Middle East and Africa Factory Automation Market Dynamics and Trends by 2031

The Middle East and Africa factory automation market size is projected to reach US$ 21.40 billion by 2031 from US$ 12.19 billion in 2023. The market is expected to register a CAGR of 7.3% during 2023–2031. Advancements in robotics and AI are likely to bring new trends to the market.

Middle East and Africa Factory Automation Market Analysis

The adoption of Industry 4.0 and advanced wireless sensors boost the Middle East and Africa factory automation market growth. In addition, favorable government initiatives and significant investment toward the adoption of factory automation technologies and solutions are thriving in the market. Furthermore, technological advancements, demand for SoftPLC, and the rising need for IoT-based hardware are expected to create opportunities in the market during the forecast period.

Factory Automation Market Overview

Factory automation helps automate a production process that involves a set of technologies and control devices to boost productivity and product quality while minimizing the overall production cost. The level of automation might range from single operations to full-fledged automation with no human involvement. Factory automation can be used at any stage of the manufacturing process, from material quantities management, production, and assembly to packaging and shipping. It regulates industrial components and guarantees consistent, superior-quality results; such benefits of factory automation fueled its demand in the automotive, oil & gas, manufacturing, and mining industries for qualitative manufacturing. Further, it fulfills the need for mass production in industries with several features, such as improved quality, minimal human intervention, and lesser labor expenses.

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Middle East and Africa Factory Automation Market: Strategic Insights

Middle East and Africa Factory Automation Market

• Market Size 2023
  US$ 12.19 Billion
• Market Size 2031
  US$ 21.40 Billion

Market Dynamics

GROWTH DRIVERS

• Adoption of Industry 4.0, Government Initiatives and Investments Associated with Digital Transformation

FUTURE TRENDS

• Advancements in Robotics and AI

OPPORTUNITIES

• Demand for Soft-PLC

Regional Overview

• Middle East and Africa

Market Segmentation

Component

• Hardware
• Software

Industry Vertical

• Automotive
• Food and Beverage
• Packaging
• Manufacturing
• Mining
• Metals
• Pulp and Paper
• Life Science and Pharma
• Cement
• Glass
• Transportation
• Infrastructure
• Power

Factory Automation Market Drivers and Opportunities

Government Initiatives and Investments Associated with Digital Transformation to Favor Market Growth

Government initiatives and investments in countries in the Middle East & Africa are playing a pivotal role in driving the adoption of factory automation technologies, fostering economic growth, and addressing industry-specific challenges. For instance, in 2022, Saudi Arabia unveiled the Saudi Advanced Manufacturing Hub strategy in partnership with the World Economic Forum. This strategic initiative aims to identify more than 800 investment opportunities, totaling US$ 273 billion, with the goal of initiating diversification within the industrial economy. By 2035, the strategy aims to elevate the total number of factories to 36,000, with ~4,000 of these facilities heavily reliant on automated equipment and digital capabilities. Further, in the UAE, The Ministry of Industry and Advanced Technology (MoIAT) has incorporated smart manufacturing as a key priority within its national industrial strategy. In early to mid-2021, the MoIAT initiated a specialized Industry 4.0 program with the objective of expediting digital transformation within local manufacturing. This program is designed to enhance productivity as well as foster the development of innovative products. These combined efforts are aimed at achieving a minimum 30% increase in manufacturing productivity, with an anticipated economic contribution of approximately US$ 6.8 billion by 2031. Also, in June 2022, the Government of Abu Dhabi allocated an investment of US$ 2.72 billion toward six pivotal industrial programs, aiming to surpass double the size of the UAE’s manufacturing industry to a projected US$ 46 billion by 2031. Thus, the rise in government initiatives and investments associated with digital transformation fuels the Middle East and Africa factory automation market growth.

