Europe Factory Automation and Industrial Controls Market - Growth, Trends, Forecasts (2020 - 2025)

The Europe Factory Automation and Industrial Controls Market is segmented by Type (Industrial Control Systems​, Field Devices), End-user Industry​ (Oil and Gas, Chemical and Petrochemical, Power and Utilities, Food, and Beverages​, Automotive​), and Country.

Market Snapshot

Study Period:

2020-2025

Base Year:

2019

CAGR:

7.2 %

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Market Overview

The Europe factory automation and industrial controls market is expected to register a CAGR of 7.2% during the forecast period (2020 - 2025). With rapid increase in competition and evolving end-user requirements, manufacturing units in the region are being forced to adopt newer technological innovations and digital transformation solutions to make their business process as efficient as possible. For instance, field devices, like motors and sensors, among others, offer opportunities to the auto industry to react faster to market requirements, reduce manufacturing downtimes, and enhance the efficiency of supply chains and expand productivity.

  • The region is also adopting industrial automation in various industries, with major firms launching industrial automation products in the market. For instance, Schneider Electric, a player in the digital transformation of energy management and automation, announced the ClimaSys smart ventilation system, which is an intelligent solution for filtering and managing the airflow for multiple control panels or electrical distribution cabinets in new or renovated applications.
  • According to OECD, Germany spends 2.88% of its GDP into manufacturing innovation, well ahead of the OECD average of 2.4%. The German automotive industry has extended its worldwide position in automotive production, significantly, over the past few years. Moreover, sustainability in the manufacturing sector is expected to be a major driver for the market studied.
  • Furthermore, various measures are being taken to boost power transmission capacity, such as smart grid, in the energy landscape The measures by the four national grid operators, to boost power transmission capacity, add up to a cost of EUR 50 billion. This is likely to escalate the usage of industrial control systems during the forecast period.
  • The Russian government is showing interest in import substitution of food production. The ban on imports of food could lead to the development and expansion of the country's food industry, further demanding investment in modern technology for processing and packaging. Also, the government is focused on creating its pharmaceutical industry by planning 'Pharma 2020 Strategy‘. Its goal is to reduce the reliance on the Russian economy on imported pharmaceuticals, which is expected to drive investments in the market.
  • However, economic downturn is likely to affect the region's adoption of automation and ICS. For instance, amid the outbreak of COVID-19, Leesman survey spanning 700,000 employees, worldwide, states that within 52,240 employed in the manufacturing and engineering space, 53% have no home working experience.

Scope of the report

The syndicated study on factory automation and industrial controls (or industrial automation) includes both process and discrete automation. The scope is comprehensive and is limited to Europe.

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Key Market Trends

Automotive Industry to Drive the Market Growth

  • The automotive industry is among the prominent sectors that hold a significant share of the world's automated manufacturing facilities. The production facilities of various automakers are automated to maintain efficiency. The growing trend of replacing conventional vehicles with EVs is expected to augment the automotive industry's demand further.
  • The primary concern of the automotive industry is the length of a project. Hence, quick return-on-investment projects, combined with low-cost automation and cost innovation, are helping the manufacturers improve competitiveness through productivity improvement. The growing adoption of automation in manufacturing processes and digitization and AI involvement are primary factors driving industrial robots' demand in the automotive sector.
  • According to UBS, the projected electric vehicle sales in Europe are expected to reach 6.33 million units by 2025, followed by China, with 4.84 million units. As Europe is leading the electric vehicles' demand, the region is anticipated to see an increase in smart automotive factories' implementation.
  • The growing presence of robots and automation in the European automotive industries is further expected to fuel the region's smart factory. Additionally, Germany also possesses the largest concentration of automotive OEM plants in Europe. A further increase in OEM sites in the country is expected to increase industrial control systems' demand.

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Germany Holds Significant Market Share

