Industrial Automation Market: Technology Trends, Opportunities, Competitive Analysis and Challenges for the manufacturers

The Industrial Automation Market size was valued at USD 156.68 Bn in 2023 and the total Industrial Automation revenue is expected to grow at a CAGR of 8.5 % from 2024 to 2030, reaching nearly USD 277.35 Bn.

Industrial Automation is the control of machinery and processes used in various industrial sector by using autonomous technologies like robotics and computer software. MMR estimates that total value of implementing automation in the manufacturing industry across the world would reach $4.92 trillion by 2030. The manufacturing industry would be able to save about 749 billion working hours by automating 64.2% of manufacturing tasks and processes.

The Industrial automation market is expected to witness growth  8.5% during the forecast period thanks to  growing adoption of process automation technology across various industrial sector such as automotive, chemical, and energy utilities.  The report has analyzed the impact of industrial automation on output, top line and supply chain as well the improvement in the quality of product. The experienced research analyst in the automation field has studied the return on investment in tangible as well as intangible benefits by industry and region.

Industrial robotic market is too competitive with some serous entry barriers for new entrants. Entry barriers are different by segment and regions.  The industrial automation industry is highly monopolistic since four major players Fanuc, Yaskawa, ABB and Kuka held 62%  share in global industrial robotic market in 2022. The competitive landscape of the industry is covered by region with the benchmarking of services of market leaders, market followers and regional players.To know about the Research Methodology :- Request Free Sample Report
Research Methodology
Bottom up approach has been used to estimate the market size for global industrial robotic industry. Special focus has been given on each economies to arrive on market estimation for country, region and then global market size. Primary and secondary data collection methods have been used to collect the data. Secondary sources include paid sources, annual reports of key players, manufacturing associations of industrial robotics. Detailed secondary sources are provided in the report.

Primary interviews carried out with stakeholders in industry that include manufacturers, end users, consultants. Combination of secondary and primary data collection made this report authentic. Micro level approach to understand the work culture by region and precedence of using robotics in manufacturing has helped repots to give local level key insights about future of robotics in manufacturing.
Industrial Automation Market Dynamics:
Rising focus on real-time data analysis and predictive maintenance

Rapid development in the manufacturing industry in Europe, the Middle East, and Africa is creating lucrative opportnutites for robotics industry..Industrial automation technologies enable firms to access plant floor data in real time, allowing them to consolidate corporate data and multi-plant operations. This feature is expected to accelerate the growth of the industrial automation market. For example, HMI allows manufacturers to carefully monitor manufacturing processes and act quickly to changing production demands, improving operational efficiency and decreasing unplanned downtime, and therefore providing greater visibility.

Predictive maintenance and asset management systems provide user insight into the state of equipment by monitoring factors such as temperature, current, voltage, speed, vibration, and location. It also predicts when components are likely to break, allowing action to be taken, enhancing efficiency. As a result, unplanned downtime and production waste may be eliminated.

Manufacturers in end-user industries such as oil and gas, food and beverage, automotive, and aerospace and defence are looking for solutions that aid real-time data analysis and proactive maintenance, as well as help them obtain better visibility of the manufacturing plant to improve plant efficiency. The growth factors in all these segmetns are anaysed and estimated in numbers to make user of this report understand the opportunities and threats in the industry.

Increasing Intelligent Business Process Automation

The increasing adoption of technologies such as industrial 4.0, AI-based smart robots, IoT, and others helps to reduce manufacturing costs while improving quality and dependability in the Automation. These criteria are critical for businesses to maintain a competitive edge in the marketplace. Mergers and collaborations among key companies are studied and given in order to understand the investment and conslodation in the industry.

Increased need for safety compliance automation solutions

A variety of processes used in industrial manufacturing can be dangerous to humans. Human mistakes or mechanical breakdowns can result in fatal incidents throughout the production process. As a result, it is critical for the manufacturing industry to implement safety measures in order to avoid such workplace fatalities. Safety compliance automation devices assist in the reduction of accident risks. For example, safety automation devices notify operators during crises and perform pre-programmed procedures to minimise the impact on human life. They discover faults in various machines and processes and perform diagnostics to find solutions as soon as possible.

