Process Automation and Instrumentation Market Size

Process Automation & Instrumentation Market Analysis

The process automation and instrumentation market is expected to grow at a CAGR of 6.1% over the forecast period. The growing adoption of digital technologies like AI, IIoT, and machine learning, along with the ever-increasing emphasis on industrial automation, are among the significant factors contributing to the growth of the process automation and instrumentation market. Furthermore, the increasing importance of cost optimization, increased productivity, energy efficiency, better scalability, and reduced errors support the studied market's growth.

• The automation industry has been revolutionized by combining the digital and physical aspects of manufacturing to deliver optimum performance. Further, the focus on a shorter time to market and achieving zero waste production has augmented the market's growth for process automation and instrumentation used across the processing industries.
• Automation of manufacturing processes has offered various benefits, such as effortless monitoring, waste reduction, and production speed. Connecting the industrial machinery and equipment and obtaining real-time data have played a vital role in the adoption of SCADA, HMI, PLC systems, and software that offer visualization; this enables reducing the faults in the product, reducing downtime, scheduling maintenance, and switching from being in the reactive state to predictive and prescriptive stages for decision-making.
• According to a survey about the adoption of automation solutions by Onpassive, an AI tech company that builds fully autonomous products, it was discovered that a significant number of companies nowadays are boosting their use of intelligent automation and RPA. In responding to the survey, about 58% of CEOs stated that they have started automating. In particular, about 35% reported that they are experimenting, 13% said that they are deploying, and 8% reported that they are automating at scale. Such trends create a favorable scenario for the growth of the studied market.
• While the instruments such as physical control valve assembly have changed little over the years, the technology surrounding these valves has advanced significantly. Increased capabilities to gather digital intelligence in real-time will only continue to enable improvements in control valve automation moving forward. Combined with the newest intelligent digital control valve positioners and cutting-edge electric valve actuators, control valve automation is on an upward wave that is anticipated to benefit all modern process plants.
• However, process automation is costly, as it requires a significant upfront investment to upgrade the overall infrastructure, including machinery, IT, etc. Hence, the high initial investment coupled with high operational and maintenance costs prevents small and medium-sized enterprises from adopting process automation and instrumentation processes, which is among the significant factor challenging the studied market's growth.
• A notable impact of COVID-19 has been observed on the growth of the studied market, as the widespread lockdown imposed, especially during the initial phase, significantly disrupted the supply chain and the operation of the industrial sector, creating a slowdown in demand for the studied market. However, the pandemic has dramatically enhanced awareness about the benefits of digital technologies, which is expected to drive investments in automation, and advanced instrumentation solutions, creating growth opportunities in the studied market.