Global Industrial Automation Market By Component (HMI, Industrial Robots, Sensors, and Other Components), By Control Systems (DCS, PLC, SCADA), By End-User Industry, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The Global Industrial Automation Systems Market size is expected to be worth around USD 493 Billion by 2032 from USD 212.6 Billion in 2023, growing at a CAGR of 9.0% during the forecast period from 2022 to 2032.

Industrial Automation systems refer to the automation of machinery and processes in different industrial sectors using autonomous technologies such as robotics or computer software. Automating 64.2% of manufacturing processes and tasks would allow the manufacturing industry to save 749 billion hours.

The market for Industrial Automation Systems is expected to grow exponentially over the forecast period due to the increasing adoption of process automation technology in various industrial sectors such as automotive, chemical, and energy utilities. An experienced researcher in the field of automation has examined the return on investment, both in tangible and intangible benefits depending on industry and region.

The industrial robotic market is highly competitive and there are many barriers to entry for new entrants. Different entry barriers exist for different segments and regions. Industrial automation is highly monopolistic. In 2021, 62% of the global industrial robot market was held by four major players, Yaskawa and ABB. With the benchmarking services of market leaders and market followers, as well as regional players.

Note: Actual Numbers Might Vary In The Final Report

Key Takeaways

• Market Size and Growth: The Industrial Automation Systems Market is expected to be worth around USD 493 Billion by 2032, with a projected compound annual growth rate (CAGR) of 9.0%. In 2023, the market was valued at USD 212.6 Billion.
• Definition of Industrial Automation: Industrial Automation Systems involve the automation of machinery and processes in various industrial sectors using technologies like robotics and computer software.
• Efficiency Gains: Automating approximately 64.2% of manufacturing processes and tasks could save the manufacturing industry approximately 749 billion hours.
• Key Players: In 2021, four major players, including Yaskawa and ABB, held 62% of the global industrial robot market, indicating a highly competitive and monopolistic nature of industrial automation.
• Driving Factors: Rise of Connected Enterprises: Information flow between units within industries is essential for enhanced production. IoT-enabled devices play a crucial role in monitoring and optimizing processes. Industry 4.0 Revolution: Industry 4.0 technologies, such as 5G, digital transformation, and software capabilities, are driving the growth of industrial automation through partnerships and collaborations.
• Restraining Factors: High Costs: Initial capital costs for technology implementation and training employees are high. Lack of Skilled Workers: Advanced technologies in industrial automation require skilled workers, and the lack of these skills can impede market growth.
• Key Components: Industrial robots dominate the component segment due to their effectiveness in increasing productivity and reducing costs. Sensors are used to enhance automation and are integral to IoT and wireless sensor capabilities. HMI (Human-Machine Interface) HMI is crucial for control engineers and operators to set parameters and monitor processes.
• Control Systems: Distributed Controls Systems (DCS) DCS dominate the control systems segment and are vital in various industries. They allow machines to have their controllers. Supervisory Control and Data Acquisition (SCADA) SCADA systems connect sensors, devices, and PLCs to a remote server, allowing for real-time data analysis. PLC (Programmable Logic Controller) PLCs monitor inputs and outputs, making decisions based on stored programs.
• End-User Industries: Manufacturing The largest market share is held by manufacturing due to the growing trend toward automated manufacturing processes. Healthcare automation improves operational efficiency, reducing costs and improving patient care. Automotive The automotive industry has a long history of automation, using it for various tasks to improve productivity and efficiency.
• Latest Trends: Digital Twin Organizations are using digital twin technology for project assessment and improvement opportunities. Augmented Reality (AR) and Virtual Reality (VR) technologies are being used to automate business and operational performance. Industrial IoT IoT solutions with AI and advanced analysis are being adopted to optimize asset productivity.
• Regional Analysis: Asia Pacific dominates the market, accounting for over 34.5% of total revenue in 2022, and it is expected to continue leading the market from 2023 to 2032. North America is also projected to grow at a CAGR exceeding 9%.
• Key Players: Some of the key players in the industrial automation market include ABB Ltd., Emerson Electric Co., Honeywell International, Inc., and Siemens AG.

Driving Factors

Rise of Connected Enterprises and Requirement of Mass Manufacturing of Products Driving the Global Industrial Automation Market.

Global industrial automation is growing due to the rise of connected enterprises. Information flow between different units within an industry is essential for enhanced production. It allows manufacturers to better understand the process of converting raw materials into finished goods using IoT/IP networks. IoT-enabled devices can also be used to locate field instruments, monitor the flow of raw materials, maintain a record of inventory status, and report on products that are passing through the supply chain.

