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Factory Automation and Industrial Controls Market - Growth, Trends, and Forecast (2019 - 2024)

The market is segmented by Product (Field Devices, Industrial Control Systems), End-user (Automotive, Chemicals and Petrochemicals, Utilities, Pharmaceuticals, Food and Beverages, Oil and Gas), and region.

Market Snapshot

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Study Period:

2018-2024

Base Year:

2018

Fastest Growing Market:

Asia Pacific

Largest Market:

Asia Pacific

Key Players:

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Market Overview

The factory automation and industrial control systems market is expected to register a CAGR of over 8.4 % during the forecast period, 2019 - 2024. The evolution of technological advancements and innovations across various manufacturing units have encouraged the adoption of automation technologies. Digitization and Industry 4.0 revolution have significantly stimulated the growth of automation among industries, by necessitating the use of smarter and automated solutions, such as robotics and control systems, to improve production processes.

  • Automation has drastically changed the way of production in the industrial sector, by reducing the manufacturing time and production cost. The production lines in several factories were manual for a considerable time. Even if there have been improvements in assembly technologies, such as faster pick-and-place machines and smarter reflow ovens, the back-end operations have remained non-automated.
  • Hence, there has been an exponential rise in labor costs. 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.
  • Various advancements have been made in the automation of the various activities that were formerly carried out manually (particularly in the labor-intensive manufacturing industry), with most of these being almost fully automated, with the help of the latest technologies. This has led to improved efficiency, high-quality products, and attendant savings in labor and costs.
  • 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 than a manually operated machine, and generally a lower degree of flexibility in terms of the possible products, as compared to a manual system (even the most flexible automation is less flexible than humans, the most versatile machines of all).
  • The sluggish adoption of Industrial IoT technologies can be linked to the higher costs for maintaining their connections, considering that M2M connections were charged with heavy taxation similar to mobile device subscriptions. The acquisition and installation cost of a control system for industrial automation represents half of the total cost during its lifetime. Additionally, the frequent changes in technology and networking result in significant cost, which is more than that of the initial investment, further slowing down the adoption.
  • In addition, significantly low adoption of SMEs in developing countries, like Brazil, who cannot bear the product costs, is restraining the market’s growth.

Scope of the Report

The industrial control and factory automation is a rising trend in the manufacturing industry, which provides smart manufacturing infrastructure. Industrial control and factory automation facilitate cost efficiency and quality of production, and standardize manufacturing, reliability, and flexibility in the process of manufacturing. Industrial control and factory automation offers a perfect mix of mechanical components and devices for the information technology market.

By Product
By Field Devices
Machine Vision
Robotics
Sensors
Motors and Drives
Relays and Switches
Other Field Devices
By Industrial Control Systems
SCADA
DCS
PLC
MES
PLM
ERP
HMI
Other Control Systems
By End-user Industry
Automotive
Chemical and Petrochemical
Utility
Pharmaceutical
Food and Beverage
Oil and Gas
Other End-user Industries
Geography
North America
US
Canada
Europe
Germany
UK
France
Rest of Europe
Asia-Pacific
China
Japan
India
Rest of Asia-Pacific
Latin America
Brazil
Argentina
Mexico
Rest of Latin America
Middle East & Africa
Saudi Arabia
UAE
Rest of Middle East & Africa

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Key Market Trends

Utilities is Expected to Register a Significant Growth

Process automation paves the path for digital data and analytics that can reduce power system costs by the following means

  • By reducing operations and maintenance costs
  • By improving power plant and network efficiency
  • By reducing unplanned outages and downtime and
  • By extending the operational lifetime of assets.

The overall savings from these digitally-enabled measures are estimated to be in the order of USD 80 billion per year over 2016-40, or about 5% of total annual power generation costs based on the enhanced global deployment of available digital technologies to all power plants and network infrastructure.

Globally, data centers consumed around 194 TWh of electricity in 2014, or about 1% of the total demand. Although data center workload is estimated to triple by 2020, related energy demand is expected to grow by only 3% due to continued efficiency gains. This is expected to drive the growth in power generation for meeting the demand from the ICT sector.

The evolution of smart grid and synchronization to match the variable demand for electricity between the peak demand period to rest of demand is expected to further create high demand from the energy and utilities sector. Due to the automation of processes and a networked system communication, digitalization can help integrate the renewable energy by enabling grids to match energy demand to times when the wind is blowing and the sun is shining. In the European Union alone, increased storage and digitally-enabled demand response are estimated to reduce curtailment of solar PVs and wind power from 7% in 2017 to 1.6% in 2040, avoiding 30 million metric ton of CO2 emission in 2040.

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China is Expected to Hold a Major Share in Asia-Pacific

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. A strong indicator of automation uptake in the country was the 58% increase in robot density in 2017 as compared to 2015. Further, the Chinese government’s programs, such as the Made in China 2025 plan, are promoting the use of R&D in factory automation and technologies and their investments. 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.

