Industrial automation refers to the combination of multiple devices (or multiple processes) into an organic complex, which is controlled by various control devices and actuators to coordinate the actions of each device (or each method), correct errors, and check quality. Make the whole production process automatically realized according to people’s requirements and minimize human operation and intervention. Industrial automation technology is a kind of application of control theory, instruments, computers, and other information technologies to achieve detection, control, optimization, scheduling, management, and decision-making of industrial production processes.
Global industrial control and factory automation market size valued at USD 141.22 billion in 2019, which likely to reach USD 265.86 billion by 2027, growing at a CAGR of 7.83 % during 2020–2027. The growth of the market can be attributed to the emergence of connected enterprises, industrial automation, and optimum utilization of resources, the initiatives by various governments for the adoption of automation. Additionally, the surge in the adoption of process automation across multiple industries such as automotive, energy utilities, and chemicals will spur the growth of the global industrial control and factory automation industry. Furthermore, the emerging applications such as heating ventilation air conditioning (HVAC) systems, electronic power distribution systems, and human-machine interface (HMI) will fuel the growth of the market in the upcoming years. Also, the increasing focus toward cost lessening and the swelling need for precision in several processes propelling the growth of the industrial control and factory automation market across the globe.
Moreover, the increased use of technology in manufacturing, especially the increase in the adoption rate of industrial robots, supply chain upgrades, and mass production to meet the growing population, along with the measures taken by the government will trigger the growth of the market. Further, the digitization and Industry 4.0 revolution have significantly influenced the industrial control and factory automation industry in the coming years. The growing usages of smart systems, components, and smart machinery and equipment, for the improvement of processes through automation and self-optimization, are projected to the robust growth of the market.
The application of robots by large-scale general manufacturing industries is basically in a spontaneous, decentralized, or scattered state. The robot integrates modern manufacturing technology, new material technology, and information control technology. It is a representative product of intelligent manufacturing. Its R&D, manufacturing, and application have become an essential indicator of technological innovation and manufacturing level, which has caused the world’s manufacturing power. In the manufacturing industry, robots are used as a computer system to track the flow of operations from raw materials to final products.
Manufacturers are working on using the most advanced digital technologies (such as IIOT, AI, and big data, etc.) to make device management more intelligent, minimize risks, and optimize operating procedures. Automation will not only improve operations but also increase work efficiency and optimize utilities. To reduce the risk and cost of human error, they are trying to eliminate human factors from certain tasks. To accelerate the implementation of business strategies, companies are using digital technology for information sharing and collaboration, and data analysis to promote their decision-making process. Automation will enable production optimization and partial autonomous operation.
Industry 4.0 implements real-time management through network technologies that determine the manufacturing process. Industry 4.0 embodies the paradigm shift of the production model from centralized to decentralized. It is precise because of the technological advances that have disrupted traditional production process theories that all this becomes possible. In the future smart manufacturing, Information Physics Fusion System (CPS) is of considerable significance to cover many industrial sectors and application fields such as automation, production technology, automotive, mechanical engineering, energy, transportation, and telemedicine.
Since the beginning of 2020, the COVID-19 epidemic has surprised the industry like a black swan. When the industries did not have time to respond, the epidemic forced the closure of various cities and shut down the work, which caused the major manufacturing countries to halt. In the long run, the outbreak has exposed some of the problems and risks that existed before the manufacturing industry and will force the manufacturing industry to reform, including further improvement of automation and informatization level and improvement of the logistics system.
Based on solutions, the global industrial control and factory automation market classified into supervisory control and data acquisition, programmable logic controllers, distributed control systems, manufacturing execution systems, product lifecycle management, plant asset management, functional safety. The distributed control systems segment held maximum market share in industrial control and factory automation in 2019. It is attributable to the growing advantages of DCS in oil & gas, automobile, chemical, food & beverages, and pharmaceutical industries for decision integrity, simplified operations, and increasing productivity in manufacturing plants.
The supervisory control and data acquisition will grow at a significant rate in the forecast period. It is owing to the surge in adoption of SCADA systems in manufacturing, and the water and wastewater industry.
Based on Component, the global industrial control and factory automation market segregated into industrial robots, industrial 3D printing, control valves, machine vision, field instrument, HMI industrial pc, and sensors. The industrial robots segment accounted for a higher revenue share in 2019 and projected to dominate the industrial control and factory automation market by 2027. It is primarily attributed to robots help in reducing human intervention in the production process, reduces the cost of manufacturing with improved quality and increased production capacity.
The control valves will grow with a lucrative growth rate in the forecast period. It is due to their massive adoption in the oil and gas industry, as they provide benefits of pressure and temperature control during downstream, midstream, and upstream activities.
Based on industry vertical, the global industrial control and factory automation market classified into aerospace & defense, automotive, chemical, energy & utilities, food & beverage, healthcare, manufacturing, mining & metal, oil & gas, transportation, and others. The mining & metal segment will hold higher market potential by 2027. It is owing to automation in mining, provides better productivity, ensures safety, minimize wear, enhances reliability, and improves quality. It offers precise speed and torque control.
The manufacturing held a significant market share in 2019. It is due to the manufacturers face increasing cost pressure and needs to optimize production processes, the adoption rate of solutions related to industrial control and factory automation is high.
Based on geography, the global industrial control and factory automation market segmented into North America, Asia Pacific, Europe, South America, and Middle East & Africa. The Asia Pacific is slated to account for a significant share by 2027 in the industrial control and factory automation market. The growth in the region is based on technological innovations and the high adoption of automation technologies in various industries. Further, low manufacturing cost, enlarged mechanization in several countries such as Japan, China, and India, will spur the APAC market.
North America is projected to provide significant growth opportunities due to the rise in demand for increasing operational efficacy and streamlining the manufacturing schedule across various industry verticals along with the presence of numerous manufacturing companies in this region.
Companies such as Emerson, Mitsubishi, Siemens, ABB, Schneider Electric, Rockwell, Yokogawa, OMRON, Honeywell, FANUC, STRATASYS, Endress+Hauser AG, Wika, Dwyer Instruments, Inc, General Electric, 3d Systems Corporation, HP, Fuji Electric, Hitachi, Krohne, and Azbil are the key players in the global industrial control and factory automation market.
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