A small PLC will have a fixed number of connections built in for inputs and outputs. Typically, expansions are available if the base model does not have enough I/O.
Modular PLCs have a chassis (also called a rack) into which are placed modules with different functions. The processor and selection of I/O modules is customised for the particular application. Several racks can be administered by a single processor, and may have thousands of inputs and outputs. A special high speed serial I/O link is used so that racks can be distributed away from the processor, reducing the wiring costs for large plants.