Smart Factory and Industrial Automation Market- By Applications ; By End Use ; By Geography - Forecast (2024-2030)

Smart Factory and Industrial Automation Market Overview:

Smart Factory and Industrial Automation Market size is forecast to reach $233.5 Billion by 2030, after growing at a CAGR of 3.3% during 2024-2030. Factory Automation is a technology, which involves the usage of automated equipment or machines in various industries to reduce or eliminate human efforts, and increase the efficiency of work in a short period of time. In Factory Automation, the manufacturing and industrial sector is growing at a rapid rate and has led to the advancement of technology such as distributed production by factories and services, the implementation of autonomous plants, and the increasing use of remote operations to automate certain operations. Thus, the graph shows the technological, political, and economic development of the Factory Automation. Most of the European countries are heading towards innovation and are facing challenges like lack of skilled labor, but the development of Factory Automation companies promotes the production efficiency and empowers rapid economic growth. Most countries are seeking ways to enhance their manufacturing industry and most of the Factory Automations companies are seeking to improve the customer experience, which will be based on the new research from Information Services Group (ISG). For example, the implementation of the new policies and regulations such as EU ePrivacy Regulation. The rising demand for  human machine interface, safety instrumented system, manufacturing execution system, programmable logic controller, distributed control system and programmable logic controller solutions in the market will drive the growth.

Additionally, the Smart Factory and Industrial Automation Market witnesses a surge in Digital Twin Expansion, as manufacturers harness digital twin technology to revolutionize operations. Digital twins, virtual replicas of physical assets and processes, are instrumental for design optimization, predictive maintenance, and performance analysis. By simulating real-world scenarios, companies enhance product quality and minimize downtime. This trend signifies a paradigm shift towards data-driven decision-making and proactive maintenance strategies, enabling businesses to achieve greater operational efficiency and competitiveness. As digital twin adoption continues to accelerate, it is poised to reshape the factory automation landscape, driving innovation and unlocking new opportunities for growth and optimization.

Market Snapshot : -

Smart Factory and Industrial Automation Market - Report Coverage:

The “Smart Factory and Industrial Automation Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Smart Factory and Industrial Automation Market.
By Instrument: Humidity Transmitter, Temperature Transmitter, Pressure Transmitter, Level Transmitter, Control Valves, Analyzers, Communication Hardware and Others.
By Solution: PLC, DCS, MES, SCADA, APS, OTS, Safety Automation and Others.
By Industry Vertical: Process (Oil and Gas, Chemical, Pharmaceutical, Food and Beverage, Metal and Mining, Power, Pulp and Paper, Water and Wastewater and Others) and Discrete (Automotive, Aerospace, Medical, Industrial Machinery, Semiconductor and Electronics and Others).
By Geography: North America, South America, Europe, APAC, and RoW.

COVID-19 / Ukraine Crisis - Impact Analysis:  

• The Covid-19 pandemic has had a profound impact on the Smart Factory and Industrial Automation Market, reshaping industry dynamics and accelerating certain trends. Initially, widespread disruptions to global supply chains caused delays in production and slowed down the adoption of automation solutions. However, as businesses sought to mitigate risks associated with future disruptions, there was a surge in demand for automation technologies to enhance resilience and operational efficiency. Remote monitoring and control capabilities became essential for maintaining operations amidst lockdowns and social distancing measures. Furthermore, the pandemic highlighted the importance of reducing reliance on manual labor, leading to increased investments in robotics and AI-driven automation solutions. Looking ahead, COVID-19 is likely to continue driving the adoption of automation as businesses prioritize agility and adaptability to navigate uncertainties in the post-pandemic world.
• The Russia-Ukraine crisis exerts a notable impact on the Smart Factory and Industrial Automation Market due to its ramifications for the global supply chain. Ukraine is a significant manufacturing hub for electronics and machinery components essential for factory automation systems. The conflict disrupts supply chains, leading to potential shortages, delays in production, and increased costs for components. Moreover, heightened geopolitical tensions may instigate uncertainty among businesses, impacting investment decisions and delaying automation projects. Furthermore, disruptions in logistics and transportation networks hinder the timely delivery of automation equipment and components to end-users worldwide. Overall, the Russia-Ukraine crisis underscores the vulnerabilities of the global supply chain and highlights the importance of diversification and resilience strategies within the Factory Automation industry to mitigate risks associated with geopolitical conflicts.

