Middle East and Africa Factory Automation and Industrial Controls Market - Growth, Trends, Forecasts (2020 - 2025)
The Middle East and Africa 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.
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Scope of the report
Key Market Trends
TABLE OF CONTENTS
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The Middle East and Africa factory automation and industrial controls market is expected to register a CAGR of 6.8% during the forecast period (2020 - 2025). The GCC is eyeing a new manufacturing era based on modern industrial society. The increasing active collaborations between government, regulators, and organizations for economic development is one of the major factors driving growth in the region's automation and manufacturing sectors.
The market in these countries is majorly driven by increasing investments in the oil and gas industry. The progress in the oil and gas sector is translating into other industries and notably energy solutions. For instance, in October 2019, the Nigerian government partnered with the Government of Norway to work out measures that will help in the expansion of Nigeria's power sector.
Saudi Arabia initiated USD 7 billion of renewable energy projects in 2018, with solar plants being the frontrunner. It is part of its plan to install 9.5 gigawatts of solar and wind capacity by 2023. such infrastructural developments are likely to provide for industrial controls and factory automation solutions.
The presence of South Africa in a strategic geographical location and favorable land prices in the country have led to a significant development of the industrial sector, with the country becoming a prominent location for the development of access control systems, automotive, security equipment, and electronic subsystems.
Moreover, the companies in this region are adopting IIoT to increase efficiency. For instance, Al Waha Petrochemicals Company in Saudi Arabia announced that to implement IIoT-based performance service from Honeywell Connected Plant to explore the possibilities of maximizing propylene production.
The outbreak of COVID-19 presents an immense opportunity for the market in the MEA region. Rockwell (Middle East) has recently stated that with factory automation, manufacturers can get much greater access to data, work smarter and respond faster with the industrial internet of things (IoT); Which would help in the event of any future crisis. This will also allow businesses and manufacturers to keep one step ahead with regard to customer buying behavior rather than simply responding to these incidents when they have already occurred.
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 Middle East and Africa.
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Key Market Trends
Oil and Gas Industry to Drive the Market Growth
The oil and gas industry is home to several government regulations for safety, reliability in the plant, and efficiency. The ICS finds applications in Remote Terminal Units (RTU) and pumping and compression stations to ensure safety.
In order to maintain the safety and environmental integrity without compromising on the efficiency of production, the oil and gas industry is increasingly adopting ICS. Automation helps in integrating information and control, power, and safety solutions to meet the demand for affordable energy and stringent government regulations.
Moreover, the prevention of downtime and improving overall asset performance can be done through real-time monitoring of data from the ESPs. The effectiveness of oil and gas operators can be improved with the adoption of DCS, which enhances alarm management, provides proactive maintenance, and offers guided decision-making, improving overall asset performance.
Due to its pre-salt development plans, the oil and gas segment is expected to witness steady growth in the coming years. The utilization of Big Data and the Internet of Things (IoT) is expected to help determine further opportunities for the companies. Moreover, the region has significant oil and gas rigs, offering ample opportunities for the market to grow in the region.
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Saudi Arabia Holds Significant Market Share
Saudi Arabia is expected to be one of the leading regions in the Middle East & Africa region in the factory automation and industrial control system market, owing to increasing government investments in new technologies. Industry 4.0 is also playing a vital role in the future of the country’s automation and manufacturing sector.
Many mega projects, such as Saudi’s NEOM city, are also driving advanced control systems and automation in infrastructure development. Focus on the manufacturing sector led by Industry 4.0 indicates the companies readiness to adopt new technologies to boost production output at a better quality.
The country has announced an investment of USD 500 billion into nine key investment sectors in the city: energy and water, mobility, biotech, food, technological and digital sciences, advanced manufacturing, media, and entertainment. Hence, the studied market has a tremendous opportunity for growth in Saudi Arabia over the forecast period.
Notably, Saudi Arabia’s 2030 Vision calls for leveraging the Kingdom’s location, strategic partnerships, energy sources, and logistics to stimulate a new industrialization phase and automation in the country. It aims to bring manufacturing half of the Kingdom’s military needs within the Kingdom by 2030 and to automate the Kingdom’s renewable energy and industrial manufacturing sector.
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The Middle East and Africa factory automation and industrial controls market is moderately fragmented. 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.
May 2019 - Honeywell joined hand with Kuwait Integrated Petroleum Industries Company (KIPIC). Under the agreement, Honeywell may provide KIPIC with front-end engineering design and advanced process control technology that may help the KIPIC expedite production start-up and assist with reaching production targets faster and more efficiently.