- Summary
- Table Of Content
- Methodology
Industrial Automation and Control Systems Market Size:
Industrial Automation and Control Systems Market size is estimated to reach over USD 864.94 Billion by 2031 from a value of USD 379.47 Billion in 2023 and is projected to grow by USD 413.87 Billion in 2024, growing at a CAGR of 10.8% from 2024 to 2031.
Industrial Automation and Control Systems Market Scope & Overview:
Automation and control systems are associated with systems and devices designed to regulate, manage, and control operating equipment with minimal or reduced human intervention. These systems find their application in various sectors such as automotive, pharmaceuticals, food & beverage, and oil & gas, where they offer features like improved efficiency, accuracy, and safety. Additionally, the benefits include reduced labor costs, increased productivity, and enhanced product quality. Moreover, a key driving factor for this market is the increasing demand for smart factories and industrial automation to optimize productivity and reduce operational costs.
Industrial Automation and Control Systems Market Insights:
Industrial Automation and Control Systems Market Dynamics - (DRO) :
Key Drivers:
Increasing Adoption of Automation across Various Industries
Automation and control systems are integral to sectors such as manufacturing, healthcare, and energy among others, enhancing efficiency, productivity, and safety. In manufacturing, it streamlines production processes, reduces errors, and increases output. In the energy sector, it optimizes energy generation and distribution, leading to increased efficiency and sustainability. In the healthcare sector, these systems improve patient care through automated patient monitoring and drug dispensing systems.
- In January 2023, according to the Association for Advancing Automation, Automation, with its cutting-edge robotics and innovative applications, is revolutionizing the healthcare sector and enhancing patient outcomes. The sector is experiencing an automation-led revolution, from robotic surgeries to lab automation, improving efficiency, enhancing diagnostic and prognostic accuracy, advancing research, and refining surgical methods.
Therefore, as industries continue to recognize the benefits of automation and implement these systems in their operations, driving the Industrial Automation and Control Systems Market demand.
Key Restraints :
Technical Complexity Hinders the Market Growth
The control systems require a substantial skilled person for their installation and integration. This includes the operation and maintenance and other task. Additionally, there are also costs related to training personnel to operate and maintain these systems. The global industrial automation and control systems require DCS, SCADA, PLC connectivity, and mix of control system types, batch control, data collection and storage, and other solutions to help manage complexity in industrial processes. The above task is carried out by a skilled technical professional and the lack of these professionals also hinders the systems adoption.
- In December 2023, according to, Automation Anywhere, Inc. analysis for true automation business users require automation of which only 48% of the Indian enterprise encouraged business users to scale automation, 52% think technical complexities and data security is a barrier to adoption of automation and AI.
These aforementioned complexities in the adoption of automation and control systems are particularly challenging for small and medium enterprises (SMEs), preventing them from adopting these systems and thus hindering the market.
Future Opportunities :
Industry 4.0 is expected to Boost Opportunities
Industry 4.0, also known as the fourth industrial revolution, is characterized by the digital transformation of manufacturing and industrial practices. It involves the integration of advanced technologies such as cloud computing into industrial processes. As industries continue to embrace Industry 4.0, the demand for Industrial Automation and Control Systems is expected to grow significantly. Moreover, it also promotes the concept of smart factories, which heavily rely on these systems for their operation. These smart factories use them to monitor and control industrial processes in real time, further driving the demand.
- In March 2022, Mitsubishi Electric announced the acquisition of a 42,000-square-meter site in Owariasahi City, Japan, to establish a new production facility for factory automation (FA) control system products by April 2025. The new factory leverages advanced technologies like 5G and AI for efficient and flexible production.
Therefore, the rise of Industry 4.0 presents a substantial prospect for the development of the Industrial Automation and Control Systems Market opportunity.
Industrial Automation and Control Systems Market Segmental Analysis :
By Product Type:
Based on the product type, the market is segmented into hardware, software, and service.
Trends in the product type:
- There is a growing emphasis on incorporating robust cybersecurity measures into PLC, SCADA, and HMI.