The connected enterprise also has easy access to information from the entire supply chain. This makes it easier to adapt to changing market conditions. Real-time information is crucial for manufacturing industries as it allows them to reduce inventory costs and identify cyber theft issues. It also helps them to produce according to market needs. The demand for software and tools that can improve productivity is increasing, as well as the need to produce high-quality products. Industrial automation and advanced production methods can address this demand.

Industry 4.0 has revolutionized the digital supply chain in all industries. Organizations must embrace Industry 4.0 because customers’ ever-changing needs for personalized and immediate services require them to embrace it. Market players are now partnering with tech-savvy companies to create new solutions based on proven technologies. In February 2020 Honeywell International Inc. and Tech Mahindra Limited collaborated to create digitalized “Factories of the Future”, using digital technologies.

This collaboration will empower manufacturers and accelerate digital transformation. In the same way, Siemens and SAP SE collaborated to offer industry4.0-enabled processes to businesses. These processes will enable the creation of a digital thread that runs throughout the product’s lifecycle. These partnerships and collaborations allow companies to capitalize on 5G, industry 4.0, digital transformation &/or software capabilities.

This will enable manufacturers to increase their growth and unlock the potential of industry 4.0 technologies and solutions. These partnerships and collaborations will likely increase the demand for automation solutions in all industries over the next few years.

Restraining Factors

High Cost and Lack of Skills Affects the Market Negatively.

Although Industrial Automation Systems is cost-effective, the initial capital costs for technology implementation and training employees are high. Due to the fragmentation of the industry, it is difficult to predict the return on investment (ROI).

Small and medium-sized businesses (SMEs) are hesitant about adopting technology due to high upfront costs and unpredictability of the return on investment. Smart manufacturing and government policies such as the Government of India MSME loan scheme and the Make in India movement are likely to overcome these limitations and open up new markets for solutions.

Advanced technologies have been developed for industrial automation. The market growth for industrial automation may be impeded by the increased installation of automation equipment. There is less skill required to use new technologies in industrial automation.

Technology advancements in machines and equipment, as well as the increased use of software systems embedded, require deep knowledge and complete information to perform the task. The market growth in industrial automation may be affected by a lack of skilled workers. Market growth could be impeded by a lack of protocols to communicate with devices. This results in a lack of communication between other devices. These factors are restraining the growth of the industrial automation market.

Growth Opportunities

The increased need for safety compliance for Both Machines and Humans.

Many methods are used to develop Industrial Automation systems technologies. These techniques can be dangerous for humans during the manufacturing process. Safety management is essential in automation technology to prevent such accidents. The safety measures in industrial automation help reduce accidents.

Early detection of problems in machinery during manufacturing allows for a quicker resolution. The government imposes enhanced safety measures for machines that comply with international safety standards. The International Electrotechnical Commission (IEC) and the International Standard Organization (ISO) impose safety rules.

Enhanced safety for both the machines and humans will lead to a better product. Market growth will be boosted by improved output and better performance in industrial automation during the forecast period.

The market is expected to grow due to the continued development and investment in the manufacturing sector. Industries such as automotive and heavy engineering are digitizing and transforming their manufacturing processes. The integration of IoT in manufacturing plants is crucial for connecting devices and systems to a network. New automation technologies, such as AI, machine learning, cloud computing, and other technologies, are helping to increase the market growth.

Latest Trends

The digital twin allows organizations to assess the feasibility of a project, minimize risk, and identify potential opportunities for improvement. Digital twin implementation and maintenance are easier with the introduction of the industrial Internet of Things (cloud systems and smart sensors). To reduce the chance of equipment failure, organizations incorporate digital twin technology in their business operations.

The digital twin technology allows for the creation of a simulation of the repair process, which helps to schedule them automatically. DHL International GmbH, a German logistics firm, implemented a supply chain solution that used a digital twin to connect Tetra Pak’s warehouse. It would enable agile, cost-effective, and scalable supply chain operations.

The Internet of Things (IoT), technology is integrated into transport vehicles to create a digital Twin. It ensures that essentials such as food and beverages are safe from farmer to consumer. This rising adoption of digital twin technology can be attributed to the growing demand for automation solutions over the next years.

Disruptive technologies like augmented reality (AR), and virtual reality (VR), help automate business and operational performance. AR is being used by organizations to help them upskill their workers to manage digital operations. AR technology is being integrated into manufacturing tools by market leaders. Siemens’ Assist AR augmented reality solution automates assembly, maintenance, inspection, inspection, inspection, inspection, extraction of 3D models and inspection from digital manufacturing software. These solutions will likely increase the demand for automation solutions over the next few years.

Industrial IoT solutions use artificial intelligence (AI), advanced analysis, edge computing, cloud computing, and cloud computing to analyze machine information and gain meaningful insights that optimize asset productivity. Siemens, for example, offers three industrial IoT solutions: Industrial Edge and Mind Sphere.

