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The industrial automation services market size is forecast to increase by USD 99.54 billion, at a CAGR of 19.33% between 2023 and 2028. The market's growth rate hinges on various factors, including the escalating demand for main automation contractors, the heightened emphasis on smart factories, and the rising complexities within plant operations. Our report examines historical data from 2018-2022, besides analyzing the current and forecasted market scenario.
The APAC market is driven by an increasing inclination toward automation software to streamline intricate production processes and enhance operational efficiency. ABB Ltd provides industrial automation services, including the Ability Genix Industrial Analytics and AI Suite, to optimize equipment and process performance. Dwyer Instruments LLC offers innovative instrumentation solutions for the global HVAC and process automation markets as part of their industrial automation services.
Market Forecast 2024-2028
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The market is driven by the transformative wave of Industry 4.0, leveraging automation, robotics, artificial intelligence, and the Internet of Things (IoT). This integration enhances industrial automation, elevating productivity and efficiency. Sensors, cloud computing, and machinery, coupled with Distributed Control Systems (DCS), contribute to technological growth. The sector's role in economic growth is pivotal, particularly in the automotive industry. While these trends propel the market forward, challenges may include ensuring seamless integration, addressing cybersecurity concerns, and managing the transition to advanced automation technologies for widespread adoption. Our researchers studied the market research and growth data for years, with 2023 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
Industrial manufacturing is undergoing a transformation characterized by increased flexibility and scalability, with the emergence of smart factories playing a pivotal role in digital transformation. Smart factories represent a shift from traditional automation to fully connected and flexible systems such as Industry 4.0. These facilities interlink devices through a communication network, allowing real-time data utilization for adaptive responses to customer demands.
The Internet of Things (IoT) and artificial intelligence enhance efficiency and customer value by capturing real-time information and enabling remote machinery control. Ongoing technological advances, complex supply chains, global competitive pressures, organizational realignments, and increased investments drive the global acceptance of smart factories, making them a mainstream trend in manufacturing. Hence, such factors are driving the market growth during the forecast period.
The demand for IoT-enabled devices has increased, mainly due to the need for data collection and analysis to solve complex maintenance tasks. In addition, IoT-enabled devices, such as wireless acoustic transmitters and steam trap monitors, aid in monitoring complete plant operations. Furthermore, with the data on machines and systems available, industrial operators can compare the efficiency and performance of machines, thereby helping operators plan maintenance activities accordingly and reduce the overall downtime due to unplanned machine failure.
Moreover, end-users have shifted their focus toward predictive maintenance as it helps reduce overall production downtime and increases operational efficiency. In addition, predictive maintenance data analysis identifies operational anomalies and potential equipment defects in industrial processes, enabling timely repairs before failures occur. Hence, such factors are driving the market growth during the forecast period.
One of the major issues hindering the growth of the global market is the lack of effective interoperability between various automation solutions and control technologies. In addition, end-users are faced with interoperability issues as the interface is not able to support the latest automation control systems. Furthermore, modern industrial systems and facilities are becoming more complex owing to the deployment of multiple devices and systems with different configurations.
Moreover, integrating the different systems, therefore, poses a challenge to end-users in terms of compatibility and interoperability. In addition, in industries such as oil and gas, power, chemical and petrochemical, and water and wastewater, the integration of automation control systems becomes even more difficult as these systems are highly dependent on legacy systems. Hence, such factors are hindering the market growth during the forecast period.
The PE segment is estimated to witness significant growth during the forecast period. The increasing need to handle complex processes that may be deployed remotely is leading to the growing adoption of industrial automation control systems, such as supervisory control and data acquisition (SCADA), programmable logic controllers (PLCs), and sensors in both process and discrete industries. In addition, in process industries, automated devices, such as the manufacturing execution system (MES), PLCs, SCADA, and human-machine interface (HMI) solutions, aid in ensuring central control of the overall operation process.
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The PE segment was the largest segment and was valued at USD 11.21 billion in 2018. Moreover, On the other hand, in discrete industries, the challenge lies in the management of distribution systems and the need for higher control over batch processing. In addition, automation systems and equipment, such as SCADA, PLCs, HMI, and robotics, improve overall manufacturing efficiency and reduce operational expenditure (OPEX). Furthermore, as industrial processes have undergone a dramatic change over the last couple of years, maintaining plant assets has been the major focus of industrial operators. In addition, the use of the Internet of Things (IoT), smart sensors, modern industrial plants, and manufacturing facilities has become increasingly complex with the growing penetration of advanced technology. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
Based on the end-user, the market has been segmented into discrete industries and process industries. The discrete industries segment will account for the largest share of this segment. The automotive, packaging, electronics, and semiconductor industries comprise the major end-users of automation services in the discrete industries segment. In addition, in discrete industries, the effective deployment of automation control systems enables companies to increase their operational efficiency by enhancing their production processes. Moreover, organizations across discrete industries need consistent maintenance and services to reduce their operational costs and downtime. In addition, the automotive industry has been steadily adopting automated control systems, with PLCs and DCS being the most widely adopted. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
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APAC is estimated to contribute 51% to the growth by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. With the rise in the scale of operations, the supply chain becomes more complex. Thus, established vendors are partnering with system integrators to provide automation services to increase their market reach and, in turn, consolidate the highly fragmented market in APAC. In addition, APAC is becoming a hub for global manufacturing. Moreover, this is due to the substantial year-over-year international investments and the high economic growth in developing countries. In addition, with favorable government policies and significant initiatives, such as Made in China 2025 and Make in India, many automakers are in the process of establishing new automobile plants. Furthermore, these plants will be equipped with modern equipment, automation, and robotic solutions to meet global standards. Hence, such factors are driving the market growth in APAC during the forecast period.
