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Industrial Automation Market Size, Share & COVID-19 Impact Analysis, By Component (Hardware (Sensors; PLC; HMI; Servo; Motor; Drive; Laser Markers; Safety Light Curtain; Robots), and Software), By Industry (Discrete Industry (Automotive; Electronics; Heavy Manufacturing; Packaging), and Process Industry (Oil & Gas; Chemicals; Pulp & Paper; Mining and Metals; Health Care), and Regional Forecast, 2021-2028

Region : Global | Format: PDF | Report ID: FBI101589

 

KEY MARKET INSIGHTS

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The global industrial automation market size was USD 179.74 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with industrial automation witnessing a steady growth across all regions amid the pandemic. Based on our analysis, the global market exhibited a significant growth of 6.5% in 2020 as compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 191.74 billion in 2021 to USD 355.44 billion in 2028 at a CAGR of 9.2% in the 2021-2028 period. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.


In the market’s report, we have studied the solutions offered by market players such as Emerson Electric Co. offerings automation solutions including Programmable Automation Controllers, Industrial I/O, Motion Control, Automation/Control Software, Panel & Industrial PCs, Industrial Web Panels, and Industrial Monitors. Similarly, ABB offers automation products including Control Systems, Turbocharging, and Programmable Logic Controllers.


The advent of 5G wireless technology and the increasing adoption of industry 4.0 are driving the demand for automation solutions across industries. Expansion of Augmented Reality (AR), Digital Twin, and Industrial IoT is expected to be a significant trend in the global market. Due to the covid-19 pandemic, the manufacturing sector has been affected the most. The purchasing manager index (PMI) indicates a decline in the manufacturing industry due to the covid-19 pandemic. For instance, in March 2021, the IHS Markit PMI reduced to 55.4 from 57.5 in February 2021. However, data from April indicates improvements in PMI to 55.5; this shows that the demand for industrial automation is likely to grow exponentially in the coming years.


Market Players Taking Active Initiative to Mitigate the Impact of Pandemic COVID-19 on Businesses


The shutdown of factories, plants, and travel restrictions imposed by the government significantly impacted manufacturing facilities. Shortages of raw material, labor, and supply chain disruptions had a negative impact on production volumes. Automation technology plays a crucial role in helping safeguard processes and people during a global COVID-19 pandemic. The major industrial organization that delivers automation technology solutions is investing to counter the downturn in material and fulfill consumer requirements during the lockdown. For instance, Emerson has developed virtual capabilities that include Virtual Factory Acceptance Tests (vFATs), MyEmerson digital tools, and cloud engineering in the automation industry to minimize team travel. These virtual solutions enable remote collaboration and virtual meetings for the organization’s contacts.


Market players are taking the active initiative to mitigate the impact of pandemic COVID-19 on businesses. For instance, in May 2020, Honeywell accelerated the development and production of vaccines and medical therapies through Fast Track Automation. Similarly, in April 2020, ABB offered free access to Software-as-a-service (SaaS) and digital applications amid pandemics to help manufacturing plants and processing industries.


LATEST TRENDS


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Increasing Implementation of Digital Twins and AR Technology in Manufacturing to Favor the Market Growth


Digital twin helps organizations to understand the feasibility, reduce risk during implementation and estimate potential improvements. With the advent of the industrial internet of things such as cloud systems and smart sensors, digital twin implementation and maintenance have become more manageable. Organizations are incorporating digital twin technology into their business operations to reduce the risk of equipment failure and automatically scheduling the repairs by creating a simulation of the process. For instance, in July 2019, DHL International GmbH, a German logistics company, integrated a supply chain solution using a digital twin for Tetra Pak’s warehouse. It would help to deliver scalable, cost-effective, and agile supply chain operations. Internet of Things (IoT) technology is incorporated in transport vehicles to create a digital twin. It keeps shipment of essentials such as foods and drinks safe from farm to consumer. Such rising adoption of digital twin technology is attributed to the increasing demand for automation solutions in the coming years.


Disruptive technologies such as Augmented Reality (AR) and Virtual Reality (VR) helps in automating business and operational performance. Organizations are leveraging augmented reality to up skill their employees to handle digital operations. Market players are incorporating AR technology with their manufacturing tools. For instance, Siemens offers an augmented reality solution, AssistAR that automates the process of assembly, maintenance, and inspection and extracting 3D models from digital manufacturing software and Siemens PLM. Such solutions are likely to foster the demand for automation solutions in the coming years.