These provide insight from industrial data using advanced technologies like AI, edge computing, and cloud. Schmalz, an ergonomic handling and vacuum automation solution provider, uses Siemens Industrial IoT’s capabilities for customer maintenance and extended analytics. This is why Industrial IoT will continue to grow across all industries in the coming years.

Component Analysis

Industrial Robots Hold the Major Market Share in the Industrial Automation Market.

The component segment is dominated by industrial robots. This is due to the extensive use by manufacturing companies of industrial robots and state-of-the-art machinery to optimize operations that require speed and strength. An industrial robot is a machine designed to perform production-related tasks in an industrial environment.

Because they can be programmed to perform many types of robotic tasks, industrial robots can be considered flexible automation. Robots are becoming the preferred choice of industrial automation for manufacturers because they are highly effective in increasing productivity and producing high-quality products. They also reduce costs.

These factors are anticipated to uplift the industrial segment in the upcoming years. Automation through robots can reduce the waste of raw materials, labor requirements, and energy consumption. It also allows for smooth, continuous manufacturing workflows, which will drive segment growth.

The sensors are helping the market growth by driving the increased use of sensor technology in new automation technologies and the increased demand from consumers for industrial sensors with enhanced developments. The sensors are used in manufacturing plants for machine processing. They also have better network connectivity, which allows them to improve the Internet of Things (IoT) wireless sensor capabilities. This involves saving data by analyzing the real-time data from the sensors.

HMI is used by control engineers and operators to set parameters or control algorithms in the controller. HMIs also display process status information, historical data, and other information for operators, administrators, managers, and business partners. HMIs are used by engineers and operators to monitor and set parameters, control algorithms, send commands, and adjust or establish parameters in the controller. HMIs also display historical and process information, which is why the HMI is anticipated to grow during the forecast period.

The market’s major components, the maintenance sensors, are equipped with new solutions that will help to increase its growth. Sensors with enhanced options include improved communication and facilitation. This is the key to industrial automation’s lucrative growth.

Control Systems Analysis

The Distributed Controls Systems (DCS) Dominate the Control Systems Segment in the Industrial Automation Systems Market.

The distributed controls systems (DCS) segment dominated and was responsible for more than 34% of the total market revenue in 2022. DCS is composed of control elements that are distributed throughout a factory or plant. These control elements can include computers, sensors, or controllers.

Each element has a purpose. DCS allows each machine to have its controller, rather than a central control system that controls all machines. DCS includes several local controllers located throughout the factory. The local controllers are connected by a high-speed communications network. Each controller can work independently, but there is a central supervisory control that is run by an operator.

The rapid adoption of IIOT is driving the market growth for DCS. The advent of 5G technology and its adoption by the power sector will also boost the integration of IoT with DCS to improve output efficiency. Due to industry 4.0 adoption, the segment of Supervisory Control and Data Acquisition (SCADA), control system segments are expected to experience a high CAGR of more than 11% over the forecast period. SCADA systems connect local sensors, devices, and PLCs to a remote/virtual server.

You can also save data to a historical database for later analysis. SCADA allows users to interact remotely with it, as well as through operator workstations, HMIs, and directly on the SCADA Server. SCADA controls are used in many industries, including aerospace and defense, automotive, chemical, and energy, as well as healthcare. They can gather real-time data and instantly feed it to the controller systems.

This segment is expected to grow further due to the increased demand from manufacturers for digitalized and smart production processes that increase production efficiency.

PLC is also growing significantly in the control systems segment. PLC is an industrial computer that monitors inputs, and outputs and makes decisions based on the program stored in the PLC’s RAM. PLCs can help reduce human decision-making efforts and increase efficiency. PLCs include internal relays which can work as physical relays and reduce the footprint of relays, driving down costs which helps to drive the industrial automation market growth.

End-User Industry

Manufacturing Covers the Major Market Share in the End-User Segment of the Industrial Automation Market.

Due to the growing trend towards automated manufacturing processes in factories and other industries, the largest market share was held by manufacturing. This segment is expected to grow at a CAGR exceeding 10% during the forecast period of 2023-2032. Automation in manufacturing refers to the use of production software and robotic tools to manage a factory during the manufacture of a product.

These tools can be used to assist businesses in tasks like production planning, inspection, processing, assembly, and inventory management. With technological advances, the range of operations a tool can perform is increasing. Automated systems allow manufacturers to cut down on process time and reduce error rates in their factory processes. These automated systems can be software- or technology-operated and require little to no human intervention. This is expected to increase segment growth during the forecast period.

Healthcare is expected to dominate and account for around 11% of the total market revenue. Healthcare automation refers to a technology system that automates certain parts of healthcare organizations’ workflows. These include both clinical activities as well as non-clinical administrative tasks like scheduling appointments, billing, claims, and scheduling.

