INDUSTRIAL AUTOMATION AND CONTROL SYSTEMS MARKET ANALYSIS

The global industrial automation and control systems market size was valued at US$ 160.12 billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 9% from 2023 to 2030. The rapid industrialization in countries such as China and India are further boosting the demand for industrial automation and control systems market. Furthermore, the positive economic outlook of these regions is expected to drive the demand for these systems, as they enable greater production and support productivity in various sectors. A rise in demand for automation systems is also a major factor driving the market.

Global Industrial Automation and Control Systems Market: Regional Insights

Asia Pacific is anticipated to gain major share in the global industrial automation and control systems market over the forecast period. This is owing to rise in demand for better solutions for managing industrial plants in countries such as South Korea, India, and China. Moreover, developing countries such as Vietnam, Indonesia, and Thailand have presence of largely untapped market, due to which, investments for development of manufacturing plants are increasing in the region. These factors are further expected to drive growth of the global industrial automation and control systems market over the forecast period.

Europe is also expected to gain significant growth in the global industrial automation and control systems market over the forecast period. The implementation of the latest technological advances and digital transformation abilities are increasing in manufacturing unities in the region to obtain effective business processes as the competition in the regional market is increasing. Moreover, with increasing end user needs, the adoption of advanced technologies is increasing in the region, which is also expected to support growth of the market in the coming years.

Figure 1: Global Industrial Automation and Control Systems Market Share (%), By Region, 2022

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Global Industrial Automation and Control Systems Market Drivers:

Convergence of IT, OT, and M2M systems to propel the market growth

The management of industrial technology has always been between Operation Technology (OT) and Information Technology (IT). IT focuses more on a top-down approach, and thus deploys and maintains the data-based infrastructure on the management side of the business. While OT uses a bottom-up approach that starts from machinery, equipment, and assets which goes up to monitoring and controlling systems. With the emergence of industrial internet and big data, the business in several industries are transforming. Thus, this factor is further expected to support growth of the global industrial automation and control systems market over the forecast period.

Growing inclination toward smart manufacturing to boost the market growth

Several manufacturing plants and factories are shifting to factory automation and implementation of smart processes. For these, these factories are making use of multiple PLCs distributed in the whole manufacturing plant for communicating with one another instead of having a centralized PLC. With this, companies can create a communication between all the machineries, as a result, it creates an ecosystems that can be controlled remotely from anywhere. Thus, adoption of smart manufacturing is increasing rapidly, which is further likely to aid in growth of the global industrial automation and control systems market over the forecast period.

Global Industrial Automation and Control Systems Market Opportunities:

Advent of industry 4.0 is likely to generate growth opportunities in the global industrial automation and controller systems market over the forecast period. Due to the advent of Industry 4.0, the adoption of automation and control system has increased rapidly. Several industries are adopting smart manufacturing for high precision and low error rates. This in turn is creating growth opportunities in the market.

Growing penetration of Internet of Things (IoT) in factory automation is also expected to generate growth opportunities in the global industrial automation and control systems market over the forecast period. With the growing penetration of IoT, smart manufacturing is growing for embracing and obtain advantages of internet connectivity. For instance, in May 2022, Emerson Electric Co. introduced the new automation solutions TopWorkx DX Partial Stroke Test with HART 7. Thus, adoption of industrial automation and control systems is increasing, further creating growth opportunities in the market.

Global Industrial Automation and Control Systems Market Trends:

Increasing use of industrial control systems in food and beverage sector is a recent trend

With increasing growth of economy and disposable incomes all over the world, the demand for the food and beverage industry is growing rapidly. Moreover, the rise in global population also adds into the growth of this industry. Thus, the industry is witnessing increased shift to automation. As a result, the use of industrial control systems is increasing in this industry. This trend is expected to boost growth of the global industrial automation and control systems market over the forecast period.

Growing focus of companies on R&D, and joint ventures, in modern technologies is another trend

Major players in the market are increasingly making heavy investments in joint ventures, R&D of modern technologies. For instance, in March 2021, Suez and Schneider Electric entered into partnership to develop a joint venture for delivering innovative digital solutions for management of water cycle. Such initiatives by market players are increasing in the market, which is a growing trend in the global industrial automation and control systems market.

Global Industrial Automation and Control Systems Market Restraints:

Concerns regarding security threats to impede the market growth

Connected products and solutions perform specifics assignments. Most of the automation solutions run on a particular working framework such as MQX, VxWorks, Windows, INTEGRITU, or Linux4. Customary security components do not work efficiently of these solutions. Thus, these systems are at risk of cyber-attacks that threat security and can compromise systems. This factor in turn is expected to limit growth of the global industrial automation and control systems market over the forecast period. However, manufacturers are focusing on improving security of these solutions with R&D and product development which is likely to support the market growth.

