|Study Period:||2018- 2026|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
Need a report that reflects how COVID-19 has impacted this market and its growth?
The global factory automation and industrial control system market was valued at USD 194.67 billion in 2020, and it is expected to reach USD 339.56 billion by 2026, registering a CAGR of approximately 9% during the forecast period (2021-2026). The recent COVID-19 outbreak has been causing significant disruption to the global economy and has drastically changed how many industries operate day-to-day. With work-from-home protocols implemented and shelter-in-place orders continue to propagate, allied market players evaluated and revised their preparedness and response strategies for cyber-incidents. This is particularly evident for players that have implemented industrial control systems (ICS) (DCS, SCADA, or PLS) to monitor and control critical equipment and processes.
- The increasing adoption of smart systems, components, and smart machinery and equipment, for the improvement of processes through automation and self-optimization, has resulted in the development of smart factories for planning, supply chain logistics, and product development. Increasingly, various manufacturing industries are striving to become smart factories.
- There has been an exponential rise in labor costs across various regions. In addition, the quality requirements are also getting more stringent. Against this backdrop, factory automation can cause a reduction in production, operation, and labor costs.
- Moreover, automotive manufacturers across the globe understand that the next generation of robotics and automation technologies is a revolutionary opportunity to upgrade automotive manufacturing, in terms of the productivity, quality, safety, and cost metrics. In addition, increased year-on-year robotic automation expenditure is projected to have a positive impact on the demand for robot automation systems.
- The integration of different industrial automation systems, such as SCADA, PLCs, and MES, on a single physical server, which can be easily accessed at different locations on the plant floor using virtual machines, has been adopted to reduce the overall cost for server, as well as to increase the flexibility in adopting industrial automation systems and software in the process and discrete industries.
- The high costs of automated systems are associated with effective and robust hardware and efficient software. Automation equipment requires higher capital expenditure, to invest in automation technologies (an automated system can cost millions of dollars to design, fabricate, and install). They also require a higher level of maintenance and generally a lower degree of flexibility in terms of the possible products as compared to a manual system, these factors are expected to act as a restraint to the market growth.
Scope of the Report
The factory automation and industrial control is a rising trend in the manufacturing industry, which provides smart manufacturing infrastructure. Industrial control and factory automation facilitate cost efficiency, quality of production and standardize manufacturing, reliability, and flexibility in the process of manufacturing. Industrial control and factory automation offer a perfect mix of mechanical components and devices for the information technology market.
|By End-user Industry|
|Chemical and Petrochemical|
|Food and Beverage|
|Oil and Gas|
|Other End-user Industries|
|Middle East & Africa|
Key Market Trends
Utilities is Expected to Register a Significant Growth
- The power and utility sector has been an early adopter of digital technologies, which has resulted in improved process automation and control.
- Process automation paves the path for digital data and analytics that can reduce power system costs by reducing operations and maintenance costs, improving power plant and network efficiency, reducing unplanned outages and downtime and extending the operational lifetime of assets.
- The power plants today produced more data in a single day than in a full month ten years ago. In a typical production plant, terabytes of data are generated daily by equipment, smart devices, sensors, DCS and PLC systems, and business systems. The challenge is unifying plant data and presenting pertinent information and analysis in context to the people who need it.
- According to a new report on Digitalization and Energy by the International Energy Agency (IEA), the digital technologies are set to transform the energy landscape globally by making it more connected, reliable, and sustainable, in order to have a profound impact on both energy demand and supply,
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China is Expected to Hold a Major Share in Asia-Pacific
- China has led the industrial robot market, which has driven its way to factory automation in the region and is one of the leading manufacturing countries in the Asia-Pacific region and globally. The increase in shipment of industrial robots in the country and the adoption of various Industrial Control System software across the country facilitates factory automation at scale.
- Despite China accounting for 25% of the world’s manufacturing activities, its manufacturing productivity is a mere one-fifth of that of the developed economies. Companies in the country are, thus, embracing Industry 4.0 to improve productivity.
- The strong support of the government in the acquisition program has helped the country to move towards Industry 4.0. For instance, Siasun, a China-based industrial robot maker, has affiliations with the Chinese Academy of Sciences, which is further linked to the government.
- Also, as most of the automation equipment is imported from Germany and Japan, the ‘Made in China’ initiative aims to expand the country's domestic production of automation hardware and equipment.
- Further, increasing costs are driving many manufacturing companies to strategize their manufacturing processes by adopting automation across their production sites to be more competitive.
