USD 177.57 billion
Report ID:
SQMIG45D2047 |
Region:
Global |
Published Date: August, 2024
Pages:
157
|Tables:
61
|Figures:
75
Industrial Automation Market size was valued at USD 171.21 Billion in 2022 and is expected to grow from USD 185.42 Billion in 2023 to reach USD 350.9 Billion by 2031, at a CAGR of 8.3% during the forecast period (2024-2031).
The industrial automation market is experiencing robust growth driven by the increasing adoption of advanced technologies such as robotics, artificial intelligence (AI), and the Internet of Things (IoT) in various industries. As manufacturers seek to increase productivity, reduce operating costs, and improve product quality, the integration of automation systems has become an option need Demand for manufacturing equipment is particularly strong in North America, Europe, and Asia Pacific, where industrial clusters are well established and continue to grow Focused products intelligent manufacturing and the presence of leading engineers is driving the adoption of automated solutions. Europe is investing heavily in automation to maintain its competitive edge in its complex automotive, aerospace and space industries. Meanwhile, led by countries such as China and Japan, Asia Pacific is witnessing rapid technological development and increasing emphasis on Industry 4.0, which has contributed significantly to the market expansion
Two major factors are driving the growth of the industrial automation market. First, the growing need for efficiency in operations is a key driver. Companies are under pressure to optimize production, reduce waste and improve energy efficiency, all of which can be done through automation. Second, the increasing adoption of smart products is driving the market. Integrating IoT devices and AI into manufacturing processes enables real-time monitoring, predictive maintenance and data-driven decision-making, which is critical for increasing productivity and reducing downtime.
Global Market Size
USD 177.57 billion
Largest Segment
Discrete Automation
Fastest Growth
Discrete Automation
Growth Rate
8.84% CAGR
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The global industrial automation market is segmented on the Component, Hardware, Software Type, Industry Vertical, and region. Based on Component, the market is segmented into Hardware, Software, Industrial Robots, Sensor and Service. Based on Hardware, the market is segmented into Industrial Sensors, Machine Vision Systems, Field Instruments, Industrial Robots (Robot Type- Traditional Industrial Robots, Collaborative Robots), Human Machine Interface, Industrial PCs, and Others. Based on Software Type, the market is segmented into Manufacturing Execution System, Industrial Safety, Plant Asset Management, Supervisory Control & Data Acquisition, Programmable Logic Controller, and Distributed Control System. Based on Industry Vertical, the market is segmented into Oil and Gas, Manufacturing, Automotive, Healthcare, Food and Beverages, Chemicals, Energy and Power, Metal and Mining, and Others. Based on region the market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.
Analysis by Component
The industrial robots segment dominated the market and accounted for the largest revenue share at a CAGR of 12% during the forecast period from 2024 to 2031. This growth is driven by manufacturing companies using industrial robots and machines most widely used in tasks that require speed, efficiency and accuracy. Industrial automation by robots reduces the waste of materials, labor requirements and energy consumption and improves efficiency.
The sensor component type segment registers the largest revenue share of over 22% in 2023 owing to its applications and importance in automation control systems. Sensors are small and provide fast data and readings and it is equally important in automation processes. Different types of sensors include temperature sensors, humidity sensors, torque sensors and more. These sensors are contributing to the intelligent and efficient automation and operation of industrial robots, which are expected to drive market growth significantly.
Analysis by Industry Vertical
The healthcare segment is expected to dominate the market and accounted for the largest revenue share of around 11% during the forecast period due to consultation and services offered to treat patient healthcare issues. Automation has also enabled doctors to operate remotely or with minimal human intervention, bringing additional accuracy and safety, and is expected to the sector grown up.
Manufacturing vertical segment records a huge market share of over 17% in 2023 due to prevalence of autonomous processes in factories and industries using automated processes and systems. The manufacturing vertical segment is expected to grow more than 10% between the forecast period 2024 to 2031. Systems are driven by software or technology with little or no human intervention. This is expected to boost the growth of the segment over the forecast period.
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The Asia Pacific region dominated the market and accounted for the largest revenue share of over 37% in 2023 and is expected to continue its dominance from 2024 to 2031. This dynamic growth is driven by major market players and growing sectors in the region driving the growth of the market. The use of smart raw materials from traditional manufacturing processes is unique and is helping to increase the adoption of market for automation technologies.
North America is expected to grow at a CAGR of over 9% between 2024 and 2031 effectively by increasing end-user needs. For example, in September 2022, ABB Ltd. expanded its manufacturing in the US with the help of investments in additional EV charging stations in the region. These investments are expected to help ABB Ltd. build more EV charging stations in the region. Industrial automation is also being adopted in many local sectors in the region such as automotive, healthcare, construction, etc.