Demand for Soft-PLC

SoftPLCs are software-based versions of programmable logic controllers (PLCs). It offers the combination of the functions of conventional PLCs with data loggers, communication gateways, and additional components, including human-machine interfaces (HMIs), SCADA systems, motion control, and web servers. In recent years, the demand for SoftPLCs has increased significantly across a wide range of industrial applications, including manufacturing, energy, factory automation, packing, building products and materials, semiconductors, and others. PLCs play a major role in industrial automation systems, offering control and monitoring capabilities for a wide range of processes. Security and safety are a major concern with any automation system, which increases the demand for SoftPLCs to fulfill the safety and security needs of industries.

Middle East and Africa Factory Automation Market Report Segmentation Analysis

Key segments that contributed to the derivation of the Middle East and Africa factory automation market analysis are component and industry vertical.

• Based on component, the Middle East and Africa Factory Automation market is divided into hardware and software. The hardware segment is further segmented into PLC, industrial PC, valves and valve system, cylinder and actuator, air preparation, vacuum technologies, and sensors. The software segment is subsegmented into SCADA, MES, and others. The hardware segment held a larger market share in 2023.
• In terms of industry vertical, the market is segmented into automotive, food & beverages, packaging, manufacturing, mining, metals, pulp & paper, life science & pharma, cement, glass, transportation, infrastructure, power, and others. The manufacturing segment dominated the market in 2023.

Middle East and Africa Factory Automation Market Share Analysis by Country

The geographic scope of the Middle East and Africa Factory Automation market report is mainly divided into Saudi Arabia, the UAE, South Africa, Algeria, Egypt, Nigeria, Morocco, and the Rest of Middle East & Africa.

The factory automation market in the Middle East & Africa is segmented into South Africa, Saudi Arabia, the UAE, Algeria, Nigeria, Egypt, Morocco, and the Rest of Middle East & Africa. These countries are highly automating their factories to improve manufacturing operations. The Ministry of Industry and Mineral Resources has taken the Future Factories Program Initiative to automate ~4,000 factories in Saudi Arabia. The program intends to transit 4,000 factories toward the adoption of the fourth industrial revolution, automation, and sophisticated industrial technologies that further enhance operational efficiency and manufacturing capabilities. Moreover, the government of Saudi Arabia is taking initiatives toward the adoption of industrial robots. For instance, according to Telecommunications and Digital Government Regulatory Authority (TDRA) data, The Dubai Robotics and Automation (R&A) Program intends to boost the robotics sector's contribution to 9% of Dubai's GDP before 2032. As part of the initiative, 200,000 robots will be provided over the following ten years until 2032. This raises the efficiency and productivity in a variety of industries, including logistics, and transportation, among others. Thus, significant government initiatives towards factory automation are leading to the growth of the Middle East and Africa factory automation market.

Middle East and Africa Factory Automation Market Report Scope

Middle East and Africa Factory Automation Market News and Recent Developments

The Middle East and Africa factory automation market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the Middle East and Africa factory automation market are listed below:

• Festo SE & Co. KG introduced its newest generation of Cartesian-handling-system mechanical axes. The ELGD-TB, tooth belt actuators, and ELGD-BS, ball screw actuators, are based on an innovative Festo design. (Source: Festo SE & Co. KG., Press Release, May 2024)
• Parker Hannifin Corp introduced a 2-way servo proportional valve as part of its TFP series, pioneering a new generation of cartridge valves. With the company’s patented VCD actuator technology, the innovative design of the sleeve and spool allows for previously unattainable flow and pressure drop values. The improved efficiency, compared to regular cartridge throttle valves, enables the use of smaller nominal sizes with the same output—thus reducing the size requirements of the control manifold blocks. (Source: Parker Hannifin Corp, Newsletter, January 2022)

Middle East and Africa Factory Automation Market Report Coverage and Deliverables

The “Middle East and Africa Factory Automation Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• Middle East and Africa Factory Automation market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Middle East and Africa Factory Automation market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST/Porter’s Five Forces and SWOT analysis
• Middle East and Africa Factory Automation market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the Middle East and Africa Factory Automation market
• Detailed company profiles