Rising Adoption of Industrial IoT to Boost Market Value


The internet of things plays a crucial role in industrial automation as IoT helps create and streamline effective, affordable, and responsive systems architectures. Industrial IoT (IIoT) solutions help connect industrial assets, create transparency quickly and easily, and increase productivity. IIoT and edge computing solutions help to simplify device management and shop floor software across the entire lifecycle. Hence, organizations are deploying IIoT solutions to automate the manufacturing process and provide a better customer experience. Such rapid adoption of IIoT solutions across industries is expected to foster market growth.


Industrial IoT solutions leverage artificial intelligence (AI), advanced analytics, edge computing, and cloud computing to analyze machine data and get meaningful insights to optimize asset productivity and availability. For instance, Siemens offers industrial IoT solutions: IndustrialEdge, MindSphere, and Mendix, which provide insights from industrial data using advanced technologies such as AI, edge computing, cloud, and advanced analytics. Schmalz, vacuum automation and ergonomic handling solution provider, leverages Siemens Industrial IoT's capabilities to enhance customer maintenance and extended analytics services. Hence, such a growing expansion of Industrial IoT across industries is likely to drive the industrial automation market growth in the upcoming years.


DRIVING FACTORS


Fourth Industrial Revolution to Embrace Partnerships and Collaborations in Global Market


Industry 4.0 has transformed the digital supply chain across the industries. Customers changing requirements such as personalized and instantaneous services are forcing organizations to embrace industry 4.0. With rapid technology evolution, market players’ partner with techno-savvy companies to develop new solutions built upon proven technologies. For instance, in February 2020, Honeywell International Inc. and Tech Mahindra Limited partnered to develop digitized “Factories of the Future” by leveraging digital technologies. The collaboration aims to accelerate the digital transformation journey by empowering manufacturers. Similarly, Siemens collaborated with SAP SE to offer industry 4.0-enabled business processes to enterprises. These processes will allow to build a digital thread for the complete product lifecycle.


With such partnerships and collaborations, companies are focusing on capitalizing on 5G, industry 4.0, and digital transformation & software capabilities to enable the manufacturers to scale up their growth and realize the potential of industry 4.0 technologies and solutions. Such partnerships and collaborations are anticipated to boost the demand for industrial automation solutions in the coming years


RESTRAINING FACTORS


High Initial Capital Investments to Impede Market Growth


The industrial automation processes are cost-effective but, the initial capital cost required for the implementation of technology and training employees is high. Further, the return on investment (ROI) cannot be predicted owing to the fragmented nature of the industry. High upfront costs and unpredictable return on investment make small and medium-sized enterprises (SMEs) hesitant to adopt the benefit of technology. However, smart manufacturing and government policies such as the Government of India MSME business loan scheme, make in India movement are likely to overcome this restraint and create market opportunities for industrial automation solutions in the near future.  


SEGMENTATION


By Component Analysis


Increasing Demand to Streamline the Business Process Driving Adoption of Industrial Automation Software


Based on the Component, the market is classified into hardware and software. Among these, the software is likely to hold a major market share during the forecast period. Automation software includes human-machine interface (HMI), manufacturing operations management (MOM) software, supervisory control, and data acquisition (SCADA), among others. The software enables businesses to streamline the manufacturing process. The hardware segment is projected to showcase a growing demand during the forecast period.


By Hardware Analysis


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Developments in Technology to Traction Innovations in Industrial Robots


The hardware segment comprises sensors, the programmable logic controller (PLC), human-machine interface (HMI), servo, laser markers, safety light curtain, and robots. Servo is anticipated to hold a major market share, followed by sensors within the hardware. The robots are projected to show a remarkable growth rate. With the advancements in technology and the emergence of industry4.0, market players are introducing advanced robots for automation purposes. For instance, in January 2021, Omron Corporation launched the i4 series SCARA robot, which automates high-precision, high-speed assembly, and transportation processes. Similarly, in May 2020, Mitsubishi Electric Corporation launched Melfa Assista, a series of robots that collaboratively works with humans.


By Sensors Analysis


Inductive Sensors to Account for Major Market Share


Sensors are further classified into photoelectric, laser, inductive, and others. Inductive sensors are projected to hold a major market share due to their capabilities, such as a large degree of mounting flexibility, weld field immunity, and robust metallic detection. The photoelectric sensor is estimated to exhibit notable growth, owing to its capabilities such as detecting a change in surface condition and detecting objects through several optical properties. Market players are introducing advanced sensors to collect data from automated systems and provide analysis and decision-making. For instance, in February 2019, Rockwell Automation launched a new photoelectric sensor, “Allen-Bradley 42AF RightSight M30,” designed for long-distance detection and improve environmental resistance.


