Industrial Automation And Control Systems Market Is Estimated To Witness High Growth Owing To Adoption Of Industry 4.0
The Industrial Automation and Control Systems Market is estimated to be valued at US$ 174.53 Bn in 2023 and is expected to exhibit a CAGR of 9.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The industrial automation and control systems market comprises machines, components, and systems operated by computers that replace human operators to minimize human intervention during production. They integrate feedback controls, powered by computerized algorithms and hardware, resulting in higher precision, quality, and increased system efficiency. Industrial automation and control systems are increasingly being adopted across sectors including oil & gas, chemicals, automotive, food & beverages, aerospace & defense, healthcare, and others.
Market key trends:
One of the major trends fueling the growth of the industrial automation and control systems market is the increasing adoption of Industry 4.0. Industry 4.0 is the internet of things applied to industrial manufacturing, allowing machine-to-machine communication and data sharing in real-time across different systems within manufacturing facilities. Major advantages of Industry 4.0 enabled industrial automation systems include centralized monitoring and control, increased productivity, improved quality, predictive maintenance capabilities, and reduced downtime. Many industries are leveraging Industry 4.0 technologies like machine learning, 3D printing, and cyber-physical systems to automate production processes and gain competitive advantage through enhanced efficiency, flexibility, and productivity. This is driving significant demand for industrial automation and control solutions globally.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in industrial automation and control systems market is moderate. High initial capital investment and presence of few dominant players pose entry barriers for new players.
Bargaining power of buyers: Bargaining power of buyers is high as industrial automation solutions require high investments and buyers can negotiate on price and delivery terms.
Bargaining power of suppliers: Suppliers have low bargaining power due to presence of many component suppliers and suppliers do not hold unique assets or resources required to produce industrial automation solutions.
Threat of new substitutes: threat of substitutes is low as industrial automation solutions have no cost effective alternative. New production technologies may emerge as substitutes in long run.
Competitive rivalry: Industrial automation market is highly competitive with presence of major global as well as regional players.
SWOT Analysis
Strengths: Industrial automation solutions help optimize production processes, reduce downtime and enhance productivity. They offer centralized control and monitoring of industrial operations.
Weaknesses: High initial investments and dependence on skilled workforce for installation and operation of industrial automation systems. Technical downtimes and disruptions can impact production.
Opportunities: Growing adoption across industries like pharmaceutical, automotive, food and beverage to drive demand. Digitization and implementation of Industry 4.0 standards to present new opportunities.
Threats: Economic slowdowns can impact capital expenditure plans of end-use industries. Trade barriers and geopolitical risks pose challenges. Cyber threats to industrial control systems also threaten business continuity.
Key Takeaways
The Global Industrial Automation And Control Systems Market Growth is expected to witness high, exhibiting CAGR of 9.0% over the forecast period, due to increasing demand for optimization of production processes and operational efficiencies across industries. The market size for 2023 is US$ 174.53 Bn.
Regionally, Asia Pacific dominates the global market and is expected to grow at fastest rate during forecast period. Countries like China, Japan and India are major producers and consumers of industrial automation solutions. This is attributable to rapid industrialization, presence of manufacturing hubs and government initiatives to adopt latest technologies.
Key players operating in the Industrial Automation and Control Systems market are ABB, Emerson Electric Co., Honeywell International, Inc., Kawasaki Heavy Industries, Ltd., Mitsubishi Electric Corporation, OMRON Corporation, Rockwell Automation, Inc., and Schneider Electric. These players are focused on developing innovative IoT and AI integrated solutions as well as acquiring regional players to strengthen their market position.