USD 177.57 billion
Report ID: SQMIG45D2047 | Region: Global | Published Date: February, 2024 | Pages: 157 | Tables: 61 | Figures: 75
Global Industrial Automation Market size was valued at USD 177.57 billion in 2021 and is poised to grow from USD 407.268 billion in 2022 to USD 441.7 billion by 2030, growing at a CAGR of 8.84% in the forecast period (2023-2030).
Industrial automation market is primarily driven by increasing need for real-time data analysis across geographies and the increasing use of cutting-edge technology across end-use sectors to boost performance. In addition to this, growing need for proactive maintenance and real-time data analysis, which would give firms better visibility into their manufacturing facilities and hence increase productivity is adding fuel to the industrial automation market. It is further supported by increased focus on asset management and predictive maintenance solutions, which would give users more visibility into the state of
Governments in Europe, the Middle East, and Africa are concentrating on the development of discrete and process industries by undertaking various initiatives and plans backed by investments to improve productivity in order to meet the rising demand and changing consumption patterns brought on by the growing population. The use of various industrial automation and communication components and technologies is encouraged by these actions done by governments of various nations for the structural growth of industries.
The industrial automation market's value chain and demand have both been profoundly influenced by the COVID-19 epidemic. In the nations that are most adversely affected by the pandemic's spread, the demand for industrial automation solutions has decreased. Due to the negative consequences of the pandemic, many industrial and infrastructure projects were suspended or delayed in a number of countries. This had an impact on the demand for industrial automation market. The Middle East and Africa's industrial automation market was dominated by nations including Bahrain, Egypt, Qatar, Saudi Arabia, Nigeria, and South Africa; however, the pandemic's negative effects caused the year-over-year growth to slow in 2020.
However, the processed food sector and the end-use market for pharmaceuticals both noticeably increased demand during this time. Consequently, the pharmaceuticals and processed food industries made a strong recovery and started recovering at a higher pace after a period of 2 to 3 months of decrease following the beginning of the unique pandemic. Due to these increasing needs, the pharmaceuticals and processed food industries are experiencing a sharp increase in demand for industrial automation solutions and components.
US Industrial Automation Market is poised to grow at a sustainable CAGR for the next forecast year.
Global Market Size
USD 177.57 billion
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Global industrial automation market is segmented based on component, industry and region. Based on the component, the Industrial Automation Market is segmented into hardware and software. Based on the Industry, the Industrial Automation Market is segmented discrete automation and process automation. Based on Region, Industrial Automation Market is categorized into North America, Europe, Asia-Pacific, South America, and MEA.
Industrial Automation Market Analysis by Component
By component, the global industrial automation market is divided into hardware and software. During the projection period, software segment is likely to hold a significant market share. Human-machine interface (HMI), manufacturing operations management (MOM), supervisory control, and data acquisition software are all types of automation software (SCADA).
IoT's rising need for sophisticated automation processes in the sectors is expected to cause the hardware segment to rise quickly during the forecast period. The hardware part consists of sensors, robots, safety light curtains, servos, laser markers, Programmable Logic Controllers (PLC), and Human-Machine Interfaces (HMI). Servo is predicted to have a sizable market share, followed by hardware sensors. Robotics are expected to increase at an impressive rate. Participants in the global industrial automation market are adopting sophisticated robots for automation purposes as a result of technological breakthroughs and the emergence of Industry 4.0. For instance, the i4series SCARA robot, which automates high-precision, high-speed assembly and transportation activities, was introduced by Omron Corporation in January 2021. In a similar vein, Mitsubishi Electric Corporation introduced Melfa Assista, a line of collaborative robots, in May 2020.
Industrial Automation Market Analysis by Industry
By industry, the global industrial automation market is segmented into discrete automation and process automation. During the projection period, the discrete automation sector is anticipated to dominate the market. The discrete automation is further divided into several subsectors including automotive, electronics, heavy industries, packaging, and others. The demand for automation solutions is projected to increase significantly in the automotive and heavy manufacturing sectors.
The process automation industry is further divided into the following sub-sectors: mining and metals, pulp and paper, chemicals, oil and gas, healthcare, and others. The mining and metals sector is anticipated to account for a sizable portion of the market, followed by the healthcare, oil & gas, and chemical sectors.
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During the forecast period, Europe is expected to hold a dominant position in the global industrial automation market. According to the International Federation of Robotics (IFR), the highest robot densities worldwide were found in Western Europe (225 units per 10,000 employees) and the Nordic European Countries (204 units per 10,000 employees) in January 2021. With 346 units per 10,000 employees, Germany comes in fourth among the most automated nations in the world. These are a few of the important elements that make up the majority of the region.
