According to Nova one advisor, the global Industrial Automation market was valued at USD 196.9 billion in 2021 and it is expected to hit around USD 413.1 billion by 2030 with a CAGR of 9.1% during the forecast period 2022 to 2030.
The industrial automation market is growing rapidly due to the high adoption of automation solutions in the manufacturing, oil & gas, chemicals & materials, and pharmaceutical sectors. With the implementation of automation components such as sensors, robots, machine vision systems, and enterprise control solutions, companies are able to drastically reduce operating and labor costs. Manufacturing companies are increasingly investing in industrial automation technologies to improve system reliability & efficiency and eliminate production errors caused by human labor. However, the limited availability of skilled labor required to operate these systems is a major challenge for the market’s growth in emerging economies.
Report Scope of the Industrial Automation Market
Report Coverage |
Details |
Market Size |
USD 413.1 Billion by 2030 |
Growth Rate |
CAGR of 9.1% from 2022 to 2030 |
Largest Market |
North America |
Fastest Growing Market |
Asia Pacific |
Base Year |
2021 |
Forecast Period |
2022 to 2030 |
Segments Covered |
Component, Mode of Automation, End User, and Region, |
Companies Mentioned |
ABB Group (Switzerland), Rockwell Automation (U.S.), Siemens AG (Germany), Yaskawa Electric Corporation (Japan), Schneider Electric (France), Yokogawa Electric Corporation (Japan), KUKA AG (Germany), Emerson Electric (U.S.), Fanuc (Japan), Honeywell International (U.S.), Mitsubishi Electric Corporation (Japan), OMRON Corporation (Japan), Advantech Co., Ltd. (Taiwan), and Fuji Electric Co., Ltd. (Japan). |
Government Initiatives and Supportive Policies to Drive Market Growth
Governments in Europe and Asia-Pacific are promoting the adoption of industrial automation technologies and systems for the digitalization of their respective manufacturing sectors. For instance, in 2019, the Chinese government invested $580 million in developing industrial robots under its Made in China 2025 plan. Under this plan, the government aims to upgrade the manufacturing capabilities of Chinese industries. Under its five-year Robot Industry Development Plan, China plans to develop top robot manufacturers, create 8–10 industrial clusters, and increase its robot density. In September 2020, the U.K. government announced plans to invest around $185 million into the second round of its “Manufacturing Made Smarter” scheme, which is aimed at promoting interconnectivity and innovation in the country’s manufacturing sector.
The Impact of COVID-19 on the Industrial Automation Market:
The COVID-19 pandemic has drastically impacted several manufacturing and processing industries across the globe. The industries severely affected include oil & gas, construction machinery, rubber & plastic machinery, and power generation. These industries faced a high impact due to changes in consumer behavior, low production, and dependency on end-use markets and are expected to recover slowly. Some of the moderately impacted industries include mining, robotics, building technology, electronics, paper & pulp, and processing equipment. These industries are expected to make a speedy recovery due to the broad range of applications they cater to. The least hit industries include agricultural machinery, food & beverage processing & packaging, and medical & scientific manufacturers as they offer essential goods globally.
The industrial sector was severely impacted by the pandemic due to the reduced consumption of high-cost products and the consumers’ inclination to spend on only the most essential goods & services. During the nation-wide lockdowns, consumers restricted their spending on consumer goods, high-cost electronics, textiles, automobiles, and machinery, which impacted the major application sectors for the industrial automation market. With countries resuming trade and economic activity and stability in consumer lifestyles, the spending on these products and services is expected to increase, boosting the demand for automation solutions over the coming years. The market is expected to recover in 2021 and 2022 due to restrictions on the volume of human labor allowed at manufacturing facilities.
Key Findings in the Industrial Automation Market Study:
Enterprise-level Controls Accounted for the Largest Market Share in 2021
Based on component, the industrial automation market is segmented into plant instrumentation, plant-level controls, and enterprise-level controls. The enterprise-level controls segment accounted for the largest market share in 2021. This segment’s large share is attributed to the benefits of implementing PLM, ERP, and MES solutions at the enterprise level. PLM solutions promote cross-team collaboration across departments such as innovation, R&D, regulatory compliance, quality, and packaging. They enable cross-functional management of product development introduction, leveraging portfolio management capabilities to deliver visibility and optimize results across the product development phase. These systems aid companies to maintain and manage records of the organization’s lifecycle, further resulting in huge cost savings.
The Fully-automatic Segment to Witness Rapid Growth During the Forecast Period
Based on the mode of automation, the market is segmented into semi-automatic and fully-automatic systems. The fully-automatic segment is expected to register the higher CAGR during the forecast period. The segment’s rapid growth is attributed to the increasing installation of complete automation solutions in end-use industries such as chemicals & materials, metals & mining, oil & gas, and paper & pulp. Fully-automatic solutions aid the companies in these industries to efficiently manage activities on-site and in offices. Mining & exploration activities are highly labor-intensive and require the proper functioning of management systems, which is efficiently facilitated by ERP solutions. Additionally, these companies also use robots and automated systems that assist the human workforce in high-intensity tasks, offering enhanced productivity.
The Oil & Gas Segment Accounted for the Largest Market Share in 2021
In 2021, the oil & gas segment accounted for the largest share of the industrial automation market. Companies in the oil & gas sector are increasingly implementing automation technologies to improve decision-making and troubleshooting and increase the performance and efficiency of oil & gas exploration activities. Some of the major areas highly influenced by automation in the oil & gas sector include drilling operations, diagnostics & inspections, pipeline monitoring systems, weather monitoring systems, and pressure & flow systems. Drilling is one of the major areas that require automation due to its high costs and high safety risks for the workers. Automated monitoring systems are being increasingly deployed for pipe monitoring applications due to the rise in criminal attempts to steal pipelines.
Asia-Pacific Commanded the Largest Market Share
In 2021, Asia-Pacific commanded the largest share of the industrial automation market, followed by Europe and North America, due to the presence of large-scale industries in these regions. Asian countries, including China and Japan, are the top manufacturers and end users of industrial robots, sensors, and machine vision systems. Additionally, India, China, and South Korea have robust automotive, consumer goods, electronics, and pharmaceutical manufacturing industries. Moreover, government initiatives and policies supporting the digitization of manufacturing plants and investments in the IIoT in these countries are major factors boosting the adoption of industrial automation solutions.
Some of the prominent players in the Industrial Automation Market include:
Segments Covered in the Report
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Nova one advisor, Inc. has segmented the global Industrial Automation market
Industrial Automation Market, by Component
Industrial Automation Market, by Mode of Automation
Industrial Automation Market, by End User
By Geography
Key Benefits for Stakeholders