Process Automation and Instrumentation Market Research Report- Forecast till 2027

Process Automation & Instrumentation Market: By Instrument (Field Instrument, Control Valve And Analyzer), Solution (APC, DCS, HMI, MES, PLC, safety automation & SCADA), End-user (Chemicals, Energy & Power, Food & Beverages)– Forecast till 2027

ID: MRFR/SEM/4064-HCR | February 2021 | Region: Global | 100 pages

Automation and Instrumentation Market Overview:

Process automation and instrumentation are referred to as the transformation of human thoughts into a technical and computerized model. It is self-learning technical advancement that utilizes gestures and patterns for acting in a way the human mind thinks. Process automation and instrumentation has become very important for the industries and modern organization as they provide real-time insights that are further used for optimizing functions.

The process automation & instrumentation market is expected to grow at a CAGR of approximately 6% during the forecast period 2017-2023. It is assumed to process automation and instrumentation Market Demands will be fueled due to the importance of energy efficiencies, cost reduction, digital technologies, increasing industrial automation, and efficient utilization of resources.

COVID-19 Analysis:
The pandemic has reduced varied opportunities for process automation and instrumentation industry. The pandemic has caused supply chain disruptions which have severely impacted the demand, production, and investment within the industry. The technologies are in infant stages, hence requires substantial investment in research and development, however, the pandemic has impacted the ROI for many investments, hence, shareholders have become vigilant in huge spending in many sectors.

Market Dynamics:
The process automation and instrumentation Market growth will be driven due to the increasing adoption of IoT in industrial domains, strict compliances, and regulations for improving production efficacies. Also, the US and the government of other developed nations have been implementing remedial plans for recovering from the economic crisis.  CARES Act passed by the US government will be a stimulus for small and big businesses, thus driving the market growth. In this view, the process automation and instrumentation market size are majorly reliant on manufacturing units, thus, spending USD 2 trillion through CARES Act will be a great impetus for progress.  The market growth is estimated to be contributed by increased automation for relatively low costs of deployment, this will drive the market for 20. 4 million.

Large manufacturing units are embedded with repetitive and complex tasks which increases the risks of injuries and accidents. For instance, oil and gas mining poses the greatest threats to the lives of miners, hence the installation of safety and security mechanisms will help in conducting an operation in a safe environment. Also, process automation and instrumentation provide opportunities for protection against attack, accidents, and other unforeseen circumstances arising in the public domain

Global process automation and instrumentation market growth will be hindered due to the high investments required for developing devices and related solutions like transmitters, control valves, process analyzers, etc.

Besides, manufacturing execution systems installation is completed in various stages like acquisition, adjustment, implementation, and consultation which further increases the cost, hence, the sale is restricted to large manufacturing units. 

Also, privacy and security issues have created uncertain situations amongst the end-users as many of the process devices are highly vulnerable to cyber breaches.

Manufacturing activities globally have been severally impacted due to following social distancing norms. The workers are being placed at safe distances for preventing the spread of disease, although inefficient operations are also accompanied by reduced demand and supply thereby disrupting the entire value chain.

Also, the majority of the countries are imposing lockdowns from time- to – time considering the positive cases rates of the infected population within the countries that have impacted the supply and demand of products.

Besides, there has been uncertainty due to continuous outbreaks, thus countries are undertaking precautionary measures due to which process automation and instrumentation market demand will struggle in the short- term and medium term.

Cumulative Growth Analysis:
Process automation and instrumentation market growth is expected to increase during the forecast period owing to high IoT adoption in various sectors with an emphasis on costs reduction and precision.

Also, the global government has been focusing on waste reduction and other environmental concerns which can be efficiently managed through process automation in various sectors. Aspects like production efficiency and optimization of operating costs will change process automation and instrumentation market outlook during the forecast period.

Value Chain Analysis:
HMI segments are estimated to grow at the highest CAGR during the forecast period. HMI is a device that is present within computer systems and helps in communication with advanced mechanisms. In the plant and manufacturing sectors, HMI helps the operators in using information for managing equipment.

HMI collects information in a visual format for enabling the operators for using data to monitor and detect issues. Besides, the field instrument segment is also expected to grow at the largest market share. Field instruments help in the measurement of temperature, pressure, a flow which plays a key role in the chemical, oil & gas, mining, and pharmaceuticals industry. 