By Servo Analysis


Intricate Position Control to Surge Need for Servo Motors and Drives


The servo is classified into motor and drive. Servo motors and drives are the essential components of the machinery that requires intricate position control, such as camera focus, conveyor belt, and robotics automation. Servo drives are expected to hold the highest market share. Schneider Electric offers a comprehensive range of servo drives, including Lexium XX series servo drives and Unilink servo drives. Servo motors are likely to grow with the highest CAGR during the forecast period. Market players are introducing new servo motors for automation systems. For instance, in May 2021, IQ Motion Control, an electric motors and controller manufacturer, launched a new range of servo motors for robotics and industrial applications.


By Motor Analysis


DC Motors to be Preferred Solution for Industrial Applications    


Based on the motor type, the servo motor is further categorized into AC motor and DC motor. DC motors are expected to hold a major market share during the forecast period. DC motors are used explicitly in applications designed to move heavy loads in industrial automation applications. These include material handling equipment or conveyor belts as they offer a high starting torque. Market players are focusing on introducing advanced capabilities DC motors to provide improved torque. For instance, Portescap, expanded the DC motors platform by introducing 22ECP-2A motors with a new amalgamated driver. Such factors contribute to the growth of DC motors across industrial applications. AC motors are expected to grow with the highest CAGR during the forecast period. It is expected to witness a significant adoption attributed to low maintenance and reduced costs.


By Industry Analysis


Discrete Automation to Drive Demand for Automation Solutions


By Industry, the market is classified into discrete automation and process automation. The discrete automation industry is expected to hold a major market share during the forecast period. The discrete automation industry is further segmented into automotive, electronics, heavy manufacturing, packaging, etc. Automotive and heavy manufacturing industries are likely to drive the demand for automation solutions.


The process automation industry is sub-categorized into oil & gas, chemicals, pulp & paper, mining and metals, healthcare, and others. The mining and metals industry is projected to hold a major market share, followed by healthcare, oil & gas, and chemicals.


REGIONAL INSIGHTS


Europe Industrial Automation Market Size, 2020 (USD billion)

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Europe to Dominate Global Market Attributed to Highest Robot Density Globally


Geographically the market is analyzed across five major regions, including North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America. These regions are further categorized into countries.


Europe is likely to hold a major industrial automation market share during the forecast period. In January 2021, the International Federation of Robotics (IFR) stated that, by region, Western Europe (225 units per 10,000 employees) and Nordic European Countries (204 units per 10,000 employees) had maximum robot density worldwide. Germany ranks fourth among the top automated countries in the world with 346 units per 10,000 employees. These are some of the key factors that contribute to the major share of the region.


Asia Pacific is anticipated to showcase a significant growth rate during the forecast period 2021-2028. Countries in the region such as Japan are the largest producers of robots and factory automation systems. The presence of robotics and factory automation products manufacturing companies such as Omron Corp., Yaskawa Electric, Yokogawa Electric, Mitsubishi Electric, and Nidec Corp. across Japan contribute to the growth of industrial automation in the region.


China is a major producer of sensors, batteries, microchips, and other components used in the internet of things system. In addition, in India, government initiatives such as Make in India and MSME support small and medium-sized businesses to adopt advanced manufacturing solutions. Such active initiatives by the government are expected to drive the growth of this market in this region.


However, due to covid-19 pandemic has caused an economic downturn resulting in reduced international business investments. Trade wars between potential economies such as China, the U.S., and India, among others, are expected to impede market growth.


According to the 2019 Singapore Government Trade Figures, the U.S. holds nearly 20% of Singapore's market share for automation equipment. Precision sensors/instrumentation, micro-electromechanical systems (MEMS), 3D printing, smart manufacturing, and Internet of Things (IoT) form industrial automation technology and are key factors of Singapore's long-term economic progress. These factors are projected to fuel the market growth.


North America will witness significant growth in the coming years due to manufacturers' advanced production capabilities and efficient trading practices.


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The Middle East and Africa are projected to have notable growth in the coming years. Latin America is estimated to represent a steady market growth.


KEY INDUSTRY PLAYERS


Market Players are Developing Innovative Applications for Robotics and Automation Solutions Driven by Significant Investments


The market players are involved in merger & acquisitions, partnerships and collaborations to expand the market presence. The key players operating in the market include ABB Ltd, Rockwell Automation, and Honeywell International, which are developing innovative applications for robotics and automation solutions to achieve new growth potential. For instance, ABB Ltd. invests approximately 5% in research and development to expand its product portfolio with a focus on machine-centric robotics, digital factory automation, collaborative robotics, and artificial intelligence.


