Global Industrial Automation Market Size, Share, Growth Analysis, By Component(Hardware, Software), By Industry(Discrete Automation, Process Automation) - Industry Forecast 2022-2028

Global industrial automation market is segmented based on component, industry and region. Based on the component, the market is segmented into hardware and software. Based on the Industry, the Market is segmented discrete automation and process automation. Based on Region, it is categorized into North America, Europe, Asia-Pacific, South America, and MEA.

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.

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.

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.

Driver

• Digital Supply Chain Across Industries Has Changed Due to Industry 4.0.

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.

• Predictive Maintenance and Real-Time Data Analysis are Becoming More Important

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.

Restraint

• High Initial Capital Expenditures

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.

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.

Top Player's Company Profiles

• Emerson Electric Co. (U.S.)
• General Electric Company (U.S.)
• Honeywell International Inc. (U.S.)
• Mitsubishi Electric Corporation (Japan)
• Omron Corporation (Japan)
• Rockwell Automation Inc. (U.S.)
• Schneider Electric SE (France)
• Siemens AG (Germany)
• Yokogawa Electric Corporation (Japan)

Recent Developments

• In July 2021, Kezzler AS, a cloud-based platform for product digitization and traceability, joined forces with Rockwell Automation Inc. By utilising cloud-based chain technologies, the alliance seeks to give manufacturers the ability to track their product's entire path from the origin of the raw materials to the point of sale or beyond.
• In July 2021, in order to create a new solution for the services and asset lifecycle management, Siemens AG and SAP SE expanded their relationship. The collaboration intends to link original equipment manufacturers (OEMs) and plant floor operations, product creation through digital twins, and remote condition monitoring to allow collaboration throughout the asset lifespan.
• In June 2021, Plex Systems, a provider of smart manufacturing solutions, purchased by Rockwell Automation Inc. in June 2021 for USD 2.22 billion. The cloud-native smart manufacturing technology from Plex Systems will be added to the industrial cloud services with this acquisition.

• Increasing the use of digital twins and augmented reality in manufacturing to support market expansion. Organizations can assess possible improvements, identify implementation risk reduction, and grasp feasibility with the use of a digital twin. The adoption and upkeep of digital twins have been easier with the rise of the industrial Internet of Things, which includes cloud-based systems and intelligent sensors. For their commercial operations, organisations use digital twin technology to lower the chance of equipment failure. By simulating the procedure, it also aids in automatically scheduling the repairs. For instance, the German logistics business DHL International GmbH integrated a supply chain solution for Tetra Pak's warehouse in July 2019 utilising a digital twin. Scalable, economical, and agile supply chain operations would be made possible. In order to construct a digital twin, transportation vehicles are equipped with Internet of Things (IoT) technology. It ensures the safe delivery of necessities, such food and beverages, from the farm to the customer. The expanding demand for automation solutions in the next years is to blame for this rising usage of digital twin technologies.
• The Internet of Things (IoT) is essential for automation because it facilitates the development of efficient, cost-efficient, and responsive system architectures. Solutions for the Industrial Internet of Things (IIoT) include connecting industrial assets, generating transparency fast and simply, and boosting efficiency. The full lifecycle of device management and shop floor software is made simpler by IIoT and edge computing solutions. In order to automate the manufacturing process and improve the customer experience, businesses implement IIoT technologies. IIoT solutions are predicted to be adopted so quickly across industries, which would help the market develop.

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.