ID: MRFR/SEM/8107-CR | April 2020 | Region: Global | 188 pages
Automation and control are two important aspects of modern manufacturing and utility supply. Today, most companies have installed automated manufacturing assembly lines and processes utilizing programmable control systems. Automation and control empower risk mitigation while fostering resiliency, agility, responsiveness, and time to market. It increases capacity utilization that drives capital investment in the newest automation technologies.
The new systems increase the competitiveness of the smarter, tech-oriented workforce, thus enabling more automation. Industries are increasingly moving towards automation of manufacturing and related processes. Various automated & controlled processes are being deployed across the industries. May it be electronics, automotive, or chemicals, all industries benefit from automation and control processes and solutions.
Global Automation and Control Market is projected to reach approximately USD 217,354.4 Million by 2025, growing at 10.41% CAGR throughout the forecast period (2019 to 2025). In 2019, the market had valued at USD 125,487.3 Million.
Favorable government policies that support manufacturing benefit the growth of businesses, technology providers, and the automation and control market. New automation technologies that offset higher wages are considered as key trends driving the growth of the market. However, it is essential to equip workers in the field with the appropriate theoretical and practical knowledge about automated processes.
Recent coronavirus pandemic has impacted industries across the globe. COVID-19 has not only accelerated deglobalization but also severely affected logistics in the manufacturing sectors. Companies faced a range of problems, from obtaining raw materials and delivering end products to attracting workers during the lockdown. This scenario has, in turn, prompted automation and control as the only alternative.
Pandemic-related logistics problems prompted the companies to consider localizing more manufacturing for both themselves and their customers. New automation & control technologies that offset higher wages and increase efficiency became inevitable. Resultantly, industries across the globe started fostering their investments in automation.
Developed countries like the US, Germany, and Sweden are adopting automation to improve trade. Due to its higher wages and workforce shortages, the US invests exponentially in automation and control than any other country. The country has also lowered the dollar value compared to other global currencies so that US manufacturing capacity utilization exceeds up to 80 %.
This is further expected to incentivize US manufacturers to invest more in automation & control. However, the US is not the only country adopting automation. Other countries, especially China and India, are also investing heavily in automation and control technologies.
Adaptation to Technology, IoT and Industry 4.0/5.0 Automation
Manufacturing sectors worldwide are preparing themselves for Industry 5.0 changes. Adaptation to technology, IoT, and Industry 5.0 automation remain a major challenge as SMEs have limited knowledge and funds in these fields. Other challenges, such as the shortage of skilled workers and the need to minimize the manufacturing costs, remain a threat, especially in developing countries like China and Vietnam.
In a scenario like this, manufacturing companies try to diversify their services and products. They incorporate economies of creativity to cope with the inevitable changes and risks. Introduction of new materials, technologies, and processes are some of the strategies they incorporate to stay ahead of the game and overcome competition risks and manage changes.
Manufacturing industries are likely to continue to transform in the years to come, witnessing a shift from manual assistance to automation, thereby driving the market demand. Most of the modern manufacturing processes are automated already to reduce or zero human intervention. Automation technologies have become the need of the hour as conventional manufacturing mechanisms are inadequate to meet current requirements.
Spurring rise in manufacturing sectors worldwide increases the market size. Besides, developments in robotics and AI, along with the adoption of industry 4.0, foster the market share. The growing demand for automation & control due to the rise of industry 5.0 and its major expedition across the industries is expected to drive the market growth.
Moreover, favorable government policies in the manufacturing sector and increased focus on economic diversification in emerging countries would act as the two major market growth propellers.
Rapidly Changing Technological Trends are Major Hindrance
Changing trends in manufacturing techniques are projected to act as major growth hindering factors for the market during the forecast period. Also, compatibility issues and high installation costs are expected to slow down the automation and control market share.
Cumulative Growth Analysis
Demand for innovative automation, control, and networking technologies to continue to increase the size of the market.
The demand for a line of industrial remote terminal units (RTUs) is growing continually. RTUs offer customized control, standard language support, powerful debugging/monitoring tools, project automation, and controller redundancy. RTUs are designed for applications that need increased processing and communication speed and storage, providing flexibility and reliability that customers require and expect. Resultantly, rugged, flexible RTU that can monitor and control various production processes in extreme environments is much in demand.
The market is segmented on the basis of product, application, and region. By product, the market is sub-segmented into supervisory control and programmable logic controller (PLC), data acquisition (SCADA), programmable automation controller (PAC), distributed control system (DCS) & remote terminal unit (RTU), human-machine interface (HMI), and manufacturing execution systems (MES).
By application, market dynamics are sub-segmented into oil & gas, mining & metals, automotive & transportation, machine manufacturing, electrical & electronics, aerospace & defense, and others. By region, the report is segmented into the Americas, Europe, Asia-Pacific, the Middle East & Africa, and South America.
SCADA Accounts for the Largest Share
SCADA is the largest segment in the market by product. In 2019, the SCADA segment registered an 11.07% CAGR. Programmable logic control (PLC) comprises a microprocessor that processes the data and triggers the output, using information received from sensors and input devices. PLCs are used for automating electromechanical processes across various industries.
