Europe Industrial Automation Software Industry Overview
|Study Period:||2018 - 2028|
*Disclaimer: Major Players sorted in no particular order
Need a report that reflects how COVID-19 has impacted this market and its growth?
Europe Industrial Automation Software Market Analysis
The European industrial automation software market is expected to witness a CAGR of over 8.2% during the forecast period. Industrial automation helps in reducing the machine hours required for the respective operations, which can be made possible only through robust software.
- Recent developments in artificial intelligence (AI) and robotics aim to assist, or even completely automate, many clerical and social interaction tasks. Along with industrial robots, the use of service robots is increasing in the fast-developing market of the European region.
- Many of the EU's research & innovation (R&I) programs have constantly supported the development of solutions and technologies that enable the European manufacturing sector to utilize digital opportunities fully. Many of the projects are financed by the Factories of the Future Public-Private Partnership as they cover areas such as digital automation, process optimization of manufacturing assets, simulation and analytics technologies, and ICT innovation for manufacturing SMEs.
- The market in Europe experiences high investments in terms of new developments, partnerships, and acquisitions. Further investment by various regional governments is expected to increase the need for client-based software solutions to meet the rising demands of SMEs and larger organizations.
- The COVID-19 pandemic brought significant adoption of Industry 4.0, which utilizes several smart manufacturing technologies. Digital workflows and automation are no longer goals; they are becoming necessary requirements. IoT devices offered manufacturers a path toward preserving revenue streams during the pandemic. Rising demand for smart manufacturing products and services in response to the public health crisis is expected to drive further growth.
Europe Industrial Automation Software Industry Segments
Industrial automation software controls machinery and processes that replace human beings in performing specific functions. The technological advancements impacting the industry floor, such as in-process control and robotic equipment, are increasing, driving the demand for industrial automation solutions.
The study characterizes the market based on the type of operating software, such as manufacturing execution systems (MES), asset performance management (APM), advanced process control (APC), product lifecycle management (PLM), operator training simulator (OTS), and industrial control systems software (operational and cybersecurity). The end-user segmentation includes oil and gas, chemical and petrochemical, power, water and wastewater, food and beverage, automotive and transportation, and other end-user industries. The segmentation by country includes Germany, France, the United Kingdom, Italy, Eastern Europe (including Russia and Turkey), and the Rest of Western Europe.
The study considers the impact of the COVID-19 pandemic on the market to arrive at the market size and growth rates of various segments.
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
|Type of Software|
|Manufacturing Execution Systems (MES)|
|Asset Performance Management (APM)|
|Advanced Process Control (APC)|
|Product Lifecycle Management (PLM)|
|Operator Training Simulator (OTS)|
|Industrial Control Systems Software (Operational and Cybersecurity)|
|Oil and Gas|
|Chemical and Petrochemical|
|Water and Wastewater|
|Food and Beverage|
|Automotive and Transportation|
|Other End-user Industries|
|Eastern Europe (Including Russia and Turkey)|
|Rest of Western Europe|
Europe Industrial Automation Software Market Trends
This section covers the major market trends shaping the Europe Industrial Automation Software Market according to our research experts:
Launch of Stringent Energy Conservation Standards and the Drive for Local Processing is Driving the Market in Europe
- The growing regulations on energy consumption across the country, with the launch of strict energy conservation standards and the drive for local processing in Europe, are driving the growth of industrial automation software in the region. The increasingly dynamic needs of the industry, demanding complex operations and processes, and the need to reduce machine hours required for a specific operation are also driving the demand for industrial automation software in Europe.
- In May 2022, the European Commission presented details of its plan, the REPowerEU Plan to repower Europe and reduce and end Europe’s reliance on Russian fossil fuels. The European Commission aims to make it possible with three pillars of energy conservation, diversifying supplies, and quickly substituting fossil fuels by accelerating Europe’s clean energy transition. Such regional initiatives drive the demand for industrial automation in the market studied.
- Moreover, the electricity grid in Germany is struggling to cope with the extent of renewable and distributed energy in the country, and many major power projects are on hold. At the same time, the government has attempted to adapt the grid to the new demands placed upon it. The measures by the four national grid operators to boost power transmission capacity sufficiently add up to a cost of USD 50 billion. This is likely to escalate the usage of PLC to accumulate data and further take successive measures, thereby fueling the market studied.
- Automation software also helps end-user industries in Europe control the overall manufacturing operations and deliver high-quality products with high precision. The effective deployment of automation software minimizes process failures and reduces product failure costs and waste.
