Latin America Factory Automation and Industrial Controls Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

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 Pharmaceutical), and Country. The Market Sizes and Forecasts are Provided in Value (USD) for all the Above Segments.

Latin America Factory Automation And Industrial Controls Market Size

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Latin America Factory Automation And Industrial Controls Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 16.65 Billion
Market Size (2029) USD 26.83 Billion
CAGR (2024 - 2029) 7.54 %
Market Concentration Low

Major Players

Latin America Factory Automation And Industrial Controls Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Latin America Factory Automation And Industrial Controls Market Analysis

The Latin America Factory Automation And Industrial Controls Market size is estimated at USD 16.65 billion in 2024, and is expected to reach USD 26.83 billion by 2029, growing at a CAGR of 7.54% during the forecast period (2024-2029).

Factory automation and control solutions facilitate the automation of entire manufacturing/production facilities by designing and building fully integrated intelligent control systems, including robots, sensors, industrial equipment, computers, and advanced data processing solutions.

  • Some prominent factors driving the market include growing demand for the adoption of the Internet of Things (IoT) and Machine-to-Machine Technologies. Also, incremental technological advancement, coupled with a sustained increase in the development of manufacturing facilities, is expected to impact the market growth rate during the forecast period.
  • Factory automation can aid manufacturing organizations in decreasing costs by eliminating waste, reducing errors, and enhancing efficiency. By automating routine tasks, manufacturers can save time and lessen the cost of labor-intensive manual processes. Due to automation, manufacturers can make better use of their resources. 
  • Automated systems can handle tasks like material handling, inventory management, etc., reducing the need for employees to complete these tasks manually. This can free up resources like labor, time, and equipment for other more critical tasks. Also, by avoiding overstocking or stockouts, factories can reduce carrying costs, inventory holding costs, and the risk of obsolete inventory.
  • The increasing adoption of IoT in Latin America can be attributed to various factors like rapid digitalization, technological advancements, government initiatives, policies, and investments aimed at promoting digital transformation and Industry 4.0.
  • The lack of skilled workforce in Latin America can be attributed to several factors. Inadequate access to quality education and training programs hinders the development of a skilled workforce. Limited resources, an outdated curriculum, and a lack of emphasis on practical skills contribute to a shortage of skilled professionals in the region. This is expected to hinder the market's growth.

Latin America Factory Automation And Industrial Controls Market Trends

Automotive End User Industry Segment is Expected to Hold Significant Market Share

  • Smart factory offers the automotive industry options to react faster to market requirements, enhance the efficiency of supply chains, reduce manufacturing downtimes, and expand productivity.
  • The automotive industry is a primary sector with significant automated manufacturing facilities. It is followed that the production facilities of various automakers are automated to maintain accuracy and efficiency. Further, the increasing trend of replacing conventional vehicles with electric vehicles (EVs) is expected to augment the automotive industry's demand.
  • Automobile manufacturers, such as Hyundai and General Motors, collaborate directly with additive manufacturers on the technology's application. Virtual and augmented reality is also used to address manufacturing difficulties, such as machine failure, occupational injuries, and technical shutdown. Like many other industries, the auto industry wants to make the most of Industry 4.0, where "connected" machines communicate with one another and human operators to deliver workplace safety and productivity benefits. As a result, the rising need for automation in the vehicle industry affects automakers' attitudes about worker safety, resulting in a spike in the studied market.
  • According to the National Association of Motor Vehicle Manufacturers, Brazil's passenger car production has rebounded after the dramatic decline in 2020. As of 2022, about 1.8 million units of passenger cars were manufactured in Brazil. In comparison to 2021, this represented an increase of nearly seven percent. Further, in 2022, the Brazilian automotive industry exported approximately USD 6.6 billion worth of motor vehicles. Meanwhile, over USD 8 billion worth of auto parts were exported that same year.
  • According to the National Institute of Statistics and Geography (Spanish: Instituto Nacional de Estadística y Geografía (INEGI)),Nissan, a Japanese multinational company, sold approximately 241,100 light vehicles in Mexico in 2023, making it the top automobile manufacturer in terms of sales. General Motors, a multinational company based in the United States, took second place in sales that year, selling approximately 184,100 light vehicle units.
  • The increase in automotive production in the region is likely to offer lucrative opportunities for the growth of the studied market.
Latin America Factory Automation And Industrial Controls Market: Number of Light Vehicle Units Sold in Mexico, by Manufacturer, in 2023

