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The process automation and instrumentation market size is forecast to increase by USD 30.26 billion, at a CAGR of 5.95% between 2023 and 2028. The market's growth relies on various factors, notably the simplification of manufacturing processes through automation, which enhances efficiency and reduces costs. Additionally, there's a notable transition towards lean manufacturing, streamlining operations and optimizing resource utilization. Moreover, the imperative for environmental sustainability drives the need for efficient resource usage and emission reduction measures. These factors collectively stimulate market expansion by fostering more agile, cost-effective, and eco-friendly manufacturing practices. As industries embrace these principles, they enhance productivity, minimize waste, and meet evolving consumer demands while remaining competitive in a dynamic market landscape.
Market Forecast 2024-2028
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In the Process Automation and Instrumentation Market, digital technologies like machine learning and artificial intelligence drive efficiency and quality. Industries benefit from advanced instrumentation products for monitoring parameters like pressure, temperature, and humidity. However, challenges such as human errors and the complexity of cyber-physical systems persist. The adoption of cloud computing and IIoT enhances operational efficiency, yet small firms face hurdles in implementation. Technologies like SCADA, HMI, and PLC streamline processes, but ensuring seamless integration remains a challenge. Despite these obstacles, the market continues to evolve, driven by the quest for enhanced productivity and quality assurance.
Lean manufacturing is the methodology to reduce waste without sacrificing productivity in a manufacturing system. Both lean manufacturing and manufacturing automation share the same goals of removing low-value or non-value activities, reducing waste, and producing predictable quality. The high growth of demand-driven technologies in a discrete manufacturing environment enables operators to maintain records of multi-step production operations. This emphasizes replacing paper-based record maintenance, procedure manuals, and data sheets with electronic documents focusing on green production. Consequently, the need for advanced production optimization tools, such as MES, SCADA, PLCs, and DCS, is increasingly felt by manufacturers.
Moreover, as automation control systems facilitate operations on a real-time basis, they provide updated information to operators on the shop floor. This enables a more detailed recording of process data, conditions, and results; it also controls the manufacturing process, thereby reducing the defect rate. It supports the timely execution of production processes while responding and reporting on plant activities as they occur, thereby reducing and eliminating unnecessary activities. Hence, an increasing shift toward lean manufacturing is expected to drive the growth of the market during the forecast period.
The process of generating patterns or trends by analyzing huge volumes of data is called big data analytics. This technology is not only confined to the IT industry but is also used in discrete industries like medical device manufacturing, automotive, semiconductor, and electronics industries. Automated systems like SCADA, MES, and DCS generate a lot of data, and the adoption of IoT in manufacturing has raised the total amount of data generated by a single factory. In the highly competitive Indian market, manufacturers must leverage their market presence by pairing their IoT and big data analytics with manufacturing processes and value chains to stay ahead of their competitors.
Moreover, the growing digitalization will help the market observe the rising adoption of IoT-enabled devices and big data analytics, which, in turn, will drive the growth of the global market during the forecast period.
The process and discrete industries are migrating toward complete automation by using smart manufacturing technologies. Automated systems such as MES integrate other control systems like the SCADA network with enterprise resource planning (ERP) to increase productivity and minimize the risk of product failure. The adoption of IIoT and connected technologies has eased the operation process, but they have increased the risks of cybersecurity in operational processes. Industrial automation and instrumentation ease many tasks for manufacturers. However, they are prone to cyber threats. Hackers exploit confidential corporate information by attacking classified networks within organizations. The primary cyber threats in the discrete industry include operational downtime, manipulation in the product development procedure, and theft of sensitive information.
However, most of the common attacks entailed ransomware, and smart manufacturers are becoming the prime targets. In industries such as medical devices, consumer durables, and automotive industries, production processes are very sensitive; with the growing number of product patents and high volume of confidential data, it is becoming very difficult for discrete industrial operators to adopt automated devices and IoT due to the looming threat of cyber-attacks. Thus, increasing cyber security threats can become a major challenge for the growth of the market during the forecast period.
The market is propelled by cutting-edge digital technologies like machine learning and artificial intelligence, revolutionizing production efficiency across various industries. Instrumentation products such as those measuring pressure, temperature, and humidity play pivotal roles in enhancing operational efficiency and ensuring product quality in manufacturing firms spanning sectors like food & beverages and chemicals. The integration of cyber-physical systems and cloud computing facilitates real-time monitoring and control, minimizing human errors and optimizing processes. Technologies like SCADA, HMI, and PLC alongside advanced solutions like APC (Advanced Process Control) and DCS (Distributed Control System) empower businesses, particularly SMEs, with robust control and visualization capabilities, driving the market's evolution towards smarter, more interconnected industrial ecosystems.
The market share growth of the oil and gas segment will be significant during the forecast period. The market is expected to witness significant expansion in the oil and gas segment as an end-user during the forecast period. Several factors, such as the rising need for energy, continued exploration efforts, and the industry's growing focus on operational effectiveness and safety, are to blame for this.
