Year | Value |
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2024 | USD 182.07 Billion |
2032 | USD 256.2 Billion |
CAGR (2024-2032) | 4.36 % |
Note – Market size depicts the revenue generated over the financial year
The market for industrial automation systems in the energy and power sector is growing at a fast pace. The total market size for this market is projected to reach $182 billion in 2024 and $256 billion in 2032. This translates into a CAGR of 4.36% for the forecast period. This growth is primarily being driven by the rising demand for automation and greater operational efficiency in the energy production and distribution sectors. Also, the growing penetration of renewable energy sources is requiring advanced control systems to be able to manage complex energy grids. Also driving the growth of this market is the growing trend towards the integration of the Internet of Things and artificial intelligence in industrial automation systems. These technological advancements are enabling real-time monitoring and preventive maintenance, thereby reducing downtime and operating costs. The major players in this market are focusing on launching new products, entering into strategic alliances, and launching new services. For example, Schneider Electric has launched a number of solutions designed to optimize energy management and improve the efficiency and productivity of industrial processes.
Regional Market Size
Industrial automation is experiencing a major transformation in the Energy & Power market, driven by technological advancements, increasing demand for energy efficiency, and the transition to alternative energy sources. Each region has its own distinctive characteristics, influenced by local regulations, economic conditions, and the rate of technological change. North America is at the forefront of innovation and investment, Europe is focused on compliance and regulations, Asia-Pacific is rapidly industrializing, the Middle East and Africa are investing in energy and power projects, and Latin America is modernizing its energy system.
“Approximately 70% of the world's electricity is generated using industrial control systems, highlighting their critical role in energy management.” — International Energy Agency (IEA)
Industrial Controls Systems (ICS) is an important segment of the Energy & Power market, and it plays a crucial role in enhancing the efficiency and safety of the energy sectors. The current growth in this segment is driven by the rising demand for automation and real-time monitoring of energy production and distribution. The need for improved energy management and the need to adhere to stricter regulations in terms of safety and the environment are the major growth drivers. ICS solutions are in their deployment phase, and the leading players, such as Siemens and Schneider Electric, are implementing these solutions in smart grids projects in Europe and North America. The main applications of ICS solutions are power plant automation, grid automation, and integration of new energy sources. One example of an integration project is the integration of solar power into the existing grid. The macro-level trends of energy efficiency and government regulation of CO2 reduction are accelerating the growth in this segment, while IoT, machine learning, and big data are enabling more efficient and responsive energy systems.
The industrial control systems market in the energy and power industry is expected to grow from $182.07 billion in 2024 to $256.20 billion in 2032, with a compound annual growth rate (CAGR) of 4.36%. This growth is driven by the increasing demand for automation and energy efficiency, resulting from the global shift towards the use of renewable energy and the need to maintain the reliability of the grid. The penetration of advanced ICS solutions is expected to rise, reaching more than 60% in key markets by 2032, as organizations seek to optimize operations and reduce costs. Artificial intelligence and machine learning will also be a major driver of growth. These innovations will enable predictive maintenance, enhance system resilience and improve decision-making. Also, government initiatives to promote sustainable energy and reduce carbon emissions will further increase the uptake of advanced control systems. Lastly, the growing focus on ICS security will shape the market as organizations seek to protect critical assets against evolving cyber-threats. In summary, the ICS market in the energy and power industry is undergoing strong growth, fuelled by technological innovation and a commitment to sustainable energy solutions.
Covered Aspects:Report Attribute/Metric | Details |
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Market Size Value In 2023 | USD 173.4 Billion |
Growth Rate | 5.00% (2023-2032) |
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