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The global industrial automation market size was valued at USD 157.04 Billion in 2018 is expected to reach USD 296.70 Billion by 2026, exhibiting a CAGR of 8.4% during the forecast period.
Industrial automation is defined as the controlling and processing of heavy industrial machines, equipment, and devices with the help of advanced systems, and software. These systems and software are backed up by advanced technologies such as machine learning, cloud, robotics, and others. Several companies in the manufacturing industry are focused on adopting and implementing industrial automation solutions to increase the overall productivity, educate their employees and reduce high cost while accomplishing precision and flexibility.
Automation in industries helps stakeholders and manufacturers to achieve growth in productivity, enhanced quality and minimizes error. Also, usage of automation solutions such as computer software and advanced sensors in the industrial process helps to ensure the collection of reliable data, facts, and figures which can be used to make informed decisions, resulting in significant cost savings.
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Smart automation will help to power the Industry 4.0 revolution, as advancement in process and discrete industry processes will support to drive manufacturing productivity in the upcoming future. Further, industries have understood the potential efficiency and productivity that can be accomplished through the applications of Industry 4.0, including the Industrial Internet of Things (IIoT) and cloud computing.
The growing adoption of smart grid technology to provide new opportunities for SCADA systems and PLC software is one of the key drivers compelling the market’s growth in the forecast period. For instance, key members of industrial internet consortium (IIC) such as Robert Bosch GmbH, National Instruments Corporation, Cisco System, and Tech Mahindra Limited, deployed smart factory solutions such as IoT and smart grid technology, in their business processes. These smart factory solutions offer applications such as advanced supply chain management, streamlined human resources, and increased profitability.
Various industrial automation systems, such as automated PI, automated warehouse, automated staff, and among others, are an essential component of maintaining and promoting the functioning of innovative manufacturing. These industrial automated systems are deployed to offer a factory-level solution to severe manufacturing concerns. Further, key companies in this market are focused on deploying cloud-based solutions and services in their manufacturing processes to automate the business and increase the profitability in terms of revenue. For instance, in August 2018, ABB Ltd deployed a software-as-a-service cloud-based model in their Ability Electrical Distribution Control Business System. This deployment will help customers to browse, select and leverage the potential and capabilities of a company’s products more precisely. Similarly, in July 2018, Siemens AG partnered with Alibaba to deploy Cloud solutions to develop and provide Industrial Internet of Things (IIoT) in Asian countries.
“Increasing adoption of Industry 4.0 trend and IoT enabled smart devices, will drive the market in near future.”
The increasing adoption of technologies such as industrial 4.0, artificial intelligence (AI) based smart robots, IoT, and others, helps to reduce the manufacturing cost and offer enhanced quality and reliability to the product. These factors are very important for companies to withstand a leading position in the competitive market. Key players are focused on mergers and collaboration to discover new opportunities by adopting IoT technologies. For instance, in May 2018, Rockwell Automation collaborated with Plug and Play, an innovation platform. This collaboration helps Rockwell Automation to find new opportunities to leverage disruptive industrial IoT technologies.
Moreover, advancement in computer-aided systems, industrial internet of things (IIoT), and upcoming engineering 5G technology will boost the market growth in the coming years. Ongoing developments in the field of Industrial IoT also help to drive progress in the automation industry and creating opportunities for disruptive industry models. For instance, in June 2019, Red Lion launched a new Signal Conditioner product lineup. Signal Conditioner is powered by IIoT and can be used in the industries, where the precise data is required to be transmitted over a certain distance without external noises.
Under the scope of the study, the component segment is divided into hardware and software. The industrial automation software segment is expected to grow with a decent CAGR during the forecasted period. This growth is due to the fast adoption of software solutions including human-machine interface (HMI), supervisory control and data acquisition (SCADA), manufacturing operations management (MOM) software and others, among the industry. The rising adoption of automated software helps organizations to monitor and control the overall manufacturing process and offer superior quality products. During 2016-2018, industrial automation market witnessed several software launches, research & development activities from software providers. For instance, in July 2018, Rockwell Automation launched Connected Components Workbench software, an industrial automation software. This automated software provides a familiar design environment and helps to reduce programming time.
Further, based on the hardware segment is bifurcated into Sensors, Programmable Logic Controllers, Human-Machine Interface, Servo, Laser Markers, Safety Light Curtain and Robots. In the hardware segment, sensors are expected to reach a market value of USD 27.71 Billion by the end of 2026 at a CAGR of 9.5% during the forecast period (2019-2026).
Under the hardware segment, sensors hold a substantial share in terms of revenue, in the overall industrial automation market during the forecast period. In industry, sensors help to monitor, control (temperature, flow, pressure, etc.) and collect data. Further, in industries, more than 20 different types of sensors are deployed due to their monitoring capabilities and remote sensing application.
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Robots will have high demand in the market, as a result of increasing demand for AI-based industrial collaborative robots in various applications such as part transfer, pick and place, packaging, semiconductor manufacturing, and others. Also, in the discrete automation industry, robots are used for self-optimization of the production lines and customized product solutions.
Major players in this market are focused on mergers and acquisitions for developing industrial robotics solutions. For instance, in April 2018, Schneider Electric, France based company, collaborated with Stäubli Robotics to integrate robotics solutions into EcoStruxure smart machines by combining products and software into a complete automated solution.
