Industrial Automation Market Worth $306.2 Billion by 2027

According to this latest publication from Meticulous Research®, the industrial automation market is projected to reach $306.2 billion in value by 2027, at a CAGR of 9.3% during the forecast period. The industrial automation market is witnessing rapid growth due to the incorporation of automation solutions in industrial processes. The growing need for digitalization and improving manufacturing facilities' safety due to increased fatalities and safety risks to the workforce also contributes to the market’s growth. According to the Bureau of Labor Statistics, there were 5,250 fatal work injuries recorded in the U.S. in 2018. Automated systems are beneficial for managing and saving time as they allow faster responses through real-time monitoring and alert the company before a breakdown. However, cyber threats associated with automated systems comprising robots and various software are a challenge for the market’s growth.

The growth of the industrial automation market is gaining pace due to several strategic developments by the industry leaders to develop their automation portfolios and gain higher market shares. Huge R&D investments, collaborations & partnerships, and the development of new automation solutions & services are the major strategies adopted by the key market players in recent years. For instance, in January 2021, ABB launched its new condition-based maintenance service for the assessment of fleet and individual robots. The new service offers optimized robot performance due to its improved robot management features.

The industrial automation market is segmented on the basis of component (plant instrumentation [sensors, motors & drives, relays & switches, machine vision systems (cameras, optics and LED lighting), robots (articulated robots, cartesian robots, SCARA, collaborative robots, and other robots), and other plant instrumentation components], plant-level controls [PLC, SCADA, DCS, other plant-level controls], enterprise-level controls [PLM, ERP, MES]), mode of automation (semi-automatic, fully-automatic), and end user (oil & gas [upstream, midstream, downstream], chemicals & materials, paper & pulp, pharmaceuticals & biotech, mining & metals, food & beverage [beverages & distilleries, dairy processing, bakery & confectionery, meat, poultry, and seafood products, fruits & vegetables, oil & fats, other food & beverage end users], power, consumer goods, automotive, machines & tools, semiconductors & electronics, aerospace & defense, other end users). The study also evaluates industry competitors and analyzes the market at the country level.

Based on component, the industrial automation market is segmented into plant instrumentation, plant-level controls, and enterprise-level controls. The plant instrumentation segment is projected to record a high growth rate over the forecast period due to the high adoption of robots, sensors, machine vision systems, and 3D printing solutions across the end-use industries. These components help control processes by integrating with the overall manufacturing control system and the logistics chain. The demand for robots has increased due to the consumers’ need to cater to a wide application area as robots can be programmed to perform repetitive and risky tasks with consistent precision, accuracy, and quality. The technology used in robots allows them to operate round the clock even in harsh environments, increasing productivity and profitability and reducing the human labor required for performing activities that might lead to physical injury, thereby increasing workplace safety and reducing labor costs.

Based on mode of automation, the market is segmented into semi-automatic and fully-automatic systems. The fully-automated segment is expected to register the higher CAGR due to the increasing deployment of fully-automatic systems by companies focused on increasing their production capabilities. The adoption of fully-automatic systems helps companies increase their throughput volumes by automating the feeding and assembly processes. The companies adopting fully-automatic systems are usually large-scale companies that already have automated equipment in their facilities and are exploring new ways to minimize long-term costs by reducing human labor.

The industrial automation market caters to end users across the oil & gas, chemicals & materials, paper & pulp, pharmaceuticals & biotech, mining & metals, food & beverage, power, consumer goods, automotive, machines & tools, semiconductors & electronics, aerospace & defense, and other industries. The chemicals & materials segment is expected to grow steadily due to the increasing implementation of IoT and process automation solutions in recent years. The chemical industry is witnessing intense global competition and low product differentiation, making cost control necessary. In such an environment, automation solutions offer dual benefits of innovation in the areas that matter to consumers and improved cost efficiency throughout optimized production. The chemicals & materials industry also needs to control raw material & energy costs, which can be achieved using IIoT and automation technologies, which is further expected to create opportunities for the market’s growth.

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