by The industrial automation market is poised to witness significant growth driven by increasing adoption of Industry 4.0 technologies. Industrial automation involves the use of control systems like computers or robots and feedback loops to control equipment and machinery reducing the need for human intervention. It helps drive consistency, speed, and precision in various production and operating processes across industries like oil & gas, mining, manufacturing, and power generation.
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.
Industrial Automation Market Trends offers manufacturing industries numerous advantages such as improved operational efficiency and productivity, minimized production downtime and costs, as well as better product consistency and quality. Demand for industrial robots, machine vision systems, industrial 3D printing, collaborative robots or cobots, and other smart automation solutions is growing massively as factories shift towards digitally transforming legacy processes into smart automated systems.
Key Takeaways
Key players operating in the Industrial Automation market include ABB Ltd, Adisra, Emerson Electric Co., Endress + Hauser, FANUC Corporation, Fizyr, General Electric Company, Honeywell Process Solutions, and Mitsubishi Electric Corporation. These companies are investing heavily in developing advanced IoT-enabled sensors and controllers along with integrated software and analytics platforms.
The growing need for optimized productivity and reduced operational costs across industries has also boosted demand for industrial automation equipment and solutions globally. Manufacturing industries are increasingly automating material handling, assembly, product testing, and packaging processes to gain competitive advantages.
Geographically, countries like China, USA, Japan, Germany are at the forefront in adopting Industry 4.0 technologies due to supportive government policies. Rising labor costs coupled with growing foreign investments in these nations has accelerated the rate of automation, especially in high-wage countries. Several emerging economies are also implementing various initiatives to modernize infrastructure and strengthen manufacturing capabilities through industrial automation.
Market Key Trends
The increasing integration of advanced technologies like AI, machine learning, computer vision, and edge computing with industrial control systems is a key trend in the automation market. It is allowing machines to self-optimize, interact with each other autonomously as well as with human workers safely in collaborative production environments. Furthermore, the growing demand for personalized and varied product customization from customers at affordable costs is driving manufacturers to adopt smart flexible automation platforms. This helps achieve lean manufacturing strategies and mass customization through reconfigurable automated work cells and quickly changeable tooling.
Porter’s Analysis
Threat of new entrants: High capital requirements for R&D and manufacturing act as a barrier for new companies. Bargaining power of buyers: Industrial customers have high bargaining power due to the availability of substitutes and large purchase volumes. Bargaining power of suppliers: Suppliers of industrial automation equipment have moderate bargaining power due to differentiated products and services. Threat of new substitutes: Threat of substitution is moderate as switching to alternative automation solutions requires high capital investment. Competitive rivalry: Intense competition exists among established automation giants to gain market share through product innovation and providing integrated solutions.
Geographical Regions
Asia Pacific region holds the largest share of the Industrial Automation Market Regional Analysis in terms of value due to growing industrialization and presence of emerging countries like China and India. North America is another major regional market driven by food processing, automotive and oil & gas industries in the US and Canada adopting smart automation technologies.
The industrial automation market is witnessing the fastest growth in the Middle East and Africa region. Automation adoption is increasing across sectors such as metals & mining, food & beverages and downstream oil & gas to improve productivity and meet rising energy demand in the region. Countries like Saudi Arabia, UAE and South Africa are at the forefront of the growing automation trend in MEA.
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1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it.
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.
