Industrial Automation Services Market Trends

Industrial Automation Services Market Overview

Industrial Automation Services Market Size was valued at USD 127.2 billion in 2022. The industrial automation services market industry is projected to grow from USD 145.26 Billion in 2023 to USD 322.22 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 14.20% during the forecast period (2023 - 2030). The growing adoption of automation and smart manufacturing across manufacturing sectors worldwide and the need to develop new business strategies and improve manufacturing's core competencies are the key industrial automation services market drivers enhancing market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Industrial Automation Services Market Trends

• Industry demands for industrial automation are on the rise, driving the industrial automation services market growth

Market CAGR for the industrial automation services market is driven by the increasing demand for industrial automation in manufacturing Industries. The increasing need for greater throughput and lower costs has led manufacturers to adopt automation and Industry 4.0 solutions to enhance efficiency. Automation has become synonymous with machines performing tasks that humans previously performed. This technology involves electromechanical systems that are programmed to perform a wide variety of processes. As automation improves and continues to influence manufacturing, manufacturers strive for a digital system that tracks materials, supply chains, production, and delivery. A growing number of manufacturers are using automation to ensure precision and consistency and to boost operational efficiency.

Additionally, many companies worldwide are adopting robots in their industrial sectors. In the next decade, robotics will see significant improvements in price and performance with the integration of artificial intelligence and other technological advances, including better machine vision and sensors. Robotics can perform various manual tasks more efficiently and accurately than humans, which is why robotics are considered vital tools for increasing productivity today. Robots have most commonly been adopted in the manufacturing industry, where robots perform manual tasks more efficiently. With the incorporation of artificial intelligence, robots are becoming cheaper, more flexible, and more autonomous. Some robots replace human workers, while others—collaborative robots, or "cobots," which complement them—are used in conjunction.

For instance, Tetra Pak's warehouse was integrated with a supply chain solution based on a digital twin by DHL International GmbH in July 2019. It would help facilitate scalable, cost-effective, and agile operations across the supply chain. Transport vehicles have Internet of Things (IoT) technology to create a digital twin. This keeps shipments of essentials, such as food and drinks, safe during transportation. The growing demand for automation solutions in the coming years has contributed to adopting digital twin technology. Thus, driving the industrial automation services market revenue.

Industrial Automation Services Market Segment Insights

Industrial Automation Services Solution Insights

The Industrial Automation Services Market segmentation, based on solution, includes a programmable logic controller (PLC), supervisory control & data acquisition (SCADA), distributed control system, manufacturing execution system (MES), product lifecycle management (PLM), functional safety, and plant asset management (PAM). The distributed control system segment dominated the industrial automation services market, accounting for 34.4% of industrial automation services market revenue. Due to the fast pace of adoption of IIOT by industrialists, automated control systems are becoming increasingly popular, driving DCS market growth.

Industrial Automation Services Services Insights

The Industrial Automation Services Market segmentation, based on services, includes consulting services, system integration, professional service, technical training, and others. The consulting services category generated the most income (31.5%) due to the consultations and services offered for treating patients' health issues, including curative, palliative, rehabilitative, and curative care. Through automation and control, operational costs are reduced, supply chain errors are reduced, and customer service is improved, which results in better patient care.

Industrial Automation Services Application Insights

The Industrial Automation Services Market data, based on application, includes aerospace & defense, others, transportation & logistics automotion, energy & power systems, and mining & metals. The automotive segment dominated the industrial automation services market, accounting for 35% of market revenue (78.48 billion). The automotive industry is expected to receive further growth as more people opt to replace conventional vehicles with alternative fuel vehicles. The production facilities of various automakers are automated to maintain accuracy and efficiency. Moreover, the growing trend of replacing conventional vehicles with EVs will further augment the industry's demand.

Figure 1: Industrial Automation Services Market, by Application, 2022 & 2030 (USD billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Industrial Automation Services Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia-Pacific industrial automation services market will dominate the industrial automation services market, owing to the growing emphasis on enhancing process efficiency and reducing production costs throughout various industry verticals. Several factors are influencing the regional economy, including the number of government initiatives for digitalization, the increasing demands for workplace safety, and improved efficiency in industrial processes. A key revenue-generating country in the Asian-Pacific industrial automation services market is China.