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Drivers
Increasing Demand for Business Efficiency
Companies around the world are under constant pressure to improve their performance. Automation helps reduce human error, improve resource efficiency, and simplify manufacturing processes. The ability of automation systems to run continuously without the need for breaks dramatically increases productivity and productivity. Furthermore, automation reduces waste and energy consumption, leading to cost savings and production efficiency. This desire for greater efficiency is a key factor in the growth of the industrial automation market.
Rise in the Advancement of Smart Manufacturing and Industry 4.0
The integration of advanced technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), and Big Data Analytics into manufacturing processes is transforming the industry. Smart manufacturing enables real-time monitoring, predictive maintenance and data-driven decision-making to improve product quality and reduce downtime 4.0, which emphasizes the digital transformation of manufacturing processes.
Restraints
High Cost of Automation Systems
The key mandate in the industrial automation market is the initial capital investment required to implement automation systems. This includes the cost of purchasing automation tools, software and associated services, and the associated infrastructure.
Challenges in Integrating Automation into Legacy Systems
Many businesses still rely on outdated or legacy systems that are not compatible with older automation technologies. Integrating new automation solutions into these existing systems can be complex and expensive, requiring substantial or complete overhaul. This challenge is particularly evident in businesses with heavy investments in infrastructure assets, where the transition to automated systems can disrupt productivity.
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The industrial automation market is competitive, characterized by a landscape dominated by several key players. These companies present a broad spectrum of products like the programmable logic controller (PLC), human interface devices, supervisory control and data acquisition devices and systems, and various industrial robots amongst others. However, there are many other industry players and new entrants from the region, as well as increasingly innovative solutions and technologies such as machine vision systems, and predictive maintenance systems for the industrial environment. The role of strategic partnerships and affiliations, mergers and acquisitions are critical in determining key features of the market growth, allowing companies to proliferate its market share, as well as advance its technology portfolio and sustain its competitive advantages. It creates a continual development and guarantees the market relevant to the dynamics of industries and what is expected on the international level.
Top Player’s Company Profiles
ABB (Switzerland)
Emerson (US)
Siemens (Germany)
Schneider Electric (France)
Mitsubishi Electric (Japan)
Yokogawa Electric Corporation (Japan)
Endress+Hauser (Switzerland)
Honeywell (US)
Rockwell Automation (US)
General Electric (US)
FANUC CORPORATION (Japan)
OMRON Corporation (Japan)
Advantech Co., Ltd. (Taiwan)
Hitachi Ltd. (Japan)
Keyence Corporation (Japan)
Parker Hannifin Corporation (US)
Yaskawa Electric Corporation (Japan)
Beckhoff Automation GmbH & Co. (Germany)
Danaher Corporation (US)
Fuji Electric (Japan)
Recent Developments
June 2023 - ABB India won the contract to supply power and automation systems for ArcelorMittal Nippon Steel India's (AM/NS India).
March 2023 - Bastian Solutions Private Limited exhibited a wide range of products and presentations this year.
June 2023 -Mitsubishi Electric announced that its wholly owned subsidiary, ICONICS, Inc., becomes ICONICS UK, Ltd. Mitsubishi Electric and ICONICS plan to use ICONICS UK’s technology and establish a Circular Digital-Engineering workflow for factory automation solutions that optimize factory equipment and systems.
Rise in the Adoption of Collaborative Robots (Cobots)
A major trend in the industrial automation market is the increasing adoption of collaborative robots, also known as cobots. Unlike traditional industrial robots, cobots are designed to work with human workers, increasing collaboration and improving workplace safety. Cobots are more flexible, easier to program, and generally less expensive than their traditional counterparts, making them attractive for a variety of industries. This trend is particularly strong in automotive, electronics and food and in the beverage industry, where accuracy and scalability are essential. As more companies recognize the benefits of cobots, their adoption is expected to continue to grow, contributing to the overall market for industrial automation development. This integration not only serves to improve operational flexibility, but also provides the base upon which to build intelligent factories, able to determine working procedures individually and continuously self-adapt if necessary.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Component types of teams that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to SkyQuest analysis, the market for industrial automation is proving to be rapidly growing, with North America pushing competitors out of the race. The executive summary of the regional leadership is informed by factors such as the well-developed manufacturing industry, the high penetration levels of automation technologies, and massive investment in the digitization of industries. An influential force behind this drive is the rising need for cutting costs and increasing productivity across manufacturing organizations, which automation solutions help to meet. Also, because of proliferation of IoT and AI technologies, another trend is the increased rate of integration of IoT and AI into automation systems which makes manufacturing smarter and more adaptive. Such developments do not only improve production efficiency but can also spearhead the provision of predictive maintenance and raw data processing in real time, which serves to reinforce North America’s status as the epicenter of industrial automation.
