The global industrial automation market was valued at USD 141.28 Billion in 2022 and is projected to reach USD 262.64 Billion by 2030, registering a CAGR of 8.10% for the forecast period 2023-2030.
Market Definition
Industrial Automation is driven by the growing usage of new technologies in various sectors and the initiative taken by the government promoting the development in industrial sector which is rising investments into production facilities and many other. In addition to this growing number of SMEs and the surge in demand of industrial internet of things particularly in the manufacturing sector is further fueling the markets growth. Industrial automation can be termed as control of machinery and operations in various sectors by autonomous systems via robotics and computer software. Industrial automation benefits with increase in productivity, reduction of costs related to labor, and other related expenses while increasing precision and flexibility.
The major factor driving the industrial automation is the growing adoption of the industry 4.0 which is integration of automation with data and connectivity leading to smart factories with solutions such as robotics, artificial intelligence, and machine learning reshaping the way industries operate, leading to more streamlined and cost-effective processes and also plays an important role in optimizing energy usage, reducing waste, and minimizing environmental impact.
Market Size:
- 2022: USD 141.28 billion
- 2030: USD 262.64 billion
- CAGR (2023-2030): 8.10%
Industrial Automation Market Dynamics
Drivers Propelling the Demand for Industrial Automation include: Rising advancement of technologies and adoption of industry 4.0 are boosting the market growth for industrial automation
With the rising industry the need for the advanced technologies for accuracy, consistency, reduction in human error, variability and increasing productivity rised. This advancement also reduced the cycle time, made better resource utilization, and improved overall operational efficiency. The advancement in 5G wireless technology and the expanding usage of augmented reality (AR), virtual reality (VR), digital twin, digitalization, and the industrial IOT are few of the technologies boosting the growth of the industrial automation. The surge in the adoption of the industry 4.0 solutions which are termed as the fourth industrial revolution driving the market with integrating the automation with data and connectivity which lead it to smart factories, industrial internet of things, and advanced data analytics. This integration provides organizations the potential for improved operational efficiency, predictive maintenance, and real time decision making.
Recent Developments
January 2023, Hitachi announced merge of its two businesses Hitachi Automation and Kyoto robotics corporation to strengthen its robotic SI business in Japan and ASEAN countries.
May 2023, Mitsubishi announced to make strategic investment in Clearpath robotics, a Canadian-based company which develops and sells autonomous mobile robots (AMR).
Restraint
High initial cost to hinder the growth of the market : With the growth in the automation industry there rise the need for advancement in the technology for improving the operations and productivity. This demand gave rise to the industrial automation which at the initial stage had some initial investments required that consist of expenditures on hardware, software, training, and infrastructure which even further had challenges with complex integration of automation solutions with existing systems and processes as these integration process often had compatibility issues, retrofitting existing machinery, and ensure seamless communication with different components of the automation system. These complex integrations can lead to delays in projects and eventually increase the project’s cost this initial cost barrier is restraining the markets growth.
Challenges
Lack of skilled labor and employees reluctant to adopt new technology putforth challenges for the automation industry : The automation industry faced several challenges with the surge in demand for the automation products and services in the various industries such as manufacturing and assembly: assembly line automation, material handling systems, conveyor systems, food and beverages automation: food processing equipment, packaging machinery, quality control systems, pharmaceutical and healthcare automation: pharmaceutical production lines, laboratory automation, medical device manufacturing, etc. these systems requires high initial investment in the high costs automation machinery even with the implementation and manufacturers had to bare the expenditure for the training and developing skilled labor with the advance new technology which many labors were resistant to these new tech and the cybersecurity risks, regulatory compliance, complexity of industrial automation system are few of the other challenges faced.
Opportunities
Globalization of manufacturing and rising demand for customized products creating opportunity for the industrial automation : Research and development in the field of industrial automation creates opportunities for developing technologies with high efficiency. Advancement in technology has created immense opportunities to a wide array of industries. Rising adoption of industry 4.0 and the digital transformation gave companies the potential with improved operational efficiency, predictive maintenance, and real-time decision making. With the advancement the consumer preference is also getting towards customized products according to particular need which is offering the manufacturers to think out of the box and develop innovative products which leads the globalization of manufacturing that is increasing the competition among themselves. The growing importance of sustainability is further fueling the industrial automation market.
Snapshot:
| Attributes | Details |
| Market Size in 2022 | USD 141.28 Billion |
| Market Forecast in 2030 | USD 262.64 Billion |
| Compound Annual Growth Rate (CAGR) | 8.10 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Component, By Control Systems, By Industry, By Mode & By region |
| By Component |
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| By Control System |
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| By Region |
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| Base Year | 2022 |
| Historical Year | 2018 - 2022 |
| Forecast Year | 2023 - 2030 |
Segment Analysis of the Industrial Automation Market
The industrial automation market is segmented by Component, Control System, Industry, Mode, and region.