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.
Emerson Electric Co: The company offers industrial automation services such as production, migration, and security services.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Advantech Co. Ltd., FANUC Bulgaria EOOD, Fuji Electric Co. Ltd., General Electric Co., Hitachi Ltd., Honeywell International Inc., JTEKT Corp., Kawasaki Heavy Industries Ltd., Mitsubishi Electric Corp., OMRON Corp., Robert Bosch GmbH, Rockwell Automation Inc., Schneider Electric SE, Sensirion AG, Siemens AG, Yokogawa Electric Corp., and Parker Hannifin Corp.
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market analysis and report forecasts market growth by revenue at global, regional & country levels and provides a market growth analysis of the latest trends and growth opportunities from 2018 to 2028.
The market is undergoing a transformation, moving from small independent units to large-scale work cells, aiming at cost reduction, improved quality, and enhanced operator safety. Embracing technologies like cloud, mobility, and smart manufacturing, businesses are integrating the Internet of Things (IIoT), machine learning, and industrial robots to streamline operations. This shift towards automation is not only driven by technology growth but also by the need to comply with government regulations and optimize business models. In the manufacturing sector, especially in aerospace and heavy engineering, IIoT, cloud computing, and machine learning play a crucial role in reducing raw material waste, improving energy usage, and enhancing overall production efficiency. Industrial sensors, including temperature, humidity, and torque sensors, along with Distributed Control Systems (DCS), contribute to monitoring and controlling processes. Emerging technologies such as Augmented Reality (AR) are also being incorporated to reduce error rates and enhance human-machine collaboration. With a focus on autonomous processes, manufacturing associations, like SFMA, are actively promoting the adoption of advanced technologies to upskill the workforce and improve efficiency across industry verticals, including healthcare and supply chain management. In the era of Industry 4.0, industrial automation services are becoming indispensable, driving advancements in various sectors and contributing to the growth of emerging economies, particularly in the power sector.
Moreover, the market is witnessing a paradigm shift with the adoption of intelligent manufacturing infrastructure, driving productivity and addressing labor costs. The integration of new systems and augmented networking architectures is revolutionizing the manufacturing landscape. Improved operator safety and enhanced production are achieved through Internet of Things (IoT) connectivity, meeting the expectations of shareholders. Businesses are increasingly reliant on automation, incorporating machinery and advanced sensors like temperature and humidity sensors to monitor operations effectively. Augmented reality (AR) technology is reducing human intervention, enhancing technology-operated processes, and minimizing errors in the supply chain. With consulting services, a customer-centric approach, and the deployment of Distributed Control Systems (DCS), the manufacturing vertical is experiencing a transformative process time. The use of wireless sensors, semiconductor chips, and industry principles contributes to creating efficient systems, particularly in small and medium-sized enterprises (SMEs). As cables and semiconductor chips play a pivotal role, the market is at the forefront of technological innovation, driving the advancement of industry standards. The integration of wireless sensors and DCS segments further emphasizes the industry's commitment to embracing intelligent manufacturing principles for sustained growth and efficiency. The Manufacturing Association (SFMA) and the Food Innovation Resource Centre are actively contributing to this technological revolution, positioning the sector as a key player in the global market.
Industrial Automation Services Market Scope |
|
Report Coverage |
Details |
Page number |
183 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 19.33% |
Market Growth 2024-2028 |
USD 99.54 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
18.67 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 51% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Advantech Co. Ltd., Dwyer Instruments LLC, Emerson Electric Co., FANUC Bulgaria EOOD, Fuji Electric Co. Ltd., General Electric Co., Hitachi Ltd., Honeywell International Inc., JTEKT Corp., Kawasaki Heavy Industries Ltd., Mitsubishi Electric Corp., OMRON Corp., Robert Bosch GmbH, Rockwell Automation Inc., Schneider Electric SE, Sensirion AG, Siemens AG, Yokogawa Electric Corp., and Parker Hannifin Corp. |
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. |
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