The report says the factory automation sector generated $242.5 billion in 2021. This is forecast to grow to $558.8 billion by 2031 with a Compound Annual Growth Rate (CAGR) of 8.7 percent from 2022 to 2031.
Prime Growth Factors
The study says an increase in demand for reliable manufacturing automation, the development of 5G wireless technology, and increase in the adoption of industry 4.0 are the main factors driving growth. This will be bolstered by an uptick in demand from manufacturers in Asian countries, specifically China and Japan.
However, a tight labor market, security concerns and the high cost of implementation are providing some friction to market growth.
Automotive Manufacturing Leads the Way
In terms of industry verticals, automotive manufacturing accounted for nearly one-third of the global factory automation market in 2021 and is likely to maintain this position through 2031. However, the food and beverage segment is projected to hit the highest CAGR of 10.3 percent from 2022 to 2031.
Robots Rule the Roost
Industrial robots are the automation component experiencing the highest demand in 2021, accounting for more than 25 percent of the global factory automation market. The drives segment is projected to produce the highest CAGR at 9.7 percent from 2022 to 2031.
SCADA and PLC
Supervisory Control and Data Acquisition System (SCADA) controls accounted for the largest share in 2021, accounting for 20 percent of the market, and is projected to keep its lead for the next decade. However, the Programmable Logic Controller (PLC) segment will carry the largest CAGR at 9.4 percent from 2022 to 2031. Large industrial manufacturers favor fully automating their production procedures. But because PLCs are readily available, smaller companies tend to use them for control-level automation at a reasonable cost.
Asia-Pacific is catching up
Europe held the highest market share in terms of revenue in 2021, accounting for more than a third of the global factory automation market, but the Asia-Pacific region is likely to dominate the market during the forecast period. In the Asia-Pacific area, manufacturers have made significant investments in electricity transmission and distribution due to the rising demand for mass manufacturing to meet the needs of the expanding population. Consequently, it forms the largest segment. However, Latin America, the Middle East and Africa (LAMEA region) is expected grow at the fastest pace with a CAGR of 9.4 percent from 2022 to 2031. Rapid increases in industrialization and population in the Middle East have led to the rising adoption of innovative solutions and automation. Furthermore, the development of the oil refineries and power industries is expected to boost the need for factory automation.
Leading Market Players:
- Schneider Electric
- Danaher
- OMRON Corporation
- Siemens AG
- General Electric
- Mitsubishi Electric Corporation
- Honeywell International Inc.
- Rockwell Automation Inc.
- Emerson Electric Co.
- ABB Ltd
- Yokogawa Electric Corporation
Key Segments in the Factory Automation Market
Industry Verticals:
- Automotive Manufacturing
- Food and Beverage
- Oil and Gas Processing
- Mining
HIgh-Demand Components:
- Sensors
- Controllers
- Switches and Relays
- Industrial Robots
- Drives
Most Popular Controls:
- Distributed Control System (DCS)
- Supervisory Control and Data Acquisition System (SCADA)
- Manufacturing Execution System (MES)
- Systems Instrumented System (SIS)
- Programmable Logic Controller (PLC)
- Human Machine Interface (HMI)