Healthcare automation solutions make it possible for healthcare professionals to focus on more important tasks. This is due to the services and consultations offered to patients to address their health concerns, such as curative, palliative, and rehabilitative. Automation and control reduce operational costs and eliminate supply chain errors. They also improve customer service, which allows for better patient care. Automation has allowed doctors to perform surgeries remotely with little human interference, which will drive segment growth.

The automotive industry has a long history of automation. Automakers used industrial robots and sensor technology to improve productivity and efficiency in their assembly plants before other industries looked at automation. Nearly every stage of vehicle manufacturing is automated in most automotive factories. Automation, machine vision, robots, and automation all work together to accomplish a variety of tasks, from welding and assembly to inspection, testing, and maintenance.

Automakers use different levels of automation. Others rely on partially automated processes that automate basic tasks but still allow humans to make final decisions regarding QA and compliance. Some use single automated machines for a specific task or combine them into an automated production line that passes the product from one machine to another.

Note: Actual Numbers Might Vary In The Final Report

Key Market Segments

Components

• HMI
• Industrial Robots
• Control Valves
• Sensors
• Other Components

Control Systems

• DCS
• PLC
• SCADA
• Other Control Systems

End-User Industry

• Oil and Gas
• Automotive
• Healthcare
• Food and Beverages
• Chemicals
• Energy and Power
• Manufacturing
• Other End-User Industries

Regional Analysis

Asia Pacific Dominates the Market with a Major share in the Industrial Automation Market.

The Asia Pacific region was the dominant market, accounting for over 34.5% of the total revenue. It is expected that it will continue to dominate the market from 2023 to 2032. The strong growth can be attributed to the present key market players as well as emerging companies within the region. The region is also seeing a growing demand for better solutions to manage industrial plants in India, China, and other countries. Smart production facilities are a common trend. This helps to increase the acceptance of industrial automation and is driving further market growth in the region.

North America, which is behind Asia Pacific, is projected to grow at a CAGR exceeding 9% between 2023 and 2032. The region’s manufacturing units are driven to use the most recent technological advancements and digital transformation capabilities to improve their business processes. This is due to an increase in competition and increased end-user demands.

ABB Ltd., for example, expanded its manufacturing presence in the U.S. by investing in new EV charging stations. ABB Ltd. E.mobility will benefit from this investment to meet the growing demand for electric vehicle chargers in the region. Many regional industries, including automotive, healthcare, and manufacturing, are adopting industrial automation. Significant companies have placed industrial automation products on the market.

Note: Actual Numbers Might Vary In The Final Report

Key Regions and Countries Covered in this Report:

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherland
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • New Zealand
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Player Analysis

The changing competitive landscape highlights how the market is being reshaped by industry dynamics. Both incumbent companies and new entrants expect organic and inorganic growth strategies to continue to be prominent over the forecast period. These include product launches, mergers and acquisitions, technological advances, geographical expansion, and technological advancements.

Accenture plc acquired Pollux, an industrial automation solutions provider, in April 2021. Accenture plc plans to use Pollux’s expertise and experience in robotics and automation solutions. This acquisition will be in line with its goal.

Key companies are investing substantial capital in joint ventures and research and development in new technologies. Suez, an American water service company, and Schneider Electric joined forces in March 2021 to develop a joint venture that would provide innovative digital solutions for water cycle management. The joint venture will combine SUEZ’s water-related technical expertise with EcoStruxure. Market players are also expanding the capabilities and applications of automation control systems in support of their use in various industries like healthcare, aerospace & defense, automotive, and chemicals.

Top Key Players in the Industrial Automation Market

• ABB Ltd.
• Emerson Electric Co.
• Honeywell International, Inc.
• Kawasaki Heavy Industries, Ltd.
• Mitsubishi Electric Corporation
• OMRON Corporation
• Rockwell Automation, Inc.
• Schneider Electric SE
• Siemens AG
• Yokogawa Electric Corporation
• Fuji Electric Co., Ltd.
• Other Key Players

Recent Developments

• In February 2021, ABB launched cobot portfolios in GoFa cobots and SWIFTI cobots. The cobots can provide high capacity and support the robots in their movements.
• In April 2021, Accenture completed its acquisition of Pollux. This acquisition will expand the expertise and experience of Pollux in automation solutions.
• In July 2021, Siemens AG collaborated with SAP SE to provide a new solution for asset management and services. This partnership will connect plant floor operations, product design through digital twins, and remote condition monitoring with OEMs to improve collaboration throughout the asset lifecycle.
• In June 2021, Plex Systems was acquired by Rockwell Automation Inc., a provider of smart manufacturing solutions. The acquisition will expand industrial cloud offerings through Plex Systems’ cloud-native smart manufacturing platform

Report Scope