Industrial Automation Services Market Size

Industrial Automation Services Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

Hence, a market study on the industrial automation services market has been done, and the study projects that the market will reach $322 billion by 2030. This will be the result of a compound annual growth rate (CAGR) of 14.2 per cent for the forecast period. The main reason for this growth is the growing demand for automation in various industries, which is a result of the need to increase productivity and reduce labor costs, as well as the need to improve product quality. Also, the integration of advanced technologies such as the Internet of Things (IoT), artificial intelligence (AI) and machine learning will transform traditional manufacturing processes, which will also contribute to the market growth. Meanwhile, major players such as Siemens AG, Rockwell Automation and ABB are investing in innovation and strategic alliances to take advantage of this growth. In this regard, recent collaborations and investments in smart factory solutions and the development of AI-based automation solutions demonstrate the commitment of the industry to further develop automation. The industrial automation services market will continue to grow, as it reflects the digital transformation of manufacturing and production.

Regional Market Size

Regional Deep Dive

Among the factors driving the growth of the industrial automation services market are the increasing demand for the efficiency, productivity, and safety of the manufacturing processes. The North American market is characterized by advanced technology and the presence of major players, while Europe focuses on the implementation of regulatory requirements and compliance. The Asia-Pacific region is characterized by the rapid industrialization and the investment in smart production, while the Middle East and Africa gradually adopt automation to increase efficiency. Latin America, although lagging behind, is beginning to recognize the potential of automation services to increase the competitiveness of its manufacturing sector. Each region is characterized by a specific dynamic, based on local economic conditions, regulatory frameworks, and cultural attitudes towards technology.

North America

• The United States government has launched the program called “Made in the USA” to enhance the competitiveness of American manufacturing through the use of advanced technology, including automation.
• The North American market is the main focus of investment by companies such as Rockwell Automation and Siemens.
• A new service is in progress in the region, which is a shift to preventive maintenance, prompted by the need to minimize downtime and optimize the operational efficiency of the plants.

Europe

• Among the most important factors is the Green Deal of the European Union, which is pushing industry towards sustainable development and encouraging greater investment in automation services for energy efficiency and reducing emissions.
• The great industrialists ABB and Schneider, in particular, are at the forefront of developing new automation systems that meet the most stringent European regulations and improve safety and operating standards.
• The emergence of Industry 4.0 in Germany and other European countries is bringing together the technology companies and the manufacturers and is speeding up the automation of production.

Asia-Pacific

• China's 'Made in China 2025' program has greatly increased the demand for automation services.
• The development of automation and robots is one of the most advanced industries in Japan. Fanuc and Yaskawa Electric are the two leading companies in this field.
• There is a marked rise in the number of smart factories in the region, especially in India and South Korea, thanks to the support of governments and private investment.

MEA

• The vision of 2021 is to use the latest technology to diversify the economy and reduce its dependence on oil.
• In the meantime, the Kingdom of Saudi Arabia has been investing in automation, as part of its National Industrial Development and Logistics Program, in order to improve the productivity of its industrial sector.
• Small and medium-sized enterprises (SME) in the region are increasingly embracing automation solutions, in a bid to improve their efficiency and thus their competitiveness.

Latin America

• Brazil's manufacturing industry has been adopting automation technology, and the government has launched several programs to modernize industry and increase productivity.
• Latin America is a market with great potential. Companies like Siemens and Rockwell Automation are expanding their presence in this region and offering tailored automation solutions.
• In spite of the fact that the region is faced with problems such as political unrest, economic uncertainty and regulatory barriers, it is increasingly recognized that automation services are a means to increase competitiveness in the world market.

Did You Know?

“By 2025, it is estimated that more than half of all manufacturing companies in North America will have adopted some form of automation, which will have a profound effect on the industry.” — McKinsey & Company

Segmental Market Size

The automation of industry is experiencing a steady growth, resulting from the growing demand for increased productivity and efficiency in the various industries. The need for real-time data to optimize operations and the need to digitally transform industries are the main driving forces for this market. Furthermore, regulatory policies that aim to increase the safety of work and reduce the negative impact on the environment also drive the automation market.

At the present time, the market is in a state of enlarged testing, and the leaders, such as Siemens and Rockwell, are experimenting with the most advanced automation solutions. The main areas of application are in the automation of the production process, in the prediction of the maintenance in the automobile industry, and in the logistics of the supply chain. Industry 4.0 and the sustainable development goals are accelerating the growth, and the IoT, AI and machine learning are enabling smarter and more efficient industrial operations.

Future Outlook

The Industrial automation services market is expected to grow from a value of $145.26 billion in 2023 to $322.22 billion by 2030, with a CAGR of 14.2%. This growth is driven by the increasing use of automation technology in various industries such as manufacturing, logistics, and energy. The need for automation services is expected to grow rapidly, as companies strive for increased efficiency, lower costs, and higher safety standards. By 2030, more than 60% of all manufacturing processes are expected to be partially or completely automated.

Artificial intelligence, the Internet of Things and machine learning are reshaping the industrial automation services landscape. These digital solutions enable real-time data analysis, preventive maintenance and improved decision-making, all of which are essential for optimising production. The drive to digital transformation and the need for companies to focus on sustainable development are also expected to drive growth. The development of smart factories and the growing emphasis on cyber-security in automation systems will also influence the future of the market, opening up new opportunities for suppliers and customers.