The global market for factory automation is predicted to grow $368 billion by 2025.
This is according to a new report published by Allied Market Research, titled Factory Automation Market by Control and Safety System, Component, and Industry Verticals: Global Opportunity Analysis and Industry Forecast, 2017-2025.
The global factory automation market accounted for $191 billion in 2017, and is expected to reach $368 billion by 2025, registering annual growth of 8.8 percent from 2018 to 2025.
In 2017, the factory automation market in Europe dominated the global market share in terms of revenue by accruing 35.5 percent share, which was followed by Asia-Pacific.
Factory automation comprises a set of technologies and automatic control devices, which are used to enhance the productivity and quality of products and simultaneously decrease the production cost.
The market is driven by factors such as rise in demand for mass production in manufacturing industries that minimizes operational cost.
Moreover, adoption of Industry 4.0 to promote smart manufacturing units that have minimal energy requirements has supplemented the market growth.
However, limited inflow of funds, high investment in implementation of factory automation systems, and scarcity of professionals are expected to hamper the growth of the global factory automation market.
The supervisory control and data acquisition system segment accounted for the highest share of about 22 percent in the global market in 2017 and is expected to grow at growth rates of around 9 percent during the forecast period.
Among industry verticals, the automotive manufacturing sector is expected to be the leading revenue contributor in the coming years, owing to the increasing trend of automating processes to reduce human intervention, improve accuracy, reduce errors, and optimize redundant tasks.
The industrial robots segment accounted for a major share of about 31 percent of the global market in 2017.
The adoption of industrial robots has increased in developing economies owing to factors such as rapid urbanization, technological advancements, availability of cheap labor, and low manufacturing costs.
Asia-Pacific is one of the fastest growing regions in the global factory automation market. It is expected to witness higher growth rate during the forecast period, owing to supportive government policies, increased investment by key companies for expansion of business, and low manufacturing & labor cost.
Some of the key findings of the study are:
- In 2017, the automotive manufacturing segment dominated the global factory automation market, in terms of revenue, and is projected to grow at growth rates of 9.5 percent during the forecast period.
- The supervisory control and data acquisition system segment is projected to grow at an annual growth rate of 9.1 percent during the forecast period.
- Asia-Pacific is projected as one of the fastest growing markets for factory automation, and is expected to witness significant growth rate in the near future.
Prominent players highlighted in the report include:
- Mitsubishi Electric
- Emerson Electric
- Schneider Electric
- Omron Corporation
- Rockwell Automation
- General Electric
- Yokogawa Electric
These companies have focused on developing new products and acquiring small businesses to sustain the competition and expand their market presence, says the report.