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

The Latin America 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:

7.9 %

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Market Overview

The Latin America factory automation and industrial controls market is expected to register a CAGR of 7.9% during the forecast period (2020 - 2025). The automation industry has always been revolutionized by the combination of the digital and physical aspects of manufacturing, primarily aimed at delivering optimum performance. Further, the focus on achieving zero waste production and shorter time to market has augmented the market's growth.

  • Investment in technologies concerning the Industry 4.0 trend is moving up on the list of priorities for manufacturing companies in the region. Mexico is expected to exhibit significant adoption of factory automation and industrial control systems as part of the Latin America region, owing to the growing adoption of automation technologies in the manufacturing sector. The growth can also be attributed to the adoption of Industry 4.0 and smart factory norms across the region's manufacturing sector.
  • Furthermore, the growing manufacturing industry in the region is expected further to boost the need for automation solutions in their operations. For instance, in August 2019, Sunnen Products Company expanded its global production footprint by opening a manufacturing facility in Monterrey, Mexico. This will complement the company's presence in the U.S., China, Switzerland, and Brazil.
  • The region is also witnessing enormous investments for the development of transportation networks, agricultural produce industries, and chemical industries, which have opened considerable opportunities for installing industrial control systems, further increasing the productivity of industries.
  • The COVID-19 pandemic has created an economic disruption for small, medium, and large-scale industries alike, across the world. Adding to the woes, country-wise lockdowns inflicted by the governments worldwide to minimize the spread of the virus have further resulted in industries taking a hit.
  • According to Trading Economics, GDP from Brazil's manufacturing sector was BRL 30,267.163 million as of December 2019. However, the GDP from manufacturing decreased to BRL 24,072.83 million in the second quarter of 2020 from BRL 27,686.97 million in the first quarter of 2020. This decrease in the manufacturing sector can be a cause due to the ongoing COVID-19 pandemic

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 Latin America.

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Key Market Trends

SCADA Industrial Control Systems to Drive the Market Growth

  • Supervisory Control and Data Acquisition (SCADA) systems enable data transfer between a central host system and a number of remote terminal units (RTUs), PLCs, and operator terminals. These systems are used in process automation for applications that include the distribution of power, natural gas, and water pipelines, where there is a need to gather remote data through potentially unreliable or intermittent low bandwidth/high-latency links. These systems are used to automate complex industrial operations, especially where human control is impractical.
  • These systems also enable monitoring from devices, including phones, computers, and tablets. Furthermore, they are capable of tracking multiple system parameters, as well as monitoring a multitude of data sources, while exchanging data in real-time. This includes PLCs, databases, maintenance applications, and existing SCADA systems, which are expected to propel the market growth.
  • Furthermore, with the growing advancement in AI and machine learning, companies such as Siemens, enhance the SCADA offerings. For instance, in 2019, the company showcased new SCADA products demonstrating the integration of emerging technologies.​
  • SCADA systems are crucial for industrial processes as they help organizations manage modern demands. For instance, Yokogawa zeros in on SCADA's evolution to deliver high performance, high availability, broad scalability, and platform independence in its SCADA applications. Therefore, organizations also benefit from the company's power and flexibility of Yokogawa's SCADA software (FAST/TOOLS), a comprehensive, fully-integrated SCADA application suite.

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Brazil Holds Significant Market Share

  • Brazil is the largest Latin American market that dominates the surrounding regions economically and commercially. The country's manufacturing sector is ranked as the third-largest in the Americas.
  • Brazil's industries account for one-third of its GDP, in which manufacturing plays a vital role. Most of the large manufacturing enterprises in the country are in the south and southeast regions. Automation companies in the country generally partner with a local distributor, agent, or integrator to complete sales.
  • According to Marco Henrique Terra, the Director of Center for Robotics, Universidade de São Paulo, agriculture automation is expected to enable a productivity increase that is critical for the food sector to compete with the other countries. Moreover, energy production is also projected to benefit from the use of automation and robotics in offshore oil exploration. It is expected to be among the most sought out solutions in the market.
  • Brazil maintains many protectionist policies that create market access barriers to US exports. Tariffs are levied against many imported foreign-manufactured automation products to support domestic automation and industrial controls companies' growth. This results in the establishment of more foreign company plants in the country to fulfill product demand.
  • In addition to this, Brazil anticipates leveraging gains of robotics as a manufacturer and a user. According to the International Federation of Robotics, Brazilian robotics imports are anticipated to witness an increase in the coming years, further increasing the deployment of industrial automation and control systems. The country also had an installed base of 4,000 industrial robots, among which the automotive industry accounted for nearly half of the industrial robots sold in Brazil.

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Competitive Landscape

The Latin America factory automation and industrial controls market is fragmented 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:

  • June 2020 - Rockwell Automation Inc. and PTC introduced Factory Insights as a Service, a turnkey cloud solution that enables manufacturers to achieve unprecedented impact, speed, and scale with their digital transformation initiatives.
  • October 2019 - Nokia announced a partnership with SENAI-SP, which is Brazil’s National Service for Industrial Training, in order to implement its portfolio of technology and connectivity solutions at SENAI-SP’s lab in São Caetano do Sul, which is a public facility for mechatronics training that features an Industry 4.0 factory.

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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 Focus Toward Cost-cutting and Business Process Improvement

      2. 4.5.2 Increasing Adoption of Internet of Things (IoT) and Machine- to-Machine Technologies

    6. 4.6 Market Restraints

      1. 4.6.1 Lack of Skilled Workforce Preventing Enterprises from Full-scale Adoption of Factory Automation

  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 Brazil

      2. 5.3.2 Argentina

      3. 5.3.3 Mexico

      4. 5.3.4 Rest of Latin America

  6. 6. COMPETITIVE INTELLIGENCE

    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

  7. 7. INVESTMENT ANALYSIS

  8. 8. FUTURE OF THE MARKET

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