During the projection period of 2022-2028, Asia Pacific is expected to exhibit a significant growth rate. The majority of robots and factory automation systems are produced in Japan. The demand for industrial automation in the area is influenced by the presence of robotics and factory automation products and manufacturing firms throughout Japan, including Omron Corp., Yaskawa Electric, Yokogawa Electric, Mitsubishi Electric, and Nidec Corp. A significant supplier of the sensors, batteries, microchips, and other IoT system components is China. Additionally, government programmes like Make in India and MSME encourage small and medium-sized firms in India in using sophisticated manufacturing techniques. It is anticipated that the government's active actions will fuel market expansion in this area.
However, the COVID-19 pandemic has sparked a recession and decreased foreign company investments. Trade conflicts between major economies, such as China, the United States, and India, are anticipated to restrict market expansion. The U.S. owns roughly 20% of Singapore's market share for automation equipment, according to 2019 Singapore Government Trade Figures. Automation technology, which includes things like microelectromechanical systems (MEMS), 3D printing, smart manufacturing, and the Internet of Things (IoT), is crucial to Singapore's long-term economic development. These elements are anticipated to propel market expansion.
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Industrial Automation Market Driver
Organizations are compelled to embrace industry 4.0 in the global industrial automation market to meet customers' evolving needs, such as fast and personalised services. The market participants collaborate with tech-savvy businesses to provide novel solutions based on rapidly evolving technologies. For instance, Tech Mahindra Limited and Honeywell International Inc. teamed together in February 2020 to create digital "Factories of the Future" by utilising digital technology. The partnership intends to assist firms to hasten the process of digital transformation. Similar to this, Siemens and SAP SE worked together to provide businesses with industry 4.0-enabled business processes. These procedures in the global industrial automation market will make it possible to create a digital thread that spans the entire product lifecycle. In order to help manufacturers, scale up their growth and achieve the potential of industry 4.0 technologies and solutions, businesses are focused on using 5G, industry 4.0, digital transformation, and software capabilities. In the upcoming years, it is projected that these alliances and collaborations would increase demand for automation solutions across industries.
There is fierce competition in the manufacturing sector as a result of rapid development in Europe, the Middle East, and Africa. Manufacturing companies across global industrial automation market, especially in end-user sectors like oil & gas, food & beverage, automotive, and aerospace & military are searching for solutions. This would support real-time data analysis, proactive maintenance, and enable them get better visibility of the manufacturing plant to increase plant efficiency. Real-time access to plant floor data made possible by industrial automation technologies enables enterprises to centralise corporate data and multi-plant operations. This element is estimated to promote the market expansion further. Industrial automation technologies, such as HMI, also assist producers in closely monitoring production processes and quickly adapting to changing production demands in order to increase operational efficiency, reduce unscheduled downtime, and provide improved visibility.
Industrial Automation Market Restraint
Industrial automation processes are cost-effective, but they come at a significant initial capital cost due to the need to adopt new technology and train staff. Due to the fragmented nature of the industrial automation market, the return on investment (ROI) cannot be predicted. Small and medium-sized businesses (SMEs) are reluctant to utilise the benefits of technology because of the high upfront expenses and unpredictable return on investment.
Smart manufacturing tactics and favourable government initiatives, such as the Make in India movement and the Government of India's MSME company financing programme, are likely to overcome this obstacle and soon open up new markets for the solutions.
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Players in the global industrial automation market are primarily focusing on innovative robotics and automation applications. To increase their market presence, the players in the industry engage in mergers and acquisitions, partnerships, and collaborations. ABB Ltd., Rockwell Automation, and Honeywell International are some of the major competitors in the industry. They are creating cutting-edge uses for robotics and automation technologies in order to unlock new development possibilities. For instance, ABB Ltd. invests about 5% of its revenue in R&D to broaden its product line with an emphasis on collaborative robotics, digital factory automation, machine-centric robotics, and artificial intelligence.
Similar to that, PTC and Rockwell Automation teamed up in June 2018. In this collaboration, Rockwell Automation gave PTC a $1 billion investment. With this collaboration, the firms aligned their augmented reality (AR), Internet of Things (IoT), industrial connectivity, FactoryTalk MES, FactoryTalk Analytics, and other automation platforms with Vuforia, PTC, and Kepware.
Industrial Automation Market Top Player's Company Profiles
Industrial Automation Market Recent Developments
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected utilizing Primary Exploratory Research backed by the robust Secondary Desk research.
According to our global industrial automation market analysis, the digital supply chain across industries changed as a result of Industry 4.0., industrial automation technologies such as HMI and growing importance of predictive maintenance and real-time data analysis are some major factors driving the growth of the global Industrial Automation market.
|Market size value in 2021
|USD 177.57 billion
|Market size value in 2030
|USD 441.7 billion
|Forecast Unit (Value)
|North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
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Parent Market Analysis
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MARKET DYNAMICS & OUTLOOK
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For the Global Industrial Automation Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global Industrial Automation Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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