Also, it is estimated that the pharmaceutical industry will grow at the highest rates during the forecast period owing to stricter legislation. Besides, within the pharmaceutical industry importance of precision and accuracy has increased due to manufacturing, testing, development of drugs, packaging, and others.

Segment Overview:
The process automation and instrumentation industry can be further divided into instrument, solution, industry.

  • By instrument- In the instrument segment, the market size is further divided into field instruments, control valves, and analytical instruments.

  • By solution- By solution category, it is further subdivided into PLC, DCS, SCADA, Functional safety, MES, APC, HMI, and others.

  • By industry- By industry, it includes food and beverages, energy and power, chemicals, metals & mining, water & wastewater, pharmaceuticals, oil & gas, and others.

Regional Analysis:
By regions, the industry is analysed through regions of North America, Europe, Asia Pacific, and others. In the above regions, it is estimated that North America will capture the highest market share due to high technological advancement, matured industrial sectors, and increasing investment from the government in specific areas like petrochemicals.

The Asia Pacific will be the second-largest region to contribute to process automation and instrumentation market growth. As many of the countries are reserves for oil refineries that will require process automation and instrumentation.

European nations are witnessing strict environmental and industrial regulations which will help in fueling the process automation and instrumentation growth. The rest of the world will also witness a similar growth rate owing to varied factors like efficiency.

Competitive Landscape:
Key players in the market will include ABB Ltd (Switzerland), General Electric Co. (U.S), Mitsubishi Electric Corporation (Japan), Rockwell Automation Inc. (U.S), Emerson Electric Co. (U.S), Simens AG (Germany), Yokogawa Electric Corporation (Japan), Metso Corporation (Finland), Schnieder Electric SE (France).

Recent Development:
In the year 2020, Emerson Electric Company has announced the launch of RXi industrial display and panel PC products which will help in minimizing costs related to industrial applications. It will enable the companies and scientists in improving the developmental processes in fields like Life Science, power, water, manufacturing, and machinery. 

In the same year, Honeywell International declared its partnership with Tact. Ai for deploying artificial intelligence for managing the global sales team. It is being expected that this collaboration is helpful in effective human-machine interfaces to maintain and manage operations.

In the year 2019, a partnership between ABB and Dassault System took place that will provide unique solutions to health care management and operations-related issues. In the year 2018, Ultrasonic Level Transmitter was launched by Simens Electric which assists the chemicals, food & beverage industries.

Report Overview:
The report includes various heading that is an overview, pandemic analysis, market dynamics, value chain analysis, segment analysis, regional analysis, competitive landscape, and recent development. The report has been prepared with secondary sources.

  • Base Year- 2020

  • Historic Year – 2019

  • Forecast Year- 2020- 2023

Report Scope:
Report Attribute/Metric Details
  Market Size   USD 72 Billion (2023)
  CAGR   6% (2017-2023)
  Base Year   2019
  Forecast Period   2020-2027
  Historical Data   2018
  Forecast Units   Value (USD Billion)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   By Instrument, Solution
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   ABB Ltd. (Switzerland), Emerson Electric Co. (U.S.), General Electric Co. (U.S.), Honeywell International, Inc. (U.S.), Mitsubishi Electric Corporation (Japan), Rockwell Automation, Inc. (U.S.), Schneider Electric SE (France), Siemens AG (Germany), Yokogawa Electric Corporation (Japan), and Metso Corporation (Finland).
  Key Market Opportunities   The rising investment by the U.S. government across chemical & petrochemical industry is aiding the market growth.
  Key Market Drivers   The major factors driving the growth of the process automation & instrumentation market is the increase in adoption of IoT technology across various industrial domains, growing strict regulation and compliance in process industries and to improvise production efficiency and minimize operating cost.

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Frequently Asked Questions (FAQ) :

The global process automation and instrumentation market is projected to record a substantial market valuation of up to USD 12.5 billion by 2027.

The global process automation and instrumentation market is projected to register a moderate 6% CAGR in the forecast period.

The increasing adoption of IoT technology across various industrial domains is expected to drive the process automation and instrumentation market during the forecast period.

the vulnerability of instrument breakage are high during critical working condition is poised to restrain the process automation and instrumentation market during the forecast period.

A few major market players operating in the global process automation and instrumentation market are Schneider Electric SE (France), Siemens AG (Germany), Yokogawa Electric Corporation (Japan), and Metso Corporation (Finland).