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Industrial Automation and Control System Market

Market Study on Industrial Automation and Control Systems: Analysing the Evolving Automation and Control Requirements, PMR Foresees a Broad Range of Opportunities for Industrial Automation Industry Participants in the Years to Come

A Detailed Analysis of the Industrial Automation and Control System Market Based on Rising Adoption of Industry 4.0, Increasing Demand for Operational Efficiency, and the Integration of Advanced Technologies across Diverse Industrial Sectors

Industrial Automation and Control System Market

The global industrial automation and control system market is forecast to expand at a CAGR of 9.3% and thereby increase from a value of US$165.1 Bn in 2023, to US$307.7 Bn by the end of 2030.

Attributes

Key Insights

Industrial Automation and Control System Market Size (2023E)

US$165.1 Bn

Projected Market Value (2030F)

US$307.7 Bn

Global Market Growth Rate (CAGR 2023 to 2030)

9.3%

Historical Market Growth Rate (CAGR 2018 to 2022)

8.5%

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Market Introduction and Definition

Industrial automation and control systems (IACS) are intricate fusions of software and hardware that are specifically engineered to optimize and expedite industrial operations. These systems comprise an extensive range of technologies, such as distributed control systems (DCS), programmable logic controllers (PLCs), and sophisticated software solutions. The principal aim of these devices is to optimize safety, efficiency, and precision in industrial and manufacturing environments through the automation of labor-intensive duties.

The IACS is of utmost importance in the pursuit of operational excellence as it facilitates the acquisition of data, control, and surveillance in real-time. Adopting this all-encompassing strategy for industrial management has become essential in the ever-changing business environment of the twenty-first century, facilitating a fundamental change towards intelligent manufacturing processes and clever factories.

A number of significant contributing factors propels the worldwide market for industrial automation and control systems. Significant market drivers include the pursuit of cost reduction in industrial processes and the growing demand for enhanced operational efficiency. The market expansion is further enhanced by the implementation of Industry 4.0 practices, which prioritize the integration of digital technologies into traditional manufacturing processes.

Regulatory compliance and an increased emphasis on workplace safety are further motivating businesses to invest in sophisticated automation solutions. New opportunities are emerging for IACS providers due to the expanding use of artificial intelligence and machine learning in industrial settings and the ongoing trend of digital transformation.

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Market Growth Drivers

Rising Need for Improved Operational Productivity, and Enhanced Efficiency

The significant expansion of the worldwide industrial automation and control system market can be attributed to the rising need for improved operational productivity and efficiency. Amidst a period characterized by fierce rivalry and swiftly changing technological environments, sectors are obliged to pursue ground-breaking resolutions to streamline their operations and attain a competitive advantage.

By integrating IACS, complex industrial operations can be orchestrated seamlessly, with fewer errors, reduced reliance on human intervention, and a more streamlined workflow. With the growing awareness among organizations regarding the criticality of operational efficiency in achieving production goals and upholding quality benchmarks, the implementation of IACS emerges as a strategic necessity.

Moreover, the imperative for operational efficiency is closely intertwined with the overarching objective of minimizing expenses in industrial procedures. Constant pressure is placed on industries and sectors to maximize resource utilization and reduce expenditures while maintaining output quality.

By implementing industrial automation and control systems, numerous manufacturing parameters can be precisely monitored and controlled, resulting in increased energy efficiency, decreased waste, and optimized utilization of resources. Through the implementation of predictive maintenance strategies and the automation of routine tasks, industries can reduce downtime, extend the life of equipment, and ultimately attain substantial cost savings.

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Market Restraints

Persistent Difficulty Posed by Cybersecurity Threats

An enduring obstacle that has a substantial impact on the worldwide industrial automation and control system market is the persistent difficulty posed by cybersecurity threats. The growing dependence of various sectors on interconnected and digitally powered systems raises significant concerns regarding their susceptibility to intrusions.

Critical infrastructure is jeopardized by the likelihood of malicious intrusions due to the complex network of sensors, controllers, and software that defines IACS. A cybersecurity intrusion in industrial automation can cause significant repercussions, including but not limited to disruptions in production, financial losses, and compromise of safety protocols.

Interoperability Obstacles

Interoperability represents a substantial obstacle for the worldwide industrial automation and control system market. Industrial processes frequently encompass a heterogeneous environment characterized by a combination of legacy systems, proprietary technologies, and diverse communication protocols.