Report Metric | Details |
---|---|
Market size value in 2022 | USD 171.21 Billion |
Market size value in 2031 | USD 350.9 Billion |
Growth Rate | 8.3% |
Base year | 2023 |
Forecast period | 2024-2031 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | 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) |
Companies covered | ’s Company Profiles
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Customization scope | Free report customization with purchase. Customization includes:-
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Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the 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 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.
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Industrial Automation Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Industrial Automation Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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REQUEST FREE CUSTOMIZATIONGlobal Industrial Automation Market size was valued at USD 171.21 Billion in 2022 and is expected to grow from USD 185.42 Billion in 2023 to reach USD 350.9 Billion by 2031, at a CAGR of 8.3% during the forecast period (2024-2031).
The industrial automation market is competitive, characterized by a landscape dominated by several key players. These companies present a broad spectrum of products like the programmable logic controller (PLC), human interface devices, supervisory control and data acquisition devices and systems, and various industrial robots amongst others. It’s the kind that never rests but keeps reinventing itself in lines of activity including industrial security, cloud-based automation, software solutions, etc., which people globally require in manufacturing businesses. However, there are many other industry players and new entrants from the region, as well as increasingly innovative solutions and technologies such as machine vision systems, and predictive maintenance systems for the industrial environment. The role of strategic partnerships and affiliations, mergers and acquisitions are critical in determining key features of the market growth, allowing companies to proliferate its market share, as well as advance its technology portfolio and sustain its competitive advantages. It creates a continual development and guarantees the market relevant to the dynamics of industries and what is expected on the international level. 'ABB (Switzerland) ', 'Emerson (US) ', 'Siemens (Germany) ', 'Schneider Electric (France) ', 'Mitsubishi Electric (Japan) ', 'Yokogawa Electric Corporation (Japan) ', 'Endress+Hauser (Switzerland) ', 'Honeywell (US) ', 'Rockwell Automation (US) ', 'General Electric (US) ', 'FANUC CORPORATION (Japan) ', 'OMRON Corporation (Japan) ', 'Advantech Co., Ltd. (Taiwan) ', 'Hitachi Ltd. (Japan) ', 'Keyence Corporation (Japan) ', 'Parker Hannifin Corporation (US) ', 'Yaskawa Electric Corporation (Japan) ', 'Beckhoff Automation GmbH & Co. (Germany) ', 'Danaher Corporation (US) ', 'Fuji Electric (Japan)'
Different countries are prompting establishment of industries so as to foster and realize the overall growth of their nations. This has resulted in the advancement of numerous automation and communication parts and structures for the architectural advancement of industries. More specifically, government attention is centered on the growth of process and discrete sectors. For instance, the Government of Singapore has joined hands with Singapore Food Manufacturing Association (SFMA) and Food Innovation Resource Centre (FIRC) to embrace the recent automation solutions like SCADA, PLC, DCS, robots, and cables in food & beverage sector. The current manufacturing policy for India is in the form of a National Manufacturing Policy and proposed vision to boost the manufacturing sector in the country. The Government of India has also embarked on some undertakings for automation, including the ‘Make in India’ policy, that has encouraged firms to embark on automation of their production facilities.
Increasing Integration of IIoT and Industry 4.0: This paper has featured the combination of IIoT with Industry 4. It is evident that decreasing to 0 technologies denotes an evolution of new and more intelligent integrated industrial automation solutions. IIoT utilizes sensors, networks, and intelligent data handling to improve precise sensing, predictive upkeep, and real-time control of the manufacturing processes. Collection of data regardingmachines and processes helps with efficient working on the production line, less time for downtime and better quality of final product. It adds flexibility and geographic control to the data through cloud computing and other tools, enhancing the capabilities of remote monitoring and control. This integration not only serves to improve operational flexibility, but also provides the base upon which to build intelligent factories, able to determineworking procedures individually and continuously self-adapt if necessary.
North America stands as a dominating region in this market, primarily due to the presence of major technology companies, high investment in research and development, and the early adoption of advanced manufacturing technologies. They identify the United States of America particularly as having better structure embracing automation in different industries such as automotive, aerospace and electronics. Other driving forces such as the efforts of the government to promote smart manufacturing and the use of IoT gadgets in industrial operations also help augment the growth of the market in this region.
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Report ID: SQMIG45D2047