The factory automation market is expected to grow from US$ 154.99 billion in 2022; it is estimated to grow at a CAGR of 8.2% from 2022 to 2028.
Leading factors boosting the growth of the factory automation market are the rise in the adoption of IoT, constant improvement in industrial robotics, and the emergence of the 5G technology. Further, the demand for safety compliance automation products is expected to provide significant growth opportunities to the factory automation market in the near future. However, the need for substantial capital investment to establish an error-free automation system is anticipated to pose a big challenge to the market's growth during the forecast period.
Europe has been a pioneer in adopting advanced technologies in the nascent stages. The growing demand for automation solutions and robotics in automotive and manufacturing industries is fueling the market's growth in the region. Western European countries such as Germany, Italy, France, and the UK are highly advanced and economically self-sufficient, equipped with advanced technology infrastructure. The automotive industry is among the key pillars of the region’s economy, heavily supporting the economic growth of Europe.
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Factory Automation Market: Strategic Insights
Market Size Value in US$ 154.99 Billion in 2022 Market Size Value by US$ 249.29 Billion by 2028 Growth rate CAGR of 8.2% from 2022 to 2028 Forecast Period 2022-2028 Base Year 2022
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Factory Automation Market: Strategic Insights
| Market Size Value in | US$ 154.99 Billion in 2022 |
| Market Size Value by | US$ 249.29 Billion by 2028 |
| Growth rate | CAGR of 8.2% from 2022 to 2028 |
| Forecast Period | 2022-2028 |
| Base Year | 2022 |
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Impact of COVID-19 Pandemic on Europe Factory Automation Market Growth
The COVID-19 pandemic substantially hampered industries in Europe. The pandemic triggered unprecedented policy responses across European countries that hit the region’s economic growth during the Q2 and Q3 of 2020. This resulted in disruptions in multiple supply chains across various European industries due to lockdowns imposed by the European Union (EU) members to curb the spread of the virus, further leading to a loss of revenue for many large and small enterprises operating in Europe. These disruptions in the supply chain halted the manufacturing processes of automation solutions. For instance, the pandemic severally impacted the business of Siemens, for example, customers cancelled orders or postponed investments, which exposed the company to increased default risk, and their supply chain experienced difficulties in certain areas. However, due to the labour shortage various nonautomotive industry like electronics and metals & machinery showed positive approach in the adoption of automation solutions like robots and sensors.
Lucrative Regions for Factory Automation Market
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Market Insights – Factory Automation Market
Rising Adoption of Factory Automation Across Automotive Industry
The growing demand for automobiles is leading to the need for an automation system as it helps manufacturers increase outputs while decreasing the cost and risk on human workers. In the current scenario, collaborative robots, robotic arms, and the Internet of Things coupled with AI are widely adopted in the automotive industry, making the manufacturing process faster and more accurate. According to the report by the International Federation of Robotics, in 2019, the robot density in the US automotive industry was 1,287 installed units per 10,000 employees, making the country ranked seventh worldwide.
Further, KUKA and Universal Robots produce and supply cobots to automotive companies such as Tesla to build cars. Tesla has developed driverless car hardware called “Autopilot,” which uses AI technology. Companies such as IBM and BMW are combining cognitive computing and IoT to invent autonomous cars, which can communicate while linking driving patterns with the human driver's emotional response in all possible scenarios. In addition, automakers such as Ford Motor Co. and BMW AG are working on deploying 3D printer technology. Moreover, various other automakers are also utilizing virtual and augmented reality to address manufacturing issues. Thus, the aforementioned advanced automation technologies ease the automotive manufacturing process at nearly every stage of vehicle production, in turn, catalyzing the factory automation market growth.
Technology-Based Insights – Factory Automation Market
Based on technology, the market is segmented into programmable logic controller (PLC), distributed control system (DCS), supervisory control and data acquisition system (SCADA), human machine interface (HMI), and others. The SCADA segment accounted for the largest factory automation market share in 2021.
SCADA combines software and hardware elements that allow organizations to control and monitor factory processes locally or remotely. It also gathers real-time process data through sensors, valves, pumps, motors, etc., through HMI software and records events into a log file. The rise in the adoption of Industry 4.0 solutions, the high demand for industrial mobility solutions for efficient management of the process industry, and the use of software platforms such as IoT and artificial intelligence in the industrial sector drive the demand for SCADA in factory automation applications.
The market is segmented based on component, type, technology, industry vertical, and geography. Based on component, the factory automation market is segmented into hardware and software. The hardware segment is further divided into sensors, controllers, robots, drives, and others. Based on type, the factory automation market is categorized into programmable automation, fixed automation, and flexible automation. Based on technology, the market is divided into programmable logic controller (PLC), distributed control system (DCS), supervisory control and data acquisition system (SCADA), human machine interface (HMI), and others. In terms of industry vertical, the market is segmented into automotive, food and beverage, oil and gas, manufacturing, mining, and others. Based on geography, the factory automation market is primarily segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. In 2021, APAC held the largest factory automation market share and is expected to retain its dominance during the forecast period.
ABB Ltd.; Emerson Electric Co.; FANUC; General Electric Company; Honeywell International Inc.; Mitsubishi Electric Corporation; Omron Corporation; Robert Bosch GmbH; Rockwell Automation, Inc., and Siemens AG are among the key factory automation market players.
The factory automation market players focus on developing advanced and efficient systems. For instance:
- In 2022, Fanuc Corporation announced the launch new FANUC SCARA robots for food and cleanroom applications. The FANUC SR-3iA/C and SR-6iA/C are fast and precise SCARA robots making it ideal for use in food plants and cleanrooms. The robots also consist of white epoxy coating for extra durability and an IP54 protection guarding against the ingress of contamination from dust and water spray.
- In 2022, Siemens announced that they had showcased their product and software technology portfolio for industrial manufacturing applications at AUTOMATE 2022. The company displayed its array of CNC, servomotors, variable speed drives, motion controllers, robotic integration solutions, PLC automation, and network connectivity, including RFID, advanced Edge technology, and its Real-Time Locating Systems (RTLS).
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Component, Type, Technology, and Industry Vertical
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
The global factory automation market was valued at US$ 1,54,992.0 Mn in 2022
The key driving factors impacting factory automation market growth includes:
• Rising Adoption of Factory Automation Across Automotive Industry
• Increasing Number of Product Launches for Promoting Industrial Automation
The key players of factory automation market are encompassed with ABB LTD.; Emerson Electric Co.; Fanuc Corporation; General Electric Company; Honeywell International Inc.; Mitsubishi Electric Corporation; Omron Corporation; Robert Bosch GmbH; Rockwell Automation, Inc., and Siemens AG.
APAC is the fastest-growing regional market in the global factory automation market between 2022-2028.
Mexico, the UK, India, the UAE, and Brazil are the countries registering high growth rate during the forecast period.
The hardware segment led the global factory automation market in 2021. The hardware segment consists of sensors, controllers, robots, drives, and others.
The List of Companies - Factory Automation Market
- ABB Ltd.
- Emerson Electric Co.
- Fanuc Corporation
- General Electric Company
- Mitsubishi Electric Corporation
- Honeywell International Inc.
- OMRON Corporation
- Rockwell Automation, Inc.
- Siemens AG
- Bosch Rexroth AG
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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