China is the 28th fastest-growing country in the world, and has a very high industrial production rate. These factors act as drivers for the automation market in the country. Investments are being planned for aiding the quality of growth, addressing environmental concerns, and reducing overcapacity, for the same. The number of companies deploying factory and process automation technologies and robotics in the country is less when compared to the enormous size of China’s manufacturing base and the number of workers it employs. This trend presents a great opportunity for companies in the industrial automation sector in China. 

Automation in the country is also expected to be augmented by the uptake of smart manufacturing. As per the Ministry of Industry and Information Technology, China is anticipated to initiate 100 smart manufacturing pilot projects in 2018. According to the 13th Five-Year Plan of Smart Manufacturing, China aims to establish its intelligent manufacturing system and complete the key industries’ transformation by 2025.

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Competitive Landscape

The factory automation and industrial control systems market is highly competitive and consists of several major players. In terms of market share, few of these major players currently dominate the market. These 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. In May 2018, Texas Instruments announced the mass production of its highly integrated, ultra-wideband AWR1642 and IWR1642 mmWave sensors. These sensors support frequencies from 76 to 81 GHz and deliver three times more accurate sensing and the smallest footprint at a fraction of the power of competing for sensor technologies. Thousands of customers are developing with the company’s mmWave sensors to enable innovation in automotive and industrial applications, including vehicle occupancy detection, people counting in buildings, machine, and human interaction, and more.

Major Players

  1. Rockwell Automation Inc.
  2. Honeywell International Inc.
  3. General Electric Co.
  4. ABB Limited
  5. Dassault Systemes SE

* Complete list of players covered available in the table of contents below

Factory Automation And Industrial Control Systems Market

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Introduction to Market Drivers and Restraints

    3. 4.3 Market Drivers

      1. 4.3.1 Emphasis on Cost Cutting and Business Process Improvement

      2. 4.3.2 Increased Adoption of Internet of Things (IoT) and Machine- to-Machine Technologies

    4. 4.4 Market Restraints

      1. 4.4.1 Lack of Skilled Workforce Preventing Enterprises from Full-scale Adoption of Factory Automation

    5. 4.5 Value Chain / Supply Chain Analysis

    6. 4.6 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.6.1 Threat of New Entrants

      2. 4.6.2 Bargaining Power of Buyers/Consumers

      3. 4.6.3 Bargaining Power of Suppliers

      4. 4.6.4 Threat of Substitute Products

      5. 4.6.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Product

      1. 5.1.1 By Field Devices

        1. 5.1.1.1 Machine Vision

        2. 5.1.1.2 Robotics

        3. 5.1.1.3 Sensors

        4. 5.1.1.4 Motors and Drives

        5. 5.1.1.5 Relays and Switches

        6. 5.1.1.6 Other Field Devices

      2. 5.1.2 By Industrial Control Systems

        1. 5.1.2.1 SCADA

        2. 5.1.2.2 DCS

        3. 5.1.2.3 PLC

        4. 5.1.2.4 MES

        5. 5.1.2.5 PLM

        6. 5.1.2.6 ERP

        7. 5.1.2.7 HMI

        8. 5.1.2.8 Other Control Systems

    2. 5.2 By End-user Industry

      1. 5.2.1 Automotive

      2. 5.2.2 Chemical and Petrochemical

      3. 5.2.3 Utility

      4. 5.2.4 Pharmaceutical

      5. 5.2.5 Food and Beverage

      6. 5.2.6 Oil and Gas

      7. 5.2.7 Other End-user Industries

    3. 5.3 Geography

      1. 5.3.1 North America

        1. 5.3.1.1 US

        2. 5.3.1.2 Canada

      2. 5.3.2 Europe

        1. 5.3.2.1 Germany

        2. 5.3.2.2 UK

        3. 5.3.2.3 France

        4. 5.3.2.4 Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. 5.3.3.1 China

        2. 5.3.3.2 Japan

        3. 5.3.3.3 India

        4. 5.3.3.4 Rest of Asia-Pacific

      4. 5.3.4 Latin America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Mexico

        4. 5.3.4.4 Rest of Latin America

      5. 5.3.5 Middle East & Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 UAE

        3. 5.3.5.3 Rest of Middle East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Rockwell Automation Inc.

      2. 6.1.2 Honeywell International Inc.

      3. 6.1.3 General Electric Co.

      4. 6.1.4 ABB Limited

      5. 6.1.5 Dassault Systemes SE

      6. 6.1.6 Schneider Electric SE

      7. 6.1.7 Emerson Electric Company

      8. 6.1.8 Autodesk Inc.

      9. 6.1.9 Mitsubishi Electric Corporation

      10. 6.1.10 Siemens AG

      11. 6.1.11 Aspen Technology Inc

      12. 6.1.12 Robert Bosch GmbH

      13. 6.1.13 Texas Instruments Inc.

      14. 6.1.14 Yokogawa Electric Corporation

    2. *List Not Exhaustive
  7. 7. INVESTMENT ANALYSIS

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

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