The integration of cutting-edge technology and systems into production processes in order to increase productivity, efficiency, and safety is referred to as industrial control and factory automation. Programmable logic controllers (PLCs), supervisory control and data acquisition (SCADA) systems, robots, sensors, and communication networks are just a few of the many technologies that fall under this category. Systems for industrial control are used to monitor and regulate a number of aspects of manufacturing activities, including inventory, processes, and machines. They enable the collecting, analysis, and decision-making of data in real-time, enabling quick reaction to shifting circumstances and enhancing overall production performance. Factory automation increases productivity and product quality while decreasing human error and labor costs by automating repetitive and boring processes.
Productivity gains, optimal resource use, higher product quality, and increased worker safety are the main advantages of industrial control and factory automation. Automation makes it possible to increase production rates, cut cycle times, and streamline workflows, which boosts output and accelerates time to market. Automation systems can also maximize the use of energy, raw materials, and equipment maintenance, which saves money and promotes environmental sustainability.
| ATTRIBUTE | DETAILS |
| Study period | 2020-2029 |
| Base year | 2021 |
| Estimated year | 2022 |
| Forecasted year | 2022-2029 |
| Historical period | 2018-2020 |
| Unit | Value (USD Billion) |
| Segmentation | By Component, By Solution, By Industry |
| By Component |
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| By Solution |
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| By Industry |
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| By Region |
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The primary driver is the requirement for higher productivity and efficiency in manufacturing processes. Automation technologies allow for more efficient workflows, quicker production rates, and less downtime, which boosts productivity and reduces costs. Additionally, the use of automation is being fueled by the increase in labor prices and the lack of skilled people. Automated technologies can take the place of manual labor in manufacturing, reducing labor-related issues and ensuring dependable and consistent output. The development of industrial control and factory automation is also being fueled by technological advancements like the Internet of Things (IoT), AI, and robotics. Intelligent decision-making, data analysis, and seamless networking are made possible by these technologies, which improve process control and optimization. Lastly, the need to reduce hazards in manufacturing environments and the growing emphasis on safety standards are driving the demand for automation solutions.
The high initial cost needed to adopt automation technologies is a major barrier. For small and medium-sized businesses in particular, the expense of obtaining and installing cutting-edge equipment, integrating various technologies, and training staff can be significant. The adoption of automation technologies may be hampered by this cost consideration, particularly for businesses with limited financial resources. The difficulty of integrating automation systems with current manufacturing infrastructure is another constraint. Many factories still use outdated machinery and procedures that are difficult to automate using current technologies. It might be difficult and time-consuming to retrofit old systems or guarantee flawless interoperability across various components.
The rising need for Industry 4.0 and smart manufacturing efforts is one significant potential. The adoption of automation technology is essential as sectors push for greater connection, data-driven decision-making, and real-time monitoring. This creates new potential for solution providers by opening up paths for the implementation of sophisticated control systems, robots, and IoT-enabled devices. Improved operational effectiveness and cost optimization present another possibility. Processes can be optimized, downtime can be decreased, and resource usage can be improved through the use of automation technologies. A favorable market climate is being created as manufacturers increasingly see the potential for sizable cost savings and greater productivity through the use of automation technologies.
The pandemic's significant effects include the interruption of global supply systems. Due to travel restrictions, a smaller workforce, and limits on international trade, the manufacturing industry encountered difficulties. As a result, automation projects and equipment purchases were delayed, which had an impact on the market's expansion. The pandemic, however, also emphasized how crucial automation is to maintaining company resilience and continuity.
The industrial control and factory automation market is expected to grow at 10.5 % CAGR from 2022 to 2029. It is expected to reach above USD 297.51 billion by 2029 from USD 129.1 billion in 2020.
Asia Pacific held more than 35.9 % of the Industrial Control and Factory Automation market revenue share in 2021 and will witness expansion in the forecast period.
The primary driver is the requirement for higher productivity and efficiency in manufacturing processes.
The Industrial Control and Factory Automation market key players include ABB Ltd.; Emerson Electric Co.; Honeywell International, Inc.; Kawasaki Heavy Industries, Ltd.; Mitsubishi Electric Corporation; OMRON Corporation; Rockwell Automation, Inc.; Schneider Electric; Siemens AG; Yokogawa Electric Corporation.
Based on industry, the process sector dominates the discrete industry in terms of market share for industrial controls and factory automation.
Asia Pacific is the largest regional market for industrial control and factory automation market.
The industrial control and factory automation market is segmented based on component, solution, industry.
Industrial sensors are in reality a crucial component with a significant share of the market in the industrial control and factory automation market, according to the data on the market that is currently accessible. Real-time data collection and essential input for automation, monitoring, and control systems in numerous industries are made possible by industrial sensors. Temperature sensors, pressure sensors, proximity sensors, level sensors, flow sensors, and a host of other sensor types are included in the category of industrial sensors. For detecting and monitoring physical variables and environmental conditions in manufacturing processes, these sensors are crucial.
Distributed Control Systems (DCS) do hold a major share of the market in the industrial control and factory automation markets, according to the data on the market that is currently accessible. In companies with continuous, complicated processes, DCS systems are commonly used since they are essential for managing and observing business activities. Distributed architecture offered by DCS systems enables centralized management and monitoring of diverse plant operations and subsystems. To maximize process effectiveness, boost productivity, and guarantee operational dependability, they provide real-time data integration, sophisticated control algorithms, and seamless communication capabilities.
Based on industry, the process sector dominates the discrete industry in terms of market share for industrial controls and factory automation. Sectors include oil and gas, chemicals, pharmaceuticals, food and beverage, power generation, and water treatment are included in the process industry. These industries frequently use batch and continuous processes to turn raw ingredients into final goods. In order to monitor and optimize complicated processes, control variables like temperature, pressure, and flow, and guarantee compliance with safety and quality standards, the process industry needs sophisticated control systems.
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The Industrial Control and Factory Automation market key players include ABB Ltd., Emerson Electric Co., Honeywell International, Kawasaki Heavy Industries, Mitsubishi Electric Corporation, OMRON Corporation, Rockwell Automation, Schneider Electric, Siemens AG, Yokogawa Electric Corporation.
Recent Developments: June 22, 2023: Stora Enso, a leading global provider of renewable solutions in packaging, biomaterials and wooden constructions, selected ABB for supplying sectional drive systems for their Oulu mill in Northern Finland, where their former paper line will be converted into a consumer board line for folding box board and coated unbleached kraft. May 30, 2023: Global software and technology leader Emerson helped the Swedish cleantech company HaloSep to optimize their unique process that turns hazardous incinerator flue gas residue from waste-to-energy plants into usable materials.The Industrial Control and Factory Automation market by region includes North America, Asia-Pacific (APAC), Europe, South America, and Middle East & Africa (MEA).
Several reasons drive the Asia Pacific industrial control and factory automation industry. The region's expanding manufacturing sector is a major driver, especially in nations like China, Japan, and South Korea. In order to improve production, efficiency, and quality control, industries are increasingly looking for automation solutions. The market, however, also has limitations. One significant obstacle is the significant upfront cost of deploying automation technologies, which could inhibit smaller businesses. Widespread adoption is also hampered by worries about job displacement and the necessity for specialized workers. the Asia Pacific market offers significant opportunities. The rise of technologies such as the Industrial Internet of Things (IIoT) and artificial intelligence (AI) presents immense potential. The region's focus on smart manufacturing and Industry 4.0 initiatives creates a favorable environment for adopting advanced automation solutions. Moreover, the need for process optimization, cost reduction, and regulatory compliance provides further opportunities for solution providers.
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