Middle East & Africa Factory Automation Market Forecast to 2028 – COVID-19 Impact and Regional Analysis – by Component (Hardware and Software), Hardware (Sensors, Controllers, Robots, Drives, and Others), Type (Programmable Automation, Fixed Automation, and Flexible Automation), Technology (Programmable Logic Controller (PLC), Distributed Control System (DCS), Supervisory Control and Data Acquisition System (SCADA), Human Machine Interface (HMI), and Others), and Industry Vertical (Automotive, Food and Beverage, Oil and Gas, Manufacturing, Mining, and Others)
The factory automation market in MEA is expected to grow from US$ 7,670.72 million in 2022 to US$ 11,134.40 million by 2028. It is estimated to grow at a CAGR of 6.4% from 2022 to 2028.
Automation in Mining Industry
To make mining business more profitable, the continuous supply of ore to the third party, rise in efficiency, ease of transport, and metal extraction should all be improved. The industry is gradually focusing on automation for this improvement, as technological advancements in factory automation will increase overall returns for the company. Also, digitization has recently been reliable enough to be used in the tough mining environment without affecting mineral production. According to the white paper by Accenture and the World Economic Forum, smart mining, particularly the implementation of 5G network, will reduce fatalities by 10% and injuries by 20% over the next decade. Also, according to the Ericsson's Connected Mining report, private 5G networks can reduce round-trip latency by 95% which will surge the demand for digitization in mining, leading to the market growth in the region. Factory automation systems have gradually reduced the role of a miner in the pit and provided a safer work environment for the operator. Also, it offers real-time information and data on mining operations, thereby helping them analyze the overall mining process, make mining process more visible, and gain full control of their fleets. It also helps reduce their capital and labor costs, thus improving their energy efficiency. According to the case study by Telefonaktiebolaget LM Ericsson, by using automation for drilling and blasting, approximately US$ 2.48 million were saved annually at the Aitik mine alone. These factors are expected to influence the demand for automation solutions in the mining industry, thereby contributing to the growth of the market.
Market Overview
The Middle East & Africa factory automation market is further segmented into South Africa, Saudi Arabia, UAE, and the Rest of MEA. The above countries in the region are adopting factory automation and smart working technique to enhance their manufacturing capabilities. For instance, Saudi Arabia is automating 4,000 factories to curb reliance on low-skilled workers. Also, to transform the country's manufacturing sector, the Ministry of Industry and Mineral Resources launched The Future Factories Program to build a robust tech ecosystem. Similarly, UAE is focusing on Fourth Industrial Revolution (4IR) or Industry 4.0 to increase productivity and provide more innovative products using automated systems. Through all the above initiatives, the Middle East & Africa region is advancing toward automation, thus leading to the growth of factory automation market. In addition, the Middle East and Africa is the largest oil producer in the world. The oil and gas industry is always looking for solutions to improve operations and reduce risks, this has led to investment in process automation. For instance, Nabors has developed an advanced rig operating system to improve the drilling operation in oil and gas industry. Nabors SmartROS™ rig operating system is built on a Linux platform and uses activity-based workflows that are viewable on an intuitive user interface. Thus, the growing developments in oil and gas industry through automation and digitalization is further boosting the market growth.
MEA Factory Automation Market Revenue and Forecast to 2028 (US$ Million)
MEA Factory Automation Market Segmentation
The MEA factory automation market is segmented into component, hardware, type, technology, industry vertical and country. Based on component, the market is bifurcated into hardware and software. The hardware segment registered a larger market share in 2022.
Based on hardware, the MEA factory automation market is segmented into sensors, controllers, robots, drives, and other hardware components. The robots segment registered the largest market share in 2022. Based on type, the MEA factory automation market is segmented into programmable automation, fixed automation, and flexible automation. The fixed automation segment registered the largest market share in 2022. Based on technology, the MEA factory automation market is segmented into programmable logic controller (PLC), distributed control system (DCS), supervisory control and data acquisition (SCADA), Human-Machine Interface (HMI), and others. The supervisory control and data acquisition system (SCADA) segment registered the largest market share in 2022. Based on industry vertical, the MEA factory automation market is segmented into automotive, food and beverages, oil and gas, manufacturing, mining, and others. The manufacturing segment registered the largest market share in 2022. Based on country, the market is segmented into South Africa, Saudi Arabia, UAE, and Rest of MEA. Saudi Arabia dominated the market share in 2022.
ABB Ltd; Bosch Rexroth AG; Emerson Electric Co.; Fanuc Corporation; General Electric Company; Honeywell International Inc.; Mitsubishi Electric Corporation; OMRON Corporation; Rockwell Automation, Inc.; and Siemens AG are the leading companies operating in the factory automation market in the region.
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