. Siemens occupies an important market share with its strong technical strength and extensive product lines. Its competitive advantage lies in highly reliable product quality, advanced technology research and development capabilities and a complete global service network. For example, Siemens' S7 series PLC is widely used in many industrial fields around the world. It has a long mean time between failures and can adapt to various complex industrial environments. Mitsubishi also performs well in the Hard PLC market. With its high-performance products and rich industry experience, it has a high market share in the fields of manufacturing, power and so on. Mitsubishi's PLC products are known for their precise control and stable performance. For example, Mitsubishi's FX series PLC is very popular in small automation systems. Omron has taken a place in the market with its innovative technology and flexible product design, and its products are widely used in industries such as electronic manufacturing and food processing.

4.1.2 Rise of domestic enterprises

In recent years, domestic Hard PLC enterprises have also been rising. As a leading domestic automation enterprise, Inovance Technology has achieved remarkable results in the field of Hard PLC. Through continuous technological investment and localization substitution strategy, Inovance Technology has gradually expanded its market share in the small and medium-sized PLC market. Its competitive advantage lies in its deep understanding of domestic market demand and its ability to respond quickly, and it can provide customers with customized solutions. At the same time, domestic enterprises such as Hollysys and Zhejiang University Central Control are also continuously increasing their R&D investment to improve product quality and technical level. These domestic enterprises have great development potential in the domestic market. With the continuous improvement of the domestic industrial automation level, they are expected to further expand their market share in the future.

4.2 Competitive strategy analysis

Various manufacturers have adopted different competitive strategies in the fierce market competition.

4.2.1 Technology innovation strategy

Enterprises are constantly increasing their investment in technology research and development. Siemens invests a lot of money in technological innovation every year and continuously launches new products and functions. For example, it has integrated advanced technologies such as artificial intelligence and big data into its PLC products, improving the intelligence level of its products. Mitsubishi also focuses on technology research and development, and continuously improves the performance and reliability of its products. Domestic company Inovance Technology has also spared no effort in technological innovation, achieving independent control from the underlying real-time operating system, IDE tools, algorithm models, bus technology, etc., and even has considerable accumulation in some chip customization and AI algorithms.

4.2.2 Market expansion strategy

In terms of market promotion, various manufacturers have adopted a variety of strategies. Siemens has increased its brand awareness and product influence by participating in industry exhibitions and holding technical seminars. At the same time, Siemens also focuses on cooperation with customers, providing customers with a full range of solutions and high-quality after-sales services. Mitsubishi has expanded its market share by cooperating with domestic companies and expanding sales channels. Domestic company Inovance Technology has achieved market expansion through precision marketing and expanding applications in emerging industries. In terms of customer service, all manufacturers focus on improving service quality, responding to customer needs in a timely manner, and providing technical support and training services to customers.

VI. Other influencing factors

6.1 Technology development trend

6.1.1 Integration and innovation opportunities

Emerging technologies such as industrial Internet and artificial intelligence have brought many innovation opportunities to Hard PLC. In the era of industrial Internet, Hard PLC can achieve remote monitoring and data analysis by connecting to the cloud. For example, Schneider Electric's M262 controller for the Industrial Internet can be directly connected to the cloud platform without the need for a gateway for data transfer. This ability to connect to the cloud allows companies to obtain real-time equipment operating status, perform remote diagnosis and maintenance, and improve equipment reliability and availability. At the same time, the integration of artificial intelligence technology has also brought more powerful data analysis and processing capabilities to Hard PLC. For example, Siemens launched an S7-1500 neural network processing module that enables machines to recognize complex patterns; Rockwell Automation launched the LogixAI analysis module, which provides automation systems with the ability to perform predictive analysis of abnormal situations. The close integration of these intelligent modules with Hard PLC enables Hard PLC to achieve more intelligent control and improve production efficiency and product quality.

6.1.2 Response to Technical Challenges

Faced with technological changes, enterprises need to adopt a series of strategies to respond to challenges. First, enterprises need to increase investment in technology research and development and continuously improve the technical level and performance of products. For example, Huichuan Technology has formed a deep accumulation in both basic technology and application technology, and has achieved independent control from the underlying real-time operating system, IDE tools, algorithm models, bus technology, etc., and even has considerable accumulation in some chip customization and AI algorithms. Secondly, enterprises need to strengthen cooperation with universities and scientific research institutions to jointly carry out technology research and development and innovation. For example, some university institutions and research institutes are committed to the application of PLC in wind turbine pitch control. Finally, enterprises need to actively participate in the formulation of industry standards to promote the healthy development of the industry. For example, the IEC1131-3 programming standard developed by the International Electrotechnical Commission provides a unified specification for PLC programming.

6.2 Changes in customer demand

6.2.1 Dynamic tracking of demand

In order to understand the changes in customer needs in a timely manner, enterprises need to establish a sound market research mechanism. Through regular market research, customer interviews and other activities, enterprises can deeply understand customer needs for Hard PLC functions, performance and other aspects. For example, with the development of factory digitization and intelligence, customers have put forward higher requirements for Hard PLC's data processing and analysis capabilities, intelligent algorithms, high-speed real-time Ethernet and other technologies. At the same time, enterprises can also predict the changing trends of customer needs by paying attention to industry dynamics and technological development trends, and provide a basis for product upgrades.

