ID: MRFR/SEM/1643-CR | February 2020 | Region: Global | 122 pages
MRFR reports that the Global Industrial Automation Market valued at USD 128.63 Billion in 2017. The market valuation is projected to grow further at a 9.35% CAGR during the forecast period (2018 to 2023).
Industrial Automation empowers risk mitigation, resiliency, agility, responsiveness, and faster time to market. It increases capacity utilization, which drives capital investment in the newest automation technologies. The new systems increase competitiveness and enable the recruitment of a smarter, tech-oriented workforce, thus enabling more automation. Industries are increasingly moving towards automation of manufacturing and related processes.
Various automated processes are being deployed in industries like electronics, automotive, and chemicals, amongst others. Favorable government policies that support manufacturing benefit the growth of businesses, technology providers, and the industrial automation market. New automation technologies that enable higher wages offset are considered as key industrial automation market trends.
Recent coronavirus pandemic has impacted industries across the globe. COVID-19 has not only accelerated deglobalization in manufacturing but has also affected logistics severely. Companies have problems ranging from obtaining raw materials and delivering end products to attracting workers from quarantines. This scenario has, in turn, promoting automation as the only alternative.
Pandemic-related logistics problems prompted the companies to consider localizing more manufacturing for both themselves and their customers. New automation technologies that offset higher wages are driving deglobalization by increasing efficiency. Resultantly, industries across the globe are fostering their investments in automation. Developed countries like the US and Germany are adopting automation to improve trades.
Due to its higher wages and workforce shortages, the US is investing much more in industrial automation than any country. The country is also lowering the dollar value compared to other global currencies so that US manufacturing capacity utilization exceeds 80 %. This would also incentivize more US manufacturers to invest in automation.
However, the US is not the only country adopting automation. Other countries, especially China and India, are also investing heavily in industrial automation technologies. China's automation spending is expected to shoot up exponentially, accounting for 30 % of worldwide automation spending. Implementation of automation technologies will transform manufacturing competitiveness and accelerate market growth.
Robust growth in manufacturing sectors worldwide drives the industrial automation market size.
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 are defined as the need of the hour as conventional manufacturing mechanisms are inadequate to meet current requirements.
Moreover, favorable government policies in the manufacturing sector and increased focus on economic diversification in emerging markets are the two key growth propellers driving industrial automation. Additionally, the growing need for digital transformation across various verticals, such as manufacturing, healthcare, transportation, and retail, acts as a major tailwind for market growth.
Compatibility issues and high installation costs slow down the industrial automation market share.
Compatibility issues and high installation costs are the major restraints for the market growth, slowing down automation processes uptake, especially in small-scale enterprises.
Lack of awareness and technical expertise are the major challenges the market confronts.
The lack of awareness for the advantages of automated processes and technical expertise, alongside the continuous innovation in manufacturing processes, pose challenges to the industrial automation market growth.
Rising demand for innovative industrial automation and networking technologies to enhance communications, monitoring, and control in manufacturing companies to foster market growth.
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 type, technology, end-user, and region. By type, the market is sub-segmented into fixed automation and programmable automation. By technology, market dynamics are sub-segmented into supervisory control and data acquisition (SCADA), programmable automation controller (PAC), programmable logic controller (PLC), distributed control system (DCS), and human-machine interface (HMI), among others.
By end-user, the market is sub-segmented into machine manufacturing, oil & gas, aerospace & defense, electronics, automotive, pharmaceuticals, and others.
Automation systems use different embedded processors and algorithms to manage and control the process. SCADA and HMI technologies have a wide range of applications in several industries, including aerospace & defense, oil & gas, electrical & electronics, chemical, automotive & transportation, pharmaceuticals, food & beverages, mining & metals, and electric power generation, among others.
The Industrial IoT network of physical devices and more, embedded electronics, software, sensors, actuators, and connectivity gadgets are used in vehicle manufacturing. These automation systems provide greater direct integration of the physical world into computer-based systems, resulting in increased efficiency, accuracy, and financial benefits. Besides, various developments in the field of IoT and development of new engineering technologies play a vital role in the growth of automotive manufacturing across the globe.
