The global factory automation and industrial controls market size was valued at USD 220.81 billion in 2021. It is projected to reach USD 503.86 billion by 2030, growing at a CAGR of 9.60% during the forecast period (2022-2030).
The term "industrial automation and control systems" refers to a group of people, pieces of equipment, and computer programs that can influence or affect how safely, securely, and dependably an industrial process runs. The majority of IACS can be controlled or monitored remotely. However, the risks and difficulties of doing so can vary depending on the kind of system and its purpose. With machinery and devices being connected via the internet, the Industrial Internet of Things (IIoT) and Industrial 4.0 are at the forefront of new technological approaches for developing, producing, and managing the entire logistics chain. These approaches are also known as smart factory automation and dominate the industrial sector trends.
Growing Importance of Energy Efficiency and Cost Reduction
Over the past 25 years, manufacturing employment has decreased in the United States. These industries' main problems are rising labor costs, pressure to reduce prices, and rising material costs. Additionally, the variable unit labor costs in the US are a sign of inconsistent productivity, which has accelerated the speed of automation adoption across the industrial sector, lowering manufacturing costs. While risk management is crucial, manufacturers are becoming more aware of the precise characteristics that make technology a profit driver at any particular stage of the industrial cycle.
At the same time, exposure to variations in material costs has been decreased because of material savings from improved labor efficiency. Automation enables flexibility according to shifting demand levels, enhancing overall profitability and competitiveness, mainly when low prices are low, and is done with the same cyclical impacts in mind. According to the Manufacturing Business Survey Committee of the Institute for Supply Management, industrial material costs increased in 2020 following a decline in the previous year.
Problems in the Trade and Implementation
Investors have been looking at other manufacturing locations due to increased production costs in China and the strengthening of the Yuan against the dollar. Firms must concentrate on high-quality production and environmentally responsible manufacturing practices in order to achieve this. It takes years for a fully automated plant to adapt and advance with new technology. Regional growth has been constrained by unfavorable or postponed measures on active automation adaptation. Robotics manufacturers had to reevaluate their supply chains due to rising trade tensions between the US and China in May 2019. For example, the components used in vision systems were and still are subject to the highest tariffs.
At the end of 2019, Siemens AG noticed a noticeably deteriorating market climate in Europe. According to the corporation, the heavily export-dependent economy of Germany was negatively impacted by trade disputes, particularly with Italy. Automation and ICS have historically been rigid regarding implementation issues; as a result, the macro and microeconomic implications are seen in factory-level economics. Numerous studies have demonstrated that the shift in manufacturing production from labor-intensive to capital-intensive is a significant factor in the slowdown in Total Factory Productivity (TFP).
Increases Productivity and Accuracy
Workstations are connected by transfer lines to form automated production lines, and every workstation handles a certain step in the production process. The system can be set up to handle application logins and administrative tasks associated with business processes. On the factory floor, robots can handle raw materials, clean machinery, run high-pressure systems, and do various other tasks. For instance, in a plant that makes cars, many press working stations are used to cut and shape the various auto parts. Then, all the components are gathered in one location, where a robot assembles them to create the vehicle. The automation of processes results in a significant acceleration of the production process.
Accurate data integration and connectivity are the foundation of data automation. Exact results can be guaranteed when reliable information is employed in production. Also, detailed data can be examined using data analytics tools to obtain correct information using AI and ML technologies. Self-healing digital grids that regulate energy generation using data analytics and wise energy forecasts are created using deep learning algorithms. A self-learning assembly line quality control system has been created using machine learning software. Scalable and self-learning ML and AI systems. These two aspects guarantee that the automated systems consistently produce reliable results.
The global factory automation and industrial controls market is segmented by product and end-user industry.
Based on product, the global factory automation and industrial controls market is bifurcated into field devices and industrial control systems.
The field devices segment is the highest contributor to the market and is expected to grow at a CAGR of 15.40% during the forecast period. Machine learning software, industrial cameras, optical and lighting systems, image-acquisition systems, frame grabbers, and vision systems are some examples of machine vision systems. Due to fundamental characteristic analysis and measurement features, machine vision systems and their components are increasingly being used in various industries. Machine vision is being used more frequently due to the strong emphasis placed on product quality control across various industries. Early in 2020, Automation World undertook a study to shed more light on the subject, with 37% of participants coming from the process industries, 46% from discrete manufacturing, and the remaining 17% from, among other industries, mining and system integration.
