Industrial Automation Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Japan, Germany, Italy - Size and Forecast 2024-2028

Industrial Automation Market: Trends, Growth, and Future Outlook

The industrial automation market in life sciences industry size is forecast to increase by USD 5.06 billion with a CAGR of 11.4% between 2023 and 2028. The market is driven by factors like increasing demand for efficiency, productivity, and operational cost reduction in industries. Industries such as manufacturing, oil and gas, automotive, and pharmaceuticals are significant contributors to the market. Emerging technologies like artificial intelligence (AI) and Internet of Things (IoT) are expected to further revolutionize the industrial automation sector.

Our market trends and analysis report examines historical data from 2018 - 2022, besides analyzing the current and forecasted market scenario. The report includes a comprehensive outlook on the market, offering forecasts for the industry segmented by Deployment, which comprises onsite and decentralized. Additionally, it categorizes Product into DCS, SCADA, PLC, and MES, and covers Regions, including North America, Europe, APAC, South America, and Middle East and Africa. The market growth analysis report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.

Market Overview

Market Forecast 2023-2027

To learn more about this report,  Request Free Sample

Market Size and Growth Forecast: Drivers and Challenges in the Industry

Our research report provides a detailed analysis of drivers, trends, and challenges that will help market players stand out amongst their competitors. The market involves the use of advanced technology and control systems to automate industrial processes. It includes various components such as programmable logic controllers (PLCs), human-machine interfaces (HMIs), sensors, and actuators.

Robotics and control systems hold a major portion of the market. By 2024, most manufacturing processes are expected to incorporate some form of industrial automation. The adoption of automation processes has led to an average increase in productivity of around 20-30%.

 Driver- Growing global demand for healthcare services

An increasing number of people will likely access and adopt modern healthcare services globally during the forecast period, spurred by the twin-pronged effects of a rise in the aging population and disposable income. Further, with a growth in the issue of chronic diseases, people in need of medical assistance is increasing, and their numbers are expected to rise going forward. With demographics changing drastically, the entire infrastructure of the current life sciences industry is expected to come under extreme pressure, as the volume of care services and personnel required to cater to the growth in patient numbers will shoot up dramatically. Amid such a backdrop, automation in industry is foreseen as a must-have factor from the perspective of enhancing strategic business performance in the life sciences industry.

Therefore, the growing demand for healthcare services will lead to increased adoption of industrial automation across all life sciences industry verticals in a concerted endeavor to reduce human effort, achieve operational efficiencies, and improve overall service quality. As healthcare providers strive for increased efficiency and precision in manufacturing pharmaceuticals and medical devices, there will be a heightened need for advanced automation solutions to optimize production processes and meet rising demand, which will fuel the growth of the global market in the life science industry during the forecast period.

Emerging Trends in the Industrial Automation Market

The open process automation (OPA) vision from the Open Process Automation Forum is expected to gain more traction during the forecast period which is one of the major market trends. This forum is one of the platforms through which key industry stakeholders are making concerted efforts to resolve the issue of interoperability. In the same year, ExxonMobil announced to work with Yokogawa Electric Corp., an automation-based services company that delivers project execution capabilities for all automation-related aspects of a project. The company worked with Yokogawa Electric Corp. to be the OPA system integrator, which would be responsible for establishing the company's OPA testbed.

Furthermore, Leveraging the OPA vision, this initiative aims to develop open-process commercial automation systems. In the long run, the OPA vision is expected to lower the cost factors, given the highly modularized and reusable components with a high interoperability factor, and reduce the level of training required to operate such systems. Therefore, increasing adoption of OPA will positively impact the market growth and trends during the forecast period.

Future Outlook and Opportunities

The future outlook of the market is promising, with significant opportunities emerging through the integration of advanced technologies. Developments in Industrial Internet of Things (IIoT) and robotics, coupled with the widespread use of sensors, are transforming control systems and operations. Safety remains a paramount focus, fostering the adoption of innovative solutions. The market's trajectory indicates a surge in investments, as businesses recognize the potential for enhanced efficiency and productivity. The IAoT is shaping new paradigms, driving strategic investment in interconnected technologies. As industries increasingly embrace automation, the market's future holds promises of optimized processes and robust technological integration.

Challenge

Infrastructural and integration issues faced across processes in the life sciences industry are major challenges obstructing the growth of the market. High-speed and high-bandwidth Internet is required for the effective implementation, primarily for sending and accessing data across a cloud-based environment. Connectivity issues, power outages, and slow networks can cause system downtimes and hamper business productivity. These are major challenges in the effective implementation, especially in developing countries, as well as among SMEs and startups.

Moreover, as most of the systems used are legacy tools with data being generally stored in legacy formats, integration issues amplify when adopting industrial automation. For instance, the pharmaceutical supply chain is highly complex; it is strewn with different hardware and legacy systems, making data management and system integration across the supply chain very challenging. Even a single vulnerable system can become a security loophole and expose the entire network to cyber intruders. Therefore, the implementation of industrial automation in the life sciences industry is hampered by various infrastructural and system integration issues, which can negatively impact the growth of the market in focus during the forecast period.

Market Segmentation by Deployment, Product, and Region.

Deployment Segment Analysis:

The onsite segment will account for a major share of the market's growth during the forecast period.? 

Customised Report as per your requirements!

The onsite segment was valued at USD 3.65 billion in 2018. The onsite segment of the global market holds the highest share of the market segment by deployment. The key reason for accepting the onsite deployment model is that it offers better security than the cloud-based deployment model. The onsite segment uses the cloud-based deployment model. Data is stored on multiple servers, whereas in the onsite deployment model, data is stored on dedicated servers. This offers good control and security over information.

