Industrial Automation (Global Market)

Main article: APCS

Automation in industry is a major market that will continue to grow

According to analysts at Fortune Business Insights Industrial^[1]industrial automation market will grow to $300 billion by 2026, showing a cumulative CAGR of about 8.5%.

The concept of industrial automation includes many elements, such as programmable controllers (PLC), safety systems, SCADA systems, drive equipment, CNC, instrumentation, MES systems and related software products. Adjacent areas are also pumps and motors, robotics, handling systems, supply chain management software, building automation systems, low-voltage switching equipment.

Market leaders are unchanged over the years, their solutions are time-tested and used in many businesses. The irremovability of positions is largely due to the fact that manufacturers offer a complete infrastructure, and from the point of view of operation, it is beneficial for customers to have the equipment of one vendor, as this makes it easier to find and replace components, as well as train maintenance personnel.

Market leaders

Let's give statistics on the revenue of the largest players in the industrial automation market.

Siemens is the undisputed leader in the Old World. Most industrial enterprises in Western and Eastern Europe use the solutions of this manufacturer. Its products such as controllers, CNC, drives are most in demand. The products of this manufacturer are also very popular in Russia, the S7 line of controllers is especially known.

In the New World, Siemens products are valued much lower: there the vendor took only ninth place in terms of revenue. In North America, Emerson is confidently knocked out of the lead, with its Delta V product line.

ABB has four divisions: "Electrical Equipment," "Industrial Automation," "Electric Drives" and "Robotics and Discrete Automation" - combined by the common digital platform ABB Ability. ABB's Electric Networks business unit will move to Hitachi in 2020.

Schneider Electric is a major supplier of switching equipment. But in addition, the company offers an EcoStruxure automation platform that allows you to actively implement IIoT technologies.

Regional segmentation

Depending on the region, the industrial automation and control systems market is divided into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa. Asia-Pacific accounted for more than 30.0% of the total market in 2018 due to the presence of key market players and new companies in the region.

Some of the notable regional players are Kawasaki Robotics, Mitsubishi Electric Factory Automation and Yokogawa Electric Corporation. In addition, the Asia-Pacific region is expected to witness significant growth, with the highest annual growth rate (CAGR) here set to be 11.0% between now and 2025.

The growth of the Asia-Pacific region can be attributed to the increasing demand for better industrial management solutions in countries such as China, India and South Korea. Following Asia Pacific, the North American regional market holds a significant share in terms of revenue and is expected to grow at a steady pace.

The North American regional market is characterized by numerous manufacturing companies that use production automation systems. In addition, the notable growth of IIoT R&D in the region may also drive the growth of the regional market.

(According to Grand View Research^[2])

Industry segmentation

By industry covered, the automation systems market is divided into the following segments: aerospace and defense, automotive, chemical, energy, product, healthcare, metallurgy, oil and gas.

The manufacturing industry is expected to remain among the leaders in the implementation of automation tools until 2025-26. The next are the food industry and beverage industries - these segments are the most sensitive to product quality and the further introduction of automation will increase productivity, improve reliability, reduce waste and optimize costs.

Among all areas of industry in the forecast period, the largest CAGR is expected in the healthcare segment - 9.6%. In the Asia-Pacific region, the chemical industry will lead, as the number of these enterprises in the region is predicted to increase.

(According to Grand View Research^[3])

Control systems

This market segment is subdivided into Distributed Control Systems (DCS), Logic Controllers (PLC), Supervisory Control and Data Acquisition (SCADA) and others.

The DCS segment holds the largest share in terms of revenue currently and is expected to dominate the manufacturing automation and industrial control market over the next six years. This growth has been attributed to growing industrialization in developing countries such as China, India and the Middle East. Such economies are characterized by the fact that they increase government support for industrialization and development plans in sectors such as power and mechanical engineering.

Factors such as the discovery of new crude oil reserves and the need to improve safety and protection standards in refineries are driving demand for DCS in the oil and gas industry. However, the adoption of SCADA systems is growing rapidly in sectors such as manufacturing, water supply and sewerage.

Leading companies such as ABB and Schneider Electric have an extensive portfolio of SCADA systems. Notable products include Symphony Plus and SCADAvantage by ABB and OASyS SCADA by Schneider Electric. The SCADA control systems segment is projected to have the highest CAGR of 9.6% from 2019 to 2025.

(According to Grand View Research^[4])

Components Market

According to Fortune Business Insights Industrial^[5]By Component Type, Industrial Automation and Control Systems Market^[6] divided into Human Machine Interfaces (HMIs), Control Valves, Sensors, and Other Equipment.

The control valve segment holds the largest share now and, according to plans, will maintain its position during the forecast period. The significant market share of control valves is due to their massive introduction in the oil and gas industry due to the advantages they offer in terms of pressure and temperature control during production, processing and transportation operations. In addition, the growing number of power plants around the world and the growing need for energy in developing countries are expected to boost demand for regulatory equipment in the electricity generation sector. An annual increase in the instrumentation segment is expected in the region of 9.5%.

Industrial Robots Market

This market segment is somewhat separate and has its own statistics. In this sector, their leaders; slightly different forecasts from the rest of the market for revenue growth, so let's figure it out in more detail.

According to Market Research Reports^[7], industrial robots have gained the most distribution in the Asia-Pacific region, unlike Eurasia and America, where the share of manual labor is still high, for example, in mechanical engineering. The Asian region occupies more than half of the industrial robot market.

