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The automation in automotive industry market size is estimated to grow at a CAGR of 3.87% between 2022 and 2027 and the size of the market is forecast to increase by USD 2,075.44 million. The growth of the market depends on several factors, such as the demand for enhanced visibility and flexibility in manufacturing, the rising technological advances in PLC, and the integration of manufacturing execution systems (MES), product lifecycle management (PLM), and enterprise resource planning (ERP).
This report extensively covers market segmentation by technology (industrial sensors, PLC, MES, SCADA, and DCS), end-user (vehicle manufacturers and component manufacturers), and geography (APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our analysis of the adoption life cycle of the market indicates its movement between the innovator’s stage and the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global Automation in Automotive Industry Market Customer Landscape
Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
The demand for enhanced visibility and flexibility in the manufacturing process is one of the key drivers fueling the automation market growth in the automotive industry. There are some automation solutions that enable automakers to integrate long supply chains into production lines, including DCS, MES, and SCADA. This is because The integration of IIoT with automation solutions in the manufacturing process enhances and optimizes plant efficiency and helps manual labor work effectively. For instance, in September 2020, BYD announced its intention to build an electric bus battery production plant in Brazil. The plant will be highly automated and deploy robotics, and the company expects to manufacture 1,000 battery modules in a month.
Moreover, such integration also increases the visibility and flexibility of the plant with the help of advanced analytics and predictive modeling techniques. These factors are encouraging the demand for automation market in the automotive industry during the forecast period.
The emergence of smart manufacturing is one of the key automation market trends in the automotive industry that is contributing to market growth. The adoption of smart manufacturing enables industrial advances with advanced computing, analytics, low-cost sensing, and new levels of connectivity enabled by the Internet. Significantly, smart manufacturing is adopted for optimization and customization, asset tracking, predictive maintenance, and real-time inventory optimization.
Moreover, to enable smart manufacturing, industrial machines, and robots must be equipped with IoT-integrated microprocessors, microcontrollers, sensors, and switches that can optimize production efficiency. To make it happen, IIoT plays a key role in integrating all these systems and transferring information among the control systems. Thus, the innovations in sensors and automation solutions are leading to increased productivity in the automotive industry. Such factors will increase the market growth during the forecast period.
Security challenges of industrial control systems are one of the factors hindering the automation market growth in the automotive industry. Securing the legacy systems that are designed to communicate point-to-point is one of the major challenges, as securing new industrial control systems is relatively easy compared with securing legacy systems. Most of the control systems operating in Europe and the US were set up during the pre-Internet era. These industrial control systems are not designed for connectivity or to authenticate the commands received, making them vulnerable to security threats. Replacing these legacy systems is not a viable option, as it increases the cost to the companies.
The new industrial control systems also need to incorporate new technologies and software in both information technology (IT) and operation technology (OT) to improve system functions and productivity. Increased adoption of modern technologies, integration of IT and OT, and the emergence of IoT and cloud computing are also increasing the security challenges in companies, making the systems vulnerable to threats. One of the common flaws of security solutions witnessed in the OT infrastructure is its inability to protect legacy systems such as SCADA. The open architecture of the SCADA system not only enables greater integration of hardware and software but also increases the risk of security threats. Though technical advancements are expected to improve productivity, the rising vulnerability to security threats is expected to hamper the adoption of automation solutions in the automotive industry during the forecast period.
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ABB Ltd.: The company offers automation in automotive industry services and solutions such as press automation, body in white, paint, and final assembly.
DENSO Corp.: The company offers automation in automotive industry solutions and services such as insulated gate bipolar transistors.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The industrial sensors segment will account for a major share of the market's growth during the forecast period. Industrial sensors sense and measure physical parameters, such as temperature, humidity, pressure, flow, speed, vibration, and position, and convert them to electrical signals that are sent to control systems such as PLC. Industrial sensors play a key role in the manufacturing of automobiles by ensuring consistency in product quality.
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The industrial sensors segment was valued at USD 3,659.37 million in 2017 and continued to grow until 2021. Currently, industrial robots are being widely adopted in the automotive industry because of the increasing demand for faster production and optimum efficiency. These industrial robots are equipped with industrial sensors that sense their movements and enable them to work efficiently with a pre-defined set of instructions. Advances in sensors, hardware, and software have made robots more intelligent and autonomous. The emergence of smart sensors is also one of the driving factors for the growth of the global industrial sensors market in the automotive industry. The adoption of Industry 4.0 involves the use of numerous sensors in manufacturing plants because of the need for real-time data from remote locations. Such factors will increase segment growth during the forecast period.
Based on end-user, the market has been segmented into vehicle manufacturers and component manufacturers. The vehicle manufacturers segment will account for the largest share of this segment. The vehicle manufacturers segment in the global automation market in automotive industry refers to the application of automation technologies and solutions within the manufacturing processes of automotive companies. Vehicle manufacturers utilize automation to enhance productivity, efficiency, and quality in their production lines. Thus, automation in the automotive industry for vehicle manufacturers offers numerous benefits, including increased production efficiency, improved product quality, reduced costs, and enhanced worker safety. As technology continues to advance, automation is expected to play an even more significant role in the automotive manufacturing sector, which will drive the growth of the segment during the forecast period.
Europe is estimated to contribute 40% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
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One of the key technological factors that are driving the growth of the automation market in automotive industry is the adoption of industrial robots in plants. APAC is a major region for the adoption of industrial robots that simplify the manufacturing process and automate the production line. The automotive market in China is the largest consumer of robots, accounting for 40% of the total robot supply in China. According to the International Federation of Robotics, the trend of building automotive manufacturing plants in China, along with wage inflation, is expected to propel the industrial robots market in China by the end of 2022. However, it decreased in India, Singapore, and Japan, while it increased in South Korea and Australia, driven by higher orders in the industrial automation industry in 2020.
In 2020, the COVID-19 pandemic had a significant impact on the automation market in the automotive industry in APAC. However, the regional economy recovered from the COVID-19 crisis due to the availability of COVID-19 vaccines and attempts to vaccinate most of the population. This has resulted in the resumption of operations at the hybrid and EVs industry's manufacturing sites, which has increased the sales of automotive components in the region. Such factors are expected to propel the growth of the regional automation market in the automotive industry during the forecast period.
The automation in automotive industry market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Automation In Automotive Industry Market Scope |
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Report Coverage |
Details |
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Page number |
188 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 3.87% |
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Market growth 2023-2027 |
USD 2,075.44 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
3.71 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
Europe at 40% |
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Key countries |
US, China, Japan, India, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ABB Ltd., Applied Materials Inc., Aurotek Corp., Auto Control Systems, DENSO Corp., Emerson Electric Co., FANUC Bulgaria EOOD, Festo SE and Co. KG, General Electric Co., Kawasaki Heavy Industries Ltd., MIDEA Group, Mitsubishi Electric Corp., OMRON Corp., Rockwell Automation Inc., Schneider Electric SE, Siemens AG, Yaskawa Electric Corp., and Yokogawa Electric Corp. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technology
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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