Industrial Automation Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Component (Hardware and Software), System Type (Supervisory Control and Data Acquisition, Distributed Control System, Programmable Logic Control, and Others), and End Users (Oil & Gas, Automotive, Food & Beverage, Chemical & Materials, Aerospace & Defense, and Others)
Publication Month: Mar 2022 |
Report Code: TIPRE00025985
| No. of Pages: 186
| Category: Electronics and Semiconductor
| Status: Published
The industrial automation market was valued at US$ 140.39 billion in 2021 to reach US$ 233.94 billion by 2028; it is estimated to grow at a CAGR of 7.6% from 2021 to 2028.
The increasing penetration of advanced technologies, such as machine learning (ML), the internet of things (IoT), and artificial intelligence (AI), has helped accelerate the growth of the industrial automation market. Vision-guided robots are experiencing a rise in demand across the sector due to their efficiency in completing repetitive tasks, such as bottle handling, bin picking, and tray loading. Numerous benefits, including enhanced traceability, improved efficiency, and high flexibility, have been driving the need for automation in the food & beverages industry over the years. These factors have encouraged food & beverages producers to invest heavily in automated technology integration across their production facilities. For instance, a US-based snack brand, Utz Brands Inc., announced its plans to integrate automated capabilities across its production plants to reduce its operational cost in 2021.
Similarly, Hormel Foods is also planning to incorporate automation across its production facilities in 2022. Other food & beverage brands rapidly adopting automated technology include Tyson Foods and ITC. Thus, the rise in investment in automation across the food & beverages industry is fueling the growth of the industrial automation market. Furthermore, the rising product development and strategic initiatives from key market players for industrial automation applications lead to market growth. For instance, in January 2022, the Khronos Group launched a new initiative with the European Machine Vision Alliance (EMVA) to produce an open, royalty-free API standard to regulate camera system runtimes in embedded, mobile, industrial, XR, automotive, and scientific industries. Thus, the rise in investments by global companies is boosting the uptake of machine vision systems and driving the industrial automation market.
Strategic Insights
Report Coverage - Industrial Automation Market
Report Coverage
Details
Market Size Value in
US$ 140.39 Billion in 2021
Market Size Value by
US$ 233.94 Billion by 2028
Growth rate
CAGR of 7.6% from 2021 to 2028
Forecast Period
2021-2028
Base Year
2021
No. of Pages
186
No. of Tables
98
No. of Charts & Figures
86
Historical data available
Yes
Segments covered
Component, System Type, and End Users
Regional scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country scope
US, Canada, Mexico, UK, Germany, Russia, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina
Report coverage
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
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Impact of COVID-19 Pandemic on Industrial Automation Market
During the COVID-19 pandemic, the industrial automation market players experienced supply chain disruptions in 2020 due to various containment measures enforced by the governments. The crisis also affected their production performances that year. The emergence of the COVID-19 virus has impacted the revenue stream and operations of automated solution manufacturers across the globe. For instance, the outbreak of COVID-19 significantly impacted the operations of ABB Ltd, which led to an increase in the backlog of orders in 2020. Meanwhile, the demand from automotive end users was at the lower side in 2020. This negatively impacted the industrial automation market size in 2020. However, due to the ongoing skilled labor shortage, nonautomotive end users—such as electronics and metal & machinery—have showcased a positive trend in adopting automation solutions such as robots and sensors from Q1 of 2021. Moreover, the pandemic could not affect the market much as the introduction of Industry 4.0 is propelling businesses across various sectors to a higher level of IoT technology and workflow. From mid-2021, the supply chains of industrial automation players stabilized, and the industrial automation market size began experiencing growth from 2022.
Lucrative Regions in Industrial Automation Market
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Market Insights – Industrial Automation Market Integration of Robotics in the Construction Industry Propel Industrial Automation Market
Construction is one of the most manual-intensive industries, with physical labor being the primary source of productivity. Robots do not yet play a substantial role in any stage of a building's lifecycle, whether it be new commercial construction, refurbishment, or deconstruction. However, with the rising automation across all industries, the global construction sector is also experiencing a surge in investment in automated solutions, such as robots. For instance, Shimizu Corporation made investments worth US$ 180.7 million since 2015 for the development of construction robots, such as Robo-Welder and Robo-Buddy. These factors further fuel the adoption of robots across the construction industry, which is expected to contribute to the industrial automation market growth over the forecast period.
Component-Based Insights
Based on component, the industrial automation market is segmented into hardware and software. The hardware segment held a larger market share in 2021. The hardware segment is anticipated to dominate the market due to the significant hardware adoption in every industry.
Players operating in the industrial automation market are mainly focused on the development of advanced and efficient products.
In Feb. 2022, Scania, a prominent worldwide transport solutions provider, signed a deal with ABB to supply a broad range of robotic solutions for Scania's new highly automated battery assembly factory in Sweden.
In Jan. 2022, Hitachi, Ltd. and Hitachi Industrial Equipment Systems Co., Ltd. announced that they have been accelerating the global development of the line building business leveraging industrial robots. Hitachi Automation, Ltd. will be established on April 1, 2022, by reorganizing and combining group firms' activities and resources to reinforce the robotic SI business in Japan and ASEAN countries.
