Discrete Automation Market Size, Share & Trends Analysis Report By Type (Programmable Logic Controllers (PLC), Manufacturing Execution System (MES), Distributed Control System (DCS), Product Lifecycle Management (PLM)), By Application (Automotive, Packaging, Textile, Aerospace & defense) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global discrete automation market was valued at worth of USD 5.25 billion in 2017 and is estimated to grow at a CAGR of 7.5% during the forecast period.

Discrete automation primarily focuses on assembling high-quality engineered components, also known as sub-assemblies, into a more efficient and vulnerable final product. Materials are often moved manually in discrete manufacturing environments such as ‘high touch’ labor environments. This technology helps administer several manufacturing processes and operations, resulting in high-quality industrial management.

The global market offers an array of growth prospects owing to rising industrialization resulting in the growing demand for automotives and other machineries. According to the World Bank, South Asia is a competitive leader in the automotive manufacturing sector. South Asian countries such as India, China, and others are growing exponentially in the automotive industry. The Indian automobile industry is the fourth largest globally, with sales accounting for 4.02 million units in 2017. Additionally, the increasing world’s young population is generating demand for the automobile market. According to the World Bank, the world’s young population constitutes 42%, thereby increasing the demand for the automotive market.

Market Dynamics

Regional Analysis

Geographically, the global discrete automation market is segmented into North America, Europe, Asia Pacific, and Latin America and the Middle East & Africa (LAMEA).

North America has several industrial advancements occurring in the automotive sector, such as increasing production and sales in accordance with technological advancements. According to the International Trade Administration (ITA), the U.S. is the second largest market for vehicle production and sales. In the year 2017, the U.S. lightweight vehicles sales hiked to USD 17.1 million units. Additionally, increasing export activities are expected to provide an array of opportunities for ceramic adhesives in the sector. According to the International Trade Administration (ITA), in 2017, the U.S. exported two million lightweight vehicles and approximately 1,30,000 heavy and medium trucks; this would subsequently offer an array of opportunities for discrete automation in the automobile sector of the region.

The discrete automation market in Europe is propelled by the presence of leading automobile manufacturers, which have been offering several growth prospects for application. Germany is a prominent market for car manufacturing with a considerable amount of exports globally. According to the European Automobile Manufacturers Association (ACEA), the European Union exported 5.4 million passenger cars in the year 2017. Additionally, regions such as the U.K, France, Belgium, Spain, Italy, and the Netherlands are potential markets, owing to technological advancements such as tracking systems, sensors, GPS, and others. They need a precise integration to meet consumer demand, thereby expanding the scope for discrete automation.

Asia-Pacific offers several growth opportunities for discrete automation in its most developing countries such as India, China, Indonesia, and South Korea, with the rapid growth of the textile industry. Developing economies such as India and China have the presence of major textile manufacturers. India has the availability of raw materials such as silk, wool, cotton, and jute along with the competitive advantage of cost efficiency in skilled labor and cost of production, thereby boosting the textile industry. Government initiatives promoting the growth of the textile industry and associated exports is one of the significant drivers boosting the production of textiles. For instance, government policies such as Integrated Wool Development Programme (IWDP) have been initiated to promote the wool sector with an aim to enhance its quality and production for fulfilling the rising needs of consumers. The Cabinet Committee on Economic Affairs (CCEA) approved a skill development scheme named “Scheme for Capacity Building in Textile Sector (SCBTS)” with funds amounting to approximately USD 202.9 million.

Latin America is projected to witness an increase in the production & sales of vehicles. Government initiatives for the quick development of the automotive industry, especially in Brazil, are propelling the ceramic adhesives market in the region. According to the Brazilian Association of Automobile Manufacturers (Anfavea), the production of the automotive industry grew by 6.2% in the year 2017.

The Middle East and Africa region is witnessing significant growth, owing to several technological driven policies. For instance, in the Middle East, Saudi Arabia is commencing a significant Information and Communication Technology (ICT) investment program. The expenditure on ICT hiked to 6% in 2017, i.e. approximately USD 36 billion, and it is expected to reach a value of USD 40 billion by 2019. This would certainly widen the scope of discrete automation in industrial verticals.

Segmental Analysis

The global discrete automation market is segmented by type and application.

Based on type, the market can be segmented into Programmable Logic Controllers (PLC), manufacturing execution system (MES), distributed control system (DCS), and product lifecycle management (PLM). Distributed control system (DCS) solutions primarily help in enhancing power generation by simultaneously avoiding the human errors that tend to occur during the distribution process. This system thereby enhances the operational process of industrial verticals.

Based on application, the market can be segmented into automotive, packaging, textile, aerospace & defense, and others. The automotive sector offers an array of opportunities for the market, owing to the surging demand for automotive light weighted vehicles majorly in developing economies such as India and China. According to the State Council, the People’s Republic of China, auto cars sales increased significantly to 6.2% in the year 2017.

Impact of covid-19

The COVID-19 pandemic has caused a global healthcare crisis, resulting in a change in healthcare delivery in most areas. Most unrelated surgeries were postponed in the first half of 2020 to slow the spread of the virus and reduce the strain on healthcare infrastructure. According to Indiana University researchers, healthcare visits declined by approximately 40% in the first six weeks of the pandemic in the U.S, from early March to mid-April.

Following the relaxation of constraints, there has been a general decrease in people postponing seeking care and treatment in healthcare facilities. Furthermore, the slowdown in clinical trial enrollment has pushed back the launch of novel treatments. These considerations may have had a detrimental influence on the autoinjector industry, particularly with its usage in healthcare facilities beginning in early 2020.

However, the overall effect on the autoinjectors market is considered positive, especially during the forecast period, due to several factors. In the biologics space, there has been a shift toward higher delivery volumes and less frequent dosing, which can be achieved through suitably customized autoinjectors.

The COVID-19 pandemic has accelerated the trend of self-injection, allowing patients to be more involved and in charge of their treatment. The trend boosted newer technology in the autoinjector market for improved regulation of injection speed, injection site discomfort, and treatment of anxiety.

Recent Developments