Factory Automation Market Overview
Factory Automation Market is projected to reach $233.5 billion by 2027, growing at a 3.3% CAGR between 2022-2027. Factory Automation is a technology, which involves the usage of automated equipment or machines in various industries to reduce or eliminate human efforts and increase the efficiency of work in a short period of time. In Factory Automation, the manufacturing and industrial sector is growing rapidly and has led to the advancement of technology such as distributed production by factories and services, the implementation of autonomous plants and the increasing use of remote operations to automate certain operations. The adoption of various factory automation components such as programmable logic controller, distributed control systems, manufacturing execution system, human machine interface, safety instrumented system and data acquisition system will drive market growth. Most of the European countries are heading towards innovation and are facing challenges like lack of skilled labor, but the development of Factory Automation companies promotes the production efficiency and empowers rapid economic growth. Most countries are seeking ways to enhance their manufacturing industry and most the Factory Automations companies are seeking to improve the customer experience, which will be based on the new research from Information Services Group (ISG). For instance, in February 2021, Government of India announced various schemes such as Production Linked Incentive (PLI) scheme, Electronics Manufacturing Cluster (EMC) scheme, electronic development fund and Modified Special Incentive Package Scheme (MSIPS) to boost electronic manufacturing in the country and allocated approximately $2.4 billion for 2021.
Report Coverage
The “Factory Automation Market Report – Forecast (2022-2027)” by
IndustryARC covers an in-depth analysis of the following segments in the Factory Automation Market Report.
By Solution: PLC, DCS, MES, SCADA, APS, OTS, Safety Automation and Others.
By Industry Vertical: Process (Oil and Gas, Chemical, Pharmaceutical, Food and Beverage, Metal and Mining, Power, Pulp and Paper, Water and Wastewater and Others) and Discrete (Automotive, Aerospace, Medical, Industrial Machinery, Semiconductor and Electronics and Others).
By Geography: North America (U.S, Canada, Mexico), South America (Brazil, Argentina and others), Europe (Germany, UK, France, Italy, Spain, Russia and Others), APAC (China, Japan India, SK, Australia and Others) and Rest of World (Middle East and Africa).
Key Takeaways
- The use of the advanced software can help in providing flexibility in terms of programming, large memory capacity, better interoperability; and incorporates more features and functions that are suitable for industry applications.
- The demand for PLC system is rising owing to its huge applications in complex automation, having extensive process control requirements, network connectivity, device interoperability, enterprise data integration and many more.
- The adoption of SCADA in various industries has accelerated owing to its various advantages consisting updating and upgrading through cloud, easy retrieval of files and many more.
- The use of the MES is observed in many industries such as pharmaceuticals, consumer packaged goods, automotive industry and many others. The major driving forces for utilizing MES includes development in the production systems, modern logistic concepts and advanced product development processes.
Factory Automation Market - by Region, 2021 (%)
Factory Automation Market Segment Analysis - by Solution
Programmable logic control is an
integration of PC and PLC in a single system to control various processes in
industries and is projected to reach $29.5 billion by 2027. This
controller comprises of two or more processors, PC-based software applications
such as HMI (human machine interface) functions, asset management, historian,
advanced process control (APC) and others with PLC capabilities. This system
can handle both analog and digital signals as it does not incorporate ladder
logic in its programmable interface. This controller is multifunctional,
controlling various types of signals, multitasking, controlling, contributing,
communicating with various clients, reading and writing to system devices and
many other functions can be performed simultaneously. Multi-domain is opted for
data collection, process control and hybrid manufacturing among others. The new
development in PLC is the software that can be easily customized according to
the requirements. This software incorporates standard communication that
assists in transfer of information from various connected systems. This
advancement in technology can be beneficial for production and product
flexibility in many industries.
Factory Automation Market Segment Analysis – by Industry Vertical
In the pharmaceutical industry, Factory
Automation helps to ensure that a consistency is maintained in each batch of
production. It also offers better control of the processes, providing an
ability to monitor the processes from remote locations. This increases the
demand of Factory Automation in the pharma industry. In
the pharma industry, the usage of liquid handling robots to improve
reproducibility and increase the validity of data in High Throughput Screening
(HTS) is one of the developed technologies. This is because the automated
systems are less likely to have inconsistency in reagent quantities and HTS is
a fairly consistent and repetitive process. In Russia, high domestic political
motivation for investment and high oil prices ensured fairly good growth rates
in most of the industries. Investors are striving to use the favorable situation
to the fullest extent and build future-oriented businesses. This is why
investments into high-tech industries and industrial Factory Automation
increased more rapidly. The Factory Automation in pharmaceutical market is
estimated to grow at a CAGR of 5.7% during the forecast period 2022–2027.