To understand key trends, Download Sample Report
Increasing Use of Industrial Automation in the Automotive Sector Positively Impacts the Market
- Smart factory offers the automotive industry opportunities to react faster to market requirements, reduce manufacturing downtimes, enhance the efficiency of supply chains, and expand productivity. 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 implantation of industrial control systems software in auto manufacturing plants allows companies to keep real-time track of productivity and quality through the data generated through plant connectivity and provides mitigating actions to the line supervisors and plant executives.
- Moreover, auto assembly witnessed substantial demand employing automation, showing a growth pattern in the number of cars manufactured while simultaneously cutting costs. Furthermore, the smart factory implementation in this sector has increased considerably, creating significant demand for industrial automation software.
To understand geography trends, Download Sample Report
Europe Industrial Automation Software Market Competitor Analysis
The Europe industrial automation software market is considered a moderately consolidated market with many players. However, a majority share of the market is divided among a few players such as Siemens AG, ABB Ltd., IBM Corporation, Emerson Electric Co., and Rockwell Automation. Innovations in the market require the developers to understand the industrial process better to deliver a suitable solution and drive close collaboration among the stakeholders during development and customization to suit the end users' needs.
In April 2022, ABB signed a memorandum of understanding (MOU) with Savannah Resources PLC to explore industrial automation and smart electrification solutions for developing Savannah's Barroso Lithium Project in northern Portugal.
Europe Industrial Automation Software Market Top Players
Emerson Electric Co.
Rockwell Automation, Inc.
*Disclaimer: Major Players sorted in no particular order
Europe Industrial Automation Software Market Recent Developments
- July 2022: Wipro PARI, an industrial automation company, announced the acquisition of Freilassing-based automation technology and assembly systems supplier Hochrainer GmbH. This acquisition is expected to further help the company in expanding its presence in Europe and consolidate its global position.
- February 2021: Liebherr Mining Expanded the use of its Operator Training Simulator. The company signed a non-exclusive cooperation agreement with ThoroughTec Simulation. The collaboration agreement gives Liebherr's customers the freedom to select the solution that best meets their needs and preferences.
Europe Industrial Automation Software Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Global Industrial Automation Software Market Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitutes
4.3.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Launch of Stringent Energy Conservation Standards and Drive for Local Processing Across Various Geographies
5.1.2 Growing Need for Mass Production with Reduced Operating Costs
5.1.3 Adoption of Emerging Technologies such as IoT and AI in Industrial Environments
5.2 Market Challenges
5.2.1 Trade Tensions and Monetary Policy Tightening
5.2.2 High Cost of Implementing Factory Automation Solutions
6. IMPACT OF COVID-19 ON THE MARKET
7. MARKET SEGMENTATION
7.1 Type of Software
7.1.1 Manufacturing Execution Systems (MES)
7.1.2 Asset Performance Management (APM)
7.1.3 Advanced Process Control (APC)
7.1.4 Product Lifecycle Management (PLM)
7.1.5 Operator Training Simulator (OTS)
7.1.6 Industrial Control Systems Software (Operational and Cybersecurity)
7.2 End-user Industry
7.2.1 Oil and Gas
7.2.2 Chemical and Petrochemical
7.2.4 Water and Wastewater
7.2.5 Food and Beverage
7.2.6 Automotive and Transportation
7.2.7 Other End-user Industries
7.3.3 United Kingdom
7.3.5 Eastern Europe (Including Russia and Turkey)
7.3.6 Rest of Western Europe
8. COMPETITIVE LANDSCAPE
*List Not Exhaustive
8.1 Company Profiles
8.1.1 Siemens AG
8.1.2 ABB Ltd
8.1.3 IBM Corporation
8.1.4 Emerson Electric Co.
8.1.5 Rockwell Automation Inc.
8.1.6 OMRON Corporation
8.1.7 Yokogawa Electric Corporation
8.1.8 Koyo Electronic Industries Co. Ltd
8.1.9 Daifuku Co. Ltd
8.1.10 Honeywell International Inc.
9. INVESTMENT ANALYSIS
10. FUTURE OF THE MARKET
Europe Industrial Automation Software Market Research FAQs
What is the study period of this market?
The Europe Industrial Automation Software Market is studied from 2018 - 2028.
What is the growth rate of Europe Industrial Automation Software Market?
The Europe Industrial Automation Software Market is growing at a CAGR of 8.2% over the next 5 years.
Who are the key players in Europe Industrial Automation Software Market?
Siemens AG, ABB Ltd., IBM Corporation, Emerson Electric Co., Rockwell Automation, Inc. are the major companies operating in Europe Industrial Automation Software Market.
Europe Industrial Automation Software Industry Reports
In-depth industry statistics and market share insights of the Europe Industrial Automation Software sector for 2020, 2021, and 2022. The Europe Industrial Automation Software research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Europe Industrial Automation Software report PDF.