Global Industrial Automation Market By Component (Hardware and Software), Control System (Distributed Control System, Supervisory Control and Data Acquisition System, Manufacturing Execution System, Programmable Logic Controllers, Human Machine Interface, and Others), Industry (Discrete Automation and Process Automation) and Region - Market Share, Trend Analysis, Competitive Intelligence, Historical Data, and Forecast 2023 - 2030

Market Perspective

The global Industrial Automation Market was valued at USD 210.75 billion in 2022 and is projected to reach USD 405.96 billion by 2030, growing at a CAGR of 8.07% from 2023 to 2030.

The global industrial automation market encompasses a wide array of technologies and applications. Industrial automation is defined as the use of control systems, such as computers and robots, along with information technologies, to manage various processes and machinery in an industrial setting. It aims to reduce human intervention and enhance operational efficiency.

Key components of industrial automation include sensors, actuators, controllers, and human-machine interfaces (HMIs). These components work collaboratively to collect and process data, control machinery, and provide user interfaces for monitoring and decision-making. Industrial automation employs different types of drives, such as electric, hydraulic, and pneumatic, to power machines and equipment. The applications of industrial automation are diverse, spanning manufacturing, energy, automotive, aerospace, and others. The drivers include the need for increased productivity, cost reduction, improved quality and precision, and enhanced safety, as businesses strive to remain competitive in a rapidly evolving industrial landscape.

Key Insights

• Based on component, the software segment acquired the largest market share in 2022
• Based on control system, the distributed control system segment captured the largest industry share in 2022
• Based on industry, the discrete automation segment generated the significant market share in 2022
• On the basis of region, North America accounted for the largest market share in 2022

Increasing Adoption of Digital Twins and Augmented Reality Technologies Aid Industrial Automation Market Growth

The adoption of digital twins and augmented reality (AR) technology in manufacturing is a significant factor supporting the growth of the global market. Digital twins enable businesses to create virtual replicas of physical systems and processes, thereby facilitating real-time monitoring, analysis, and predictive maintenance. On the other hand, AR technology overlays digital information onto the physical world, assisting workers in tasks such as assembly, maintenance, and troubleshooting. These technologies are revolutionizing manufacturing by enhancing operational efficiency, reducing downtime, and minimizing the risk of equipment failures.

Digital twin technology, bolstered by the industrial Internet of Things (IoT), has become increasingly accessible through the utilization of smart sensors and cloud systems, enabling businesses to simulate procedures and automatically schedule repairs. AR technology is used for hands-free guidance, training, and remote assistance, contributing to quicker and error-free processes. The adoption of these technologies is driven by the need for improved productivity and cost reduction while ensuring the safety and quality of manufacturing processes.

High Initial Capital Investments to Hamper Industrial Automation Market Development

High initial capital investments pose a significant challenge to the growth of the market. While industrial automation procedures are known for their cost-effectiveness in the long run, the initial investment required for technology implementation and staff training can be substantial. The fragmented nature of the market and the diverse range of technologies and solutions available can make it challenging for businesses to predict the return on investment (ROI). This uncertainty presents a major challenge, particularly for small and medium-sized businesses (SMEs), which are cautious about adopting automation due to high upfront expenses. As a result, the high initial capital costs remain a notable challenge for many businesses looking to adopt industrial automation.

Recent Developments

October 2023: Rockwell Automation entered into a definitive agreement to acquire Verve Industrial Protection, aiming to enhance Rockwell's portfolio by incorporating a high-quality asset inventory system and vulnerability management solution.

February 2023: Emerson launched the Ovation Green portfolio, which integrates its power expertise and renewable energy capabilities. This offering combines the acquired Mita-Teknik software with Emerson's Ovation automation platform, renewable energy knowledge base, cybersecurity solutions, and remote management capabilities. This aims to support power generation companies in meeting the demands of transitioning to green energy generation and storage.

Segmentation Analysis

Based on components, the market is categorized into hardware and software. The hardware segment garnered the highest revenue in 2022. This dominance can be attributed to the critical role that hardware components play in automation systems. Hardware components encompass a wide range of devices, including sensors, actuators, controllers, and human-machine interfaces, among others. These components serve as the backbone of industrial automation, enabling the collection of data, control of machinery, and interaction with human operators. The demand for reliable and robust hardware is particularly high in industries where precision, accuracy, and durability are paramount. Industries such as manufacturing, automotive, and aerospace heavily rely on industrial automation hardware to ensure smooth and efficient operations. As a result, the hardware segment boasts a substantial market share, reflecting the vital role these components play in enabling automation across various sectors.