Factory Automation Market Segment Analysis - by Geography
APAC is among the major regions, which has been driving the Factory Automation Market accounting for 37.7% share in 2021. In Europe, the number of rig count is decreasing drastically from year to year. The number of rig count decreased from 117 to 82 between 2015 to 2019. Even though there was a decrease in rig count, technology development and implementation of automation has been increasing. This combined with the stabilizing of oil and gas industry prior to Covid-19 to spur the market growth especially in APAC region. With Factory Automation, oil and gas companies are increasingly able to keep track of their pipes and networks with an extraordinary amount of oversight. Development in technologies such as using autonomous underwater vehicles and unmanned aerial vehicles, onshore and offshore pipelines is being done to protect against terrorist attacks, criminal activities and even repair damages. Meanwhile, weather monitoring systems can be used to detect changes in seismic activity as well as ocean and atmospheric levels.
Factory Automation Market Drivers
Industry 4.0 Revolution in the Manufacturing Sector
Industry 4.0 revolution creates smart automation in the phase of
industrialization. Increasing demand for machines in the manufacturing sector
is set to push the Factory Automation Market to new heights. Implementation of
Factory Automation in industries results in many benefits such as productivity
gains, improved team performance, enhanced managerial reporting, error
reduction, cost reduction and higher quality. The growing need to achieve
process optimization in lesser time; in the industrial operations; is coupled
with various government initiatives to adopt automation. And this phenomenon
drives the Factory Automation Market. Azerbaijan is planning to invest more in
automotive industry which is expected to drive the deployment of automation and
controls in this country. Along with the increasing investments in automotive
industry, it is also observed that the key players in oil & gas and utility
sector are planning for the upgradation of the manufacturing units which is
expected to drive Factory Automation Market. Rising rate of the population
entering the middle and upper classes is increasing the consumption at
consumer's end and allowing industries to implement automation to maintain or
enhance their production output, thus, enlarging the growth of the market. In September
2020, U.K. government announced to invest $180 million approximately in the
second phase of its “Manufacturing Made Smarter” scheme, to boost
interconnectivity and innovation in the manufacturing sector.
Reduction of Operating Costs with the advent of IoT
The main motivation for
mechanization of IoT is to suggestively decrease the functioning expenditure
when automation devices, sensors, transmitters and actuators are converted to
internet enabled devices. The labor cost is highly significant in the
total industrial operating cost, making generally 60%–65% of the total cost. In
majority of the cases, manual jobs typically consist of two categories: direct
staff and indirect staff. Direct staff is responsible for executing the
process, while indirect staff is the backend support for direct staff. In
developing nations, there is a constant growth in ageing workforce, resulting
in issues related to safety, quality control and productivity. Thus, the
automation of industries has become a notable means to tackle the rising wages
and workforce age. This has resulted in the industrial operators to rely upon
automation to provide a convenient and efficient way of reducing the
operational costs, while simultaneously maintaining the productivity at optimum
levels. According to International Federation of Robotics R & D Programs
data, Government of China, being the largest investor in robotics research,
invested $577 million in 2021 for the research & development of intelligent
robots with IoT Capabilities.
Factory Automation Market Challenges
High Initial Investment
Automated machines can be one of the most-costly operations for
a company. Automated machines run anywhere between thousands and millions of
dollars depending on the type and degree of automation. Apart from the
initial costs, there might be several unpredictable costs which may surpass the
real cost saved by the accomplishing automation in the company. Some of these
costs include research and development costs of automating a process and
anticipatory repairs & maintenance costs. In addition to the above-mentioned
costs, there is a training cost associated with the automated machines and
equipment that further restricts the industrial operators’ likeability in
developing economies for automating their operating lines.
Factory Automation Market Landscape
Product
launches, acquisitions, Partnerships and R&D activities are key strategies
adopted by players in the Factory Automation Market. Factory Automation Market’s top 10 companies include:
- Honeywell International Inc.
- Siemens AG
- ABB Ltd.
- Emerson Electric Co.
- KUKA AG
- Schneider Electric
- Mitsubishi Electric Corporation
- Endress+Hauser AG
- Yokogawa Electric Corporation
- General Electric
Recent Developments
- In July 2021, TE Connectivity Ltd., a global leader in connectivity and sensors, announced to acquire ERNI Group AG (ERNI), a leading firm in electronic connectivity for factory automation and automotive. The acquisition increases TE’s broad connectivity product portfolio such as high-speed and fine-pitch connectors for factory automation, automotive, medical and other industrial applications.
- In March 2020, Yokogawa Electric launched digital manometer. MT300 uses silicon-based resonant sensor and is used to monitor pressure in the industrial applications.
- In March 2020, ABB launched “Ability Mine optimize” to its digital portfolio. It is an innovative solution of optimized electrification and automation solutions among others.
Relevant Report Titles:
Robotic Process Automation Market - Forecast(2021 - 2026)
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Process Control Automation Market - Forecast(2021 - 2026)
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Industrial Connectors Market – Forecast (2021 - 2026)
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