Global Industrial Automation Market Size, Share, Growth Analysis, By Component(Hardware, Software), By Industry(Discrete Automation, Process Automation) - Industry Forecast 2022-2028

Global Industrial Automation Market size was valued at USD 177.57 billion in 2021 and is poised to grow from USD 407.268 billion in 2022 to USD 441.7 billion by 2030, growing at a CAGR of 8.84% in the forecast period (2023-2030).

The demand for real-time data analysis across geographies and the growing use of cutting-edge technologies across end-use sectors to improve performance are the main factors driving the industrial automation market. The market for industrial automation is also being fueled by the increased demand for proactive maintenance and real-time data analysis, which would allow businesses more insight into their manufacturing facilities and hence boost efficiency. Increased attention to asset management and preventative maintenance programmes, which would give users more insight into the state of. In order to meet the rising demand and shifting consumption patterns brought on by the expanding population, governments in Europe, the Middle East, and Africa are focusing on the development of discrete and process industries through a variety of initiatives and plans backed by investments to increase productivity. These initiatives taken by governments of various nations for the structural growth of industries encourage the employment of various industrial automation and communication components and technologies.

The COVID-19 pandemic has had a significant impact on both the demand for and value chain of the industrial automation sector. The market for industrial automation solutions has declined in the countries that are being most negatively impacted by the pandemic's expansion. Numerous industrial and infrastructure projects were halted or postponed due to the pandemic's detrimental effects in a number of nations. This affected the industrial automation market's demand. Bahrain, Egypt, Qatar, Saudi Arabia, Nigeria, and South Africa were market leaders in the Middle East and Africa for industrial automation, but the pandemic's negative effects led the growth to stall in 2020.

But throughout this time, there was a discernible rise in demand in the pharmaceutical end-use market as well as the processed food industry. Consequently, during a period of 2 to 3 months of decline following the commencement of the particular pandemic, the medicines and processed food industries made a robust rebound and started recovering at a greater pace. The pharmaceuticals and processed food industries are seeing a strong rise in demand for industrial automation solutions and components as a result of these expanding needs.

Top-down and bottom-up approaches were used to estimate and validate the size of global Industrial Automation Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined by using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analysed to get the final quantitative and qualitative data.

Segments covered in this report

Global industrial automation market is segmented based on component, industry and region. Based on the component, the Industrial Automation Market is segmented into hardware and software. Based on the Industry, the Industrial Automation Market is segmented discrete automation and process automation. Based on Region, Industrial Automation Market is categorized into North America, Europe, Asia-Pacific, South America, and MEA.

Driver

Industry 4.0 Has Changed the Digital Supply Chain Across Industries.

In the worldwide industrial automation market, businesses are driven to adopt industry 4.0 in order to fulfil the changing expectations of their clients, who increasingly want quick and individualised service. Market participants work with tech-savvy companies to offer cutting-edge solutions built on quickly advancing technologies. For instance, in February 2020, Tech Mahindra Limited and Honeywell International Inc. collaborated to develop digital "Factories of the Future" using technology. The partnership wants to help businesses accelerate their digital transformation. Similar to this, Siemens and SAP SE collaborated to offer organisations business processes that were industry 4.0 enabled. A digital thread that spans the full product lifetime will be able to create thanks to these processes in the global industrial automation industry. Businesses are concentrating on employing 5G, industry 4.0, digital transformation, and software capabilities to assist manufacturers, scale up their growth, and realise the potential of those technologies and solutions. These partnerships and alliances are expected to boost demand for automation solutions across industries in the coming years.

Real-Time Data Analysis and Predictive Maintenance are Getting More Important

As a result of the Middle East, Africa, and Europe's rapid expansion, there is intense competition in the industrial industry. Manufacturing firms worldwide are looking for solutions, particularly in end-user industries including oil & gas, food & beverage, automotive, and aerospace & military. This would enable them to have better view of the manufacturing facility and assist real-time data analysis, preventive maintenance, and plant efficiency improvements. Businesses can centralise corporate data and multi-plant operations thanks to industrial automation solutions that offer real-time access to plant floor data. It is predicted that this component would further encourage market expansion. In order to boost operational effectiveness, lower unscheduled downtime, and improve visibility, companies can benefit from industrial automation technologies like HMI that help them closely monitor their production processes and quickly respond to shifting production demands.

Restraint

Costly Initial Capital Investments

Industrial automation processes are economical, but because new technology must be adopted and employees must be trained, they have a high initial capital expense. The return on investment (ROI) cannot be forecast because of the industrial automation market's fragmentation. Because of the high initial costs and erratic return on investment, small and medium-sized businesses (SMEs) are hesitant to employ the benefits of technology.

This barrier is probably going to be removed and new markets for the solutions will soon become available thanks to smart manufacturing strategies and beneficial government efforts like the Make in India movement and the Government of India's MSME enterprise financing programme.

Market Trends

expanding the usage of augmented reality and digital twins in manufacturing to assist market growth. With the use of a digital twin, organisations may evaluate potential enhancements, pinpoint implementation risk reduction, and understand feasibility. The development of the industrial Internet of Things, which incorporates cloud-based platforms and intelligent sensors, has made it simpler to deploy and maintain digital twins. Organisations employ digital twin technology to reduce the possibility of equipment failure in their commercial operations. It also helps in automatically scheduling the repairs by simulating the process. For instance, the Tetra Pak warehouse's supply chain solution was connected by the German logistics company DHL International GmbH in July 2019 using a digital twin. Operations throughout the supply chain would be scalable, affordable, and flexible. Transportation vehicles are outfitted with Internet of Things (IoT) technologies in order to create a digital twin. It guarantees the secure transportation of necessities, such food and drink, from the farm to the consumer. This increase in the use of digital twin technologies in the next years is due to the increased need for automation solutions.

Because it enables the creation of effective, affordable, and responsive system architectures, the Internet of Things (IoT) is crucial for automation. Connecting industrial assets, creating transparency quickly and easily, and improving productivity are some Industrial Internet of Things (IIoT) solutions. IIoT and edge computing solutions simplify the entire lifecycle of device management and shop floor software. Businesses use IIoT technologies to automate the manufacturing process and enhance the consumer experience. The projected rapid use of IIoT solutions across sectors will help the market grow.