The industrial automation market comprises automatic control systems such as industrial PCs, SCADA systems, industrial robots, machine vision systems, and digital communication products such as industrial Ethernet and wireless. These solutions help improve productivity and quality while optimizing energy usage and product changeover time. The growing adoption of advanced technologies such as cloud computing, big data analytics, artificial intelligence, and IIoT is driving the transition of industrial systems towards the smart, connected industry conceptualized as Industry 4.0.
Global Industrial Automation Market is estimated to be valued at US$ 260 Billion in 2024 and is expected to exhibit a CAGR of 9.3% over the forecast period 2024-2031.
Key Takeaways
Key players operating in the industrial automation market are ABB Ltd., Emerson Electric Co., General Electric Co., Honeywell International Inc., Rockwell Automation Inc., Schneider Electric SE, Siemens AG. They provide integrated solutions consisting of industrial PCs, distributed control systems, motion controllers, safety systems, machine vision systems, and smart devices.
The growing Industrial Automation Market Demand for mass customization is prompting manufacturers to adopt automated solutions that facilitate flexible manufacturing and quick changeovers. Industrial automation helps optimize production processes, minimize downtime and costs while improving quality and flexibility.
The market is witnessing increased investments towards digitalization initiatives aimed at modernizing existing factories. Many companies are focusing on global expansion and offering localized industrial automation and digital solutions tailored for regional requirements. This is enabling them to tap opportunities in emerging markets embracing industrialization.
Market Key Trends
Adoption of Industry 4.0 technologies such as IIoT, additive manufacturing, autonomous robots, smart sensors, artificial intelligence, and cloud computing is a major trend shaping the industrial automation market. The use of intelligent, connected production systems helps achieve the vision of smart manufacturing through real-time data analytics, predictive maintenance, remote monitoring of plants, and collaborative robotics. This transition towards smart automated solutions is expected to transform factory operations and value chains over the coming decade.
Porter’s Analysis
Threat of new entrants: The automation market requires significant capital investment in R&D which acts as a deterrent for new players. Bargaining power of buyers: Large automation companies have significant bargaining power over component manufacturers due to their scale of operations. Bargaining power of suppliers: The market has a few large automation component manufacturers that dominate supply, giving them bargaining power over buyers. Threat of new substitutes: Technological advancements enable new alternatives, though switching costs are high due to capital investments in existing automation systems. Competitive rivalry: Intense competition exists between major automation giants to develop innovative solutions and capture greater market share.
Geographical Regions
North America currently holds the largest share of the industrial automation market, valued at USD 58 billion in 2018. This is attributed to high automation adoption rates across manufacturing and process industries in the US and ongoing investments to modernize production capabilities.
Asia Pacific is identified as the fastest growing regional market, driven by rising industrial automation demand from China, India, Japan and other Southeast Asian countries. governments actively promoting 'Made in Country' initiatives are catalyzing automation integration across diversified sectors.
Get More Insights on- Industrial Automation Market
For Deeper Insights, Find the Report in the Language that You want:
About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
Comments on “Industrial Automation Market is transitioning towards Industry 4.0”