Electrical Automation Market - Forecast(2023 - 2028)

Electrical Automation Market Overview:

Technological advancements such as robotics, artificial intelligence, machine learning, and the Internet of Things are enhancing productivity at individual as well as industrial level. Electrical automation is the convergence of electronic system with automation to digitally control the process. As per the United Nations Industrial Development Organization (UNIDO), the manufacturing sectors has reduced its global capacity as an employer from 22% in 1991 to under 13% in 2016 and it is further foreseen to be deducting.^[1] Leveraging over this stride of automation in manufacturing industries positively impacting production and assembly line, where it covers each aspect of industrial operations, electrical automation market is poised for exponential growth.

Various other end-user applications including infrastructure, lift control, robotics, gas measurement & regulation, marine and commercial vehicles for efficient as well as economic operations are employing electrical automation. Such immense range of adjacent sectors has driven the market size to $27.64 billion as of 2018 and is progressing with a global compound annual growth rate of 4% during the forecast period of 2019-2025.

Electrical Automation Market Outlook:

Some most trusted tool brand that help to perform electrical automation task in easy and reliable manner are human machine interface (HMI), distributed control system (DCS), and supervisory control and data acquisition (SCADA).

Further analysis of electrical automation market application segments estimated building electrical automation to be the leading subdivision progressing with an application CAGR of 5.94% going through 2025. Building automation is an example of a distributed control system, it’s an amalgamation of electrical hardware and communication network technology aimed at monitoring and controlling the mechanical, security, fire and flood safety, lighting, HVAC and humidity control and ventilation systems in a building. It is an effective tool for energy conservation and at the same time to regulate electric power distribution throughout the infrastructure. As per the Global Alliance for Building and Construction, energy demand in buildings could increase by 50%, while global building floor area is expected to double by 2050.^[2] Thus, leveraging the global issue of energy security, electrical automation in buildings is forecast to submit substantial demands in the market.

Electrical automation is a trend developing globally and converging with numerous sectors from robotics and industrial to energy and emission. Europe being the front-runner in terms of technological advancement, is reckoned to be the region generating highest demand for electrical automation, accounting for 36.19% of the global demand in 2018. Some factors supporting the argument-

·      The drift augmented by the European automotive market towards automation is fuelling the electrical automation market of Europe. The demands from this specific sector can be estimated by the fact that 11% of the European Union manufacturing employment is sourced by its automotive sector.

·       The European Union is developing a body ensuring energy security. Fulfilling these objectives requires wiser energy usage which is diverting traffic towards electrical automation in infrastructures via smart grid technology and electrical relays. The goals set by the union creating demand for electrical automation are a fully-integrated internal energy market for a free-flow of energy without technical glitches and energy efficiency.^[3]

·         Automation in the warehouse robotics market with a value of $2.79 billion as of 2018 is a major trend disrupting the electrical automation market. With the advent of virtual retail companies such as Amazon and E-Bay, warehouse associated with it are adapting electrical automation for efficient logistics operations alleviated of human-errors causing adverse economic effects.

·         Electrical automation solutions have also converged with the existing automation in food & beverages, banking, and oil & gas industry that is totally operated on digital control system to minimize human occupancy in operations and make the process precise, accurate and less-energy consuming. The flourishing retail automation market progressing with a CAGR of 8.60% (2019-2025), is stroking the electrical automation market with abundant demand. F&B retail giants such as McDonalds and KFC has stationed touch screen ordering and payment devices shrinking the necessity for cashier employees.

·         In 2018, Emerson publicized its association with Texas A&M College of Engineering to develop an Advanced Automation Laboratory. It is financed with a donation of $1.5 million to deliver practical knowledge about the purpose of electrical automation in oil and gas, refining, life sciences, and food and beverage industries.

A major factor restraining the electrical automation market is its expensive cost of implementation with economically marginalized vendors deprived of its application. Majority of the electrical automation demand is from technologically developed economies with the larger markets of under-developed nations not being capitalized. However, with influx of investments into R&D targeting commercializing of electrical automation is foreseen to expand the market size and converge is with untouched arcades globally. And also, with global population expanding unrestrainedly, automation is an imperative asset for efficient production demand otherwise industries will fall short of production as per the requirements.

Electrical Automation Market Players Perspective:

Some of the key players operating in the electrical automation market are Siemens, ABB, Emerson Process Management, Rockwell Automation, Schneider Electric, Honeywell process solutions, Mitsubishi electric, Yokogawa electric, Omron automation, and Danaher Industrial Ltd.

Emerson through acquisition of intelligent platforms of General Electric in 2018 to is set to magnify its portfolio in the global automation market. Through this agreement, Emerson has increased opportunities to develop itself in electrical automation machine-control involved in metals & mining, life sciences, food & beverage, and packaging industries.

Electrical Automation Market Research Scope:

The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the electrical automation market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include the various application segment in electrical automation market, and their specific advantages.

•           North America: The U.S., Canada, Mexico

•           South America: Brazil, Venezuela, Argentina, Ecuador, Peru, Colombia, Costa Rica

•           Europe: The U.K., Germany, Italy, France, The Netherlands, Belgium, Spain, Denmark

•           APAC: China, Japan, Australia, South Korea, India, Taiwan, Malaysia, Hong Kong

•           Middle East and Africa: Israel, South Africa, Saudi Arabia

1.         Is the market for the electrical automation growing? How long will it continue to grow and at what rate?

2.         Which type of systems presents the major growth opportunities?

3.         Is there a possibility for change in the market structure over time? 

4.         Are additional developments needed for the existing product or services offerings or do the existing products meet the customer demands?

5.         Do the key vendors look for partnerships to expand their businesses with respect to geography or product?

6.         What are the short-term, long-term, and medium-term growth drivers for the market?

7.         What are the short-term, medium-term, and long-term challenges for the market?

8.         What are the short-term, medium-term, and long-term opportunities for the market

9.         Who are the top players/companies of the market?

10.       What are the recent innovations in the market?

11.       How many patents have been filed by the leading players?

12.       What are the types of patents filed by the leading players?

13.       What is our Vision 2030 electrical automation market?

•           Give a deep-dive analysis of the key operational strategies with focus on the corporate structure, R&D strategies, localization strategies, production capabilities, and sales performance of various companies

•           Provide an overview of the product portfolio, including product planning, development, and positioning

•           Discuss the role of technology companies in partnerships

•           Explore the regional sales activities

•           Analyze the market size and giving the forecast for current and future electrical automation market during the forecast 2019–2025

•           Analyze the competitive factors, competitors’ market shares, product capabilities, and supply chain structures.

 [1] https://sustainabledevelopment.un.org/content/documents/2537IDR2018_FULL_REPORT_1.pdf