The advent of industry 4.0 and high advances in the automation technology are surging across multiple industrial verticals. Most of these recent innovations are end-user driven, which is a current trend in the automation market. The proliferation of cutting-edge technologies such as artificial intelligence (AI), robotics, machine learning, and Internet of Things (IoT), smart devices are now a ubiquity in manufacturing sectors. These devices enable users to automate repetitive tasks and also to reduce the complexity of infrastructure and operations, thereby ensuring a smooth flow which enhances efficiency of the overall supply chain. Owing to these benefits offered by automation, investments are pouring in for restructuring of legacy production methods. As a result, the Global Process Automation and Instrumentation Market attained a valuation of $60 billion in 2018, and is estimated to rise at a CAGR of 5.5% during 2019-2025.
A Glimpse into Investment Patterns of Market Players –
With advancements in automation, industry players across different verticals are trying to stay ahead of the game, which is resulting in huge investments and associations in the automation industry. High incidence of automation investments comes from the cohort of small and medium scale manufacturers that are likely to meet with the demand to fortify the supply chain of these companies. On the other hand, major investments by global manufacturers are observed to reduce their production costs and reinforce their operations by fixing their technological and infrastructural impediments.
Investments by key organizations in the form of acquisitions and partnerships with automation companies are popular in the process automation and instrumentation industry. Few of them include:
Partnership to enhance automation operations – In June 2019, the ExOne Company, a global leader in industrial sand and metal 3D printers, partnered with Siemens, a global company in automation and digitization. With this partnership, ExOne will deliver industrial 3D printers, to manufacturing customers, that integrate with the sensing, control, and motion technologies of Siemens.
Acquisition – In 2019, KPM Analytics acquired Sensortech Systems, a company with expertise in radio frequency (RF) technology and near infrared resonance (NIR). With this acquisition, KPM Analytics expands NIR technology portfolio while adding RF technology of Sensortech Systems to automate their real-time moisture measurement and quality control.
Asia-Pacific to Dominate the Automation Market –
The Asia-Pacific region has a strong base for automation and manufacturing sectors. Industrial robots constitute a major part of the automation and instrumentation market. Owing to this, Asia has emerged as the strongest market for robot installations and witnessed an annual growth rate of 25% during 2012-2017. Besides, China is emerging as a global leader in automation owing to its share of 36% in the global robots market. Moreover, programs such as “Made in China 2025”, “Make in India” are strengthening the market size and investments in the manufacturing sectors of China and India. As a result, the region has emerged with a share of 33.75% in the global process automation & instrumentation market.
Customer-Centric Environment in Food & Beverage Augment the Process Automation and Instrumentation Market Demand
The food and beverage industry is embracing customer-centric environment with the advent of automation process. Quality control and fault-tolerance are the vital aspects of food and beverage supply chain. Along with these aspects, end-to-end traceability of the food products is being effectively implemented with the help of automation and analytics tools. This reduces consumer complaints and food inspection as the food product can be tracked from inception to fulfillment. Besides, automation through effective traceability safeguards against detrimental effects such as labeling and packaging errors, microbial impurities, and contaminated shipments. This in turn profits the overall supply chain in the food industry. Owing to these benefits, the food and beverages sector is thriving in the process automation and instrumentation market, and will grow with a CAGR of 8.74% during the forecast period.
Process Automation & Instrumentation Market Trends and Growth Drivers
Industry 4.0 Boosting Development of Automation Pyramid of Industries –
· Industry 4.0 acts as a significant driver for the process automation and instrumentation market living up to its hype. Collecting data and applying analytics are the most important aspects of processes in the Industry 4.0, also known as the Industrial Internet of Things (IIoT). This process should be achieved in an IT-friendly manner to be adopted by a large proportion of industries. Owing to this, equipment and processes are integrated and automated without increasing complexity to collect the data. This is driving the demand for process automation across different verticals such as pharmaceutical, healthcare, paper & pulp, and oil & gas.
· Automation at MES level - Manufacturing Execution Systems (MES) have become more crucial than ever for industries owing to the Industry 4.0. MES, which resides at the operation level in industrial automation, is evolving with new smart technologies. Next gen smart robots, cobots, enhanced connected equipment, increasing data analytics, smart sensors are a few aspects of automation in MES. These aspects of Industrial 4.0 pertaining to automation at the MES level are propelling demand for the automation and instrumentation market, especially in the manufacturing sector.
To withstand competition from the market, companies are enhancing their visibility for customers as well as for other stakeholders. Business integration systems enable companies to improve automation of business and functional operations, real-time visibility of operations, and integration among stakeholders. In order to meet these requirements, continuous testing and working on multiple tools is increasing. The ever-growing adoption of continuous delivery and deployment practices of these tools and technologies are driving demand for more robust and industry-specific automation strategies. Besides, automation in these processes provide cost-cutting, more fault-tolerance, and application and maintenance flexibilities. This demand from the business systems integration to enhance operations is boosting the process automation and instrumentation market demand.
Increasing Demand for Cybersecurity in Safety Automation -
Process safety automation is undergoing radical changes with the advent of cybersecurity. With increasing industrial automation, cybercrime is becoming an important issue within industrial automation and control systems around the world. In 2018, about 91% of the global countries reported to have a cybercrime legislation and the measures are taken by individual governments to implement robust strategies to implement sustainable environments. These initiatives are gaining huge traction across various verticals. Industrial cybersecurity solutions are deployed in industrial automation equipment, plants, and other applications and tools.
The approach of these cybersecurity solutions is hybrid and effective. However, the demand is further increasing to extend functionality in non-PC-based industrial equipment and control systems, and also to meet and manage cybersecurity in industry-specific integrated systems. This increasing demand for automated and customized industrial cyber-security solutions is gaining demand in the process safety automation market.
Key Players Perspective in the Process Automation & Instrumentation Market
The key companies operating in the global process automation and instrumentation industry are Honeywell International Inc., Emerson Electric Co., Schneider Electric Se, Yokogawa Electric Corporation, ABB Ltd., General Electric Co., Mitsubishi Electric Corporation, Metso Corporation, Yokogawa Electric Corporation, and Beckhoff Automation GmbH & Co., Kg. These key players are providing a wide range of solutions coupled with the outreach services, and tailored as per industry requirements.
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