The cost, usability, and simplicity of the available collaborative robots for training are also improving. This primarily gives businesses various options and spurs interest in and demand for these robots. The assembly lines in the car industry are now more productive, efficient, and economical due to artificial intelligence. By automating the manufacturing process, shop floor industrial robotics, particularly cylindrical robots, changed how cars are produced. As an illustration, Techman declared in 2020 that its collaborative robots had joined the supply chains of European and American automakers.
Based on the end-user industry, the global factory automation and industrial controls market is bifurcated into automotive, chemical and petrochemical, utility, pharmaceutical, food and beverage, oil and gas, and other end-user industries.
The oil and gas segment owns the market share and is expected to grow at a CAGR of 8.40% during the forecast period. ICS is used in remote terminal units (RTU) and pumping and compression stations to ensure safety because the oil and gas sector is subject to several government rules for safety, plant dependability, and efficiency. The industry is rapidly implementing ICS solutions to preserve safety and environmental purity without sacrificing production efficiency. In order to satisfy the demands of reasonably priced energy and strict governmental standards, automation aids in integrating information and control, power, and safety solutions. To monitor gas and liquid measurement data from the wellhead to production, storage, transportation, processing, and points of sale, upstream and midstream enterprises needed critical data management skills.
Defect detection used to ensure product quality, prevent medication mix-ups during packing, verify label printing, barcodes, color recognition, etc., is one of the crucial inspections in the pharmaceutical and chemical industries. The use of automation and control technology in the pharmaceutical industry is promoted by mandating company spending on automation. The management of bottle orientation, capping, labeling, and collation systems is one of the primary uses of smart factories in pharmaceutical packaging systems. The demand for automated packaging machinery, stricter standards, and shorter time to market are all contributing to the growth of items related to the smart factory.
The global factory automation and industrial controls market is divided into four regions: North America, Europe, Asia-Pacific, and LAMEA.
North America Dominates the Global Market
North America is the most significant shareholder in the global factory automation and industrial controls market and is expected to grow at a CAGR of 8.65% during the forecast period. Furthermore, North America has seen several mergers and acquisitions, pumping capital into the industry under study and indirectly assisting the expansion of numerous end-user sectors. For instance, Cimetrix Incorporation, a provider of equipment connectivity products for smart manufacturing and Industry 4.0, was acquired by PDF Solutions Inc. in November 2020. The acquisition is anticipated to contribute to the expansion of smart factories in the manufacturing of semiconductors, packaging, and electronics. In order to promote and develop apprenticeship programs and to help workers who deal with industrial automation enhance their abilities, there have been numerous partnerships and collaborations around the nation. By supplying the essential skills and enticing more businesses to use the technology, such programs are anticipated to contribute to the market's overall growth.
Europe is anticipated to grow at a CAGR of 9.20%, generating USD 129.83 billion during the forecast period. In 2020, the manufacturing industry contributed around 25% of the UK's GDP. Despite being one of the top industrial economies in the world, the nation's manufacturing industry is continually growing and expanding. The nation can use its manufacturing skills due to rapid developments in digital and disruptive manufacturing technologies, emphasizing the sector's significance for economic growth. The UK is among the top 5 countries in the world for innovation. The area plans to increase total spending on R&D to 2.4% of the GDP by 2027 to strengthen its capabilities in creating and implementing ideas and become the most inventive economy.
China has dominated the market for industrial robots, paving the way for factory automation in the region and making it one of the top producing nations worldwide and in the Asia-Pacific. Scaled factory automation is made possible by a rise in the importation of industrial robots into the nation and the widespread use of different Industrial Control System software. The research also claims that the operational stock of industrial robots rose by 21% to 783,000 units in 2019. The pace of new installations in China slowed in 2019, but good development is anticipated as the pandemic shifts the emphasis from skilled manual labor to industrial robots.
The LAMEA market is anticipated to grow significantly during the forecast period. According to the Association for Advancing Automation in Mexico, the country is currently the fourth-largest importer of robots. It is envisaged that this highly advanced Industry 4.0 facility would produce essential components for connected transportation. However, the ICS may be counted as a sizable market in Mexico due to the low manufacturing costs and diversifying consumer base. However, Mexican manufacturers deal with the same problems as their American counterparts: declining profit margins, evolving consumer preferences, shortened product lifecycles, and a general need for more adaptable production processes. The area's large-scale oil and gas production has created a sizable market for the digital transformation of the manufacturing sector. Recently, Ericsson stated that it would start using 5G for commercial purposes with operators in the United Arab Emirates, Saudi Arabia, and Qatar.
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