Further, the major countries studied in the industrial automation services market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: INDUSTRIAL AUTOMATION SERVICES MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

North America's industrial automation services market accounts for the second-largest market share due to increased competition and end-user expectations. Manufacturing units in the region are implementing the latest technological advances and digital transformation capabilities to make their business processes more efficient and effective. Further, the US industrial automation services market held the largest market share, and the Canadian industrial automation services market was the fastest-growing market in the North-American region

The Europe industrial automation services market is expected to grow at the fastest CAGR from 2023 to 2030. In January 2021, Western Europe and Nordic European Countries had the highest robot densities in the world, according to the International Federation of Robotics (IFR). Moreover, Germany’s industrial automation services market held the largest market share, and the UK industrial automation services market was the fastest-growing market in the European region.

For instance, as part of the new services and asset lifecycle management solution, Siemens AG expanded its partnership with SAP SE. Through digital twins and remote condition monitoring, the partnership aims to facilitate collaboration across the asset lifecycle by connecting plant floor operations, product development, and remote condition monitoring.

Industrial Automation Services Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the industrial automation services market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The industrial automation services industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global industrial automation services industry to benefit clients and increase the market sector. In recent years, the industrial automation services industry has offered some of the most significant advantages to manufacturing industries. Major players in the industrial automation services market, including Siemens AG (Germany), ABB Ltd. (Switzerland), Johnson Controls Inc. (Ireland), General Electric Company (US), Schneider Electric SE (France), Honeywell International Inc. (US), Mitsubishi Electric Corporation (Japan), Yokogawa Electric (Japan), Rockwell Automation Inc. (US), and Ametek Inc. (US)

The ABB Group provides power and automation technologies. In addition to power products, the Company also makes power systems, automation products, process automation, and robotics. In March 2021, as part of its SCADA system, ABB developed an automation control solution that improves the efficiency of solar plants, enabling plant operators to monitor and analyze relevant data about solar projects easily.

The Rockwell Automation India Private Limited company was founded in 2001. The company manufactures a range of electronic components, including antennas, switches, and waveguides. In November 2020, With LifecycleIQ services, Rockwell Automation combined the power of digital technology with expert human knowledge in a transformative partnership. As a result of the services, companies can work faster, smarter, and more agile at every part of the business cycle. Companies can benefit from connecting their operations and maintenance in greenfield and brownfield facilities during the design, operations, and maintenance phases.

Key Companies in the Industrial Automation Services market include

• Siemens AG (Germany)


• ABB Ltd. (Switzerland)


• Johnson Controls Inc. (Ireland)


• Schneider Electric SE (France)


• General Electric Company (US)


• Honeywell International Inc. (US)


• Mitsubishi Electric Corporation (Japan)


• Yokogawa Electric (Japan)


• Rockwell Automation Inc. (US)


• Ametek Inc. (US)

Industrial Automation Services Industry Developments

2023 will see Walter Surface Technologies recently introduced a new service to broaden its automation and robotic solutions for industrial producers in an effort to become a global leader in productivity solutions. In 2023, global engineering technologies company Renishaw will unveil a newly developed product line specifically for the industrial automation market. Walter, a member of the A3-Association for Advancing Automation, collaborated with a broad network of North American system integrators and end-of-arm tool manufacturers that specialize in robotic systems and material removal operations to craft a quick but thorough automatization process. The goal of the new RCS product line is to revolutionize the commissioning and maintenance of industrial automation systems by leveraging its current industrial metrology applications experience and technologies. 

The new product line was created to address a few key issues facing the global industrial automation sector. It focuses on issues like operational precision and repeatability that arise while setting up, calibrating, and maintaining robots by hand.

Zapier announced the launch of two new products, Zapier Tables and Zapier Interfaces, to its platform in 2024. Zapier's automation platform consists of a set of no-code tools, such as enhanced workflow logic, a database tool, and a no-code app builder. This allows businesses to create customized, dependable solutions without the need for a developer and update workflows.

Industrial Automation Services Market Segmentation

Industrial Automation Services Solution Outlook

• Programmable Logic Controller (PLC)


• Supervisory Control & Data Acquisition (SCADA)


• Distributed Control System


• Manufacturing Execution System (MES)


• Product Lifecycle Management (PLM)


• Functional Safety


• Plant Asset Management (PAM)

Industrial Automation Services Services Outlook

• Consulting Services


• System Integration


• Professional Service


• Technical Training


• Others

Industrial Automation Services Application Outlook

• Aerospace & Defense


• Others


• Transportation & Logistics


• Automotive


• Energy & Power Systems


• Mining & Metals

Industrial Automation Services Regional Outlook

• 
  

  North America

  
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• 
  

  Europe

  
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• 
  

  Asia-Pacific

  
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• 
  

  Rest of the World

  
  
  
  
  • 
    

    Middle East

    
    
  
  
  • 
    

    Africa

    
    
  
  
  • 
    

    Latin America