The task of attaining uninterrupted interoperability among these heterogeneous components is indeed formidable. The integration of various components within IACS is impeded by the absence of standardized interfaces and communication protocols; this results in operational inefficiencies, heightened complexity, and elevated implementation expenses.

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Opportunities

Industry 4.0 Revolution

The global market for industrial automation and control systems is propelled by the opportunistic nature of the Industry 4.0 revolution. The fourth industrial revolution is characterized by the amalgamation of conventional manufacturing processes with digital technologies, such as data analytics, artificial intelligence (AI), and the Internet of Things (IoT).

Industry 4.0 signifies a fundamental change in approach, presenting unparalleled prospects for advancements and improved productivity within industrial processes. The intelligent factories made possible by the seamless integration of IACS and Industry 4.0 principles are characterized by autonomous decision-making and communication by machines; this fosters an ecosystem of manufacturing that is highly interconnected and responsive.

An essential opportunity that Industry 4.0 introduces is the capacity to utilize data in order to make well-informed decisions. The utilization of IACS enables the acquisition of up-to-date information from diverse elements of the industrial procedure, thereby providing a holistic understanding of performance, efficiency, and prospective domains that may benefit from enhancement.

Through sophisticated analytics and machine learning algorithms, various sectors can derive significant patterns and trends from this data. This empowers them to perform predictive maintenance, optimize production schedules, and improve overall operational efficiency. The collaboration between Industry 4.0 and IACS not only facilitates increased productivity but also creates novel opportunities for advancement, enabling sectors to respond to evolving market dynamics and consumer preferences swiftly.

Analyst’s Viewpoint

The industrial automation and control system market on a global scale is anticipated to experience significant expansion due to a confluence of factors that emphasize its critical significance in contemporary industrial environments. An important factor driving the expansion of the market is the rising need for improved operational efficiency in diverse sectors. To streamline operations and minimize expenses, organizations must implement IACS, which offers a comprehensive framework for monitoring, controlling, and acquiring data in real-time.

The dynamic between manufacturers and consumers in the IACS market is transforming in tandem with the progress of technology. By utilizing emerging technologies like the Industrial Internet of Things (IIoT), manufacturers can offer more sophisticated and integrated solutions. This promotes a cooperative partnership in which manufacturers and consumers engage in close cooperation to customize IACS solutions that address the unique requirements of each industry.

The collaboration between manufacturers and consumers is fortified by the trend toward customization and the delivery of comprehensive solutions; this ensures that IACS implementations are in perfect harmony with the distinct specifications of every industrial environment. Anticipating the future, the IACS market exhibits considerable potential, as the ongoing era of Industry 4.0 will significantly shape its course.

The transformation of the industrial landscape is occurring as digital technologies such as AI, machine learning, and data analytics are integrated into operational procedures. IACS-enabled smart factories are gaining prevalence, facilitating autonomous decision-making and fostering a more adaptable industrial ecosystem. The shift towards intelligent manufacturing not only increases operational effectiveness but also creates opportunities for novel ideas, thereby establishing the IACS market as a driver of the subsequent industrial revolution.

Supply-side Dynamics

The worldwide market for industrial automation and control systems is distinguished by the existence of major actors who possess considerable sway. Siemens AG, ABB Ltd., Rockwell Automation, Schneider Electric, and Emerson Electric Co. are the dominant participants in the industry. These prominent entities in the industry influence the competitive environment by virtue of their technological prowess and vast market penetration.

The US emerges as a prominent participant among nations that have adopted IACS, capitalizing on sophisticated automation solutions implemented in the manufacturing and process sectors. China, a significant contributor due to its accelerated industrialization, has implemented IACS to improve production efficiency. Germany has emerged as a leader in the integration of IACS within its manufacturing industry, as demonstrated by the implementation of advanced control systems in the production of machinery and automobiles.

The market leaders of IACS are exerting industry-defining efforts through their emphasis on innovation, strategic alliances, and international expansion. Siemens AG, for example, is a leader in the development of innovative automation solutions; its products incorporate digital duplicates and artificial intelligence. A comprehensive approach is prioritized by ABB Ltd., which integrates control systems and robotics to produce all-encompassing automation solutions.

The dynamic nature of the industry is influenced by the strategic collaborations and acquisitions pursued by these participants, such as Rockwell Automation's partnerships for digital transformation. Furthermore, the market is being transformed by the implementation of more user-friendly interfaces and developments in cybersecurity measures led by Schneider Electric, and Emerson Electric Co. These developments are improving security and accessibility across a wider spectrum of industries. In general, these market leaders are instrumental in directing the IACS industry toward ongoing innovation and international recognition.