By Component
The hardware segment held the largest market share in 2022:
The market for the industrial automation based on components is further classified into hardware, software, and services. Hardware dominated the industrial automation market in 2022. Hardware is an important part for any processes which consists of physical devices used for automating manufacturing and industrial processes with a wide range of devices such as PLC, industrial robots, sensors, actuators, drives, etc. software also has a significant impact on the industrial automation market which is used for wide variety for controlling industrial automation hardware which includes SCADA, MES, ERP, ICS and many more. Services requires planning, deigning, implementation and maintenance for the industrial automation systems which includes system integration, consulting services and maintenance services. The growing demand for the robotics and the sensor based systems for efficiency, accuracy, and high productivity is driving the markets growth.
By Control System
The industrial automation market based on control system is segmented into DCS, PLC, SCADA and others. Off which the SCADA segment dominated the market. SCADA is used for the various application in industries such as power generation, oil & gas, water treatment and others. It is a system that offers collection and analysis of data and provides various benefits over other control systems such as real-time monitoring, historical data collection, remote operations and others. PLC is a microprocessor based controller used for automating industrial processes and is typically used for smaller and less complex industrial applications. DCS is computer based control system used for monitoring and controlling industrial processes typically used for large and complex industrial applications such as oil & gas, power generation, chemical and others.
By Industry
The discrete automation segment to hold major share in 2022 : Based on the industry type the industrial automation market is sub-categorized into discrete automation and process automation. Discrete automation is further sub-divided into automotive, electronics, heavy manufacturing, packaging, and others. With the rising technology and advancements in the equipment’s & devices and the growing demand for customized products automotive sector’s to rise the demand for the industrial automation market. And process automation further subdivided into oil & gas, chemicals, pulp & paper, mining & metals, healthcare and others. The discrete automation segment to hold the major share in the market during the forecasted period.
Regional Analysis
North America occupied the largest market share in 2022 : Asia-Pacific to lead the industrial automation market in 2022. For instance, according to International Federation of Robotics (IFR) world reported 553,052 industrial robot installations in factories around the world. By region, 73% were installed in Asia, 15% in Europe, and 10% in America. China is the largest market in 2022 with annual installations of 290,258 units to fulfill the dynamic market domestic and international robot suppliers established production plants in china and is continuously increasing its production capacity. Robots installations in Japan were upto 9% i.e. 50,413 units. The European union remains the second largest market in 2022 with Germany, France, and UK contributing with 25,636:11,475: 2,534 units respectively. With above the markets in Asia such as Japan the largest producer of the robots and factory automation systems with the presence of key players such as Omron Corp, Yaskawa Electric, Mitsubishi Electric, and many other. On the other hand, china is major producer is sensors, batteries, microchips and other components used for the IOT systems. These factors contributed to the region’s growth.
List of the prominent players in the Industrial Automation Market:
- ABB Ltd.
- Emerson Electric Co.
- General Electric Company
- Honeywell International Inc.
- Mitsubishi Electric Corporation
- Omron Corporation
- Rockwell Automation Inc.
- Schneider Electric SE
- Siemens AG
- Yokogawa Electric Corporation
- FANUC
- Yaskawa Electric
- Hitachi, Ltd
- Dwyer Instruments Ltd
- Stratasys
By Component
- Hardware
- Software
- Service
- DCS
- PLC
- SCADA
- Others
- Discrete Automation
- Automotive
- Electronics
- Heavy Manufacturing
- Packaging
- Others
- Process Automation
- Oil & Gas
- Chemicals
- Pulp & Paper
- Mining & Metals
- Healthcare
- Others
- Semi-Automatic
- Fully-Automatic
Impact of the COVID-19 Pandemic on the Industrial Automation Market:
COVID-19 significantly impacted the industrial automation market. The pandemic led to closure of factories and plants and even travel restrictions imposed by the governments created shortages of raw materials, labors, and supply chain disruption impacted the overall production volumes which decreased the demand for the industrial automation products & services in addition to it postponed of canceled the projected implementations of various automation projects. The automation technology has an importance of safeguarding people during the pandemic as some industries observed a positive while some experienced a negative impact. It also accelerated the digital transformation of industries with increase in adoption of concepts based on industry 4.0 such as the industrial internet of things gained popularity as companies recognized the benefits gained such as remote monitoring, operational flexibility, and data based decisions.
Further, the increasing usage of online platforms during the lockdowns gave e-commerce the growing need for automation in logistics and warehouses. With the implementation benefits such as automated sorting, packing, and delivery solutions became a positive for the industry as the online shopping rosed.