For more details on this report - Request for Sample

Key Takeaways:

• The use of advanced software can help in providing flexibility in terms of programming, large memory capacity, and better interoperability; and incorporates more features and functions that are suitable for industry applications.
• The demand for PLC systems is rising owing to its huge applications in complex automation, extensive process control requirements, network connectivity, device interoperability, enterprise data integration, and many more.
• The adoption of SCADA in various industries has accelerated owing to its various advantages consisting of updating and upgrading through the cloud, easy retrieval of files, and many more.
• The use of the MES is observed in many industries such as pharmaceuticals, consumer packaged goods, automotive industry, and many others. The major driving forces for utilizing MES include development in production systems, modern logistic concepts, and advanced product development processes.

Smart Factory and Industrial Automation Market Segment Analysis – By Instrument

Communication hardware emerges as the fastest-growing instrument in the Smart Factory and Industrial Automation Market with a CAGR of 4.3% during the forecast period 2024-2030, driven by the increasing demand for seamless connectivity and data exchange within industrial environments. With the rise of Industry 4.0 and the Internet of Things (IoT), there's a growing emphasis on real-time monitoring, remote access, and integration of disparate systems. Communication hardware facilitates these requirements by enabling efficient communication between various automation devices, sensors, and control systems. Additionally, advancements in communication protocols such as Ethernet/IP, Profinet, and Modbus TCP/IP enhance interoperability and compatibility, further fuelling the adoption of communication hardware. Moreover, the shift towards cloud-based solutions and edge computing amplifies the need for robust communication infrastructure to support data transmission and analysis, driving the sustained growth of communication hardware in the Smart Factory and Industrial Automation Market. 

Smart Factory and Industrial Automation Market Segment Analysis – By Solution

Process Automation Management (PAM) emerges as the fastest-growing solution in the Smart Factory and Industrial Automation Market with a CAGR of 5.2% during the forecast period 2024-2030, driven by its ability to streamline and optimize manufacturing processes. PAM encompasses a range of technologies and software tools that automate and orchestrate workflows, enabling seamless integration and coordination of diverse manufacturing operations. With the increasing complexity of modern production environments, businesses are turning to PAM solutions to improve operational efficiency, reduce errors, and enhance productivity. Moreover, PAM systems offer real-time monitoring and analytics capabilities, empowering decision-makers with actionable insights for continuous process improvement. As industries strive for agility, flexibility, and competitiveness, the demand for PAM solutions is expected to continue surging, positioning it as a cornerstone of the evolving factory automation landscape. 

Smart Factory and Industrial Automation Market Segment Analysis – By Industry Vertical

In the pharmaceutical industry, Factory Automation helps to ensure that a consistency is maintained in each batch of production. It also offers better control of the processes, providing an ability to monitor the processes from remote locations. This increases the demand of Factory Automation in the pharma industry. In the pharma industry, the usage of liquid handling robots to improve reproducibility and increase the validity of data in High Throughput Screening (HTS) is one of the developed technology. This is because the automated systems are less likely to have inconsistency in reagent quantities and HTS is a fairly consistent and repetitive process. In Russia, high domestic political motivation for investment and high oil prices ensured fairly good growth rates in most of the industries. Investors are striving to use the favorable situation to the fullest extent and build future-oriented businesses. This is why investments into high-tech industries and industrial Factory Automation increased more rapidly. The Factory Automation in pharmaceutical market is estimated to grow at a CAGR of 5.9% during the forecast period 2021–2026.

Smart Factory and Industrial Automation Market Segment Analysis – By Geography

North America dominates the market with a market share of 38% in 2023 in the factory automation sector, driven by several key factors. Firstly, the region boasts a mature industrial landscape with a strong emphasis on innovation and technological advancement, fostering a conducive environment for automation adoption. Secondly, stringent regulatory standards regarding safety, efficiency, and environmental sustainability incentivize industries to invest in automation solutions to remain competitive and compliant. Additionally, the rising labor costs and a growing shortage of skilled workers further incentivize companies to automate manufacturing processes. Moreover, the increasing demand for customized products and just-in-time manufacturing practices necessitates flexible and agile production systems achievable through automation technologies. With these dynamics at play, North America continues to lead the way in driving growth and innovation within the global Smart Factory and Industrial Automation Market.