Based on control system, the market is categorized into distributed control systems, supervisory control and data acquisition systems, manufacturing execution systems, programmable logic controllers, human-machine interface, and others. The supervisory control and data acquisition (SCADA) system segment is anticipated to experience significant growth in the forthcoming years. This growth is primarily driven by the increasing demand for real-time monitoring and control of industrial processes. The systems provide a centralized platform for monitoring and managing complex systems, making them highly valuable in industries such as manufacturing, utilities, and infrastructure. With the advent of Industry 4.0 and the Industrial Internet of Things (IIoT), the need for efficient data collection, analysis, and control has surged. SCADA systems offer the capability to integrate data from diverse sources, ensuring better decision-making and process optimization. As industries increasingly strive to enhance productivity, reduce downtime, and improve the overall efficiency of their operations, the SCADA system segment is poised to experience rapid growth due to its pivotal role in enabling these advancements.

Based on industry, the market is categorized into discrete automation and process automation. The discrete automation segment garnered the highest market revenue in 2022. This leadership in the market can be attributed to the extensive application of discrete automation solutions across various industries. Discrete automation focuses on the automation of individual or distinct tasks, making it highly adaptable to a range of industrial processes. It is employed in sectors such as automotive manufacturing, electronics production, and packaging, where precision and speed are critical factors. The discrete automation segment includes technologies such as industrial robots, programmable logic controllers (PLCs), and automated guided vehicles (AGVs), which play a pivotal role in streamlining production processes and improving operational efficiency. With the increasing emphasis on efficiency and cost reduction in manufacturing and assembly processes, the discrete automation segment has experienced substantial growth in recent times, making it a major segment in the global industrial automation market.

North America Emerges as the Dominating Region Due to Strong Focus on Automation Across Different Industries

North America’s leading position in the global industrial automation market can be attributed to several factors. The region boasts a mature industrial landscape with a strong emphasis on automation across various industries, including manufacturing, automotive, aerospace, and energy. The region has been at the forefront of technological innovation and is a major hub for automation solutions providers, including industry giants such as Rockwell Automation and Honeywell. Additionally, stringent regulations and standards pertaining to safety and quality drive the adoption of automation in North American industries. The need for increased productivity, cost reduction, and quality assurance further propels the demand for industrial automation solutions. These factors, coupled with a robust economy, contribute to North America's dominance in the global industrial automation market.

Asia Pacific to Exhibit Robust Growth Due to Rapid Increase in Production of Industrial Robots and Automation Systems

Asia-Pacific is the fastest-growing region in the global industrial automation market, with the highest CAGR. The Asia-Pacific region, particularly Japan and China, has witnessed a rapid increase in the production of industrial robots and automation systems. Japan, in particular, is a leader in the development and production of robotics and industrial automation products. China is a key manufacturer of components such as sensors, microchips, batteries, and other IoT-related technologies, thereby contributing to the growth of the market in the region. Government initiatives in India, such as Make in India and support for small and medium-sized enterprises (SMEs), have encouraged businesses to adopt innovative manufacturing solutions. The dynamic economic growth and the expanding industrial sector in Asia-Pacific position it as a key region for the adoption of automation, thereby solidifying its standing as the fastest-growing region in the global industrial automation market.

Competitive Landscape

The global industrial automation is fragmented with key players such as ABB, Emerson Electric Co, General Electric, Honeywell International Inc., Mitsubishi Electric Corporation, Omron Corporation, Rockwell Automation Inc., Schneider Electric, Siemens, and Yokogawa Electric Corporation, amongst others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product launches, and collaborations to expand their business globally and enhance their competitive position.

The global Industrial Automation Market is segmented as follows:

By Component

• Hardware
• Software

By Control System

• Distributed Control System
• Supervisory Control and Data Acquisition System
• Manufacturing Execution System
• Programmable Logic Controllers
• Human Machine Interface
• Others

By Industry

• Discrete Automation
• Process Automation

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America