- The advent of edge computing capabilities in the software segment, allows on-site data analysis and processing.
The hardware component accounted for the largest revenue share of 47.39% in the year 2023 and is anticipated to register the fastest CAGR growth during the forecast period.
- The hardware component includes a Programmable Logic Controller (PLC), Human Machine Interface (HMI), Sensors & Actuators, Communication Networks, and others.
- As per the analysis, development is driven by increasing industrial automation, technological advancements, and the integration of the Internet of Things (IoT) and Artificial Intelligence (AI) in control systems.
- They are designed to act as an interface between the device and the manufacturing equipment on the shop floor to streamline operations and achieve optimal efficiency.
- Moreover, they offer a range of benefits including improved productivity, flexibility, quality control, cost savings, and worker safety.
- Furthermore, they are utilized in chemical industries, steel manufacturing, power generation, and other industrial applications that require Industrial Automation and Control Systems.
- In March 2024, SDMC, FANUC America Corporation , revealed its new combined PLC/CNC motion controller, the Power Motion i-MODEL A Plus (PMi-A Plus). FANUC's control and servo technology is globally recognized for its excellence, reliability, and support of CNC machine tools.
- Thus, hardware components including PLC, HMI, and others are driving the Industrial Automation and Control Systems Market trends.
By Application:
Based on the application, the market is segmented into HVAC (Heating, Ventilation & Air-Conditioning), Safety & Security, Industrial Automation, Assembly Line, Chemical Processing, Smart Home Devices, Water Treatment, Food Processing, Lighting, and Others.
Trends in the application:
- The focus on HVAC solutions that are energy-efficient and eco-friendly is intensifying. This shift is propelled by escalating energy prices and heightened consumer consciousness about environmental concerns.
- The interest in smart home devices is growing as consumers are increasingly looking for more convenience, security, and energy efficiency in their homes. Home systems are being equipped with automation technologies, enabling homeowners to remotely manage lighting, security, heating, and appliances using smartphones and other devices.
Industrial automation accounted for the largest revenue share in the year 2023 and is anticipated to register the fastest CAGR growth during the forecast period.
- Rapid advancements in technologies like edge computing and the Industrial Internet of Things (IIoT) have enhanced the capabilities of industrial automation systems, enabling more efficient, flexible, and reliable processes, which increase productivity and reduce costs.
- These systems operate continuously without fatigue, leading to higher productivity and reduced human error, improving product quality and consistency.
- Additionally, while the initial investments are high, the long-term benefits, such as significant labor cost savings and waste reduction through improved precision, often outweigh the costs. Industrial automation also performs hazardous tasks, enhancing workplace safety.
- In June 2023, according to Process Precision Instruments, industrial automation is revolutionizing various sectors by enhancing productivity, efficiency, and safety. Key trends include the significant role of AI and ML in data analysis, decision-making, and process optimization. The IIoT is transforming the industrial landscape by enabling connectivity and data exchange, leading to improved monitoring, control, and optimization.
- These aforementioned trends contribute to the high revenue and anticipated growth of the industrial automation segment in Industrial Automation and Control Systems Market share.
By End-User:
Based on end-users, the Industrial Automation and Control Systems Market is segmented into Manufacturing, Food & Beverage, Pharmaceuticals, Transportation, Healthcare, Agriculture, Oil & Gas, and others.
Trends in the end-user:
- The rise of augmented reality (AR) technology in industrial settings is enhancing operational efficiency and worker productivity.
The manufacturing segment accounted for the largest revenue share in the year 2023 and is anticipated to register the fastest CAGR growth during the forecast period.
- Automation allows industries to enhance productivity and cut labor costs, with each system designed for a specific task, leading to cost reduction, improved quality, enhanced safety, and increased production.
- Businesses are increasingly automating their operations to boost production capacity while reducing manual labor and associated costs.
- Strict regulations related to workplace safety have also spurred the adoption of automated technologies in manufacturing environments.
- Moreover, government initiatives promoting industrial automation worldwide are also contributing to market expansion.
