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The Industrial Automation Market size is estimated to grow by USD 83.68 billion at a CAGR of 8.16% between 2022 and 2027. Market expansion relies on various factors, including evolving market dynamics, the imperative for simplifying intricate manufacturing processes, and the increasing emphasis on smart factory initiatives. These elements collectively shape the trajectory of market growth, reflecting a blend of industry trends and technological advancements. The changing market dynamics underscore the importance of adaptability and innovation in meeting evolving consumer demands and market conditions. Simultaneously, the need to simplify complex manufacturing activities highlights the importance of efficiency and optimization in production processes. Additionally, the growing focus on smart factories signifies the integration of advanced technologies and data-driven solutions to enhance productivity and competitiveness. Thus, the interplay of these factors delineates the landscape for the anticipated expansion of the market, driven by the pursuit of operational excellence and digital transformation in manufacturing.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
Market Forecast 2023-2027
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This report extensively covers market segmentation by product (SCDA, PLC, DCS, drives, and sensors), end-user (process industry and discrete industry), and geography (APAC, North America, Europe, South America, and Middle East and Africa).
The SCDA segment will account for a major share of the market's growth during the forecast period. One of the key functions of the SCADA includes monitoring and gathering real-time data; interacting with devices such as sensors, pumps, valves, and other monitoring devices; and recording the events in a log file. As the manufacturing activities in the process and discrete industries include the use of diverse field instruments such as valves, drives, relays, switches, and sensors and are scattered across different locations in a manufacturing plant, it is important to analyze the data generated by these devices to gain real-time insights for data-driven decision-making to streamline the entire plant process.
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The SCDA segment was valued at USD 34.68 billion in 2017. Thus SCDA systems provide easy access to real-time data and enhance the data-driven decision-making capabilities of plant operators, businesses, or governments. Also, the increasing need to control, monitor, and visualize the entire process, specifically to optimize the cost and achieve operational efficiency, is a factor for the growth of SCDA systems in process and discrete industries. Hence, this can significantly increase the growth of this segment and thereby fuel the growth of the industrial automation market during the forecast period.
Based on end-user, the market has been segmented into the process industry and the discrete industry. Process industries mainly include the oil and gas, power, pulp and paper, water and wastewater, chemical and petrochemical, mining and metal, pharmaceutical, and food and beverage industries. Due to the increasing use of SCADA, PLC, DCS, and drives in major process industries, such as oil and gas, chemical and petrochemical, and power, the process industry segment holds a dominant share in the global industrial automation market. One of the key reasons for the growth of automation software demand in the oil and gas industry is the need for remote monitoring for the discovery of a great number of deep-water oil and gas fields. Therefore, this can significantly increase the growth of this segment and thereby fuel the growth of the industrial automation market during the forecast period.
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APAC is estimated to contribute 42% 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.
The main contributors of the growth of the industrial automation market in APAC are countries such as China, Japan, India, Vietnam, South Korea, Malaysia, and Australia. Due to the strong industrial base and increasing investments in the power, water and wastewater treatment, and food and beverage industries, China, Japan, South Korea, and India are the largest markets for industrial automation. Factors such as the high demand for energy is resulting in the commencement of several oil and gas projects, demand for industrial automation will be led by increasing investments in liquefied natural gas (LNG) processing activities that can fuel the growth of the global industrial automation market in the region.
The market is witnessing rapid evolution with the integration of robotics, artificial intelligence, and Internet of Things technologies, revolutionizing material handling and automation processes in the manufacturing sector. With a focus on labor costs reduction and operational efficiency, companies are adopting advanced networking architectures and analytics tools, leveraging the cloud and mobility solutions for enhanced productivity. Solutions like Air Automation Engineering (AEE) optimize industrial sector operations, while innovations in machine learning and distributed control systems (DCS) improve performance across industries, including healthcare, transportation, and aerospace and defense. The advent of 5G wireless technology further accelerates connectivity, enabling real-time monitoring with precision through temperature, humidity, and torque sensors. In an industrial setting, IoT technology integrates temperature sensors and input/output sensors with computer software, enabling real-time data monitoring and control through Human Machine Interface, optimizing the performance of both AC and DC motors. 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.
The manufacturers are slowly witnessing the brunt of excessive demand fluctuation and rising overall operational expenditure (OPEX) as the market dynamics in some of the leading process and discrete industries are changing significantly.
For Instance, factors such as the fluctuating prices of oil and gas and metal in the global market, the Russia-Ukraine war, a slowdown in the global automotive industry, and a shortage of skilled workforce have directly affected the overall OPEX and profitability of manufacturing companies. This sudden and unprecedented shift in market dynamics can significantly impact manufacturing processes unless manufacturers adopt effective safety mechanisms against such critical risks. Thus, such factors can drive the growth of the market during the forecast period.
In 2019, the automation software segment witnessed faster growth than the automation hardware segment in the market. The declining dependence on hardware and the wide acceptance of software applications has increased the demand for automation software. Thus, to scale up their market reach, OEMs of automation software and industrial control systems are trying to acquire system integrators. On the other hand, some companies are focusing on single automation products, such as digitalization, to capitalize on the rising demand for IIoT.Thus this trend is expected to have a high impact on the growth of the market during the forecast period.
Due to the advancement of IIoT, also referred to as Industry 4.0 in the automation context, design challenges at the control level have increased significantly. Even though IIoT provides a range of benefits such as real-time communication and reliability, increasing the overall efficiency of industrial automation and smart maintenance distributed intelligence systems for manufacturing and factory automation, it comes with certain challenges as well.
Due to the increasing adoption of IoT-enabled devices, manufacturers and system integrators are facing design challenges in factory automation. Although different levels in Industry 4.0 have their set of design challenges, the challenges related to control-level designing are extremely complex. Thus the above factors can impede the growth of the market 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.
Endress Hauser Group Services AG: The company offers industrial automation such as cleaning and calibration system liquiline control CDC90. Also, the company offers measuring instruments and automation solutions for the industrial process engineering industry including flow, level, pressure, analysis, temperature, recording, and digital communications.
Azbil Corp: The company offers industrial automation, such as Advanced Process Control. Also, the company offers a variety of products and services necessary to control air conditioning in office buildings and other large scale buildings, based on an integrated system.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Technavio report provides 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 research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.
The market is experiencing a transformative wave propelled by cutting-edge technologies like Artificial Intelligence (AI), the Internet of Things (IoT), and cloud computing. These innovations optimize operations through real-time data analytics and automation technologies, enhancing quality control and ensuring safety compliance. With a focus on technological advancement, companies are integrating advanced sensors such as temperature and humidity sensors into their processes, while embracing augmented reality (AR) and virtual reality (VR) for immersive experiences. Strategic partnerships and comprehensive training programs drive proficiency in utilizing labeling equipment, human-machine interfaces, and programmable logic controllers. This synergy of digital technologies and DC motors paves the way for unprecedented efficiency and productivity in industrial settings.
Market Scope |
|
Report Coverage |
Details |
Page number |
182 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.16% |
Market growth 2023-2027 |
USD 83.68 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.65 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 42% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Azbil Corp., Danfoss AS, Dassault Systemes SE, Emerson Electric Co., Endress Hauser Group Services AG, FANUC Corp., Fuji Electric Co. Ltd., General Electric Co., Hitachi Ltd., Honeywell International Inc., KROHNE Messtechnik GmbH, OMNIVISION, OMRON Corp., Robert Bosch GmbH, Rockwell Automation Inc., Schneider Electric SE, Siemens AG, WIKA Alexander Wiegand SE and Co. KG, and Yokogawa Electric Corp. |
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 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. |
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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 Product
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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