Moreover, in the onsite deployment model, data can be accessed only through dedicated client servers, whereas in the cloud-based deployment model, data can be accessed through multiple points. This makes the data stored on the cloud prone to security breaches. Large life science organizations that deal with critical research information prefer onsite healthcare information software solutions, as they provide an optimum level of data security with physical access controls and security protocols. Such factors are expected to drive the growth of the global market in life science industry during the forecast period.

Product Segment Analysis:

The primary factor prompting the increasing use of DCS for effective process control is the stringent regulations governing the life sciences industry. As the adoption of technology is growing in the global life sciences industry, especially in the pharmaceutical sector, the development and integration of new systems and API products call for the effective deployment of DCS. For instance, SIMATIC PCS 7 from Siemens AG was specifically designed for the pharmaceutical and life sciences industry.

Further, the faults in the traditional systems lead to the demand is expected to grow for upgrades across legacy DCS as well as new capacity additions, and these factors are expected to propel the market forward during the forecast period. The entire DCS market is witnessing extensive product development, and this trend is expected to stimulate demand during the forecast period.

Regional Analysis

For more insights on the market share of various regions Download Sample PDF now!

The North America region dominates the industrial automation market with a market share of over 39%. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.  One of the most crucial factors for the growing adoption of the market is the provision of premium services to the burgeoning aging population of North America. The rapidly increasing number of patients in the region is one of the prime drivers for the growing adoption of automation in a bid to de-stress the entire infrastructure of the life sciences industry.

Further, consumers have started asking for sophisticated healthcare systems and solutions, given high household incomes and the growing need for better-quality services. This evolution in consumer demand is essentially encouraging the region's life sciences sector to implement automation with its aim to provide greater convenience and patient experience.  Such factors will drive the growth of the market in the life science industry in this region during the forecast period.

Industrial Automation Technologies

Industrial Automation Technologies have witnessed transformative developments with the advent of Industry 4.0, prominently featuring the Industrial Internet of Things (IIoT). Control systems, equipped with advanced sensors, enhance operational efficiency and safety across diverse sectors. Robotics has become integral, automating tasks and streamlining operations. Investments in IIoT and automation technologies have surged, as industries recognize the potential for optimized processes and increased productivity. The integration of smart devices and sensors in the IIoT is shaping the future of the market, creating a connected ecosystem that drives innovation and efficiency in the realm of things.

Application Areas of Industrial Automation

Industrial automation, driven by innovations in programmable logic controllers (PLCs), has transformed various application areas within the manufacturing industry. Mitsubishi Electric Corporation and Omron Corporation, key players in the field, cater to diverse clients seeking enhanced efficiency and reduced manual intervention. Automation initiatives span from machines to maintenance processes, optimizing production workflows. PLCs play a pivotal role in controlling and monitoring machinery, ensuring seamless operations. From automotive assembly lines to food processing plants, the industry benefits by streamlining processes, improving productivity, and minimizing errors. These initiatives underscore the pivotal role of automation in meeting the evolving demands of clients and driving progress in the industrial landscape.

Key Market Players

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 solutions for the pharmaceutical and biotech industries.

Our market research and growth report also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:

ABB Ltd., Applied Materials Inc., Aspen Technology Inc., Azbil Corp., Balluff GmbH, Danaher Corp., Dassault Systemes SE, Emerson Electric Co., Endress Hauser Group Services AG, Honeywell International Inc., Johnson Controls International Plc, Mitsubishi Electric Corp., OMRON Corp., Parker Hannifin Corp., Rockwell Automation Inc., SAP SE, Schneider Electric SE, Siemens AG, Yokogawa Electric Corp., and Festo SE and Co. KG 

Technavio's market growth and forecasting report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies 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. 

Competitive Landscape

In the competitive landscape of the industry, businesses are leveraging innovation, particularly in artificial intelligence, to redefine factory automation in the Asia Pacific region. Government initiatives further propel advancements, fostering a dynamic market. The assembly line domain witnesses a surge in the integration of robots, emphasizing efficiency and precision. The factory automation market is a battleground where companies strive to outpace rivals, offering cutting-edge solutions. As demand surges, the industry becomes a hotbed for collaboration, where the convergence of technology and strategic partnerships reshapes the future of automated processes across diverse sectors.

 

Segment Overview

The market forecasting 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. 

• Deployment Outlook
  • Onsite
  • Decentralised

• Product Outlook 
  • DCS
  • SCADA
  • PLC
  • MES

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Brazil 
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Scope
Report Coverage	Details
Page number	100
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 11.4%
Market growth 2024-2028	USD 5.06 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	9.12
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 39%
Key countries	US, China, Japan, Germany, and Italy
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	ABB Ltd., Applied Materials Inc., Aspen Technology Inc., Azbil Corp., Balluff GmbH, Danaher Corp., Dassault Systemes SE, Emerson Electric Co., Endress Hauser Group Services AG, Honeywell International Inc., Johnson Controls International Plc, Mitsubishi Electric Corp., OMRON Corp., Parker Hannifin Corp., Rockwell Automation Inc., SAP SE, Schneider Electric SE, Siemens AG, Yokogawa Electric Corp., and Festo SE and Co. KG
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 market analysis and report do not include the data that you are looking for, you can reach out to our analysts and get segments customized.

Request Sample PDF 

What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2024 and 2028
• Precise estimation of the size of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across North America, Europe, APAC, South America, and Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

We can help! Our analysts can customize this market research report to meet your requirements. Get in touch