The Asia-Pacific industrial robotics market is expected to grow by 13.39% in terms of robotic system revenue, remaining the largest regional market in the world. Revenue will reach $97.0 billion by 2026. Annual shipment to here will increase to 1.11 million units in 2026 with a CAGR of 17.89% in 2019-2026.

North America Industrial Robotics Market Revenue to Reach 13.01 Billion by 2026 The CAGR for 2019-2026 will be 11.67%. It is expected that the annual increase in the volume of supplies in the same period will be 16.02%, increasing to 126.36 thousand units by 2026.

Revenue of the pan-European robotics market for 2019 is $373.47 million and will show a cumulative growth of 40.73% during 2020-2026.

Industrial Robotics Segment Leaders:

• ABB
• The Yaskawa Electric Corporation
• Midea Group (KUKA)
• The Fanuc Corporation
• Kawasaki Heavy Industries

Automatics Market Growth Drivers and Restraints

Key market players are focused on acquisitions and cooperation in the implementation of new technologies that will improve the quality of products and reduce production costs.

In most cases, automation allows manufacturers to produce goods faster, with higher quality and with lower costs than with manual operations, says Quality Magazine[8] David Dechow, chief architect of machine vision systems at Integro Technologies.

The concept of Industry 4.0 is put at the head, the implementation of which will allow consumers to actively use industrial automation technologies, link all existing systems into a single production management system, which will make it possible to predict the need for repairs in advance and will allow them to abandon unplanned downtime.

On the agenda is the introduction of the industrial Internet of Things (IIoT), using 5G wireless technologies .

It is the use of the latest technologies, according to analysts, that will become the main driver of the growth of the industrial automation market.

Smart robotics and automation are vital to addressing new consumer trends, product assortment demand or trade barrier issues, says Dr. Susanne Bieller, IFR Secretary General, in a press release from[9] - New technology solutions pave the way for greater flexibility in manufacturing.

Separately, it should be noted that the coronavirus pandemic will also become one of the growth factors in the automation market.

Before the pandemic, people might have thought we were automating too much, "Robots[10] Richard Pak[11] at Clemson University who researches psychological factors related to automation, told the NY Times. This event will make people think about what else needs to be automated.

Market participants are expanding the capabilities of industrial control systems for use in industries such as transport, mining and metallurgy, as well as aerospace and defense. Investments in research and development in industrial automation and robotics are increasing significantly around the world. Thus, the evolution of digital industrial solutions paves the way for rapid growth of the automation and control systems market around the world.

The most deterrent for many enterprises, primarily defense, as before, will be the problem of cyber security.

The security of critical infrastructure is complex in nature, and we believe that research is needed that will become an important part of understanding where the industry can improve overall, says Mary Ramsey, executive director of ISA's[12].

Industrial networks

• Industrial Networks (Global Market)

Market estimates

2024: Global Industrial Embedded Market Growth by 3% to $89 Billion

In 2024, costs in the global industrial embedded market reached $89.24 billion. This is almost 3% more compared to 2023, when the volume of the industry was estimated at $86.87 billion. Such data are provided in a review prepared by Market Research Future analysts and published in mid-February 2025.

One of the main drivers of the sector in question, the authors of the study call the need for automation in various fields. We are talking, in particular, about the manufacturing, automotive and aerospace industries. Embedded automation technologies improve performance, reduce operational costs, and improve process accuracy. The industry is further stimulated by advances Internet in the field of things (): IoT companies use all kinds of sensors to more effectively monitor equipment and optimize activities.

Technological advances in microcontrollers, processors and integrated circuits play an important role in the development of the market. Embedded systems are becoming more compact, efficient and energy efficient, which opens up new opportunities for their implementation. At the same time, the integration of machine learning and artificial intelligence expands functionality: AI algorithms allow you to analyze huge amounts of information with high speed, identify possible problems and predict equipment failures. As a result, enterprises can optimize their work in almost real time.

The growing focus on energy efficiency and sustainability in industrial operations is also driving demand for embedded systems. Companies are increasingly implementing solutions that reduce energy consumption while improving operational efficiency. Embedded systems help to monitor and optimize energy use in industrial enterprises. This results in substantial cost savings and helps to reduce the carbon footprint. In addition, embedded systems contribute to the development of peripheral computing.

Analysts identify five key market segments: telecommunications, automotive, consumer electronics, industrial automation and healthcare. In 2024, solutions for the telecom sector provided revenues of about $18.8 billion. The automotive industry accounted for $22 billion, consumer electronics - $15 billion. Industrial automation brought in $23.44 billion, the health sector - about $10 billion. Significant market players are named:

• Emerson Electric;
• Kontron;
• BeagleBoard;
• Intel;
• Arm Holdings;
• Moxa;
• Texas Instruments;
• Honeywell;
• Microchip Technology;
• [[Advantech];
• Siemens;
• Raspberry Pi Foundation;
• Rockwell Automation;
• Analog Devices;
• NXP Semiconductors.

From a geographical point of view, in 2024, North America was in the lead, where sales of embedded systems are estimated at $36.54 billion: the region dominates thanks to the advanced technological landscape and the active introduction of industrial automation tools. This is followed by Europe with $24.23 billion, and the Asia-Pacific region closes the top three with $19.27 billion. The rest of the revenue was provided by South America, the Middle East and Africa.

Market Research Future analysts believe that in the future, the CAGR in the market under consideration will be 2.73%. As a result, by 2035, costs on a global scale could increase to $120 billion.^[13]

Notes