Process Automation and Instrumentation Market Overview
The growing demand for automated processes and instruments from large enterprises along with rising adoption of internet of things (IoT) across various industries are some of the key factors driving the growth of process automation and instrumentation market. Process automation is a technology-enabled automation of complex and repetitive manual processes. By simplifying and streamlining organizational process, process automation and instrumentation optimizes collaboration between resources, increases productivity, provides transparency, reduces cost, and assures compliance.
Based on component, the process automation and instrumentation market has been segmented into hardware, software and services. The hardware category held the largest market share in terms of revenue in 2017, owing to its high deployment among large enterprises. The hardware category is further bifurcated into controllers, switches, human machine interface (HMI), remote telemetry unit (RTU) and input/output (I/O) cards. Among hardware, controllers are most commonly used, as they are deployed to control the processes based on commands received from the input device. The controllers growth is primarily buoyed by growing demand for energy efficiency, which is resulting in the rise of investments in the energy sector.
On the basis of application, the process automation and instrumentation market has been segmented into chemicals & pharmaceuticals, manufacturing, metals & mining, water & wastewater, energy & utilities, food & beverages, oil & gas and others (including pulp & paper and hospitality). The oil & gas category was the largest adopter of process automation and instrumentation products and services, recorded in 2017. The growing demand for petroleum products such as petrol, diesel and natural gas has led to rise in exploration and extraction activities, as well as upgradation of existing oil and gas rigs. These are among the major factors pushing the demand for process automation and instrumentation in the global market.
The process automation and instrumentation market for energy & utilities is expected to register highest CAGR during the forecast period. The industry is pushing for increasing efficiency and reducing emissions owing to stringent norms across the globe. Process automation provides efficient input and output energy management, thereby helping the industry towards its goal.
The process automation and instrumentation market in Asia-Pacific is expected to register fastest growth during the forecast period. This is due to increasing investments in energy infrastructure, supported by swiftly growing economies such as India, China and South Korea. For instance, the government of India completed electrification of 95% of households in the country, as of October 2018, up from 86% a year ago. The ever-rising energy demand as well as government initiatives to thrive for improved power reliability and focus on home-grown industries are some key factors supporting the market growth.
Process Automation and Instrumentation Market Dynamics
The increasing focus of companies to improve efficiency as well as reduce operating costs across various industries is one of the major drivers behind the process automation and instrumentation market growth. Organizations around the globe are exhibiting stringent emission control regulations as well as efficiency norms sanctioned by various individual and governmental organizations. Process automation provides shift in production approach from conventional methods to digitalized processes, as well as help in better inventory and supply chain management, in turn improving the efficiency of the whole process.
High cost associated with research and development of automation services along with high investment cost of implementation and management of these systems are the major factors hindering the process automation and instrumentation market growth. These processes find very less penetration among small and medium size enterprises, owing to their limited budgets to set-up as well as maintain automation services. Additionally, high growth economies of Asia-Pacific and Middle East & Africa regions such as India, China, Saudi Arabia and South Africa have huge potential, but are still not open to process automation. This can be attributed to the availability of cheap labor in these countries as well as large capital investment requirement for implementation of process automation.
Process Automation and Instrumentation Market Competitive Landscape
The global process automation and instrumentation market is consolidated with top four players namely, Siemens AG, Honeywell International Inc., Emerson Electric Company, and ABB Group, accounting for over 60% of the total global market share in 2017. The initial capital investment is very high, along with the requirement of high degree of expertise to enter the market. Danaher Corporation, OMRON Corporation, Mitsubishi Electric Corporation, Yokogawa Electric Corporation, Schneider Electric SE and Rockwell Automation Inc., are some of the other key players operating in the process automation and instrumentation market.
The report will provide country-wise process automation and instrumentation market analysis. Some of the major countries that is covered in the report include U.S., Canada, U.K., Germany, France, Italy, Russia, China, Japan, India, Australia, South Korea, UAE, Saudi Arabia, South Africa, Turkey, Brazil, Mexico.