The global industrial and factory automation market are experiencing remarkable growth due to the burgeoning demand for manufacturing in emerging economies. The solutions deal with the manufacturing of eminent products such as thermostat, hydraulic, pneumatic, solenoid valves, and actuators in various end-use industries including energy chemicals, food & beverage and pharmaceuticals. Rising demand for external control elements coupled with information technologies for flexibility and quality outputs in process equipment operations is fueling the market growth. According to a recent business intelligence report from IndustryARC, the global industrial and factory automation market was valued around $180 billion in 2018, and its value is poised to grow at a CAGR of 5% to 10% during the forecast period 2019-2025.
The adoption of IoT and the advancement in M2M communication technology in the industrial sector is stroking the industrial and factory automation market. Additionally, the need for optimal use of resources, waste reduction, and an increase in process efficiency are some of the prime concerns in manufacturing industries that are influencing the market. The various types of systems that are used in industrial and factory automation include sensors, software services, and control systems.
Geographically, Europe is the key region, which accounted to a maximum demand share of 30% to 35% in 2018. The report titled “Industrial and Factory Automation Market: By System Types (Control Systems, Software, Machine Vision, Others); By Hardware (Human Machine Interface, Connectivity, Others); By Verticals (Energy, Automotive, Chemicals, Others) & By Geography – Forecast (2018-2023).”
Industrial and Factory Automation Market: Demand Analysis
The oil & gas remained to be dominant in industrial and factory automation market segment in 2018, and is estimated to grow at a profitable CAGR of 2.0% to 2.5% over a forecast period 2019 to 2025 Now, according to the International Energy Agency (IEA), the world economy is becoming more energy efficient and will lead to a significant increase in the oil demand with an average annual rate of 1.2mb/d. So, by 2023, the oil demand will reach 104.7mb/d which will lead to a rapid industrial and factory automation market growth. The impetus can be met by the increased adoption of industrial automotive equipment owing to its huge benefits including reduced labor-cost. Additionally, it saves energy, improves efficiency and increases productivity across the industries. This further propels the growth of the automation technology market.
The demand for industrial and factory automation has an additional boost due to the growing adoption of industrial robots in electrical & electronics industry. The robots are used to tackle the assembly of miniature products such as circuit breakers to the digital camera. Therefore, the range of automation in this field is very wide. Automation in this industry increases the feasibility to perform in numerous tasks such as inspection, dispensing, and packaging. Further, the electronics industry is estimated to be the growth engine for automation with the increasing use of industrial robots in electronic production.
The industrial and factory automation industry is a highly fragmented market with the existence of numerous players serving either whole or a specific set of market segments. ABB LTd., Emerson Electric Co., Siemens AG, Omron Corp, Mitsubishi Corp, Honeywell International Inc, General Electric Co, Rockwell Automation, Yokogawa Electric Corp, Schneider Electric SE, Fanuc Corp. are some of the prominent players in the market.
Industrial and factory automation market is prognosticated to witness stocking growth in the forecast period 2018 to 2015. Industrial automation has been adopted in various industries owing to its huge benefits. Manufacturing, energy chemicals, oil & gas, food & beverage, and pharmaceuticals are some of the major end-user industries in the market. Europe is the dominant region in industrial and factory automation market. Additionally, with the advent of technologically advanced industrial factory automation is expected to make the products, even more, cost-effective and hence more added in the near future.
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