Increasing global demand for autonomous vehicles and efficient production systems pushes automakers to emphasize on developing new manufacturing processes, which are more efficient and maximize output. Also, increasing pressure to minimize carbon footprint by increasing uses of fuel-efficient automobiles and electric vehicles pushes the demand for automation in the automotive industries
Asia Pacific region dominates the global industrial automation market. The market is growing with a positive YoY rate and is expected to do so. Factors positively impacting market growth include advancement in technology and integration with the current manufacturing environment. Also, the increasing application areas yearly and the strong presence of manufacturing companies and the developing economy of Asian countries play a major role in the development of the market.
North America accounts for the second-largest share in the global industrial automation 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 growth of the regional market.
Europe also shows a positive growth rate towards the adoption of automation control systems. Besides, factors such as the growing automotive and power generation industries in the region fuel market growth.
Global Industrial Automation Market appears 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.
These strategies help the market players to gain a larger competitive advantage in the market and to meet their expansion plans. They focus on new technology development initiatives and geographical expansion. The market would witness relentless innovations and developments, which, as a result, would intensify the competition among these players.
Recent acquisition of industrial automation firm PARI would help Wipro Infra gain a top spot in the automation industry, increasing its market access and larger play in industrial IoT.
On December 10, 2020, privately held, Wipro Enterprise's Infrastructure Engineering Company in India announced the acquisition of Precision Automation and Robotics India (PARI). PARI is a leading provider of turnkey solutions in industrial automation and robotic automation, mainly for the automotive industry players. It has also been a pioneer and has a significant presence in electric vehicle space, including the battery assembly.
Over the last few years, WIN has built significant capabilities and partnerships. With this acquisition, Wipro Infrastructure Engineering (WIN) would be leveraging markets where the company has a presence through its hydraulics business for these new solutions. The combined strength makes WIN a complete industrial automation company capable of serving customers globally and offers significant growth opportunities in the future. WIN has ventured into the industrial automation business with the vision to be among the leading players globally.
MRFR employs advanced research methodologies to gain impeccable and highly accurate market assessments. Market size and segments are analyzed and substantiated using top-down and bottom-up perspectives. MRFR's expert data analysts implement scientific and systematic methods to evaluate all the variables impacting the market growth, including critical insights into trends, constraints, probabilities, and contingencies.
In primary research methods, information is gathered through key decision-makers and industry insider interviews. The secondary research facilitates a detailed analysis based on the researches available on public platforms. MRFR experts use reliable sources such as annual reports, SEC filings, and white papers to consolidate unique intelligent inputs.
Reasons to buy the Global Industrial Automation Market Research Report.
MRFR has tracked down the market since 2015 and has included the necessary historical data & analysis in the research report. MRFR's industrial automation 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.
Simultaneously, it provides information on the current market trends, challenges, and opportunities that would 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. The report includes the latest advancements in the market and future trends that would influence the growth of the industrial automation industry.
MRFR also allows customized industrial automation market analysis according to your needs. Meaning, MRFR can cover a particular product, application, or a company covering detailed analysis in the report.
|Market Size||Significant Value|
|Forecast Units||Value (USD Million)|
|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||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Market Opportunities||Various development in field of IoT and development of new engineering technologies.|
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
Global industrial automation market is projected to grow at approximately 9.35% CAGR during the assessment period (2017-2023).
Global industrial automation market valued at USD 128.63 billion in 2017.
Automotive is the largest end-user segment in the global industrial automation market.
The Asia Pacific region holds the largest share in the global industrial automation market, followed by North America and Europe, respectively.
ABB Ltd. (Switzerland), Siemens AG (Germany), Emerson Electric Company (US), Schneider Electric SE (France), General Electric Company (US), Honeywell International, Inc. (US), Yokogawa Electric (Japan), Mitsubishi Electric Corporation (Japan), Ametek, Inc. (US), Fanuc (Japan), and Rockwell Automation, Inc. (US), are some of the top players operating in the global industrial automation market.