6.2.2 Improvement of customer satisfaction

By meeting customer needs, enterprises can improve customer satisfaction and market competitiveness. In order to meet customer needs, enterprises need to continuously optimize product design and improve product performance and quality. For example, in product design, companies can use more advanced technologies and materials to improve product reliability and anti-interference capabilities; at the same time, companies can also optimize the product's user interface to improve product usability and maintainability. In addition, companies also need to provide high-quality after-sales service, respond to customer needs in a timely manner, and provide technical support and training services to customers. For example, traditional manufacturers such as Siemens and Schneider have won the trust and praise of customers by providing customers with a full range of solutions and high-quality after-sales services with a complete after-sales service network.

VII. Risk Analysis

7.1 Technical Risks

Hard PLC faces many risks in terms of technology, among which technology iteration and compatibility issues are particularly prominent.

7.1.1 Risk of technological backwardness

With the continuous advancement of science and technology, PLC technology is also rapidly iterating. If enterprises cannot keep up with the pace of technological development in a timely manner, Hard PLC products may quickly fall behind, resulting in a decline in product competitiveness. For example, in terms of performance indicators such as response time and accuracy, new technologies are constantly emerging. Some high-performance PLC products can achieve a response time of less than 1 millisecond and an accuracy of less than 0.01 mm. If the company's Hard PLC products cannot maintain competitiveness in these key performance indicators, they may be eliminated by the market. According to statistics, the update cycle of PLC technology is about 3-5 years. If enterprises cannot carry out effective technology upgrades within this cycle, they will face the risk of technological backwardness.

7.1.2 Compatibility issues

Poor compatibility of Hard PLC with other devices may bring a series of risks. In industrial automation systems, Hard PLC needs to connect and interact with various sensors, actuators, communication devices, etc. If the Hard PLC is not compatible with these devices, it may cause data transmission errors, control command loss or delay, etc., affecting the operation of the entire control system. For example, in some factories, due to compatibility issues between devices of different brands, system integration is difficult, increasing the time and cost of installation and commissioning. In addition, compatibility issues may also limit the company's choices in equipment upgrades and expansions, affecting the company's long-term development.

7.2 Market Risk

Market risk is also an important challenge that Hard PLC companies need to face, mainly including intensified market competition and demand fluctuations.

7.2.1 Increasing competitive pressure

Hard PLC market competition is becoming increasingly fierce, and companies are facing huge competitive pressure. As the market continues to expand, new competitors continue to enter, including traditional PLC manufacturers and emerging companies. These competitors may compete for market share by lowering prices, improving product performance, and providing better after-sales service, which will affect the company's profits. For example, in some project biddings, companies may face price wars, resulting in a squeezed profit margin. In order to cope with the risk of increasing competitive pressure, companies need to continuously improve their core competitiveness, including technological innovation, product quality, and after-sales service.

7.2.2 Demand uncertainty

The market demand for Hard PLC is affected by factors such as the macroeconomy and industry cycles, and there is great uncertainty. For example, in an economic downturn, companies may reduce their investment in automation equipment, resulting in a decline in demand for Hard PLC. In addition, factors such as technological progress and policy changes may also have an impact on market demand. In order to reduce the operating risks brought by demand fluctuations, enterprises need to strengthen market research and demand forecasting, keep abreast of market trends, and adjust production and sales strategies. At the same time, enterprises can also diversify risks by expanding application areas and developing new customers.

7.3 Policy Risks

Policy changes may also have potential impacts on Hard PLC enterprises. Enterprises need to pay attention to policy adjustment risks and strengthen compliance risk management.

7.3.1 Policy Adjustment Risk

Government policy adjustments to the industrial automation industry may have an impact on the development strategy of Hard PLC companies. For example, the government may introduce policies to encourage smart manufacturing and green environmental protection, which will bring new development opportunities to Hard PLC companies. But at the same time, the government may also strengthen supervision of the industry, improve environmental protection standards, safety production requirements, etc., which will increase the cost and operating pressure of enterprises. Enterprises need to pay close attention to policy changes and adjust their development strategies in a timely manner to adapt to the impact of policy adjustments.

7.3.2 Compliance Risk Management

Hard PLC enterprises need to strengthen policy compliance management and reduce risks. In terms of environmental protection policies, with the improvement of environmental awareness, the government's environmental protection requirements for enterprises are also getting higher and higher. If the production process of an enterprise cannot meet the government's environmental protection requirements, it may face the risk of punishment or production ban. In terms of trade policy, the rise of international trade protectionism may have an impact on the import and export of Hard PLC products. Enterprises need to strengthen research on environmental protection policies and trade policies, establish and improve compliance management systems, and ensure that the production and operation activities of enterprises meet policy requirements.