Market Segmentation

Which is the Prime Component Type Segment?

Industrial Robots to Accommodate the Maximum Market Share

It is expected that the industrial robots sector will hold the most significant portion of the industrial automation and control system market. The growing prevalence of automation in manufacturing operations, motivated by the imperative for improved productivity and accuracy, establishes industrial robotics as a critical element in contemporary industrial environments.

Conversely, the sensors sector is positioned to undergo the most rapid expansion among the various IACS segments. The integration of the Internet of Things (IoT) and smart manufacturing is anticipated to bring about a significant increase in the need for sensors, which are essential for both data acquisition and process monitoring.

The capacity of sensors to furnish instantaneous insights and facilitate proactive decision-making is in accordance with the dynamic environment of Industry 4.0, thereby stimulating the exponential expansion of this sector.

Which Technology is Highly Sought-after?

SCADA Systems Sought-after Owing to their Indispensable Nature

It is expected that the supervisory control and data acquisition (SCADA) sector will hold the most significant market share in the Industrial automation and control system industry. SCADA systems are indispensable for making informed decisions and improving operational efficiency in a variety of industrial processes by acquiring, monitoring, and controlling data in real-time.

Concurrently, the segment devoted to distributed control systems (DCS) is anticipated to experience the most rapid expansion in the IACS market. The adoption of DCS is propelled by the demand for seamless integration of automation technologies and the escalating complexity of industrial processes. By offering a centralized and all-encompassing control platform for intricate procedures, DCS establishes itself as a pivotal facilitator of productivity and efficiency, thereby contributing to its exponential market expansion.

Which is the Largest End-use Industry in Terms of Demand Generation?

Manufacturing Sector Continues to be the Leading End-use Industry Segment

Predicted to hold the most substantial market share in the industrial automation and control system industry is the Manufacturing sector. In order to optimize production processes, ensure consistent quality, and improve operational efficiency, manufacturing sectors invest significantly in automation. As a result, this sector holds a dominant position in the IACS market.

Contrarily, it is anticipated that the Energy and utilities sector will undergo the most rapid expansion. With the increasing global emphasis on sustainable practices and energy efficiency, there is a growing trend in the energy and utilities sector to implement sophisticated IACS solutions for monitoring and controlling critical processes.

By integrating intelligent technologies to optimize utility operations and enhance grid management and distribution of energy, this market segment is positioned for sustained and accelerated expansion within the IACS industry.

Top Regional Markets

North America’s Leadership Prevails

It is expected that the North American region will hold the largest market share in the worldwide industrial automation and control system industry. The prevailing position can be ascribed to the firmly established industrial infrastructure, technological progress, and a strong focus on automation in diverse sectors.

As a result of the proactive adoption of cutting-edge technologies and the presence of significant market participants, North America is positioned as a leader in the international IACS market.

Opportunities Arise in South Asia, and Oceania with Increasing Infrastructural Developments, and Growing Emphasis on Intelligent Manufacturing Practices

Conversely, South Asia and Oceania are positioned to experience the most rapid expansion. The surge in manufacturing activities and the rapid industrialization of nations such as India are propelling the demand for IACS in this region. Increasing infrastructure development expenditures and a heightened emphasis on intelligent manufacturing practices also contribute to the IACS market's accelerated expansion in South Asia, and Oceania.

The adoption of advanced automation solutions is anticipated to propel these nations' industrial landscapes toward modernization, thereby positioning the region as the fastest-growing segment of the global IACS market.

Competitive Intelligence and Business Strategy

Prominent industry participants in the industrial automation and control system sector, including Emerson Electric Co., Siemens AG, ABB Ltd., and Rockwell Automation, implement strategic initiatives to maintain and increase their market dominance. A fundamental element of their methodology is perpetual innovation. These prominent companies in their field allocate significant resources towards research and development with the goal of being at the forefront of innovative technologies that tackle the ever-changing demands of the industrial sector.

Siemens AG, as an example, places emphasis on the development of all-encompassing automation solutions that integrate cutting-edge technologies such as artificial intelligence and digital duplicates. By maintaining a steadfast dedication to innovation, they are able to not only maintain a competitive edge in technological capabilities but also provide clients with cutting-edge solutions, which is an essential element in securing and retaining market share.