Similarly, in June 2018, PTC partnered with Rockwell Automation. In this partnership, Rockwell automation has invested USD 1 billion in PTC. With this partnership, the companies aligned Vuforia augmented reality (AR), PTC’s Thingworx Internet of Things (IoT), and Kepware industrial connectivity with Rockwell’s FactoryTalk MES, FactoryTalk Analytics, and other automation platforms.


LIST OF KEY COMPANIES PROFILED:



  • ABB Ltd. (Zürich, Switzerland)

  • Emerson Electric Co. (Missouri, U.S.)

  • General Electric Company (Massachusetts, U.S.)

  • Honeywell International Inc. (North Carolina, U.S.)

  • Mitsubishi Electric Corporation (Tokyo, Japan)

  • Omron Corporation (Kyoto, Japan)

  • Rockwell Automation Inc. (Wisconsin, U.S.)

  • Schneider Electric SE (Rueil-Malmaison, France)

  • Siemens AG (Munich, Germany)

  • Yokogawa Electric Corporation (Tokyo, Japan)


KEY INDUSTRY DEVELOPMENTS:



  • July 2021-Rockwell Automation Inc. collaborated with a cloud-based product digitalization and traceability platform, Kezzler AS. The partnership aims to enable manufactures to capture their product's end-to-end journey from raw material sources to the point of sale or beyond by using cloud-based chain solutions.

  • July 2021-Siemens AG expanded partnership with SAP SE to deliver a new solution for the services and asset lifecycle management. The partnership aims to connect plant floor operations, product development through digital twins, and remote condition monitoring with original equipment manufacturers (OEMs) to facilitate collaboration across the asset lifecycle.

  • June 2021- Rockwell Automation Inc. acquired Plex Systems, a Smart manufacturing solution provider, for USD 2.22 billion. The acquisition aims to expand industrial cloud offerings with Plex Systems’ cloud-native smart manufacturing platform.


REPORT COVERAGE


An Infographic Representation of Industrial Automation Market

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The industrial automation market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.


Report Scope & Segmentation














































  ATTRIBUTE



  DETAILS



Study Period



  2017-2028



Base Year



  2020



Forecast Period



  2021-2028



Historical Period



 2017-2019



Unit



Value (USD billion)



Segmentation



Component; Industry; and Geography



By Component




  • Hardware

    • Photoelectric

    • Laser

    • Inductive

    • Others



    • Motor


      • AC

      • DC


    • Drive




    • Sensors

    • PLC

    • HMI

    • Servo

    • Laser Markers

    • Safety Light Curtain

    • Robots


  • Software



By Industry




  • Discrete Automation

    • Automotive

    • Electronics

    • Heavy Manufacturing

    • Packaging

    • Others



  • Process Automation

    • Oil & Gas

    • Chemicals

    • Pulp & Paper

    • Mining and Metals

    • Health Care

    • Others





By Geography




  • North America (By Component, By Industry, By Country)

    • U.S. (By Hardware)

    • Canada (By Hardware)





  • Europe (By Component, By Industry, By Country)

    • U.K. (By Hardware)

    • Ireland (By Hardware)

    • Germany (By Hardware)

    • France (By Hardware)

    • Italy (By Hardware)

    • Spain (By Hardware)

    • Rest of Europe (By Hardware)





  • Asia Pacific (By Component, By Industry, By Country)





    • China (By Hardware)

    • Japan (By Hardware)

    • India (By Hardware)

    • Rest of Asia Pacific (By Hardware)



  • Middle East & Africa (By Component, By Industry, By Country)

    • GCC (By Hardware)

    • South Africa (By Hardware)

    • Rest of the Middle East & Africa (By Hardware)





  • Latin America (By Component, By Industry, By Country)

    • Brazil (By Hardware)

    • Mexico (By Hardware)

    • Rest of Latin America (By Hardware)





Frequently Asked Questions

Fortune Business Insights says that the global market size was USD 179.74 billion in 2020 and is projected to reach USD 355.44 billion by 2028.

In 2020, the European market value stood at USD 57.85 billion.

Growing at a CAGR of 9.2%, the market will exhibit steady growth in the forecast period (2021-2028).

The Software is expected to be the leading segment in this market during the forecast period.

Increasing deployments of fifth-generation wireless technology, industrial IoT, industry 4.0, smart factories, and robotics are major factors driving the growth of the market.

ABB Ltd., Rockwell Automation Inc., Emerson Electric Co., Schneider Electric SE, Honeywell International Inc., and Mitsubishi Electric Corporation are some of the major players in the global market.

Europe dominated the market share in 2020.

The Asia Pacific is expected to exhibit the highest growth rate during the forecast period.

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