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The Factory Automation Platform as a Service Market size is poised to grow by USD 6.64 billion, at a CAGR of 21.51% between 2023 and 2028. The market's evolution is driven by the seamless convergence of IT and OT, a transition from the capital expenditure (CAPEX) to the operational expenditure (OPEX) model within the manufacturing sector, and a growing influx of investments in smart factories. These factors collectively propel market advancement, reflecting the changing landscape of industrial operations and business strategies. The ease of IT and OT convergence highlights the integration of information technology and operational technology for enhanced efficiency and productivity. Simultaneously, the shift from the CAPEX to the OPEX model signifies a move towards more flexible and cost-effective finance structures in manufacturing operations. Additionally, the increasing investments in smart factories underscore the industry's commitment to leveraging advanced technologies for streamlined production processes and improved outcomes. Thus, the interplay of these factors delineates the landscape for the anticipated growth of the market catering to industrial automation and smart manufacturing solutions.
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The market share growth by the platform segment will be significant during the forecast period. The platform segment of the market includes asset management, remote monitoring, data processing and analytics, application development and management, and security management.
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The platform segment was the largest and was valued at USD 1.19 billion in 2018. The proliferation of IoT-enabled devices in discrete industries to streamline the manufacturing process has increased the need for effective cloud-based platforms to execute data processing and analytical tasks. Such an increase in the demand for IoT-enabled devices requires factory-specific cloud applications to be developed to ensure effective performance. All these factors are driving the growth of platform services for factory automation applications. Such factors are expected to drive the market growth during the forecast period.
Factory automation platform as a service for large enterprises refers to a cloud-based or software-based solution that provides a comprehensive suite of tools and services to streamline and optimize manufacturing and production processes within a factory or industrial setting. Large enterprises often choose factory automation platforms as service solutions to modernize their manufacturing operations, improve competitiveness, and stay ahead in a rapidly evolving market. These platforms can help them adapt Industry 4.0 principles, which emphasize the use of digital technologies to create more agile, efficient, and responsive manufacturing processes, which, in turn, will boost the growth of the market in focus during the forecast period.
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North America is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In 2022, North America had some of the world's most advanced economies, which led to data generation and consumption. The expanding healthcare, automotive, and other discrete industries in the region are increasing the need for high-level cloud infrastructure services, subsequently raising the demand for factory automation platforms as a service in the region. Most manufacturers are focusing on the use of IoT-enabled solutions and cloud platforms to streamline their manufacturing process. They are also focusing on constructing smart factories to develop advanced products.
However, industrialization and economic growth have resulted in the adoption of the benchmark quality of manufacturing in North America. The industrial sector in the region is technologically mature and has a strong presence and penetration of top vendors that supplement the overall market growth in the region. This is expected to affect the growth of the market in North America during the forecast period.
The market revolutionizes industries like professional services and banking and financial services, streamlining workload management and enhancing efficiency for workers. Facilitating seamless financial transactions and optimizing patients care, FA PaaS integrates with medical devices and leverages cloud computing for enhanced healthcare services. Incorporating cutting-edge technologies such as artificial intelligence and machine learning, platforms enable business process automation for companies like Generali and Amperity. With the advent of virtual assistants and solutions from IT companies like Truist Invest and GreyOrange, FA PaaS drives innovation across diverse sectors including agricultural and pharmaceutical, empowering businesses, Human Resources with the transformative potential of Ace matrix.
Ease of IT and OT convergence is notably driving the market growth. Information technology includes physical storage, networking devices, and computers, whereas operational technology includes industrial control systems, such as distributed control systems (DCS), SCADA, and PLC. Traditionally, IT and OT perform separately, as most control systems have separate protocols and closed-network communication systems. The adoption of digital platforms based on cloud-based open APIs orchestrates the ease of data exchange across the ecosystem. This platform follows agile application architectures on PaaS using containers or micro-services, which bridges the gap between IT and OT communication networks through cloud-based platforms.
Consequently, the factory automation platform as a service offers IoT solution providers a platform to rapidly build and deploy factory automation applications into software-as-a-service (SaaS) applications, thereby reducing the overall time to market. Thus, ease of IT and OT convergence will have a positive impact on the growth of the global market in focus during the forecast period.
The increasing number of strategic collaborations is a major Market trend. Most vendors in the market are partnering with key value chain participants to improve their product capabilities and efficiency. For instance, on September 19, 2023, Red Hat, Inc., the world's largest provider of open-source solutions, announced the development of a new industrial edge platform in conjunction with Intel, which will give a modern method to developing and running industrial controls. In February 2023, Schneider Electric and Capgemini collaborated to accelerate 5g industrial automation, supported by Qualcomm.
However, such collaborations are aimed at increasing the market reach and ensuring ease in the development of a factory automation platform as a service solution. Although the market is in its nascent stage, the increasing presence of PaaS and IaaS and the rising number of strategic collaborations are expected to provide high growth opportunities for established companies in the market during the forecast period.
Data privacy and security concerns are significant challenges hindering market growth. Data security has been a primary concern for many organizations. Currently, organizations are focusing on data security policies that govern OpenStack cloud models, which represent a relatively new concept in the market. In addition, attacks such as man-in-the-middle (MiTM) attacks can adversely affect the object storage component. One of the major concerns is that clients do not check the certification authority (CA) credential of the server when executing a secure socket layer (SSL) connection. Owing to such increasing concerns, enterprises are demanding advanced security features for cloud-based applications.
Moreover, the cloud solutions are becoming secure, they are still vulnerable to DDoS attacks, data breaches, unsecured APIs, data loss, and account hijacking. Thus, data privacy and security concerns might pose a critical threat to the adoption of cloud infrastructure, which will hinder the growth of the market during the forecast period.
The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies 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.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2023 for the following segments
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The market is witnessing rapid growth across diverse industries including healthcare and life sciences, energy and utility, transportation and logistics, and media and entertainment. This trend is fueled by the increasing demand for rule-based automation and knowledge-based automation to streamline business functions and enhance operational efficiency. Key players in the FA PaaS sector are leveraging telecom and IT advancements to integrate financial transaction capabilities and manage equity investments effectively. They are also addressing the need for secure handling of medical record systems and unstructured data through innovative solutions. A skilled workforce remains crucial for deploying and maintaining these platforms, ensuring Responsible AI Layer implementation across operations. Platforms like Truist Invest Pro are setting benchmarks by enabling seamless automation across retail and consumer goods sectors, emphasizing the transformative impact of FA PaaS in modern industries.
Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 21.51% |
Market Growth 2024-2028 |
USD 6.64 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
21.01 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 36% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Advantech Co. Ltd., Blue Prism Group plc, ClearBlade Inc., Crosser Technologies, Emerson Electric Co., FANUC Corp., General Electric Co., Honeywell International Inc., Litmus Automation Inc., Microsoft Corp., Mitsubishi Electric Corp., Panasonic Holdings Corp., PTC Inc., Schneider Electric SE, Telit, Veea Inc., YASH Technologies Inc., Yokogawa Electric Corp., and Siemens AG |
Market dynamics |
Parent market analysis, Market Forecasting, 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 the market forecast period. |
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. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
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
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