Market Research Future (MRFR) estimates the global industrial automation market to be a USD 216.5 Billion market in 2023, with a CAGR of 9.35% over the forecast period of 2018-2023. The global industrial automation market was valued at USD 128.63 Billion in 2017. The current industrial revolution has garnered tremendous demand for automation in various industry verticals which sustains the growth of the global industrial automation market.
Incessant need for improving efficiency, flexibility, quality, and productivity of manufacturing industries is driving the growth of the global industrial automation market. Manufacturers across the globe are investing heavily in automation which has given an impetus to the growth of the global industrial automation market. Moreover, the disruption caused by Industry 4.0 and the emergence of the Industrial Internet of Things has encouraged the adoption of advanced automation such as 3D printing and industrial robots across diverse industries. In addition, automation is desirable in the manufacturing sector to meet safety compliance.
Government policies are expected to create a supportive dais for the growth of the global industrial automation market. Since manufacturing forms the backbone of an economy, governments across the world have endeavored towards modernizing and upgrading production methods which will give a boost to their economy. The US and Germany promote adoption of industrial automation in diverse industries. The Government of Canada has embraced digital culture with the adoption of automation in the aerospace & defense, automotive, transportation, and healthcare industries. Governments in emerging economies such as India, South Korea, and Malaysia have also taken initiatives to incorporate automation within their industries to accelerate economic development.
Even though the global industrial automation Market is featuring continued growth, it is faced by high implementation cost as a barrier to the market growth. Automated equipment requires intensive capital expenditure and can cost millions of dollars for design, fabrication, and installation, depending on the degree of automation. Additionally, automation also requires setting up of cellular communication system and skilled technicians which further raises the cost of implementation.
Consumers demanding for cheap as well as customized products are prompting manufacturers to adopt the Industry 4.0 standards. Industry 4.0 is the fourth industrial revolution which is expected to ignite pockets of growth within the global industrial automation market. Industry 4.0 offers a combination of connected machines, process automation, and manufacturing units. With the rapid adoption of Industry 4.0 standards across industries, automation is becoming the mainstay of modern industries such as oil & gas, road, and transportation, food & beverage, etc.
The global Market for industrial automation has been segmented based on type, technology, and end user. By type, the market has been segmented into fixed automation and programmable automation. The fixed automation segment was the largest segment in 2017 and generated a revenue of USD 94.35 Billion, while the programmable automation segment is expected to emerge as the fastest growing segment over the forecast period.
By technology, the Market for industrial automation has been segmented into supervisory control & data acquisition (SCADA), Distributed Control System (DCS), Programmable Logic Controller (PLC), Human Machine Interface (HMI), Programmable Automation Controller (PAC), and others. The Programmable Logic Controller (PLC) segment dominated the market in 2017, however, the Distributed Control System (DCS) segment is expected to be the fastest growing segment over the forecast period.
By end user, the market for industrial automation has been segmented into Machine manufacturing, Oil & Gas, Aerospace & Defense, Electrical & Electronics, Automotive & Transportation, Mining & Metals, Food & Beverage, Pharmaceuticals, and others. The automotive & transportation segment was the largest segment in 2017 and accounted for 23.78 Billion in 2017 while the food & beverage segment is expected to grow at the fastest rate of 12.34% over the forecast period.
The global industrial automation market spans across the regions of North America, Asia Pacific, Europe, and the Rest of the World (Row). Europe is the largest market and accounted for USD 49.21 Billion in 2017. The industrial outlook of Europe looks promising and is showcasing an upswing post 2017. The growth of the industrial automation market is driven by strong private investment which is impacting the market positively. Being the automotive hub of the world, Europe holds ample scope for market expansion. Europe has been the frontrunner in the adoption of industrial automation which coupled with supportive financing conditions have created a healthy climate for corporate investments. Furthermore, government initiatives to improve production activities has aided the expansion of the Europe market for industrial automation. The growth of end-user industries such as food & beverage, oil & gas, and aerospace & defense also provide an impetus to the growth of the Europe industrial automation market. The UK, Germany, France, and Italy are the key contributors to the Europe Market for industrial automation.
North America is the second largest market for industrial automation and attained USD 37.92 Billion in 2017. The region is an early adopter of latest technologies such as industrial robots and ongoing industry upgrade in the region favors the growth of the market. Other driving factors include the presence of key market players in the region and the growth of end-user industries.
