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The Global Factory Automation Platform as a Service (FA PaaS) Market size is poised to grow by USD 6,649.1 million, at a CAGR of 21.51% between 2023 and 2028.
Factors such as ease of IT and OT convergence, a shift from the CAPEX model to the OPEX model in the manufacturing industry, and an increasing number of investments in smart factories will propel the market growth. North America is estimated to hold the largest market share. Other geographical regions include APAC, Europe, South America, and Middle East and Africa. The market is segmented into Component and End-User. The Component category is anticipated to generate the most substantial revenue, particularly from its sub-segments in the factory automation platform as a service (FA PaaS) market
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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 Factory Automation Platform as a Service (FA PaaS) Market trends. Most vendors in the factory automation platform as a service (FA PaaS) 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 factory automation platform as a service market reach and ensuring ease in the development of a factory automation platform as a service solution. Although the factory automation platform as a service (FA PaaS) 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 vendors 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 global factory automation platform as a service market during the forecast period.
The market share growth by the platform segment will be significant during the forecast period. The platform segment of the factory automation platform as a service 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 1,198.22 million 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 factory automation platform as a service market growth in the region. This is expected to affect the growth of the market in North America during the forecast period.
The Factory Automation Platform as a Service 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.
Global Factory Automation Platform as a Service 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.
ABB Ltd. - The company offers a factory automation platform as a service such as Process automation service, which includes applications such as chemical, aluminum, cement, life science, and many more.
Advantech Co. Ltd. - The company offers a factory automation platform as a service such as diverse reliable technologies and solutions for implementing edge computing, IoT, and AIoT, that can provide customers with application-oriented products.
Honeywell International Inc. - The company offers factory automation platform as a service such as Honeywell as a Service which includes navigating technology challenges.
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 factory automation platform as a service market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Factory Automation Platform As A Service 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 6,649.1 million |
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 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 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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