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The factory automation and industrial control systems market is highly competitive and consists of several major players. The market appears to be moderately fragemented. The major players with prominent shares in the market are focusing on expanding their customer base across foreign countries. These companies are leveraging on strategic collaborative initiatives to increase their market shares and profitability. The companies operating in the market are also acquiring start-ups working on factory automation and industrial control systems to strengthen their product capabilities.
- April 2021 - Google Cloud and Siemens collaborated to streamline production operations and boost shop floor efficiency. Siemens plans to integrate Google Cloud's top data cloud and artificial intelligence/machine learning (AI/ML) capabilities with its factory automation solutions to assist manufacturers in the manufacturing process.
- March 2021 - GE Digital unveiled enhancements to its CIMPLICITY and Tracker software that provide critical decision support for operators to make them more efficient. A high-performance automation platform, CIMPLICITY HMI/SCADA provides client-server visualization to precisely monitor and control operations.
- January 2021 - OMRON Corporation launched their i4 series SCARA robot. It features 15 kg payload capacity, LED lights, and EtherCAT communication, and it can automate assembly and transportation.
May 2021- Schneider Electric partnered with Roca Group to accelerate decarbonization. Roca Group, a world leader in the design, production, and commercialization of products to define a new roadmap toward decarbonization, has been establishing a single, global strategy across the group.
April 2021- Mitsubishi Electric Corporation announced the development of seven new X-Series products, including two HVIGBTs and five HVDIODEs, bringing the total number of X-Series power semiconductor modules to 24. These modules are designed for increasingly big-capacity, small-sized inverters used in traction motors, DC-power transmitters, substantial industrial machines, and other high-voltage, large-current equipment. Beginning in July, the models will be released in order.
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 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 An Assessment of Impact of COVID-19 on the Industry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing Emphasis on Energy Efficiency and Cost Reduction
5.2 Market Challenges
5.2.1 Trade Tensions and Implementation Challenges
6. INDUSTRY STANDARDS AND REGULATIONS
7. MARKET SEGMENTATION
7.1 By Product
7.1.1 By Industrial Control Systems
220.127.116.11 Distributed Control System (DCS)
18.104.22.168 Programmable Logic Controller (PLC)
22.214.171.124 Supervisory Control and Data Acquisition (SCADA)
126.96.36.199 Product Lifecycle Management (PLM)
188.8.131.52 Human Machine Interface (HMI)
184.108.40.206 Manufacturing Execution System (MES)
220.127.116.11 Enterprise Resource Planning (ERP)
18.104.22.168 Other Industrial Control Systems
7.1.2 Field Devices
22.214.171.124 Machine Vision Systems
126.96.36.199 Robotics (Industrial)
188.8.131.52 Sensors and Transmitters
184.108.40.206 Motors and Drives
220.127.116.11 Other Field Devices
7.2 By End-user Industry
7.2.2 Chemical and Petrochemical
7.2.5 Food and Beverage
7.2.6 Oil and Gas
7.2.7 Other End-user Industries
7.3.1 North America
18.104.22.168 United States
22.214.171.124 United Kingdom
126.96.36.199 Rest of Europe
7.3.3 Asia Pacific
188.8.131.52 Rest of Asia Pacific
7.3.4 Latin America
7.3.5 Middle East & Africa
8. COMPETITIVE LANDSCAPE
*List Not Exhaustive
8.1 Company Profiles
8.1.1 Schneider Electric SE
8.1.2 Rockwell Automation Inc.
8.1.3 Honeywell International Inc.
8.1.4 Emerson Electric Company
8.1.5 ABB Limited
8.1.6 Mitsubishi Electric Corporation
8.1.7 Siemens AG
8.1.8 Omron Corporation
8.1.9 Yokogawa Electric Corporation
8.1.10 General Electric Co.
8.1.11 Texas Instruments Inc.
8.1.12 Robert Bosch GmbH
9. INVESTMENT ANALYSIS
10. FUTURE OUTLOOK OF THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Factory Automation and ICS Market market is studied from 2018 - 2026.
What is the growth rate of Factory Automation and ICS Market?
The Factory Automation and ICS Market is growing at a CAGR of 9.0% over the next 5 years.
Which region has highest growth rate in Factory Automation and ICS Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Factory Automation and ICS Market?
North America holds highest share in 2020.
Who are the key players in Factory Automation and ICS Market?
Honeywell International Inc., General Electric Co., ABB Limited, Dassault Systemes SE, Rockwell Automation Inc. are the major companies operating in Factory Automation and ICS Market.