Supervisory control & data acquisition is a software and hardware system used for controlling, analyzing, and monitoring industrial processes. The programmable automation controllers (PAC) encompass digital devices used to store and execute embedded programs.
Europe is the largest market for Automation & Control globally.
Europe dominates the global automation and control market. In 2019, Europe accounted for 32.87% of the market share, with a market value of USD 41,242.5 million. The region is further projected to grow at 8.8% CAGR during the forecast period. The high adoption of automation & control systems is a major growth driver for the regional market. Besides, factors such as the growing automotive and power generation industries in the region fuel market growth.
Furthermore, favorable government initiatives and the focus on reducing the waste generated in various industry verticals to improve production activities foster market growth. Germany is the largest market for automation and control technologies and would continue to leads the regional market throughout the forecast period. On the other hand, the rest of Europe is predicted to register the highest CAGR during the review period due to the high market penetration of automated driving technologies.
Technological Advances drive the Automation and Control market in North America.
North America accounts for the second-leading share in the global automation and control market. Market growth attributes to the high demand for semiconductor products and flourishing manufacturing sectors in the region. Huge technological advancement in North American countries is also an important factor supporting the regional market's growth.
The US, among other North American countries, accounted for the largest market share in 2019 due to the high demand for advanced robotic technologies in manufacturing. Mexico is expected to register the highest CAGR during the assessment period due to government policies that favor factory automation and the increased demand for intelligent and automated manufacturing systems.
The APAC Region is the Fastest-Growing Market.
The Asia Pacific automation and control market is growing rapidly. Factors such as government initiatives for digitalization and foreign direct investments (FDI) in manufacturing drive the regional market's growth. Also, the increasing demand for automation services such as project engineering to minimize maintenance costs and operational expenses propel market growth.
Rapidly growing automotive and food industries and major vehicle production plants impact the market growth positively. Moreover, the digitization of the manufacturing industry and increased global competitiveness increase the adoption of automation and control technologies among component manufacturers.
China accounts for the largest market share due to the adoption of digital technologies. Taiwan is expected to register the highest CAGR during the anticipated period due to the focus on reducing production costs and the adoption of automation in industries.
Global Automation and Control Market appear highly competitive. Several well-established technology providers form a strong competitive landscape. These players try to maintain their market positions by investing in strategies, such as collaboration, mergers & acquisitions, partnership, product/ technology launch, and expansion.
Dec.03, 2020 - Rolls-Royce announced the acquisition of Servowatch, a UK-based integrated marine automation solutions supplier. Servowatch serves navies, commercial vessels, and large yachts. The acquisition would expand Rolls-Royce's ship automation and control offerings.
Dec. 16, 2020 - Allied Electronics & Automation announced its partnership with Invertek Drives, LPS, Makita, Bayshore Networks, PCTEL, and Datalogic to expand its product lines.
Dec. 08, 2020 – Adapdix Corporation, a leading player in Edge AI automation and control software and digital transformation, announced the completion of a USD 8M Series A funding round to accelerate the growth of AI-powered automation and control software.
Reasons to buy the Global Automation and Control Market Research Report.
MRFR's automation and control report offers a complete assessment of the current and future automation industry outlook with detailed market insights and changing market scenarios. The research report offers several strategic business methodologies that help the readers to make informed business decisions. The report includes the latest advancements in the market and future trends that would influence the growth of the automation and control industry.
Simultaneously, it provides information on the current market trends, challenges, and opportunities to change the market dynamics in the foreseeable future. MRFR research analysts work collaboratively with industry experts to offer you a comprehensive analysis of the current market scenarios. MRFR also allows customized automation and control market analysis according to your needs, covering a particular product, application, or company.
|Market Size||USD 217,354.4 Million|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Product, Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Dwyer Instruments Inc. (US), Endress+Hauser Management AG (Switzerland), Stratasys Ltd (US), Schlumberger Limited (US), Bosch Rexroth AG (Germany), ABB Group (Switzerland), OMRON Corporation (Japan), Mitsubishi Electric Corporation (Japan), Fanuc Corporation (Japan), Rockwell Automation (US), KUKA AG (Germany), Schneider Electric SE (France), Honeywell International Inc. (US), General Electric Company (US), Siemens AG (Germany), Yokogawa Electric (Japan), Emerson Electric Co. (US), Ametek Inc. (US)|
|Key Market Opportunities||Favorable government policies in the manufacturing sector and increased focus on economic diversification in emerging countries.|
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
The global automation and control market can rise at 10.41% CAGR by 2025.
The market can value at USD 217,354.4 Mn by 2025.
PLC, DCS, SCADA, and PAC are some automation and control type.
Schlumberger Limited (US), Dwyer Instruments, Inc. (US), Bosch Rexroth AG (Germany), Stratasys Ltd (US), and ABB Group (Switzerland) are some reputed names in automation and control market.
The expansion of robotics can drive the market.