Industrial Control and Factory Automation Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Industrial Control and Factory Automation Market Trends & Drivers

Governments’ Initiatives to Promote Industrial Automation

To ensure healthy economic development, governments in almost all countries are supporting industries. The structural development of the manufacturing sector depends upon the adoption of advanced communication and automation technologies. For instance, Singapore’s government is collaborating with the Singapore Food Manufacturing Association (SFMA) and Food Innovation Resource Centre to incorporate advanced automation solutions, such as DCS, SCADA, PLC, and robots, in the food & beverage industry.

Similarly, the National Manufacturing Policy (NMP) of the Government of India is focused on boosting manufacturing output and quality. The government has also launched the Make in India initiative to encourage companies to set up manufacturing plants here and automate their operations. Moreover, the Indian government’s spending on IT in 2022 increased by 12.1% from the previous year, to encourage automation and other technological advancements in different industries.

Adoption of IoT and AI in Industrial Processes

IoT is an approach where many devices, such as home appliances, wearables, and even manufacturing machines, are connected to the internet, sharing data with each other and a control center. These interconnected smart devices enable automation across various industries.

Currently, organizations are investing in IoT and industrial automation for their business expansion powered by technological advancements. According to Oxford Economics, 34% of the manufacturers said investments in AI were their priority, while 27% said they prioritize predictive analytics and 19% were firmly focused on initiatives involving ML.

The need to expand production, increase operating efficiency and system uptime, ensure the safety of workers, and strengthen perimeter access and control is one of the major factors responsible for the rising adoption of IoT and AI for industrial automation.

For instance, it is mandatory for a few industries to comply with certain product quality standards, which are implemented by governments. For instance, in the case of food production, the FDA Food Safety Modernization Act mandates companies to provide food products that are fit for consumption. It also promotes public health through many programs, such as the FDA Retail Food Code and Current Good Manufacturing Practices.

Industrial Control & Factory Automation Market Analysis

Industrial Robots Category To Witness Fastest Growth

Among all components, the industrial robots category is predicted to expand at the highest rate, of around 10%, over the projection timeframe. The use of robotics has seen a steady rise across industries such as automotive, electronics, pharmaceuticals, and food & beverage in recent years. For instance, to stay competitive in the market and be future-ready for production needs, industrial facilities in India are widely using robotic automation. To achieve the vision of Make in India, it is essential to increase the use of this technology to complement human operations. This will ultimately enable a judicious mix of speed, skill, accuracy, and consistency.

Moreover, robots are widely used by the automotive industry. In 2021, the robot density in the U.S. automotive industry hit a new record of 1,000 installed units per 10,000 employees.

Sensors Category Will Continue To Hold Significant Share

The sensors component category recorded a significant revenue share, of over 24%, in 2022. Sensors play a vital role in smart manufacturing by collecting data and providing basic data support. Moreover, the exponential rise in the adoption of IoT and other Industry 4.0 technologies is driving the use of sensors. Smart sensors, which collect statistics from the surroundings and various pieces of infrastructure, are rapidly being upgraded, thus driving the intelligent transformation of industrial internet terminals.

The Industrial Sensor 4.0 era encompasses everything from industrial process sensing and factory automation to microcontrollers and wired or wireless connections to cloud servers. The different types of sensors incorporated in factories and machines include temperature sensors, humidity sensors, vibration sensors, and torque sensors. By being integrated into industrial robots, they help in making manufacturing operations efficient.

Automotive Category Held Significant Share

The automotive division held the second-largest revenue share in 2022, after healthcare. The changing customer priorities and technological breakthroughs add up to a fundamental shift in individual mobility behavior. Owing to the rapid globalization and the economic growth of developing economies, such as India and Brazil, the standard of living of consumers has improved in recent years, thus resulting in a growing demand for automobiles. The automotive industry has always been considered a massive end market for industrial robots. In 2020, around one-fifth of the industrial robot installations around the world happened in the automotive industry.

Regional Analysis

Asia-Pacific Emerges as Market Leader

The rising demand for improved solutions to manage industrial plants in India and China is responsible for Asia-Pacific’s domination in the market. The region accounted for a revenue share of over 39% in 2022, and it is expected to continue its dominance from 2023 to 2030. The strong growth is also attributed to the presence of key market players and emerging companies in the region.

Essentially, the shift to smart production facilities from conventional facilities supports the acceptance of industrial automation, thus driving the market growth. Moreover, the automotive sector is one of the fastest-growing sectors in India, which has itself become one of the biggest auto component manufacturers across the globe. This is driven, in part, by the burgeoning popularity of electric and autonomous vehicles.

To keep pace with the rising demand, automobile OEMs are making large investments in various aspects of vehicle manufacturing. The industry attracted 5.54% of the total equity FDI in the country between April 2000 and June 2022, which has enabled industry players to automate their factory operations.

Market Breakdown

This fully customizable report gives a detailed analysis of the industrial control & factory automation industry from 2019 to 2030, based on all the relevant segments and geographies.

Based on Component

• Sensors
• Control Valves
• Switches and Relays
• HMI
• Industrial Robots

Based on Solutions

• SCADA
• PLC
• DCS
• MES

Based on Industry

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

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa,
  • U.A.E.

Top Industrial Control and Factory Automation Companies