According to the new research report titled 'Industrial Automation Market Forecast to 2028 - COVID-19 Impact and Global Analysis,' the market is expected to reach US$ 233.94 billion by 2028, registering a CAGR of 7.6% from 2021 to 2028.
Automation in the food & beverages industry refers to strategic integrations of technologies across various production processes, such as inspection, packaging, and storage. Over the years, food & beverages companies have optimized different production processes through the uptake of automated systems, such as delta robots, automated guided vehicles, and robotic arms, to be in line with various food safety & quality standards laid down by regulatory bodies and reduce overall labor cost across production sites.
Vision-guided robots are experiencing a rise in demand across the industrial automation market due to their efficiency in completing repetitive tasks, such as bottle handling, bin picking, and tray loading. Numerous benefits, including enhanced traceability, improved efficiency, and high flexibility, have been driving the need for automation in the food & beverage industry over the years. These factors have encouraged food & beverage producers to invest heavily in automated technology integration across their production facilities. For instance, a US-based snack brand, Utz Brands Inc., announced its plans to integrate automated capabilities across its production plants to reduce its overall operational cost in 2021. Similarly, Hormel Foods is also planning to incorporate automation across its production facilities in 2022. Other food & beverage brands rapidly adopting automated technology include Tyson Foods and ITC. Thus, the rise in investment in automation across the food & beverage industry is fueling the growth of the industrial automation market.
The MEA industrial automation market is negatively impacted by the disruption in the supply chain of robotics and related components. The demand for industrial automation solutions such as sensors, robots, and machine vision systems has weakened marginally since the eruption of COVID-19 in the MEA countries. This led to a loss of revenue among the automation solutions manufacturers, distributors, system integrators, and service providers offering their products in the region in 2020. However, as the region showcased a positive trend for adopting automation systems, owing to government containment measures, which propelled the adoption of industrial automation solutions such as robots, sensors, and machine vision systems from 2021.
The containment measures implemented by the regional government bodies affected all economic and manufacturing activities in the region. Various manufacturing operations were delayed and halted in 2020. The onset of the COVID-19 pandemic adversely impacted the adoption of advanced solutions such as robots in the region. For instance, according to the International Federation of Robotics, Brazil witnessed a 17% slowdown in the adoption rate of robots in 2020, thereby negatively impacting the industrial automation market. However, due to containment measures imposed by governments, along with the need to meet the stipulated delivery, manufacturers have started to showcase a positive outlook toward the adoption of automated technology from Q4 of 2020, which positively influenced the growth of industrial automation market in SAM.
The global industrial automation market is segmented based on component, system, and end user. The segmentation in this research study has been finalized post in-depth secondary research and extensive primary research. In addition, the industrial automation market is also segmented in terms of technology offered by the leading participants in the industry to understand widely used market-specific terminologies. Thus, we have incorporated the research segments and have finalized the market segmentation. The industrial automation market is broadly segmented into five major regions - North America, Europe, Asia Pacific (APAC), Middle East & Africa, and South and Central America. APAC held the largest market share in 2020, followed by Europe and North America. APAC is further anticipated to register the highest CAGR in the industrial automation market during the forecast period. The increasing uptake by various industries and the growing penetration of advanced technologies, such as artificial intelligence (AI) and internet of thing (IoT), are fueling the industrial automation market size.
North America has been highly competitive in the industrial automation market due to the advancements in technology, with the US being a developed country accepting advanced technologies for industrial operations. With 5G wireless technology penetration, automation solutions across industries continuously increase. Moreover, due to the rising demand for augmented reality (AR) and virtual reality (VR), industrial automation's and industrial IoT markets are expanding.
In addition, the region is witnessing an increase in robotic technology adoption. For instance, in 2020, Epson Robots collaborated with the US-based automation solutions provider, Air Automation Engineering (AAE), to increase its technical support in the Midwest US. Furthermore, the increasing government initiatives, such as Advanced Manufacturing Partnership (AMP) and Automate Canada, are also contributing toward the growth of industrial automation market size.
Reasons to Buy
Automation in the food & beverages industry refers to strategic integrations of technologies across various production processes, such as inspection, packaging, and storage. Over the years, food & beverages companies have optimized different production processes through the uptake of automated systems, such as delta robots, automated guided vehicles, and robotic arms, to be in line with various food safety & quality standards laid down by regulatory bodies and reduce overall labor cost across production sites.
