Growing Demand for Smarter Systems Drives the Global Market for Industrial Automation

[John Millence]

The global industrial automation market achieves a valuation of USD 192.74 billion in 2023 and is projected to grow at a robust CAGR of 8.6% from 2024 to 2032, reaching USD 401.48 billion by 2032. This significant growth is driven by the increasing demand for smarter and more efficient systems in industrial operations, particularly in the Asia Pacific region, where the presence of key production plants and emerging players is prominent.

Regional Insights​

Asia Pacific​

The Asia Pacific region significantly contributes to the global industrial automation market. This dominance is attributed to the region's cost-effective production capabilities and the emergence of new players, particularly in countries like China and Japan. The market in this region is expected to grow at the fastest rate during the forecast period, fueled by the rising demand for smarter solutions to manage industrial plants. Countries such as India, China, and South Korea are leading this growth due to their rapid industrialization and technological advancements.

North America​

Following the Asia Pacific, North America holds a significant share of the market revenue and is estimated to grow at a healthy pace in the forecast period. The increasing adoption of factory automation systems by manufacturers and the rise in IoT research and development are key factors propelling the market forward in this region. The United States and Canada are at the forefront of this growth, driven by technological innovation and a strong industrial base.

Industrial Automation: Market Segmentation​

Industrial automation involves the use of control systems, such as computers or robots, and information technologies to handle processes previously performed by humans on a larger scale. This integration of the physical world into computer-based systems offers numerous advantages, including increased efficiency, control, precision, and cost-effectiveness.

By Devices​

1. Machine Vision
2. Robotics
3. Sensors
4. Motion and Drives
5. Relays and Switches
6. Others

By Control System​

1. Supervisory Control and Data Acquisition (SCADA)
2. Distributed Control System (DCS)
3. Programmable Logic Controller (PLC)
4. Manufacturing Execution System (MES)
5. Product Lifecycle Management (PLM)
6. Enterprise Resource Planning (ERP)
7. Human Machine Interface (HMI)
8. Others

By Application​

1. Discrete Industry
   • Automotive
   • Packaging
   • Food Processing
   • Textiles
   • Others
2. Process Industry
   • Chemical
   • Power
   • Oil and Gas
   • Healthcare and Pharma
   • Plastic
   • Others

Digital Transformation Drives the Global Market for Industrial Automation​

The manufacturing industry is undergoing a significant transformation as manual tasks are increasingly being replaced by smart robots and automation-driven systems. Automation is essential to meet the current production demands, providing precise and high-quality output without compromising quantity. Favorable government policies in the manufacturing sector and the growth of the sector in emerging economies further propel the industrial automation market.

The need for digital transformation across major industries such as healthcare, transportation, and retail is accelerating the demand for industrial automation. As the potential of IoT and interconnectivity is realized, the industry is expected to grow rapidly during the forecast period.

Key Industry Players in the Global Industrial Automation Market​

Several key players dominate the global industrial automation market, contributing to its growth through competitive strategies, capacity expansions, and technological advancements. The following companies are leading the market:

1. Siemens AG
2. Emerson Electric Co.
3. ABB Ltd.
4. Rockwell Automation, Inc.
5. Mitsubishi Electric Corporation
6. Schneider Electric
7. Texas Instruments Incorporated
8. Others

These companies are continuously innovating and investing in new technologies to maintain their competitive edge. Their efforts include mergers, acquisitions, capacity expansions, and plant turnarounds, which help them stay ahead in the rapidly evolving industrial automation market.

Comprehensive Market Analysis​

The industrial automation market is comprehensively analyzed based on various strategic frameworks, including Porter's Five Forces model and SWOT analysis. This analysis provides into the competitive landscape, market dynamics, and the strengths, weaknesses, insights, and threats faced by key market players.

Porter's Five Forces Analysis​

1. Threat of New Entrants: The industrial automation market has high entry barriers due to the need for substantial capital investment and technological expertise, reducing the threat of new entrants.
2. Bargaining Power of Suppliers: Suppliers in this market have moderate bargaining power due to the availability of multiple suppliers and the high demand for automation components.
3. Bargaining Power of Buyers: Buyers have high bargaining power as they have numerous options and the ability to switch suppliers easily due to competitive pricing.
4. Threat of Substitutes: The threat of substitutes is low as automation offers unique benefits that cannot be easily replaced by traditional methods.
5. Industry Rivalry: The industrial automation market is highly competitive, with several key players striving for market share through innovation and strategic initiatives.

SWOT Analysis​

1. Strengths:
   • High efficiency and precision in industrial processes.
   • Cost-effectiveness and reduced human error.
   • Strong market presence of key players.
2. Weaknesses:
   • High initial investment and maintenance costs.
   • Complexity in integration with existing systems.
3. Opportunities:
   • Increasing adoption of IoT and AI in industrial applications.
   • Expansion in emerging economies with favorable government policies.
   • Rising demand for smart manufacturing solutions.
4. Threats:
   • Rapid technological advancements leading to obsolescence.
   • Cybersecurity threats and data privacy concerns.

The global industrial automation market is poised for significant growth, driven by the increasing demand for smarter systems and digital transformation across industries. The Asia Pacific region leads this growth, with North America also contributing significantly. The market's segmentation by devices, control systems, and applications highlights the diverse nature of industrial automation solutions.

Key players like Siemens AG, Emerson Electric Co., ABB Ltd., and others are at the forefront of this market, driving innovation and expansion. The comprehensive analysis of the market, including Porter's Five Forces and SWOT analysis, provides a clear understanding of the market dynamics and competitive landscape.

As industries continue to seek efficient, precise, and cost-effective solutions, the industrial automation market is set to achieve remarkable growth, transforming the manufacturing landscape globally.