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The oil and gas segment was the largest and was valued at USD 20.33 billion in 2018. Governments have a major influence on the development of this situation. For instance, the US Department of Energy makes investments in cutting-edge process automation technologies to improve the sustainability and efficiency of oil and gas operations. Similarly, the Vision 2030 plan of Saudi Arabia intends to encourage automation and digitization in the oil and gas industry while also diversifying the country's economy. Process automation and instrumentation solutions are predicted to become increasingly in demand in the oil and gas sector as a result of these initiatives and expanding global energy infrastructure. This is expected to increase the adoption of process automation and instrumentation solutions in the oil and gas end-user segment, which in turn will drive the growth of the market during the forecast period.
Based on type, the market has been segmented into process automation and process instrumentation. The process automation segment will account for the largest share of this segment.?Process automation mechanizes production processes by incorporating field devices and controlling devices in plants. Automation solutions include DCS, SCADA, PLC, and MES, which help end-users optimize their business operations by effectively controlling production processes. The market in India is mainly driven by the business imperative to use resources efficiently, improve productivity, and optimize plant operations. Government regulations that seek to control carbon dioxide emissions by limiting power consumption and the need to minimize the wastage of raw materials are also expected to drive the market during the forecast period.
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APAC is estimated to contribute 37% to the growth by 2028. Technavio’s analysts have elaborately explained the regional market trends, drivers, and challenges that are expected to shape the market during the forecast period. In APAC, it is expected that the market will witness growth as the region is investing constant efforts in the development of industries and improving the work efficiency of industries. The adoption of automation has been slow in the region due to factors such as the presence of cost-conscious industries that have limitations in terms of financial availability. The availability of low-cost industrial workers is the other major factor that has affected the adoption of process automation and instrumentation solutions in APAC. In addition, the intensity of the awareness of process automation and its implementation has been low when compared with other geographies.
Furthermore, certain process automation summits are being held in the region to facilitate and support the field of automation and the adoption of process automation in industries. Some governments like India are launching initiatives to promote Industry 4.0 in the region. Such initiatives increase awareness about Industry 4.0 in the Indian manufacturing industry through demonstration centers. Such factors, along with robotics integration and industrial sensors, are expected to drive the growth of the market in APAC during the forecast period, as indicated by market research and growth.
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 process automation solutions such as Control systems, Control Room Solutions, and Measurement Products.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
ABB Ltd., Delta Electronics Inc., Emerson Electric Co., Endress Hauser Group Services AG, Fuji Electric Co. Ltd., General Electric Co., Hitachi Ltd., Honeywell International Inc., KROHNE Messtechnik GmbH, Metso Outotec Corp., Mitsubishi Electric Corp., OMRON Corp., Pepperl and Fuchs SE, Rockwell Automation Inc., Schlumberger Ltd., Schneider Electric SE, Siemens AG, Teledyne Technologies Inc., Titan Co. Ltd., and Yokogawa Electric Corp.
Technavio report provides an in-depth analysis of the market growth and forecasting 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 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market is witnessing rapid growth driven by a myriad of factors, including asset utilization, supply chain management, and a paramount focus on workplace safety. Industries like the oil & gas, food & beverages, and pharmaceuticals sectors are leveraging advanced technologies such as the Internet of Things and field instruments to enhance plant safety and streamline data acquisition for improved efficiency and reliability. With a keen eye on digitalization, companies are adopting solutions like safety automation & SCADA, HMI, and PLC for better asset management and visualization. The integration of Bluetooth connectivity and IIoT further enhances operations, making processes more flexible, speedy, and accurate while ensuring safety and reliability across the board.
Additionally, the market is evolving rapidly, driven by the demand for flexibility, speed, and accuracy across diverse sectors like oil & gas industry, food & beverages industry, and pharmaceuticals. A skilled workforce is essential to navigate this landscape, leveraging digitalization portfolio and harnessing the power of the Industrial Internet of Things (IIoT). SMEs (Small and Medium-sized Businesses) play a crucial role, benefiting from solutions like SCADA (Supervisory Control and Data Acquisition), HMI, and PLCs to enhance operations. Visualization software aids in data interpretation, while control valves and analyzers ensure precise control and monitoring. Integration of MES optimizes production efficiency, empowering the energy & power sector to meet growing demands. In this dynamic environment, the emphasis on process automation and instrumentation is paramount for sustainable growth and competitiveness.
Market Scope |
|
Report Coverage |
Details |
Page number |
187 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.95% |
Market Growth 2024-2028 |
USD 30.26 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.58 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 37% |
Key countries |
US, Canada, China, India, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Delta Electronics Inc., Emerson Electric Co., Endress Hauser Group Services AG, Fuji Electric Co. Ltd., General Electric Co., Hitachi Ltd., Honeywell International Inc., KROHNE Messtechnik GmbH, Metso Outotec Corp., Mitsubishi Electric Corp., OMRON Corp., Pepperl and Fuchs SE, Rockwell Automation Inc., Schlumberger Ltd., Schneider Electric SE, Siemens AG, Teledyne Technologies Inc., Titan Co. Ltd., and Yokogawa Electric Corp. |
Market dynamics |
Parent market growth 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, and Market condition analysis for the 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 End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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