Vision-guided robots are experiencing a rise in demand across the industrial automation market due to their efficiency in completing repetitive tasks, such as bottle handling, bin picking, and tray loading. Numerous benefits, including enhanced traceability, improved efficiency, and high flexibility, have been driving the need for automation in the food & beverage industry over the years. These factors have encouraged food & beverage producers to invest heavily in automated technology integration across their production facilities. For instance, a US-based snack brand, Utz Brands Inc., announced its plans to integrate automated capabilities across its production plants to reduce its overall operational cost in 2021. Similarly, Hormel Foods is also planning to incorporate automation across its production facilities in 2022. Other food & beverage brands rapidly adopting automated technology include Tyson Foods and ITC. Thus, the rise in investment in automation across the food & beverage industry is fueling the growth of the industrial automation market.
The MEA industrial automation market is negatively impacted by the disruption in the supply chain of robotics and related components. The demand for industrial automation solutions such as sensors, robots, and machine vision systems has weakened marginally since the eruption of COVID-19 in the MEA countries. This led to a loss of revenue among the automation solutions manufacturers, distributors, system integrators, and service providers offering their products in the region in 2020. However, as the region showcased a positive trend for adopting automation systems, owing to government containment measures, which propelled the adoption of industrial automation solutions such as robots, sensors, and machine vision systems from 2021.
The containment measures implemented by the regional government bodies affected all economic and manufacturing activities in the region. Various manufacturing operations were delayed and halted in 2020. The onset of the COVID-19 pandemic adversely impacted the adoption of advanced solutions such as robots in the region. For instance, according to the International Federation of Robotics, Brazil witnessed a 17% slowdown in the adoption rate of robots in 2020, thereby negatively impacting the industrial automation market. However, due to containment measures imposed by governments, along with the need to meet the stipulated delivery, manufacturers have started to showcase a positive outlook toward the adoption of automated technology from Q4 of 2020, which positively influenced the growth of industrial automation market in SAM.
The global industrial automation market is segmented based on component, system, and end user. The segmentation in this research study has been finalized post in-depth secondary research and extensive primary research. In addition, the industrial automation market is also segmented in terms of technology offered by the leading participants in the industry to understand widely used market-specific terminologies. Thus, we have incorporated the research segments and have finalized the market segmentation. The industrial automation market is broadly segmented into five major regions - North America, Europe, Asia Pacific (APAC), Middle East & Africa, and South and Central America. APAC held the largest market share in 2020, followed by Europe and North America. APAC is further anticipated to register the highest CAGR in the industrial automation market during the forecast period. The increasing uptake by various industries and the growing penetration of advanced technologies, such as artificial intelligence (AI) and internet of thing (IoT), are fueling the industrial automation market size.
Key Findings of Study:
North America has been highly competitive in the industrial automation market due to the advancements in technology, with the US being a developed country accepting advanced technologies for industrial operations. With 5G wireless technology penetration, automation solutions across industries continuously increase. Moreover, due to the rising demand for augmented reality (AR) and virtual reality (VR), industrial automation's and industrial IoT markets are expanding.
In addition, the region is witnessing an increase in robotic technology adoption. For instance, in 2020, Epson Robots collaborated with the US-based automation solutions provider, Air Automation Engineering (AAE), to increase its technical support in the Midwest US. Furthermore, the increasing government initiatives, such as Advanced Manufacturing Partnership (AMP) and Automate Canada, are also contributing toward the growth of industrial automation market size.
Reasons to Buy
- Save and reduce time carrying out entry-level research by identifying the growth, size, leading players, and segments in the global industrial automation market
- Highlights key business priorities to assist companies to realign their business strategies
- The key findings and recommendations highlight crucial progressive industry trends in the global industrial automation market, thereby allowing players across the value chain to develop effective long-term strategies
- Develop/modify business expansion plans by using substantial growth offering developed and emerging markets
- Scrutinize in-depth global market trends and outlook coupled with the factors driving the market, as well as those hindering it
- Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to client products, segmentation, pricing, and distribution
Table of Contents
1. Introduction
3. Research Methodology
4. Industrial Automation Market Landscape
5. Industrial Automation Market - Key Industry Dynamics
6. Industrial Automation Market - Key Market Dynamics
7. Industrial Automation Market Analysis - By Component
8. Industrial Automation Market Analysis - By System
9. Industrial Automation Market Analysis - By End User
10. Industrial Automation Market - Geographic Analysis
11. Impact of COVID-19 Pandemic on Global Industrial Automation Market
12. Industry Landscape
13. Company Profiles
14. Appendix
List of Tables
List of Figures
Executive Summary
The industrial automation market was valued at US$ 140.39 billion in 2021 to reach US$ 233.94 billion by 2028; it is estimated to grow at a CAGR of 7.6% from 2021 to 2028.The increasing penetration of connected enterprises and the rising need for mass manufacturing of products are promoting the industrial automation market due to increasing demand for real-time data analysis across geographies and rising uptake of advanced technologies across end-use industries to improve performance. For instance, in 2019, the Chinese government invested US$ 577 million in developing industrial robots under the Made in China 2025 plan. In September 2020, the UK government announced plans to invest around US$ 180 million into the second round of its 'Manufacturing Made Smarter' scheme to promote interconnectivity and innovation in the country's manufacturing industry. Furthermore, the rising product development and strategic initiatives from key industrial automation market players for industrial automation applications lead to industrial automation market growth. For instance, in 2020, Honeywell International Inc. and Tech Mahindra Limited partnered with 'Factories of the Future' to accelerate the digital transformation journey by empowering manufacturers. Similarly, Siemens collaborated with SAP SE to offer industry 4.0-enabled business processes to enterprises. Thus, the factors mentioned above are driving the industrial automation market.
