Factory Automation Market

Global Factory Automation Market Size (2023 to 2028)

The global factory automation market size is expected to be worth USD 360.6 billion by 2028 from USD 226.5 billion in 2023, registering a CAGR of 9.75 % from 2023 to 2028.

Factory automation is becoming a new reality and is usually incorporated into end-to-end manufacturing processes in industries. A wide range of technologies performs a process by means of command combined with feedback control that automatically ensures the proper execution of instructions. The resulting system can operate without human intervention and can be achieved by various means, including hydraulic, mechanical, pneumatical, electrical, computers, and electronic devices, usually in combination.

Global Factory Automation Market Drivers:

The rise in demand for automation in various industries is one of the primary factors propelling the growth of the factory automation market. An increase in demand for mass production with reduced operating costs in manufacturing industries is supporting the growth of the factory automation market. Factory automation focuses on increasing the efficiency of the manufacturing process to achieve low-cost and efficient production. It also deals with the quality control associated with mass production. These factors are increasing the demand for the factory automation market. Further, various automotive, food, chemical, oil and gas, packaging, mining, and other industries are investing in adopting automation systems for less human intervention, more reliability, and efficiency in manufacturing.

Factors such as the surge in the adoption of Industry 4.0, government initiatives to enhance factory automation, and enabling technologies such as artificial intelligence and the Internet of Things are boosting the factory automation market during the forecast period. The increase in demand for automation of manufacturing industries in Asian countries such as China and Japan is rapidly increasing and offering great opportunities. Further, The advent of cloud systems, smart sensors, and other advanced technologies is enabling the demand for automation in factories. Moreover, low manufacturing costs and supportive government policies are providing opportunities for the factory automation market during the forecast period.

Global Factory Automation Market Restraints:

The high cost of installations is majorly hampering the growth of the global factory automation market. Factory automation involves a set of technologies and mechanical systems that help automate the manufacturing process. The cost of installation and maintenance of the whole set-up is quite hefty. The aforementioned factor is primarily restraining the factory automation market. It also requires highly qualified individuals to manage, implement, and oversee the workflow of automation processes. They should also have in-depth knowledge of system security awareness and procedures. Further, these automation systems need safe authentication practices and solutions to be protected from outside tampering.

Impact of COVID-19 on the global factory automation market:

In several sectors, supply and demand mismatch was observed as businesses were not operating at full capacity. This outbreak has an economic impact and implications on most markets, including the factory automation market. Owing to the impact on prime players in the supply chain, delay or cancellation of projects due to complete or partial lockdowns globally is observed. Further, the lack of skilled workforce availability during the pandemic led to an increase in demand for the automation of factories. A rise in demand for the industrial Internet of Things, especially the rapid adoption of robots, has marked the expansion of the factory automation market during the last quarter of 2020.

REPORT COVERAGE:

This research report on the global factory automation market has been segmented and sub-segmented into the following categories.

Factory Automation Market - By Control System:

• Distributed Control Systems
• Supervisory Control and Data Acquisition System
• Manufacturing Execution System
• Systems Instrumented System
• Programmable Logic Controller
• Human-Machine Interface

Based on the control system, the supervisory control & data acquisition (SCADA) segment occupied the largest share of the global factory automation market in 2022. SCADA is an industrial process system that collects data from instruments and equipment located at plants & remote sites. It acquires and transmits data and provides monitoring and control for the input and output process. It helps increase productivity and profitability by reducing maintenance and operating costs in various industries such as aerospace & defense, automotive, chemical, energy & utilities, manufacturing, and healthcare. These features are expected to drive the factory automation market during the forecast period.

The distributed control system (DCS) segment is anticipated to account for a notable share of the worldwide market during the forecast period. With the fast pace of adoption of the industrial Internet of Things and 5G, its adoption in the power generation sector for better output efficiency is expected to boost the factory automation market.

Factory Automation Market - By Components:

• Sensors
• Controller
• Switches and Relays
• Industrial Robots
• Drives
• Others

Based on components, the industrial robots segment records to dominate the factory automation market during the forecast period. The demand is majorly observed in automobiles and heavy engineering industries. These industries require robots to perform critical tasks in optimized time.in addition, increased demand for mass production and evolving robotics and artificial intelligence (AI) are driving the factory automation market.

The sensors segment is expected to hit the highest CAGR in the near future. Sensors are small in size and offer instant, accurate data that are vital for automation processes. Their demand for automation and control system functioning and processes is growing. It also assists industrial robots in the manufacturing process and records high efficiency. This growing demand is contributing to the expansion of the factory automation market.

Factory Automation Market - By End-User:

• Automotive manufacturing
• Food and beverage
• Oil and gas processing
• Mining
• Others

Based on end-users, the Automotive manufacturing segment is ruling with the dominant shares of the market. Several driving factors, such as the demand for automation in the automobile industry to perform repetitive and complex tasks, are growing immensely. Further, the industry is inclined to adopt smart manufacturing systems and logistics systems to deal with competition and to cater to increased demand for automobiles, which is propelling the market growth.

The healthcare segment is deemed to have the highest growth rate in the near future. Owing to digital consultation and services offered to treat patients, enabling doctors to do surgeries remotely or with minimum human interference for safety is anticipated to drive the factory automation market.

Factory Automation Market - By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Based on region, North America accounts for the highest share of the worldwide market during the forecast period owing to heavy investments in the oil and gas sectors in the U.S. and Canada, as well as the surge in demand for energy-efficient solutions. Furthermore, an increase in demand for automation in manufacturing facilities in the region is contributing to the growth of the North American factory automation market.

Asia-Pacific is the second region in leading the share of the factory automation market. The rise in infrastructure investment in countries such as China, India, and Japan is driving growth in the region. Further adoption of smart grid technologies and cloud-based solutions to cater to the rising demand acts as major factors that boost factory automation market growth in the region.

KEY MARKET PLAYERS:

ABB Ltd, Emerson Electric Company, GE Company, Honeywell International Incorporation, Mitsubishi Electric Factory Automation, Omron Corporation, Rockwell Automation, Inc., Schneider Electric SA, Siemens AG, Yokogawa Electric Corporation, Kuka AG, Keyence Corporation, Fanuc Corporation, Bosch Rexroth, Fuji Electric Co., Ltd., Endress+Hauser and Hitachi Ltd are some of the major companies in the global factory automation market.

RECENT HAPPENINGS IN THE MARKET:

• In 2023, Hitachi Ltd. announced the opening of a new production facility for semiconductor manufacturing equipment in the Kasado area. This facility will focus on doubling the production capacity and cater to the needs of semiconductor manufacturing equipment.
• In 2022, Mitsubishi Electric Factory Automation announced establishing a new factory in India for factory automation control system products to meet the growing demand in the local market.