Brazil is Expected to Hold Significant Market Share

  • Brazil is a highly developed manufacturing nation in Latin America and the second-largest exporter of appliances and electrical goods, following Mexico. As per the Organization for Economic Co-operation and Development (OECD), the manufacturing industry's value-added contribution to Brazil's gross domestic product increased by 0.9% (+8.81%) since the previous year, 2021. Consequently, the Brazilian manufacturing industry share reached a pinnacle in 2022, accounting for 11.12%. Therefore, it is anticipated that the market is expected to experience growth due to the prevalent use of automated processes and systems in manufacturing factories and industries.
  • The implementation of robots in the transformation of industrial automation is currently in progress in Brazil, a country with significant potential for automation. As per IFR, the Brazilian automotive industry is the foremost adopter of industrial robots, with 47% of operational robots and 22% of new installations in 2021. This capability enables the automotive industry to maintain its position as one of the most significant users of robots and possess one of the most automated supply chains globally.
  • Furthermore, the increasing production and consumption of oil and gas in the country will likely offer lucrative opportunities for the growth of the studied market. For instance, according to the Brazilian National Agency for Petroleum, Natural Gas and Biofuels (ANP), in 2022, offshore production represented about 97 percent of Brazil's crude oil output, amounting to more than 1.07 billion barrels. Natural gas production in Brazil has more than doubled in one decade, reaching over 50 billion cubic meters in 2022. In comparison to 2021, this represents an increase of three percent. Brazil's natural gas production is primarily concentrated offshore.
  • Moreover, massive shifts in manufacturing due to Industry 4.0 and the acceptance of IoT require enterprises to adopt agile, smarter, and innovative ways to advance production, with technologies that complement and augment human labor with automation and reduce industrial accidents caused by process failure.
  • In May 2023, OpenSignal reported that TIM achieved the top 5G network availability score in Brazil, which was 4.2. Claro came next, achieving a score of more than three percent. In comparison, Vivo had the lowest rating of about 2.6 in the Latin American nation. Embratel developed the private 5G network in So Paulo, while Ericsson supplied the manufacturing equipment.
Latin America Factory Automation And Industrial Controls Market: 5G Network Reach Score in Brazil, by Provider as of May 2023

Latin America Factory Automation And Industrial Controls Industry Overview

The Latin America factory automation and industrial controls market exhibits significant fragmentation, featuring prominent players like Rockwell Automation Inc., Honeywell International Inc., General Electric Company, ABB Limited, and Dassault Systemes SE. These key industry participants employ strategic approaches, including partnerships and acquisitions, to bolster their product portfolios and establish a sustainable competitive edge.

In July 2023, ABB demonstrated its commitment to addressing the digital connectivity challenges faced by today's oil and gas industry by expanding its XIO series of remote input/output controllers. The enhanced XIO series introduces a novel Ethernet-to-Serial passthrough application, enabling real-time monitoring and control. This innovation not only improves data accessibility but also enhances data integrity, providing customers with an expanded array of solutions.

Furthermore, in May 2023, Rockwell Automation, Inc. announced a strategic partnership with Avid Solutions Inc., aimed at optimizing the efficiency and speed of Green Hydrogen (H2) production for businesses. Avid Solutions, as a solutions partner, brings its expertise in processes and digitally enabled solutions for industrial producers to the table, offering comprehensive Green H2 solutions encompassing electrolyzers, H2 liquefaction, and turn-key plant automation services. Notably, Avid holds the esteemed position of a Gold System Integrator partner within Rockwell Automation's Partner Network program, signifying their extensive knowledge of Rockwell Automation's product portfolio.

 

Latin America Factory Automation And Industrial Controls Market Leaders

  1. Rockwell Automation Inc.

  2. Honeywell International Inc.

  3. General Electric Company

  4. ABB Limited

  5. Dassault Systemes SE

*Disclaimer: Major Players sorted in no particular order

Latin America Factory Automation And Industrial Controls Market Concentration
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Latin America Factory Automation And Industrial Controls Market News

  • August 2023: Rockwell Automation, Inc. launched ArmorKinetixDistributed Servo Drives. This unique distributed servo drive is an extension of the Kinetix5700 platform and delivers users with a scalable drive solution that helps provide cleaner, greener, and more influential machine designs.
  • June 2023: ABB Robotics expanded its extensive robot offering with four new models and 22 variants, offering more choices, growing coverage, and improving performance. The following generation models contain the IRB 6710, IRB 6730, IRB 6720, and IRB 6740, suitable for payloads ranging from 150kg to 310kg, with a reach from 2.5m to 3.2m, offering customers greater choice and significant performance and energy efficiency improvements.

Latin America Factory Automation & Industrial Controls Market Report - 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 INSIGHTS

    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 Buyers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

    4. 4.4 Assessment of the Impact of Macro Economic Factors and COVID-19 on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Focus Toward Cost-cutting and Business Process Improvement

      2. 5.1.2 Increasing Adoption of Internet of Things (IoT) and Machine- to-Machine Technologies

    2. 5.2 Market Restraints

      1. 5.2.1 Lack of Skilled Workforce Preventing Enterprises from Full-scale Adoption of Factory Automation

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Product Type

      1. 6.1.1 Industrial Control Systems

        1. 6.1.1.1 Distributed Control System (DCS)

        2. 6.1.1.2 Programmable Logic Controller (PLC )