As a result, quick and reliable responses are required from these safety instrument systems (SIS). The International Electrotechnical Commission (IEC) and the International Standard Organization (ISO) regulate international safety standards for equipment in order to enhance worker safety while also ensuring product quality and technical compatibility of goods and services. These functional safety standards assist in obtaining the required degree of functional safety and performance in industries. As a result, the growing demand for safety compliance automation products and services presents an opportunity for the industrial automation market.

High capital costs for installation and maintenance of industrial automation solutions

The construction of brand-new automated manufacturing facilities necessitates the use of cutting-edge automation technologies such as SCADA, DCS, RTU, PLC, and HMI. Data collection via SCADA helps in eliminating calculation mistakes while enhancing product quality and manufacturing facility efficiency. The establishment of these production operations necessitates considerable financial expenditures in equipment, software, and training. For new entrants who are establishing their first factory, investing such a significant sum is tough.

As a result, before deploying industrial automation systems and solutions, these businesses must conduct an in-depth examination of their return on investment. Furthermore, several companies are unable to replace their existing old systems due to the high prices of new and sophisticated systems, as well as the lack of connectivity with old systems. These legacy systems communicate via their own unique protocols, making it difficult to connect them to newer systems. Manufacturers have to pay significant additional costs to modify their existing systems.
Industrial Automation Market Segment Analysis:
By Component, The hardware dominates the segment in the global industrial automation market acquiring almost 50-60% of the total market share. The hardware market is constantly growing to increasing requirement of physical components in setting up automation systems. On the other hand, the software market is acquiring a handsome share in the global market due to adoption of advanced automation technologies, focusing on data analytics, process control, and operational efficiency.

The software market is rapidly growing owing to the rising need for smart manufacturing solutions and real-time process monitoring, due to developed AI and IoT. While hardware maintains the largest share, investments in software and services are growing faster. This trend reflects the industry's shift towards more intelligent, data-driven automation solutions and is contributing to the exponential growth in the global industrial automation market and will continue to increase in the upcoming decades.

By Type of Deployment, both on-premises and cloud-based deployments are widely used across various industries; however, the market is dominated by cloud-based deployment due to remote accessibility, adaptability and lower maintenance.

The adoption of each type of deployment can vary depending on the specific needs and preferences of the organizations within each industry sector. While on-premises solutions may have been more common historically, the trend towards cloud-based solutions is steadily increasing due to factors, such as scalability, flexibility and cost-effectiveness. The market for deployment is constantly showing an exponential graph due to automation and will continue to grow in the future.

By End Use Industry, The global industrial automation sector is segmented by various end-user industries in which the market is dominated by the automotive sector. The reason to high market demand and increasing overall market growth is that the automotive industry heavily relies on automation for manufacturing processes, quality control, and assembly lines to enhance productivity and ensure precision.

Furthermore, there is an increasing market capitalization of the food and beverage sector owing to the need for hygiene, packaging efficiency, and consistent product quality. The industrial automation is very crucial in terms of manufacturing, packaging, and distribution of various goods, including medications, which is further pushing the growth and resulting in an exponential graph in the overall segment.
Industrial Automation Market Regional Insights
North America Industrial Automation Market is expected to grow at better spead than in 2021 to 2022 in terms of revenue during the forecast periodowing to the rising demand for innovative manufacturing robotic technologies across the industry. The robust production ability and trading potential of key companies is also a crucial factor accountable for the growth in this region. Recently, U.S. exported approximately USD 12.7 Billion worth of automation equipment. Moreover, the U.S. is third-largest global exporters after China and Germany. Globally, U.S. is a competitive top–tier supplier of the automation equipment market.

In Europe Industrial Automation Market is likely to grow with the highest CAGR throughout the forecasted period. Germany belongs to the five major robot markets in the world (China, Japan, USA, Korea, Germany) and had a share of 36% of the total installations in Europe.The development in this region is due to the growing demand for IoT solutions for the innovative automation process in the automotive and manufacturing industry. Main companies in this region are concentrating on mergers and collaboration with other players to improve and launch innovative automated Automation Types.