Smart Factory and Industrial Automation Market Drivers 

Industry 4.0 Revolution in the Manufacturing Sector

Industry 4.0 revolution creates smart automation in the phase of industrialization. Increasing demand for machines in the manufacturing sector is set to push the Factory Automation market to new heights. Implementation of Factory Automation in industries results in many benefits such as productivity gains, improved team performance, enhanced managerial reporting, error reduction, cost reduction, and higher quality. The growing need to achieve process optimization in lesser time in the industrial operations coupled with various government initiatives to adopt automation is driving the Factory Automation market. Azerbaijan is planning to invest more in automotive industry which is expected to drive the deployment of automation and controls in this country. Along with the increasing investments in automotive industry it is also observed that the key players in oil and gas and utility sector are planning for the up gradation of the manufacturing units which is expected to drive Smart Factory and Industrial Automation market. Rising rate of the population entering the middle and upper classes is increasing the consumption at consumer's end and allowing industries to implement automation to maintain or enhance their production output, thus, enlarging the growth of the market.

Reduction of Operating Costs with the advent of IoT

The main motivation for mechanization of IoT is to suggestively decrease functioning expenditures when automation devices, sensors, transmitters, and actuators are converted to internet enabled devices. The labor cost is highly significant in the total industrial operating cost, making generally 60%–65% of the total cost. In majority of the cases, manual jobs typically consist of two categories, direct staff and indirect staff. Direct staff is responsible for executing the process, while indirect staff is for the backend support for direct staff. In developing nations, there is a constant growth in ageing workforce resulting in issues related to safety, quality control, and productivity. Thus, the automation of industries has become a notable means to tackle the rising wages and workforce age. This has resulted in the industrial operators to rely upon automation to provide a convenient and efficient way of reducing the operational costs, while simultaneously maintaining the productivity at optimum levels.

Smart Factory and Industrial Automation Market Challenges

High Initial Investment

High initial investment stands as a significant challenge in the Smart Factory and Industrial Automation Market, deterring some businesses from adopting automation solutions. The upfront costs associated with acquiring automation equipment, software, and integrating them into existing systems can be substantial. For smaller businesses or those operating on tight budgets, this financial barrier can be particularly daunting. Moreover, the complexity of automation systems often necessitates additional expenditures on training personnel or hiring specialized experts to implement and maintain the technology effectively. Additionally, the return on investment (ROI) timeline for automation projects can be relatively long, further discouraging some businesses from committing to the initial investment. Despite the potential long-term benefits in terms of increased efficiency, productivity, and cost savings, the immediate financial outlay required for automation implementation remains a formidable challenge that companies must carefully consider and strategize around. As such, overcoming the hurdle of high initial investment is crucial for the broader adoption of automation solutions across industries.

Market Landscape

Product/Service launches, approvals, patents and events, acquisitions, partnerships, and collaborations are key strategies adopted by players in the Smart Factory and Industrial Automation Market. The top 10 companies in this industry are: Honeywell International Inc., Siemens AG, ABB Ltd., Emerson Electric Co., KUKA AG, Schneider Electric, Mitsubishi Electric Corporation, Endress+Hauser AG, Yokogawa Electric Corporation, General Electric

Developments:

Mitsubishi Electric is investing heavily in factory automation technology. They opened a new plant in India for advanced systems and are expanding production in Japan to meet demand for programmable logic controllers (PLCs) and other control systems. They're also focusing on Industrial IoT (IIoT) capabilities to improve connectivity and data management for smarter factories.

ABB is focusing on digitalization to enhance factory automation solutions. Their ABB Ability™ Genix platform uses AI and cloud analytics to unlock data insights, improve efficiency, and drive business decisions for manufacturers. This goes beyond traditional automation to create a data-driven factory experience.

For more Automation and Instrumentation Market reports, please click here