        3. 6.1.1.3 Supervisory Control and Data Acquisition (SCADA)

        4. 6.1.1.4 Product Lifecycle Management (PLM)

        5. 6.1.1.5 Human Machine Interface (HMI)

        6. 6.1.1.6 Manufacturing Execution System (MES)

        7. 6.1.1.7 Enterprise Resource Planning (ERP)

        8. 6.1.1.8 Other Industrial Control Systems

      2. 6.1.2 Field Devices

        1. 6.1.2.1 Machine Vision

        2. 6.1.2.2 Robotics (Industrial)

        3. 6.1.2.3 Sensors and Transmitters

        4. 6.1.2.4 Motors and Drives

        5. 6.1.2.5 Relays and Switches

        6. 6.1.2.6 Other Field Devices

    2. 6.2 By End-user Industry

      1. 6.2.1 Oil and Gas

      2. 6.2.2 Chemical and Petrochemical

      3. 6.2.3 Power and Utilities

      4. 6.2.4 Food and Beverages

      5. 6.2.5 Automotive

      6. 6.2.6 Pharmaceutical

      7. 6.2.7 Other End-user Industries

    3. 6.3 By Country

      1. 6.3.1 Brazil

      2. 6.3.2 Argentina

      3. 6.3.3 Mexico

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles*

      1. 7.1.1 Rockwell Automation Inc.

      2. 7.1.2 Honeywell International Inc.

      3. 7.1.3 General Electric Company

      4. 7.1.4 ABB Limited

      5. 7.1.5 Dassault Systemes SE

      6. 7.1.6 Schneider Electric SE

      7. 7.1.7 Emerson Electric Company

      8. 7.1.8 Autodesk Inc.

      9. 7.1.9 Mitsubishi Electric Corporation

      10. 7.1.10 Siemens AG

      11. 7.1.11 Aspen Technology Inc.

      12. 7.1.12 Bosch Rexroth AG (Robert Bosch Gmbh)

  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OUTLOOK OF THE MARKET

**Subject to Availability
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Latin America Factory Automation And Industrial Controls Industry Segmentation

Factory automation refers to the use of control systems, machinery, and computer systems to automate industrial processes and tasks, reducing the need for human intervention. This includes processes like manufacturing, material handling, and quality control. The industrial controls market encompasses the products and systems used to monitor and control various industrial processes. This includes components like programmable logic controllers (PLCs), human-machine interfaces (HMIs), sensors, and software that manage and optimize the operation of machinery and equipment in industrial settings. The market for these technologies and solutions is essential for improving efficiency, safety, and productivity in industrial operations.

The Latin America factory automation industrial controls market is segmented by product type (industrial control systems (distributed control system (DCS), programmable logic controller (PLC), supervisory control and data acquisition (SCADA), product lifecycle management (PLM), human-machine interface (HMI), manufacturing execution system (MES), enterprise resource planning (ERP)), field devices (machine vision, robotics (industrial), sensors and transmitters, motors and drives, relays and switches)), by end-user industry (oil and gas, chemical and petrochemical, power and utilities, food and beverages, automotive, pharmaceutical), by country (Brazil, Argentina, Mexico, and Rest of Latin America).

The market sizes and forecasts are provided in value USD for all the above segments.

By Product Type
Industrial Control Systems
Distributed Control System (DCS)
Programmable Logic Controller (PLC )
Supervisory Control and Data Acquisition (SCADA)
Product Lifecycle Management (PLM)
Human Machine Interface (HMI)
Manufacturing Execution System (MES)
Enterprise Resource Planning (ERP)
Other Industrial Control Systems
Field Devices
Machine Vision
Robotics (Industrial)
Sensors and Transmitters
Motors and Drives
Relays and Switches
Other Field Devices
By End-user Industry
Oil and Gas
Chemical and Petrochemical
Power and Utilities
Food and Beverages
Automotive
Pharmaceutical
Other End-user Industries
By Country
Brazil
Argentina
Mexico
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Latin America Factory Automation & Industrial Controls Market Research FAQs

The Latin America Factory Automation and Industrial Controls Market size is expected to reach USD 16.65 billion in 2024 and grow at a CAGR of 7.54% to reach USD 26.83 billion by 2029.

In 2024, the Latin America Factory Automation and Industrial Controls Market size is expected to reach USD 16.65 billion.

Rockwell Automation Inc., Honeywell International Inc., General Electric Company, ABB Limited and Dassault Systemes SE are the major companies operating in the Latin America Factory Automation and Industrial Controls Market.

In 2023, the Latin America Factory Automation and Industrial Controls Market size was estimated at USD 15.39 billion. The report covers the Latin America Factory Automation and Industrial Controls Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Latin America Factory Automation and Industrial Controls Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Latin America Factory Automation and Industrial Controls Industry Report

Statistics for the 2024 Latin America Factory Automation And Industrial Controls market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Latin America Factory Automation And Industrial Controls analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Latin America Factory Automation and Industrial Controls Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)