Based on industry, under the scope of the study segmented the market into discrete and process. Discrete industry is expected to hold the maximum market revenue share during the forecasted period. Under the discrete industry, we have included automotive, electronics, heavy manufacturing, packaging, and others. The automotive industry holds a major share in terms of revenue and is forecasted to grow with an exceptional CAGR during the forecast period.
The demand for industrial automation products in discrete automation will be mostly driven from automotive, heavy manufacturing, and electronics, industry to ease the manufacturing process. Referring to multiple secondary sources, Indian automotive sales were valued at around 4 Million in 2017, growing with a CAGR of 9.5%. India is the 7th largest manufacturer of commercial vehicles in 2018.
Under the scope of the study, the regional segment is divided into five major regions including North America, Asia Pacific, Europe, Middle East & Africa, and Latin America. North America is holding a major market share in terms of revenue, of industrial automation within the region. This growth is due to the increasing demand for advanced manufacturing robotic technologies across the industry. The robust production capability and trading potential of major companies is also a key factor responsible for the growth in this region.
Moreover, according to the International Trade Administration, in 2017, the U.S. exported around USD 12.7 Billion worth of automation equipment. Also, the U.S. was the third-largest global exporters after China and Germany in 2016. Globally, U.S. is a competitive top–tier supplier of the automation equipment market.
North America Industrial Automation Market Size, 2018
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Europe is expected to grow with the highest CAGR during the forecasted period. The growth in this region is due to the increasing demand for IoT solutions for the advanced automation process in the automotive and manufacturing industry. Key companies in this region are focusing on mergers and collaboration with other players to develop and launch advanced automated products.
The market growth in APAC is significantly compelled by increasing industrial and manufacturing expansion activities in countries such as China, Japan, and India. Industrial automation market size in India is expected to grow with an exceptional CAGR, because of rising investment done by government and foreign investors. For instance, during 2014-2015, India received a foreign direct investment of around USD 63 Billion for “Make in India” projects. Also, during 2015-2018, major car manufacturers such as Hyundai Motor Company, Suzuki Motor Corporation, and General Motors invested substantially in India to fulfill the growing domestic demand.
“Key players such as ABB and Rockwell Automation will focus on strengthening the market position for providing industrial automation solutions “
ABB Ltd. (ASEA Brown Boveri) is a Switzerland-based multinational company, catering automation products, solutions, systems and services across a wide range of industries. ABB has a strong geographical presence and caters to the custom-made end-user industry demands with the help of over 35,000 employees across the globe. The company is currently focused on developing and launching automated solutions for various industries, including food & beverages, chemicals, and others. For instance, in June 2018, ABB launched process automation solutions enabled with commercial modular. These solutions are ideally developed by biotech and pharmaceutical plants, fine chemical factories and food and beverage manufacturing plants. Moreover, the company is focused on expanding its business segment by signing a various global agreements with other key players. For instance, in July 2018, ABB’s Control Technologies signed an agreement with Actemium, a VINCI Energies brand, to offer end-users to access Distributed Control Systems (DCS) by combining the strengths from both companies.
The report provides an elaborative analysis of the global industrial automation market dynamics and competitive landscape. Various key insights presented in the report are the price trend analysis, recent industry developments in the global market, such as mergers & acquisitions, the regulatory scenario in crucial countries, macro, and microeconomic factors, SWOT analysis, and key industry trends, competitive landscape and company profiles.
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Value (USD Billion)
August 2018: Siemens AG acquired mendix, a low-code application developer company. This acquisition was completed to strengthen its digital enterprise business segment.
July 2018: Siemens AG partnered with Alibaba Cloud to develop Industrial Internet of Things (IIoT) solutions in China.
June 2018: Honeywell Process Solutions (HPS) launched a Connected Plant Solution. This solution helps to monitor the midstream gas metering systems.
May 2018: Emerson acquired Aventics, provider of smart pneumatics technologies powering machine and factory automation applications. This acquisition will help to strengthen the presence of Emerson in Europe.
As per our study, the global industrial automation market held a revenue of US$ 157.04 Bn in 2018 and it is anticipated to grow at a CAGR of 8.4% during the forecast period (2019 -2026). Industrial automation is defined as the automated control systems that includes computers, mechatronics robots, and information technologies software and are backed up by advanced technologies such as machine learning, cloud, robotics, and among others
The discrete industry is expected to be the leading segment in industrial automation market during the forecast period. The demand for industrial automation products in discrete automation will be mostly driven from automotive, heavy manufacturing, and electronics, industry to ease the manufacturing process.
Rising adoption of integrated solutions in IIoT industrial applications, and advancement of industrial technologies namely industrial 4.0, artificial intelligence (AI) and others, will help to drive the growth of the industrial automation market.
ABB Ltd., Emerson Electric Company, GE Company, Honeywell International Incorporation, Mitsubishi Electric Factory Automation, Schneider Electric SE, Siemens AG, Yokogawa Electric Corporation and Omron Corporation are the key players in industrial automation market.
Rising adoption and integration of core technologies such as Industry 4.0, Industrial internet of things (IIoT), and advanced Cloud computing in factories applications are the trends of industrial automation market
The industrial automation market is estimated to reach US$ 296.70 Bn by the end of 2026.