  • Germany is not only a major consumer of automation equipment, but it is also a major manufacturer of automation equipment in Europe. Several major players of automation and control equipment, such as Siemens, Schneider Electric, KUKA, etc., are based out of Germany, thus driving a high investment flow toward R & D activities.
  • The country has been witnessing rapid growth in the demand for automation solutions. For instance, in August 2019, KUKA received an order for 22 KMP 1500s from an automotive customer. These intelligent, autonomous vehicles can supply materials to robots and machines, perfectly timing the production process. Additionally, a collaboration between India and Germany in Industry 4.0 is expected to augment the market growth.
  • According to the recent estimates from the International Federation of Robotics (IFR), Germany has the third most robot density in the world (338 units per 10,000 workers), after Singapore and South Korea. IFR estimates that the annual supply in Germany may continue to grow by at least 5% on average per year, between 2018 and 2020, due to the increasing demand for robots in various industries, with a focus on the automotive industry. This increasing supply of industrial robots in the country is expected to drive the market studied.
  • There is the development of a complete 5G ecosystem in the country, which will further accelerate the pace of digitization in the industry. This will strengthen Germany’s position in global competition. Recently, Deutsche Telekom, a German telecommunications company, added new partners for its 5G-based smart factory ecosystem. The new partners are EK Automation, Konica Minolta, and Endress+Hauser.

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Competitive Landscape

The European factory automation and industrial controls market is competitive due to several players in the market. Players are involved in product development and strategic activities such as partnerships, mergers, and acquisitions. Some of the key developments in the market are:

  • August 2020 - Schneider Electric, the digital transformation leader of energy management and automation, is expanding its portfolio and reinforcing its commitment to holistic and software-supported automation through the acquisition of ProLeiT AG. ProLeiT AG provides Process Control Systems (PCS) with an integrated Manufacturing Execution System (MES) functions optimized for the Consumer Packed Goods marketplace, including the Food and Beverage, Chemicals, and Life Sciences segments
  • March 2020 - RightHand Robotics (RHR), a provider of autonomous robotic picking solutions, continues for its global expansion by establishing a sales and business development office in Frankfurt, Germany.

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Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY​

  3. 3. EXECUTIVE SUMMARY ​

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview​

    2. 4.2 Industry Value Chain Analysis​

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis​

      1. 4.3.1 Bargaining Power of Suppliers​

      2. 4.3.2 Bargaining Power of Consumers​

      3. 4.3.3 Threat of New Entrants​

      4. 4.3.4 Threat of Substitutes​

      5. 4.3.5 Intensity of Competitive Rivalry​

    4. 4.4 Assessment of Impact of COVID-19 on the Industry

    5. 4.5 Market Drivers

      1. 4.5.1 Gaining Prominence for Automation Technologies

      2. 4.5.2 Proactive Government Policies and a Vibrant Startup Ecosystem

    6. 4.6 Market Challenges

      1. 4.6.1 Lack of Skilled Workforce

  5. 5. MARKET SEGMENTATION​

    1. 5.1 Type

      1. 5.1.1 Industrial Control Systems​

        1. 5.1.1.1 Distributed Control System (DCS)​

        2. 5.1.1.2 PLC (Programmable Logic Controller)​

        3. 5.1.1.3 Supervisory Control and Data ​Acquisition (SCADA)​

        4. 5.1.1.4 Product Lifecycle Management (PLM)​

        5. 5.1.1.5 Human Machine Interface (HMI)​

        6. 5.1.1.6 Manufacturing Execution System (MES)​

      2. 5.1.2 Field Devices​

        1. 5.1.2.1 Machine Vision Systems​

        2. 5.1.2.2 Robotics (Industrial)​

        3. 5.1.2.3 Sensors​ and Transmitters

        4. 5.1.2.4 Motors and Drives​

        5. 5.1.2.5 Other Field Devices

    2. 5.2 End-user Industry​

      1. 5.2.1 Oil and Gas

      2. 5.2.2 Chemical and Petrochemical

      3. 5.2.3 Power and Utilities

      4. 5.2.4 Food and Beverages​

      5. 5.2.5 Automotive​

      6. 5.2.6 Other End-user Industries​

    3. 5.3 Country

      1. 5.3.1 United Kingdom

      2. 5.3.2 Germany

      3. 5.3.3 France

      4. 5.3.4 Rest of Europe

  6. 6. COMPETITIVE INTELLIGENCE

    1. 6.1 Company Profiles

      1. 6.1.1 Schneider Electric SE

      2. 6.1.2 Rockwell Automation Inc.

      3. 6.1.3 Honeywell International Inc.

      4. 6.1.4 Emerson Electric Company

      5. 6.1.5 ABB Ltd

      6. 6.1.6 Mitsubishi Electric Corporation

      7. 6.1.7 Siemens AG

      8. 6.1.8 Omron Corporation

      9. 6.1.9 Yokogawa Electric Corporation

      10. 6.1.10 Fanuc Corporation

  7. 7. INVESTMENT ANALYSIS

  8. 8. FUTURE OF THE MARKET

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