Industrial Automation And Control Systems Industry Overview
The global industrial automation and control systems market size was valued at USD 146.79 billion in 2020 and is expected to reach USD 288.93 billion by 2028, registering a CAGR of 8.9% during forecast period.
The market is anticipated to witness substantial growth over the forecast period on account of the rising adoption of process automation solutions across various industries, such as automotive, chemical, and energy utilities. Process automation helps companies reduce labor and operational expenses. It also offers benefits such as increased efficiency and reliability to help reduce human errors. Moreover, the rising adoption of industrial robots across the manufacturing sector to cater to complex customer demands is expected to boost the market growth.
Gather more insights about the market drivers, restrains and growth of the Global Industrial Automation And Control Systems Market
Industry leaders are implementing various control systems for process optimization and controlling different industrial procedures, such as additive manufacturing, molding, paint works, and metalworking. These control systems comprise single or multiple control loops that carry out numerous automation processes using meters and sensors, eliminating human intervention. Such techniques are used to control the pressure, level, temperature, and flow, which is an essential process in any industrial facility. Owing to their benefits, control systems are extensively used in the oil and gas, power generation, chemical, telecommunications, and pulp & paper sectors for accomplishing partial or entire automation.
The rapid shift of industries toward smart manufacturing is another factor responsible for spurring the market growth. Industries that adopt automation systems largely prefer to leverage proven standards and technologies to ensure safe, secure, and consistent operations. Furthermore, the advent of Industry 4.0 has resulted in the manufacturing sector experiencing a rapid acceptance of new and augmented networking architectures and systems. However, issues such as high deployment costs of these systems, privacy and security concerns, lack of standards and regulations pertaining to Industry 4.0, and the resultant downsize of the workforce owing to automation are among the major challenges posed before the industry players.
The industry is also driven by technology proliferation, growing economic opportunities, and increasing demand for operational efficiency. This ecosystem is expected to enhance any country’s innovation front by introducing a new phase of economic growth. Additionally, it is anticipated to significantly impact a wide range of businesses, stakeholders, and business models, leading to a favorable regulatory landscape to promote the adoption across industries worldwide. Growing awareness regarding the benefits of cloud computing platforms and technological advancements in semiconductors and electronic devices are expected to offer substantial growth prospects to the industry in the near future.
Industrial Automation And Control Systems Market Segmentation
Based on the Components Insights, the market is segmented into HMI, industrial robots, control valves, sensors and others
The control valves segment dominated the market in 2020, accounting for over 24% of the total revenue share, and is expected to maintain its dominance over the forecast period. Control valve automation has witnessed significant advancements over the past few years. While the overall structure of the component remains largely unchanged, solution providers are focused on automating and achieving precise positioning of these instruments.
Over the past decade, developments such as the introduction of smart and digital valve positioners with internal capabilities for diagnostics and alarm status, among others, have outpaced the performance of conventional mechanical systems. Such innovations have resulted in increased traction among customers, consequently supporting the segment demand.
The industrial robots segment is expected to exhibit the highest CAGR of over 11% from 2021 to 2028. The growth can be attributed to a substantial increase in the adoption of robots for carrying out automation processes. Robotic industrial automation is transforming the face of production processes, with manufacturers across the globe progressively implementing robots to enhance the efficiency and safety of their operations.
Based on the Vertical Insights, the market is segmented into aerospace & defense, automotive, chemical, energy & utilities, food & beverage, healthcare, manufacturing, mining & metal, oil & gas, transportation and others
The manufacturing vertical is expected to dominate the industrial automation and control systems market over the forecast period and account for over 17% of the revenue share by 2028. The convergence of technology and automation in manufacturing operations is rapidly progressing with manufacturers realizing the value of successful digital transformation. The adoption of automation solutions also facilitates the integration of electric assets and production process information to help enhance sustainability across the entire manufacturing plant lifecycle.
The healthcare segment is poised to record the highest CAGR of nearly 10% from 2021 to 2028. Automation helps healthcare workers and hospitals to track patient records and share them across multiple systems, along with analyzing key checkpoints to reach a better conclusion. In addition, it improves the overall data management, care services, and operational tasks and reduces the risk of errors. The adoption of automation also benefits the healthcare industry by providing advanced healthcare business intelligence solutions for maintaining a better revenue cycle.
Based on the Control System Insights, the market is segmented into DCS, PLC, SCADA and others
The Distributed Control Systems (DCS) segment dominated the market and captured over 34% of the total revenue share in 2020. The segment is expected to continue dominating the market over the forecast period. DCS helps to centralize operations and provides flexibility by enabling central control, reporting, and monitoring of individual components.
Benefits such as scalability, easy and convenient installation, and automatic updates are leading to the increased demand for DCS. Moreover, the growing industrialization across the globe, especially in developing nations of Asia Pacific and the Middle East, has also led to the accelerated demand for DCS.
SCADA is expected to exhibit the highest CAGR of 10% from 2021 to 2028. The growth can be attributed to the increasing acceptance of SCADA control systems across numerous end-use industries, including oil and gas, manufacturing, utilities, and wastewater. These systems allow companies to improve efficiency, enhance their decision-making processes, and significantly reduce the downtime.
Based on the Regional Insights, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
Asia Pacific dominated the market in 2020 with a revenue share of over 30%. The adoption of these systems is continually increasing in countries such as India, Japan, China, and South Korea. A recent study by Grand View Research suggested that Asia Pacific alone possesses approximately 1.5 million robots installed in its industrial facilities, out of which over 30% are located within China. Besides, an enormous untapped market exists in developing economies such as Indonesia, Vietnam, and Thailand, attracting new investments to set up production facilities. This provides an opportunity for solution providers to expand their market presence and explore new revenue streams.
North America is anticipated to showcase significant growth and register a CAGR of over 8% from 2021 to 2028. The region is among the early adopters of industrial automation due to the extensive support from government bodies. Sophisticated environmental standards and regulations from the government have steered companies across verticals to adopt such solutions to expand their production capabilities while undergoing the regulatory norms.
Besides, the outbreak of the novel coronavirus, COVID-19, has resulted in high reliance of key end-user industries on automation, thereby helping them reduce financial and other long-term economic impacts. Market players across the region are collaborating with similar companies to develop innovative solutions for their customers.
Market Share Insights:
March 2020: Epson Robots, a SCARA robot manufacturer based in the U.S., announced its collaboration with Air Automation Engineering (AEE) to offer technical support in the Midwest, U.S., in an attempt to strengthen its presence.
Key Companies Profile:
Market incumbents are implementing aggressive strategies such as joint ventures, technology collaborations, and mergers and acquisitions to expand their outreach. Additionally, key market participants are expected to focus on cost reduction, thereby making entry into the market difficult for new entrants.
Some of the prominent players operating in the global industrial automation and control systems market are:
Emerson Electric Co.
Rockwell Automation, Inc.
Honeywell International, Inc.
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