APAC has been a major contributor to the growth of the industrial control & factory automation market Owing to the construction sector, which is the key end user of industrial control & factory automation. The use of industrial automation and factory automation components and systems, such as SCADA, DCS, industrial sensors, and industrial robots is aided by the expanding population in this region's emerging countries as well as environmental awareness. Asia remains the world’s largest market for industrial robots. 76% of all newly deployed robots in 2022 were installed in Asia. Installations for the region´s largest adopter China grew strongly by 23% with 168,700 units shipped.

Saudi Arabia's automotive sector is one of the largest in the Middle East, has remained reasonably steady, with a number of businesses reporting excellent results. Saudi Arabia is seeing substantial development in the manufacturing sector as a result of increasing deployment of various IoT-related software and services, which are propelling the Country to become a globally known technology-driven industry. Along with the industrial sector, the country's food processing industry is well established and poised to develop significantly in the future years.
Industrial Automation Market Scope: Inquire before buying



Global Industrial Automation Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
US $ 156.68 Bn.


Forecast Period 2024 to 2030 CAGR:
8.5%
Market Size in 2030:
US $ 277.35 Bn.


 Segments Covered:
by Components
Hardware
Software


by Product
Distributed Control Systems
HMI
Industrial Robots
MVS
Manufacturing Execution Systems
PLC
SCADA


by Mode of Automation
Flexible
Fixed
Integrated


by Type of Offering
Solution
Enterprise level controls
Plant Instrumentation
Services


by Deployment Mode
Cloud Based
On Premises


by Application
 Assembly Line
Automation
Material Handling
Packaging
Quality Control and Inspection
Supply Chain Automation


by End Use Industry
Oil & Gas
Chemicals
Food & Beverages
Energy & Power
Automotive
Machine Manufacturing
Water & Wastewater Treatment
Electronics & Semiconductors
Metals & Mining
Others



Industrial Automation Market, by Region:
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Industrial Automation Market, Key Players are:
The Competitive Strategy In industrial automation industry is categorised by leading firms such as Siemens, ABB, and General Electric, each holding a strong market position. Companies implement competitive strategies focused on innovation and technology, driving strategic initiatives that enhance operational efficiency and customer satisfaction. Financial analysis reveals significant investments in research and development, enabling firms to stay ahead in a rapidly evolving market. Emerging players are also challenging established companies by introducing disruptive technologies. This dynamic environment fosters continuous improvement and adaptation, essential for maintaining leadership in industrial automation.

1. FANUC (Japan)
2. Yaskawa Electric Corporation (Japan)
3. Toshiba Corporation (Japan)
4. Yokogawa Electric Corporation (Japan)
5. Fuji Electric Co., Ltd. (Japan)
6. Hitachi, Ltd. (Japan)
7. Omron Corporation (Japan)
8. Mitsubishi Electric Corporation (Japan)
9. Keyence Corporation (Japan)
10. Accurate Industrial Controls Pvt. Ltd. (India)
11. Honeywell International Inc (US)
12. Emerson Electric Co. (US)
13. General Electric Company (US)
14. Rockwell Automation, Inc (US)
15. Danaher Corporation (US)
16. NATIONAL INSTRUMENTS CORP (US)
17. Roper Technologies, Inc (US)
18. Voith GmbH (Germany)
19. Siemens AG (Germany)
20. Kuka AG (Germany)
21. Bosch Rexroth Corporation (Germany)
22. Phoenix Contact (Germany)
23. MARCO Limited (UK)
24. Schneider Electric SE (France)
25. Endress+Hauser (Switzerland)
26. ABB Ltd. (Switzerland)
27. Danfoss A/S (Denmark)
28. Tegan Innovations (Ireland)

FAQs:

1. Which is the potential market for Industrial Automation in terms of the region?
Ans. In the Asia Pacific region, the construction sector which is the key end user of industrial control & factory automation is expected to drive the market.

2. What is expected to drive the growth of the Industrial Automation market in the forecast period?
Ans. Increasing focus on real-time data analysis and predictive maintenance are major factors driving the market growth during the forecast period.

3. What Was the Industrial Automation Market Size in 2023?
Ans. Industrial Automation Market Size was USD 156.68 Billion in 2023.

4. What segments are covered in the Industrial Automation Market report?
Ans. The segments covered are Components, Solutions, Industry, and region.