Industrial Automation

Industrial Automation

Industrial automation can be defined as the sectors in the industrial process where the use of computer-aided or other information technologies makes it possible to control various processes or machines without the need for human operation. It increases output, quality, and safety in the production process. Some factors influencing this market growth include Industry 4.0, the need to improve operational efficiency, growing demand for real-time data processing, raising labor prices, and AI, IoT, and Robotics technologies. Further, factors such as international competition, lack of human resources, and concerns for compliance with safety and environmental standards, also drive the need for automated systems.

The Industrial Communication Market is expected to grow with a significant CAGR of 9.0% during the forecast period (2024-2032) by increasing the efficiency of the processes, cutting costs, and increasing effectiveness in business operations. It helps companies to satisfy customer needs for increased product differentiation, delivery time, and quality as well as reduce energy consumption. Moreover, the increase in the application of new technologies, including the automation of work by Artificial Intelligence in organizational activities, will continue to dictate change in the redesign of business processes and structures. Furthermore, leading players have actively integrated mergers & acquisitions and joint ventures as important strategic moves to sustain the competition in the global market. In April 2024, Lear Corporation a global automotive technology leader in Seating and E-Systems, acquired WIP Industrial Automation (“WIP”). The acquisition builds upon Lear’s successful integration of ASI Automation, Thagora Technology SRL, and InTouch Automation as part of IDEA by Lear, the next phase of the company’s strategy to utilize technology and innovation to develop products and extend its leadership in operational excellence.

• Based on the component, the market is segmented into hardware, services, and software. The hardware held a significant share of the market in 2023. The hardware segment of sensor drives, industrial computers, and others is central to the growth of industrial automation since they facilitate real-time data capturing, processing, and actuating of industrial instruments. The availability of the IoT and AI sensible technologies has enhanced the features and functionalities of the related hardware. Major organizations are starting to invest in new levels of hardware to improve accuracy and minimize time lost in production. This segment is widely needed for connecting automation systems of different industries.
• Based on the type, the market is segmented into Programmable Logic Controllers (PLC), Distributed Control Systems (DCS), Supervisory Control and Data Acquisition (SCADA), Human-Machine Interface (HMI), Industrial Robotics, and others. Programmable Logic Controllers (PLC) held a significant share of the market in 2023. PLCs are essential in automation because they regulate complicated processes in industries by periodically assessing and controlling them. They mainly contain flexibility, durability, and the capability to function in unfavorable conditions of manufacturing and oil industries. The increasing requirements for smart factories and high-level control systems have promoted the development of PLCs. Siemens, Rockwell Automation, and Mitsubishi Electric are the leaders in this market segment. In May 2023, Mitsubishi Electric Automation, Inc. expanded its line of MELSEC iQ-F series compact controllers to now offer a basic model providing OEMs with an all-in-one controller for small machines up to 60 I/O with integrated Ethernet connectivity. The FX5S PLC is a solution for simple automation applications at a more affordable price than the original FX5U high-performance model and FX5UJ mid-range model.
• Based on the industry, the market is segmented into automotive, food & beverages, chemicals & petrochemicals, oil & gas, pharmaceuticals, electronics & semiconductors, and others. The automotive held a significant share of the market in 2023 owing to the application of industrial automation expanded in automotive to improve the product speed, quality, and variability in constructing intricate cars. Robotics, actuation welding, and quality control systems are part and parcel of the contemporary auto industry. With electric and self-driving cars dominating the automotive market in the upcoming years, automation equally helps with the volume increase and expense reduction. General Motors, Tesla, and many other major car manufacturers are also incorporating automation technologies.
• Based on the application, the market is segmented into process automation, discrete automation, and warehouse automation. Discrete automation is expected to grow with a significant CAGR in the forecast period (2024-2032) because Discrete automation looks at the automation of creating distinct products such as electronics and machinery beginning with assembly and inspection. This segment is highly motivated by demands in speed, and accuracy coupled with flexibility to support the market needs. Manufacturing industries like electronics, aerospace industries as well as the consumer goods industries are incorporating discrete automation to enhance production cycles. Some of the firms operating in this automated environment include ABB and Omron.
• For a better understanding of the market adoption of Industrial Automation, the market is analyzed based on its worldwide presence in countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, France, U.K., Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. North America is expected to grow with a considerable CAGR in the forecast period due to the advancement in technology and globalization of industries. Industry 4.0 with a mature manufacturing background is improving production efficiency relating to products and services in industrial markets. It is becoming apparent that organizations are using automation solutions to overcome the shortage of labor, increase the level of safety, and strengthen their position in the global market. For instance, on May 6, 2024, Comau is spearheading the Power of Automation with new digital-driven, advanced robotic, and powerful AI-backed automation solutions, unveiled at Automate, North America’s leading automation show. The region exhibits a robust inclination towards research activities that contribute to development, especially regarding automation solutions such as robotics and artificial intelligence.
• Some of the major players operating in the market include Siemens, Rockwell Automation, ABB, Schneider Electric, GE Vernova company (General Electric Company), Emerson Electric Co., Honeywell International Inc, Bosch Rexroth Corporation (Bosch), Mitsubishi Electric Corporation.