Asia Pacific is in the midst of industrial revolution and continues to feature an upward growth trend. China is the biggest market for industrial robot market and experiences high demand for automation from the Chinese automotive and transportation sector. Moreover, the governments in the region are expanding support towards the adoption of industry 4.0. Furthermore, the growth of the semiconductor industry has resulted in high demand for automation in manufacturing plants. China, Taiwan, Japan, Korea, and India are the key contributors to the Asia Pacific industrial automation market. Owing to these factors, the Asia Pacific market is poised to be the fastest growing market for Industrial automation over the forecast period.
Fanuc Corporation, General Electric Company, Ametek, Inc., Emerson Electric Co.,
Honeywell International Inc., Siemens AG, Mitsubishi Electric Corporation, Yokogawa Electric, Rockwell Automation, Inc., ABB Ltd., and Schneider Electric SE.
Global Industrial Automation Market- Competitive Landscape
Market Research Future includes following key players for Industrial Automation market research study: General Electric, Mitsubishi Electric Corporation, Emerson Electric Co., Siemens AG, Schneider Electric SE, ABB Ltd., Rockwell Automation, Inc., and Fanuc Corporation.
The market share analysis is derived by considering various factors such as financial position, segmental R&D investment, product innovations, corporate strength, product portfolio, strategy analysis, and, key innovations in the market among other factors. The major players holding prominent position in the Market are General Electric, Mitsubishi Electric Corporation, Emerson Electric Co., Siemens AG, Schneider Electric SE among others.
According to MRFR analysis, General Electric Company is currently leading the global industrial automation market with 18% market share. General Electric is a technology and financial services company which develops and manufactures products for the generation, transmission, distribution, control, and utilization of electricity. The company’s industrial automation systems enable its customers to connect their machines for better, faster, safer and reliable performance. The company offers world class industrial software, distributed control systems and process safety systems to thousands of partners globally. The company plans to enhance its product portfolio and increase sales to its existing customers in energy, aviation, and oil-and-gas businesses and obtain new customers in various other sectors to maintain its current leading market position.
Mitsubishi Electric Corporation has currently occupied the second position in the global industrial automation market with 8% market share. Mitsubishi Electric Corporation is a leading manufacturer and developer of electric and electronic equipment. The company provides its industrial automation solutions to improvise safety, reliability and profitability for remote oil and gas operations. The company offers innovative range of automation and processing technologies such as controllers, electrical discharge machines and industrial robots. Also, the company invests in research and development of industrial automation systems and enhances its corporate network by expanding its business into untapped areas to maintain its market position.
Emerson Electric Co. has currently occupied the third position in the global industrial automation market with 7% market share. Emerson Electric Co. is a leading manufacturer of process control systems, valves, and analytical instruments. Emerson’s biggest advantage is its wide range of industrial automation solutions and skilled workforce with industry expertise. The company has a strong R&D department which constantly focuses on development of innovative automation solutions to offer world class automation to its global partners. The company has a strong customer base and is focused on developing its product portfolio to maintain its market position.
Siemens AG has currently occupied the fourth position in the global industrial automation market. Siemens AG is headquartered in Germany and engages in the production and supply of systems for power generation, power transmission, and medical diagnosis. The company provides industrial automation product called SIMATIC WinCC V7 SCADA system which is one of the most scalable SCADA system offering efficient production analysis, and efficient operational control. The company is partnered with International Society of Automation (ISA) to develop secured industrial automation systems. Moreover, Siemens offers global customer support according to highest quality standards which helps the company to maintain its current market position.
Schneider Electric has currently occupied fifth position in the global industrial automation market. Schneider Electric is a global provider of energy management and automation solutions. The company offers wide range of industrial automation products such as motion controllers, programmable relays and interface modules. The company has unique product portfolio in industrial automation and devotes 5% of its sales every year for R&D with over 7,500 R&D engineers worldwide. The company provides technology and integrated solutions for optimization of industrial processes in large oil and gas facilities. The company is investing in enhancing its skilled workforce to maintain its market position