Strategic alliances and cooperative ventures are critical components of the growth strategies of market leaders. Through the formation of strategic partnerships with industry-specific organizations or other technology frontrunners, these businesses generate synergies that expand their market presence and product offerings. As an example, Rockwell Automation actively pursues collaborative alliances to propel its digital transformation endeavors. These partnerships not only facilitate the expansion of their product lines but also empower the companies to enter untapped markets and fortify their current positions.

Key Company Developments

New Product Launch

In 2022, Rockwell Automation, Inc., the largest corporation globally committed to industrial automation and digital transformation, introduced the PowerFlex AC variable frequency drive portfolio for motor control applications in the Asia Pacific region. Customers' next-generation vehicles will benefit from increased intelligence, performance, and flexibility thanks to TotalFORCE Technology.

Market Impact: The establishment of Rockwell Automation's PowerFlex AC variable frequency drive portfolio, which is designed for motor control applications in the Asia Pacific region, is anticipated to bring about a significant revolution in the worldwide market. This advancement represents a calculated maneuver to address the increasing need for sophisticated industrial automation solutions in a region experiencing rapid expansion. By integrating TotalFORCE Technology, Rockwell Automation not only improves the functionality and intelligence of motor control applications but also establishes itself as a frontrunner in fostering progress and effectiveness within the worldwide industrial automation sector.

(Source: Rockwell Automation)

New Product Launch

Dwyer Instruments unveiled the Series 685 differential pressure transmitter, which was designed with installers and maintenance professionals in mind, in June 2022. They have a response time that is configurable by the user and are mountable in any orientation.

Market Impact: It is anticipated that the introduction of the Series 685 differential pressure transmitter by Dwyer Instruments, which was created with installers and maintenance personnel in mind, will have a positive effect on the global market. This advancement increases the adaptability and user-friendliness of the product in relation to differential pressure applications, thereby accommodating the particular requirements of installation and maintenance personnel. The flexibility of this technology's accountability and user-configurable response time contribute to its widespread adoption, potentially establishing a benchmark for adaptable and efficient pressure measurement solutions on a global scale.

(Source: Dwyer News)

Industrial Automation and Control System Market Report Scope

Attribute

Details

Forecast Period

2023 to 2030

Historical Data Available for

2018 to 2022

Market Analysis

US$ Million for Value

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • South Asia & Pacific
  • East Asia
  • The Middle East & Africa  

Key Countries Covered

  • United States
  • Canada
  • Germany
  • United Kingdom
  • France
  • Italy
  • Spain
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Malaysia
  • Indonesia
  • Australia
  • New Zealand
  • GCC Countries
  • South Africa  

Key Market Segments Covered

  • Component
  • Technology
  • End-Use Industry
  • Region

Key Companies Profiled

  • Siemens AG
  • Rockwell Automation, Inc.
  • Schneider Electric SE
  • ABB Ltd.
  • Emerson Electric Co.
  • Honeywell International Inc.
  • Yokogawa Electric Corporation
  • General Electric Company
  • Mitsubishi Electric Corporation
  • Omron Corporation

Report Coverage

  • Market Forecast
  • Company Share Analysis
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives  

Customization & Pricing

Available upon request

Industrial Automation and Control System Market Research Segmentation

By Component:

  • HMI
  • Industrial Robots
  • Control Valves
  • Sensors
  • Misc

By Technology:

  • Supervisory Control and Data Acquisition (SCADA)
  • Distributed Control System (DCS)
  • Distributed Control System (DCS)

By End-Use Industry:

  • Aerospace & Defense
  • Automotive
  • Chemical
  • Energy & Utilities
  • Food & Beverage
  • Healthcare
  • Manufacturing
  • Mining & Metal
  • Oil & Gas
  • Misc

By Region:

  • North America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Latin America
  • Middle East & Africa

- Companies Covered in This Report -

  • Siemens AG
  • Rockwell Automation, Inc.
  • Schneider Electric SE
  • ABB Ltd.
  • Emerson Electric Co.
  • Honeywell International Inc.
  • Yokogawa Electric Corporation
  • General Electric Company
  • Mitsubishi Electric Corporation
  • Omron Corporation

- Frequently Asked Questions -

The estimated value CAGR of the industrial automation and control system market is approximately 9.3% during the projected period.

The global industrial automation and control system market size is around US$165.1 Bn as of 2023.

The US is presently the largest country in the global industrial automation and control system market.

Some of the most prominent players in this market are Siemens AG, Rockwell Automation, Inc., Schneider Electric SE, ABB Ltd., Emerson Electric Co., Honeywell International Inc., and Yokogawa Electric Corporation.

The energy & utility segment is expected to grow at the fastest pace during the forecast period.

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