Global Industrial Automation Market Size to USD 395.09 billion in 2028
The Global Industrial Automation Market Size was valued at USD 191.89 billion in 2021. During the forecast period, the market is expected to increase from USD 205.86 billion in 2022 to USD 395.09 billion in 2028, representing a CAGR of 9.8%. The introduction of 5G wireless technology, as well as the growing acceptance of Industry 4.0, are driving up demand for automation solutions. The expansion of digitalization, and industrial IoT, Augmented Reality (AR), digital twins are predicted to be key indicators of global industrial automation market growth. In July 2021, Rockwell Automation Inc. partnered with Kezzler AS, a cloud-based product digitalization and traceability platform. Using cloud-based chain technologies, the partnership aims to enable manufacturers to document their product's end-to-end journey from raw material suppliers to point of sale or beyond.
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During COVID-19, government-imposed travel restrictions, as well as factory and plant closures, had a substantial impact on manufacturing sectors. Production volumes were impacted due to labor shortages, raw material shortages, and supply chain interruptions. During the global COVID-19 epidemic, automation technology plays a significant role in helping to protect individuals and processes. During the pandemic, a large industrial organization that provides automation technology solutions is investing to combat fulfill consumer demands and material shortages. For instance, to reduce team travel in the automation sector, Emerson Electric Co. has developed virtual capabilities such as Virtual Factory Acceptance Tests (vFATs), cloud engineering and MyEmerson digital tools. For the organization's contacts, these virtual solutions offer virtual meetings and remote cooperation.
Increasing The Utilization of Digital Twins and Augmented Reality (AR) In Manufacturing to Boost Market Growth
Organizations can use a digital twin to assess feasibility, predict possible improvements and decrease risk during deployment. Digital twin implementation and maintenance have become more manageable with the development of the industrial Internet of Things, such as smart sensors and cloud systems. To reduce the chance of equipment failure organizations are using digital twin technology in their operations. It also assists in the automatic scheduling of repairs by simulating the procedure. In July 2019, DHL International GmbH, a German logistics provider, integrated a supply chain solution for Tetra Pak's warehouse utilizing a digital twin. It would aid in the delivery of supply chain operations that are scalable, cost-effective, and nimble. To build a digital twin, Internet of Things (IoT) technology is integrated into transportation vehicles. It ensures the safe delivery of goods such as foods and beverages from farm to consumer. Such increasing adoption of Augmented Reality (AR) and digital twin technology boost the growth of the industrial automation market during the forecast period.
Fourth Industrial Revolution to Embrace Partnerships and Collaborations in Global Market
Across industries, Industry 4.0 has changed the digital supply chain. Organizations must embrace industry 4.0 in order to meet evolving customer demands such as personalized and quick services. With the rapid advancement of technology, industry participants collaborate with tech-savvy companies to build innovative solutions based on proven technologies. Honeywell International Inc. and Tech Mahindra Limited joined in February 2020 to construct digitized "Factories of the Future" using digital technology. The partnership and collaboration aim to promote digital transformation by empowering manufacturers. Similarly, Siemens AG and SAP SE partnered to provide businesses with industry4.0-enabled business processes. These procedures will enable the creation of a digital thread that will span the entire product lifecycle.
Companies are focusing on capitalizing on 5G, industry 4.0, and digital transformation & software capabilities through such partnerships and collaborations, allowing manufacturers to scale up their business and realize the potential of industry 4.0 technologies and solutions. Such partnerships and collaborations are expected to drive demand for global industrial automation across industries.
Europe is likely to dominate in the global Industrial Automation Market share during the forecast period. In January 2021, according to the International Federation of Robotics (IFR), the highest robot density was found in Western Europe (225 units per 10,000 employees) and Nordic European Countries (204 units per 10,000 employees). With 346 units per 10,000 employees, Germany is the fourth most automated country in the world. These are some of the important elements that contribute to the region's significant share.
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The Asia Pacific is the second-largest market for industrial automation due to Japan produces the most robots and industrial automation systems. The presence of robotics and industrial automation products and major market players such as Yaskawa Electric, Omron Corp., Yokogawa Electric, Nidec Corp., and Mitsubishi Electric across Japan helps the industrial automation demand in the region.
China is a key manufacturer of sensors, microchips, batteries, and other IoT components. Furthermore, government efforts in India, such as Make in India and MSME, assist small and medium-sized firms in adopting innovative manufacturing solutions. The government's active activities are projected to promote market expansion in this region.
KEY INDUSTRY DEVELOPMENTS:
July 2021- Kezzler AS, a cloud-based product digitalization and traceability platform, collaborated with Rockwell Automation Inc. Using cloud-based chain technologies, the partnership aims to enable manufacturers to document their product's end-to-end journey from raw material suppliers to point of sale or beyond.
In July 2021, Siemens AG and SAP SE expanded their relationship to develop a new service and asset lifecycle management solution. To enhance collaboration across the asset lifecycle, the alliance aims to connect plant floor operations, product development through digital twins, and remote condition monitoring with original equipment manufacturers (OEMs).
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