ID: MRFR/SEM/2423-CR | July 2017 | Region: Global | 90 pages
Factory Automation Market Scenario
Factory Automation Market is expected to grow at USD 240 Billion by 2022, at 8% of CAGR between 2016 and 2022. The Industrial automation includes the automation technologies and control devices, relays that are deployed in the automating machines. The computer software and industrial robots are increasingly utilized in the industries to handle various processes to achieve improved productivity and efficiency. Several industrial sectors that include oil and gas industries, chemicals, materials, medical sector and other crucial industries are increasingly deploying the automation techniques.
In several manufacturing industries, the advent of Digital Twin and AR technology is gaining popularity as they reduce the implementation risk, and the costs incurred in the maintenance, the software is quite manageable and effective in the overall operation. Additionally, the advent of cloud systems, smart sensors and other advanced technologies are trending in the factory automation market.
COVID 19 Analysis:
The COVID 19 pandemic in the year 2019 has created a huge adverse impact on the production and manufacturing sectors of varied verticals. The businesses and manufacturing sectors were deploying varied strategies for the business continuity. The transportation of the logistics, obtaining raw materials have become extremely difficult throughout the pandemic. Such factors have led to the deployment of the factory automation techniques to stimulate the production and other industrial procedures. Therefore the pandemic has positively impacted the Factory Automation Industry demand.
The shortage in labor and other movement restriction laws and regulations because of the pandemic have also led to the Factory Automation market growth in the recent years. Industries such as rubber, plastic, construction machinery, oil and gas industries, power generation have been extremely benefitting with the Factory Automation technology and devices during the pandemic.
Increasing the productivity with minimal manufacturing costs is the primary attribute of the factory automation technology, which is considered as the growth stimulating factor for the Factory Automation Industry.
Several countries are increasingly investing in the carbon free techniques that also include fuel-efficient techniques. Especially the end-user industries like automobiles are focusing on such techniques. Such factors are considered as the major driving factors of Factory Automation market.
Increasing adoption of the IoT technologies and devices combined with the embedded electronics, automated software solutions, sensors and advancement in the automated technologies in the recent times are presenting lucrative opportunities for the overall growth of Factory Automation market. The emerging new engineering technologies are significantly reducing the error rate compared to the process done with the human intervention. Such factors are expected to further stimulate the overall growth of Factory Automation Industry.
Increasing adoption of market 4.0 across the globe is presenting lucrative opportunity for the Factory Automation market. On the other hand, the government initiatives for the further development of the factory automation market are also impacting the overall growth of the market.
The compatibility issues that arise when the existing infrastructure doesn’t perform effectively with the automated technologies or devices are considered as the primary restraining factor of Factory Automation market. On the other hand, the increasing awareness regarding the security for the technologies itself and the labor involved in the process are also hindering the overall growth of Factory Automation Market.
Higher installation costs and maintenance of the equipment and technologies are burdening the emerging business sectors and manufacturing sectors. Such factors are hindering the overall growth of Factory Automation Market.
The availability of the several equipment that are designed for the automation in the industries have not been completely established in the developing countries. Hence lack of awareness is considered as the primary challenge in the Factory Automation Market.
Lack of technical expertise regarding the continuous innovation in the market is also considered as the primary challenge of the Factory Automation Market. The continuous new technologies in the Factory Automation market are also creating the need for the continuous replacement of the existing technologies. Such factors are negatively impacting the overall growth of Factory Automation Industry.
Cumulative Growth Analysis:
The industrial automation and the networking technologies are gaining momentum in the recent years owing to the pressure to increase the production rate and quality products in the market. The manufacturing industries and warehouses were intensively utilizing the Factory Automation techniques to reduce the labor wages and other costs associated with the labors. The DC motors were intensively used in the manufacturing sectors to move heavy loads and therefore the established market players are focusing on the advancements of the DC motors. However the AC motors are expected to grow with highest CAGR. The market value of Factory Automation Industry expected to reach USD 240 Billion by 2022, at 8% of CAGR between 2016 and 2022
Value chain analysis:
The factory automation has been segmented based on various levels in the factory processes up to the enterprise level. The factory automation systems were primarily deployed to increase the productivity and to reduce the cost incurred for the production activities, but the goal of the automation has been shifted to increase the quality and flexibility in the manufacturing sectors. A recent study reports that by installing a pistons into the manufacturing engines, the manufacturing error rates have come down from 1-1.15% to 0.00001%. On the other hand, the operational costs that includes, healthcare costs, paid leaves, holidays and other wages were lowered or eliminated. The factory automation system comprises of the sensors, actuators, controllers, industrial robots, supervisory control and other safety instrumented systems. Such varied options and tools have expanded the end-user industries, thereby impacting the Factory Automation market growth.
The industries are getting accumulated with advanced technologies, embedded electronics and IoT devices which are the primary growth stimulating factors of Factory Automation market. However the costs for the repair and maintenance are the minor restraining factors of the Factory Automation market.
Based on Type:
Based on Technology:
Based on End User industries:
North America is currently holding the largest market share in the Factory Automation owing to the increasing number of industrial robots and tools in the region. The demand for the semiconductor products have been rising in the region which has led to the Factory Automation Market demand. Additionally, the region is becoming technically advanced at a fast pace and the manufacturing sectors are multiplying at faster pace as well. Such factors contribute to the growth of Factory Automation market.
Countries such as Japan have taken initiatives like establishing robot training centers across the region. Other Asia-pacific countries like Vietnam is showcasing higher Factory Automation market growth owing to their realization of the potential benefits of the automation processes. The industrial robots are capable of performing the industrial operations at minimal time while providing quality products. Such increased rate of productivity has been observed, which stimulates the Factory Automation market growth. On the other hand, countries like China are increasingly focusing in the factory automation procedures owing to the lack of labor across the region, The Ministry of Human Resources report that the China’s labor force will reach 700 million by the year 2050 such factors are further propelling the countries to adopt the Factory Automation techniques.
This report has covered:
|Market Size||USD 240 Billion|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type, Technology, End User|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Siemens AG, ABB Ltd, Emerson Electric Corporation, Rockwell Automation, Honeywell International Inc., Schneider Electric, Rexroth Bosch Group, Mitsubishi Electric Corporation, Yokogawa Electric Corporation, and Omron Corporation|
|Key Market Opportunities||The ongoing global trend towards Factory Automation is being reflected in an increase in the number of industrial robots.|
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
The manufacturing sector is the high end-user. Automotive, semiconductor & electronics, packaging & processing, printing & converting, and energy & power are other users.
Fixed Automation, Flexible Automation, Programmable Automation, and Integrated Automation are types of factory automation. The integrated automation type to gain high traction.
The global market of factory automation market is likely to thrive at 8% of CAGR and value at USD 240 Billion by 2022 due to the growing adoption of SCADA.
Rexroth Bosch Group, Yokogawa Electric Corporation, Mitsubishi Electric Corporation, and Omron Corporation are prominent players of the factory automation market.
Growing need for better energy efficient procedures in manufacturing units and heavy IoT deployments are observed as factory automation market propellers.
Supervisory control and data acquisition (SCADA) is the widely used factory automation technology. Other technologies are Human Machine Interface (HMI), Programmable Automation Controller (PAC), Distributed Control System (DCS), and Programmable Logic Controller (PLC).
The SCADA segment is expected to thrive at 10% CAGR in the review period due to its growing popularity.