The industrial automation market is segmented based on component, system, and end user. Based on component, the market is segmented into hardware and software. In 2021, the hardware segment led the industrial automation market and accounted for a larger market share. Based on system, the market is segmented into supervisory control and data acquisition, distributed control system, programmable logic control, and others. In 2021, the others segment led the industrial automation market and accounted for the largest market share. Based on end user, the market is segmented into oil & gas, automotive, food & beverage, chemical & materials, aerospace & defense, and others. In 2021, the automotive segment led the industrial automation market and accounted for the largest market share. Geographically, the market is broadly segmented into North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America (SAM). In 2021, APAC accounted for a significant share in the global market.
The key players operating in the industrial automation market include ABB LTD.; B&R Industrial Automation GmbH; HITACHI LTD.; Industrial Automation (M) SDN BHD.; Koyo Electronics Industries Co., LTD.; Mitsubishi Electric Corporation; Omron Corporation; Rockwell Automation; Siemens; and Yokogawa Electric Corporation.
Industrial automation uses control systems, such as robots, computers, and information technologies, to handle various machinery in an industry to replace human intervention. Depending on the operations involved, the industrial automation systems are majorly classified into two types, namely process plant automation and manufacturing automation. Industrial automation offers high product quality, reliability, and production rate while reducing production and design costs by deploying new, innovative, and integrated technologies and services. They possess various features, such as high productivity, quality, flexibility, and information accuracy, which is likely to increase the uptake of automation in the industrial sector during the forecast period. Also, the surge in the uptake of automation solutions in the oil & gas, manufacturing, chemicals & materials, pharmaceuticals, and other industries, is driving the industrial automation market.
Construction is one of the most manual-intensive industries, with physical labor being the primary source of productivity. Robots do not yet play a substantial role in any stage of a building's lifecycle, whether it be new commercial construction, refurbishment, or deconstruction. However, with rising automation across all industries, the global construction sector is also experiencing a surge in investment in automated solutions, such as robots. Several types of robots are being extensively adopted across the construction industry are 3D printing, demolition, and remote-controlled or autonomous vehicles. Since automation across the construction industry is in a very nascent stage, it is expected to propel over the coming years, thereby supporting the market.
Based on component, the industrial automation market is segmented as hardware and software. Hardware is anticipated to continue drive the industrial automation market by component segment owing to the significant adoption of in every industries. The software segment is the second largest segment gaining its prominence during the forecast period. Hardware is an essential part of manufacturing and process production. Innovations in hardware are a prerequisite for complementing and fulfilling any significant technological development in the industry. The primary type of industrial hardware used for automation are motor & drives, sensors, robots, machine vision systems, and others.
Machine vision users and systems integrators have exploited better imaging, optics, illumination, and software for nearly 40 years. Even though machine vision is a somewhat mature technology, lower component, software, and engineering costs and increased simplicity of use and application expansion continue to drive machine vision acceptance across industries. In 2021, due to the COVID-19 pandemic, manufacturers accelerated the deployment of machine vision technology for industrial automation to keep operations running as effectively as possible and keep up with the increasing demand as businesses scrambled to bolster digital infrastructure, supporting remote workers. Moreover, the rise in investment by companies to develop new products through machine vision technology for industrial automation is further propelling the market. For instance, in January 2022, the Khronos Group launched a new initiative with the European Machine Vision Alliance (EMVA) to produce an open, royalty-free API standard to regulate camera system runtimes in embedded, mobile, industrial, XR, automotive, and scientific industries. Thus, the rise in investments by global companies is boosting the uptake of machine vision systems for industrial automation.
APAC held the largest market share in 2020, followed by Europe and North America. APAC is further anticipated to register the highest CAGR in the market during the forecast period. The increasing uptake by various industries and the growing penetration of advanced technologies, such as AI and IoT, are fueling the market. In terms of market share, APAC and Europe held the first and second positions, respectively, in 2020. In terms of growth, APAC is anticipated to be the fastest-growing regional market with an impressive CAGR of 8.8% from 2021 to 2028. The government initiatives and policies supporting the digitization of manufacturing plants and investments in the IIoT are the significant factors boosting the uptake of industrial automation solutions in this region
Vision-guided robots are experiencing a rise in demand across the sector due to their efficiency in completing repetitive tasks, such as bottle handling, bin picking, and tray loading. Numerous benefits, including enhanced traceability, improved efficiency, and high flexibility, have been driving the need for automation in the food & beverage industry over the years. These factors have encouraged food & beverage producers to invest heavily in automated technology integration across their production facilities. For instance, a US-based snack brand, Utz Brands Inc., announced its plans to integrate automated capabilities across its production plants to reduce its overall operational cost in 2021. Similarly, Hormel Foods is also planning to incorporate automation across its production facilities in 2022. Other food & beverage brands rapidly adopting automated technology include Tyson Foods and ITC. Thus, the rise in investment in automation across the food & beverage industry is fueling the growth of the industrial automation market.
The List of Companies - Industrial Automation Market
ABB LTD.
B&R Industrial Automation GmbH
HITACHI LTD
Industrial Automation (M) SDN BHD
Koyo Electronics Industries Co., LTD
Mitsubishi Electric Corporation
Omron Corporation
Rockwell Automation
Siemens
Yokogawa Electric Corporation
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