High cost of implementation to hinder the market growth

High cost of implementing automation and control systems and rise in initial capital investments related to installations are the major factors adversely impacting growth of the global industrial automation and control systems market. Moreover, the maintenance required for these systems is higher than machines controlled manually. Thus, this further adds into the cost of these systems. These factors are expected to hinder growth of the industrial automation and controller systems market over the forecast period.

Figure 2: Global Industrial Automation and Control Systems Market Share (%), By Control System, 2022

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Global Industrial Automation and Control Systems Market Segmentation:

The global industrial automation and control systems market report is segmented into Component Type, Control System, and Vertical.

Based on Component Type, the market is segmented into HMI, Industrial Robots, Control Valves, Sensors, and Others. Out of which, Human Machine Interface is expected to dominate the global market over the forecast period and this is attributed to the increasing adoption of novel technologies such as voice control systems, and touch screens. Human machine interface is a bridge assisting human resources to interact with devices and systems. It can be a touch screen, a voice recognition systems, and an industrial PC having HMI software. With increasing adoption novel technologies, the demand for HMI is increasing, which in turn is driving growth of this segment.

Industrial Robots segment is also expected to witness significant growth in the near future and this is owing to the growing focus of companies on optimizing the manufacturing capabilities and achieving mass production. The use of industrial robots and state-of-the-art machinery is high in manufacturing companies for optimization of operations requiring strength, speed, and accuracy. As industrial automation using robots can offer various benefits, the demand for this segment is increasing rapidly, which in turn is supporting its growth.

Industrial Robots

Based on Control System, the market is segmented into DCS, PLC, SCADA, and Others. Out of which, DCS is expected to dominate the global market over the forecast period and this is attributed to the rising industrialization in emerging countries such as India, China, and countries in Middle East. These countries have favorable government schemes, and support automation. Distributed Control Systems or DCS is utilized in a plant as a control system for automated process control. It uses several automated control loops with automated controllers without needing any central controller in action. Thus, with the increasing industrialization, adoption of DCS is increasing rapidly, which is further expected to support the market growth in the coming future.

PLC segment is also expected to witness significant growth in the near future and this is owing to the growing applications of programmable logic controllers or PLC in manufacturing units. These are used for controlling different operations and processes such as assembly lines and robotic devices. These systems offer various advantages due to which their demand is increasing in manufacturing industry. This is further likely to support growth of this segment.

Based on Vertical, the market is segmented into Aerospace & Defense, Automotive, Chemical, Energy & Utilities, Food & Beverage, Healthcare, Manufacturing, Mining & Metal, Oil & Gas, Transportation, and Others. Out of which, Healthcare is expected to dominate the global market over the forecast period and this is attributed to the growing collaborations among market players to develop new solutions to automate and digitize bioprocessing operations.

Food and Beverage segment is also expected to witness significant growth in the near future and this is owing to demand for integrating industrial automation and control system in the industry. With industrial automation and control systems manufacturers can monitor, precision control, track, and get quality control over different industrial processes in food and beverage for accelerating production, and to maintain the FDA standard quality. Thus, the segment is likely to gain major growth in the market over the forecast future.

Global Industrial Automation and Control Systems Market: Key Developments

In March 2022, ABB announced to have received a contract of automating new greenfield plant of NatureWork in Thailand. ABB will be fulfilling the contract through supplying the software, hardware, and control room designs.

In May 2022, Emerson Electric Co. announced the launch of TopWorx DX Partial Stroke Test with HART 7, a new automation solution of the company that can increase safety and automation as it facilitates a separate emergency shutdown valve.

In December 2020, Honeywell International, Inc. announced the acquisition of Sparta Systems for US$ 1.3 billion in cash. This acquisition is expected to strengthen the service capability of Honeywell International, Inc. in industrial automation, enterprise performance management software, and digital transformation solutions for life science companies.

In March 2022, Kawasaki Heavy Industries, Ltd. announced the successful completion of verification tests for industrial automation with the use of a multi-use unmanned ground vehicle (MUGV). The company plans to make use of automated vehicle in their motorcycle production unit.

Global Industrial Automation and Control Systems Market: Key Companies Insights

The global industrial automation and control systems market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global industrial automation and control systems market are ABB, Emerson Electric Co., Honeywell International, Inc., Kawasaki Heavy Industries, Ltd., Mitsubishi Electric Corporation, OMRON Corporation, Rockwell Automation, Inc., and Schneider Electric

*Definition: The Industrial Automation and Control System (IACS) market consists of various automation equipment, machines, and components that monitor and perform multiple industrial tasks and automate them for improving product quality and efficiency.