INDUSTRIAL AUTOMATION MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Industrial Automation Market Size and Trends

Global industrial automation market is estimated to be valued at USD 217.45 Bn in 2024 and is expected to reach USD 406.23 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 9.3% from 2024 to 2031.

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Global industrial automation market growth is driven by rapid digitalization and rising adoption of industrial internet of things (IIoT) based solutions across industries.

The key trend in the industrial automation market has been increasing investments by manufacturers in adoption of advanced robotics and IoT based technologies to drive productivity and operational efficiency. Adoption of AI and machine learning in automation has also been growing globally. Enhanced data analytics capabilities and advance robotics solutions helps industries to optimize process management.

Growing adoption of IoT and Industry 4.0 technologies

Industrial revolution changed the landscape of industrial production by introducing mechanical manufacturing processes driven by steam and water power. Fourth Industrial Revolution is upon the manufacturing sector and promises to transform how goods will be produced once again. IoT and Industry 4.0 technologies that connect the physical world of factories and machines to controllers, software, sensors and people in an internet-based system enables increasingly intelligent and adaptive production. Manufacturers are realizing significant productivity gains from linking their physical operations to digital systems in ways that improve visibility into processes, optimize workflows, preempt downtime and enhance asset utilization.

Industry 4.0 technologies facilitate data collection from embedded sensors and machines on factory floors. This production data when analyzed with advanced analytics yields valuable insights into equipment performance, material usage and quality control. Manufacturers can predict maintenance needs, detect inefficiencies and orchestrate production flows in a more coordinated manner to maximize output. The connectivity afforded by IoT also allows for remote monitoring and management of industrial equipment. Issues can be addressed remotely before escalating to full breakdowns. The trove of operational intelligence gathered through IoT further aids in simulating “what if” scenarios to refine production processes.

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Government initiatives and subsidies for automation

Governments across major economies like North America, Asia Pacific, etc. acknowledge that enabling advanced automation technologies for domestic manufacturers through initiatives and incentives is integral to sustaining their industrial competitiveness. Labor costs are increasing, while consumers demand higher quality, customized, and sustainable products at lower prices. These pressures can be mitigated by utilizing industrial robots and AI-driven systems. Governments provide tax relief, low interest loans and grants for manufacturers instituting industrial automation projects. For instance, “Industry 4.0” program by the Germany government co-funds R&D and implementation of smart factory technologies.

Government of Singapore also allocates funds through its “Automation Support Package” to help small businesses computerize operations. China’s “Made in China 2025” industrial plan commits billions in developing intelligent manufacturing capabilities. Tax credits are available in many American states for investments in industrial robotics. Canada and several European nations have similar subsidy drives promoting adoption of robotics. Such government assistance eases the upfront capital required for automation equipment and modernization. It encourages more organizations to invest in robotics, even during uncertain economic cycles.

For instance, in January 2021, Omron Corporation, a global leader in automation and control technology, launched the i4 series SCARA robot that is designed to automate high-precision, high-speed assembly and transportation processes. This innovative robot aims to enhance manufacturing efficiency by offering easy installation and advanced capabilities for various applications.