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The industrial automation software market is estimated to grow at a CAGR of 2.6% between 2022 and 2027. The size of the market is forecast to increase by USD 5,249.42 million. The growth of the market depends on several factors, including the need to reduce overall operational expenses, the emergence of automation software solutions on the cloud, and increasing plant complexities.
This report extensively covers market segmentation by product (SCADA software, MES, DCS software, HMI software, and PLC software), end-user (process industry and discrete industry), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The reports categorize the global industrial automation software market as a part of the global IT consulting and other services market within the global IT services market. The super parent global IT services market cover companies offering IT consulting and system integration services, application services, electronic data processing services, business process outsourcing services, infrastructure services, and Internet services. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The emergence of automation software solutions on the cloud is notably driving market growth, although factors such as cybersecurity threats may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Industrial Automation Software Market Driver
The emergence of automation software solutions on the cloud is notably driving market growth. The adoption of cloud-based automation software eliminates the expenses related to hardware and IT infrastructure of automation solutions such as MES and SCADA. The shift toward cloud-based solutions has enabled industrial units to significantly reduce costs, enhance functionality, and achieve greater flexibility.
The shift of functions such as analyzing and maintaining data from the operators to cloud service providers through cloud-based architecture enables the users to view data on devices such as tablets and smartphones. These devices are also used as portable HMIs to monitor remote machines and enable field technicians to access and control the process that is being followed. It is estimated that the adoption of cloud-based SCADA and MES solutions will reduce end-user's costs by up to 25% compared to on-premise SCADA solutions during the forecast period. Thus, the emergence of automation software solutions on the cloud will drive the market for industrial automation software during the forecast period.
Significant Industrial Automation Software Market Trend
Integration of PLM and ERP in industrial automation software is another factor driving the market growth. The integration of PLM and ERP helps manufacturers to develop and launch profitable products in the discrete manufacturing environment. The integration of PLM and ERP helps manufacturers to create a feedback information mechanism that can enhance the performance of the production process and the quality of manufactured parts.
The exchange of information between the two systems allows the adoption and tuning of the manufacturing process in a short time with improved performance. This integration will allow quick detection of the differences between the final product and the expected output (product). End-users are increasingly showing interest in this tri-system integration as it optimizes process and product design reduces the production cost and cycle time and increases the capacity to manufacture high-quality, innovative products. This improved reactivity enables end-users to better deal with market changes. These factors will positively impact the market during the forecast period.
Major Industrial Automation Software Market Challenge
Cybersecurity threats are the major challenge hindering the growth of the market. The primary cyber threats in the discrete industry include operational downtime, manipulation in the product development procedure, and theft of sensitive information. Most of the common attacks involved ransomware, with smart manufacturers becoming the prime targets. Industries such as medical devices, consumer durables, and automotive are quite sensitive, and with the increasing product patents and the high volume of confidential data, it is becoming very difficult for discrete industrial operators to adopt automated devices and IoT due to the increased risk of cyber threats.
Though automation software vendors are increasing the security level in automation software and solutions, upgrades and security suits increase the overall cost of the complete automation suits, thereby increasing the CAPEX for industrial manufacturers. Thus, the aforementioned factors will hinder the market during the forecast period.
Key Industrial Automation Software Market Customer Landscape
The 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 Industrial Automation Software Market Customer Landscape
Vendors 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 - The company offers industrial automation software to improve productivity, minimize cost, and extend the useful life of products and systems as its key offerings under process automation. The company also focuses on manufacturing and selling drives, motors, generators, traction converters, and mechanical power transmission products.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth of the SCADA software segment will be significant during the forecast period. The demand for SCADA systems is increasing because of the rise in the need to monitor, control, and visualize the whole process to optimize the cost and reach operational efficiency. Factors such as the rise in smart grid technology in the power industry, the rise in smart wastewater treatment technology, and the need to reduce energy losses in metal, mining, and mineral processing industries drive the global SCADA market toward growth.
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The SCADA software segment was valued at USD 10,876.90 million in 2017 and continued to grow until 2021. The plant monitoring process and integration of various PLCs and databases using SCADA systems are gaining traction in the process and discrete industries. Advances in new tools to design SCADA applications for process control as per the plant requirement have eased the SCADA installation process in industries. The growing demand for Internet of Things (IoT)-enabled devices, as well as the need to efficiently manage and distribute data across operating areas, will increase the demand for SCADA systems, especially in the process industry, during the forecast period.
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APAC is estimated to contribute 39% 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.
Factors such as rising population coupled with improved purchase power parity, growing expense on food products, and the increasing need for substitute food (packaged food and ready-to-eat food) are expected to foster the growth of the food and beverages industry in the region during the forecast period. Oil and gas investments are being aimed at downstream activities due to the rising need for energy resources in APAC to fuel its industrial growth and support its growing population. For instance, China Rongsheng Petrochemical built 400,000 barrels per day refining facility in 2018, with a further addition in the refining capacity by 2020. Moreover, the oil and gas industry in APAC is expected to witness sustainable growth during the forecast period, considering the rising need for fuels and hydrocarbons.
The outbreak of COVID-19 adversely affected the growth of the industrial sector in APAC. However, increasing focus on the adoption of technologies such as the IoT, automation systems, edge computing, and the availability of smart sensors that can be integrated with automation software is expected to boost the growth of the market in APAC during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Product (SCADA software, MES, DCS software, HMI software, and PLC software), End-user (Process industry and Discrete industry), and Geography (APAC, North America, Europe, Middle East and Africa, and South America).
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Industrial Automation Software Market Scope |
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Report Coverage |
Details |
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Page number |
183 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 2.6% |
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Market growth 2023-2027 |
USD 5,249.42 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
2.23 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 39% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ABB Ltd., Advantech Co. Ltd., AMETEK Inc., Baosteel Group Corp., Beckhoff Automation GmbH and Co. KG, Eaton Corp. Plc, Emerson Electric Co, General Electric Co., Hitachi Ltd., Honeywell International Inc., Mitsubishi Electric Corp., OMRON Corp., Parsec Automation Corp., Rockwell Automation Inc., Schneider Electric SE, Siemens AG, Tata Consultancy Services Ltd., TOSHIBA CORP, Yokogawa Electric Corp., and Oracle Corp. |
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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, and Market condition analysis for the forecast period. |
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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 report to meet your requirements. Get in touch
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
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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