Industrial Control & Factory Automation Market To Generate $286.8 Billion Revenue by 2030

The industrial control & factory automation market size is expected to advance at a CAGR of 8.60% during 2022–2030, to reach USD 286.8 billion by 2030.

The major growth factors for the market are the rising emphasis on increasing economic and infrastructure opportunities, growing penetration of M2M communication in the industrial Sector, and rising demand for operational efficiency.

For a factory to truly become future-ready, integration between the devices used in enterprises and the plant floor is necessary. In turn, this kind of integration requires smart devices for efficient data collection, secure network infrastructure, and the ability to turn the data into actionable information.

Thus, factory integration and control systems enable users across an organization to optimize their operations, by connecting the site to a centralized internet server. Industrial automation and control are implemented through motor control systems, a wide array of systems, and smart software. The combination of these three components is designed to help build an efficient factory automation system, to meet the industry’s needs.

Distributed Control System (DCS) Category Dominates Market

The rising adoption of distributed control systems in industries is a key driver for the market. These systems play a vital role in large-scale manufacturing operations, where thousands of control loops need to be monitored in real time. These operations cannot be monitored as efficiently by humans, which is why an automated centralized system is required.

The DCS enables tasks such as information exchange, preventative maintenance production scheduling, and quality control. A DCS is responsible for the geographical distribution of subsystems throughout the plant. It can monitor operational features such as efficiency, risk of subsystem failure, reporting, safety, and security and greatly improve outcomes.

Further, IIoT allows for the deployment of automated control systems, thus propelling the requirement for DCS. These systems are used for multiple manufacturing processes, such as batch process control. Moreover, the introduction of 5G and its usage in the power sector would propel the integration of DCS and IoT for higher output and efficiency.

Industry 4.0 Revolution Biggest Driver for Market

The adoption of Industry 4.0 principles in the manufacturing, chemical, and automotive industries is the biggest the industrial control & factory automation market driver. Industry 4.0 is revolutionizing manufacturing operations, to improve services and the overall product quality. Moreover, manufacturers are arming their production facilities with new technologies, including analytics, IoT, and cloud computing, to comply with the product quality and energy efficiency regulations worldwide.

For instance, the Indian manufacturing industry spent between USD 5.5 and 6.5 billion on industry 4.0 solutions in Financial Year 2021, which made up 50% of the technology spend of Indian manufacturers.

Most of the processes and systems in the manufacturing sector are being automated as the Industry 4.0 spreads, thus enabling factories to operate round the clock with a minimal chance of error. This can ultimately help maintain the quality of processes, as well as decrease the total production time, starting from the procurement of raw materials to the manufacturing of the end product. A range of automation solutions, including SCADA, DCS, HMI, and PLC are deployed to operate and control production equipment.

To achieve the goal of high productivity and better quality, smart factories are adopting high-tech IoT devices. Using AI-powered visual insights instead of manual inspection reduces the chance of manufacturing errors and helps companies save on manufacturing expenses and time.

Mergers and Acquisitions Are Key Strategic Developments Taken by Players

Many companies are looking at mergers & acquisitions to garner a stronger foothold in the industry. For instance, in April 2021, Google Cloud and Siemens collaborated to enhance factory processes and enhance productivity. The key aim of this collaboration was allowing manufacturers to easily deploy AI on the factory floor and improve overall quality.

The biggest global industrial control & factory automation market players are Schneider Electric SE, Rockwell Automation Inc., Honeywell International Inc., Emerson Electric Company, and Mitsubishi Electric Corporation.