Further, the increasing number of online shoppers across the globe is constantly influencing the adoption of automation across the e-commerce industry. Significant automation applications across the sector include workflow process automation and automated storage and inventory retrieval. The demand for automation in e-commerce is highly varying, owing to which the forward pick areas must be continuously adjusted to aid the fluctuation in demand. Along with managing stock keeping unit (SKU)demand fluctuations, an Automated storage and retrieval systems (ASRS) also advances the fulfilment process, thus, allowing e-commerce and omnichannel retailers to adhere better to service level agreements by fulfilling order delivery commitments. Several e-commerce giants have also increased their investment in automating their warehouse facilities over the years. For instance, in July 2021, Amazon India announced the launch of its 11 automated fulfilment centers. The centers will be integrated with automated technologies to automate pick pack and shipping processes and ensure safe and timely order processing. These factors are expected to boost the growth of the industrial automation market globally over the forecast period.
In the COVID-19 pandemic, industrial automated solutions manufacturing facilities across the globe were adversely impacted, leading to low production volumes. Further, the demand for such solutions declined rapidly, owing to the temporary closure of end-use manufacturing and other retail outlets. For instance, the automotive sector recorded a 20% decline in manufacturing in 2020, owing to the spread of COVID-19. Thus, in the first two quarters of 2020, the global industrial automation market size was adversely impacted. However, the world experienced the rapid adoption of robots in 2020. In 2020, APAC recorded the deployment of 71% of all newly manufactured robots. Installations for the region's largest adopter (China) grew strongly by 20%, with 168,400 units shipped. Adoption from the automotive industry was weaker in APAC in 2020. The electronics & semiconductor industry invested significantly in industrial automation solutions, such as robots, in 2020, and it continued to invest in 2021. Meanwhile, owing to containment measures enacted by governments, the supply side of industrial automation manufacturers was marginally affected till Q3 of 2020. Moreover, with the normalization of economic and manufacturing activities from Q3 of 2020, the adoption of automated solutions experienced a rise to reduce the number of human interactions across facilities, thereby enabling the industrial automation market to revive from both the supply and demand sides in 2021.
The industrial automation market is segmented based on component, system, and end user. Based on component, the market is segmented into hardware and software. In 2021, the hardware segment led the industrial automation market and accounted for a larger market share. Based on system, the market is segmented into supervisory control and data acquisition, distributed control system, programmable logic control, and others. In 2021, the others segment led the industrial automation market and accounted for a larger market share. Based on end user, the market is segmented into oil & gas, automotive, food & beverage, chemical & materials, aerospace & defense, and others. In 2021, the automotive segment led the industrial automation market and accounted for the largest market share. Geographically, the market is broadly segmented into North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America (SAM). In 2021, APAC accounted for a significant share in the global market.
The key players operating in the global industrial automation market and profiled in the market study include ABB LTD.; B&R Industrial Automation GmbH; HITACHI LTD.; Industrial Automation (M) SDN BHD.; Koyo Electronics Industries Co., LTD.; Mitsubishi Electric Corporation; Omron Corporation; Rockwell Automation; Siemens; and Yokogawa Electric Corporation.
The overall global industrial automation market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the industrial automation market with respect to all the segments. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data and gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the industrial automation market.
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Abb Ltd.
- B&R Industrial Automation GmbH
- Hitachi Ltd
- Industrial Automation (M) Sdn Bhd
- Koy- Electronics Industries Co. Ltd
- Mitsubishi Electric Corporation
- Omron Corporation
- Rockwell Automation
- Siemens
- Yokogawa Electric Corporation
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 187 |
| Published | March 2022 |
| Forecast Period | 2021 - 2028 |
| Estimated Market Value ( USD | $ 140386.28 Million |
| Forecasted Market Value ( USD | $ 233942.24 Million |
| Compound Annual Growth Rate | 7.6% |
| Regions Covered | Global |