- According to Invest India, manufacturing leaders such as Hyundai Motors are adopting advanced manufacturing processes by implementing AR & VR technologies. These include smart sensors for equipment defect detection, deep learning vision systems for quality control, AI for panel crack detection, and VR-based immersive training for employees. The use of AR automated machine vision, along with image-based analysis, ensures high accuracy in quality assurance and control, thereby reducing downtimes.
- These abovementioned trends contribute to the advancement of the manufacturing segment.
Regional Analysis:
The regions covered are North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
North America is estimated to reach over USD 298.06 Billion by 2031 from a value of USD 130.73 Billion in 2023. The Industrial Automation and Control Systems Market growth is mainly driven by their deployment in automation, manufacturing, and other industries.
- In October 2023, Rockwell Automation and Microsoft announced an expansion of their long-term partnership to expedite the design and development of industrial automation through generative AI. The collaboration aims to empower the workforce and speed up the delivery of industrial automation systems for customers. The partnership will integrate Microsoft's Azure OpenAI Service with FactoryTalk Design Studio, offering unique capabilities that speed up the delivery of industrial automation systems for their customers.
Furthermore, factors including rapid industrialization, advancements in technologies like AI and IoT, and others are projected to drive the market in North America during the forecast period.
Asia Pacific region was valued at USD 96.24 Billion in 2023. Moreover, it is projected to grow by USD 105.27 Billion in 2024 and reach over USD 227.05 Billion by 2031. Out of this, China accounted for the maximum revenue share of 34%.
The Asia Pacific region's growing industrialization and adoption of smart factories offer lucrative growth prospects for the market. Additionally, the adoption of Industry 4.0 in the region is driving Industrial Automation and Control Systems Market growth.
- In March 2024, Rockwell Automation announced the launch of its CUBIC product line across the Asia Pacific region. It specializes in IEC-61439-compliant modular enclosure systems for power and electrical panels and enhances sustainability and safety while reducing maintenance time. Serving rapidly growing sectors like renewable energy, mining, data centers, chemicals, food and beverage, and infrastructure.
As per the Industrial Automation and Control Systems Market analysis, Europe is anticipated to witness substantial development that is backed by the increasing adoption of smart factories. The growing investment in IoT technologies caters to the surging demand across the region.
The Industrial Automation and Control Systems Market in the Middle East & Africa is poised for moderate progress. This is driven by trends such as increasing industrialization and the need for energy efficiency, especially in countries like the UAE, Turkey, and South Africa.
The rising adoption of automation in various sectors such as manufacturing and healthcare in countries including Brazil, Argentina, and Mexico is depicting the rising Industrial Automation and Control Systems Market demand in the Latin American region.
Top Key Players & Market Share Insights:
The Industrial Automation and Control Systems Market is highly competitive with major players providing systems to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in the industrial automation and control systems market. Key players in the industrial automation and control systems industry include-
- Siemens (Germany)
- ABB (Switzerland)
- Schneider Electric (France)
- Honeywell International Inc. (U.S)
- Mitsubishi Electric Corporation (Japan)
- Rockwell automation (U.S)
- Emerson Electric Co.(U.S)
- Yokogawa electric (Japan)
- Omron Corporation (Japan)
- Danaher Industrial Ltd (U.S)
Recent Industry Developments :
Product launches
- In May 2024, Comau, launched a range of new robots and intelligent solutions. The company showcased its portfolio of sustainable, advanced automation solutions that are transforming various industries. It includes the S-Robot Family, a new generation of compact welding and handling robots that are water and dust-resistant. MI.RA/OnePicker, a fully automated, intelligent piece-picking system, and MATE-XB and MATE-XT, wearable exoskeletons designed to support workers during physically demanding tasks. .
- In February 2023, Yokogawa Electric Corporation announced the global launch of a new reinforcement learning service for edge controllers. This service, designed for OpreX Realtime OS-based Machine Controllers (e-RT3 Plus), employs the Factorial Kernel Dynamic Policy Programming (FKDPP) reinforcement learning AI algorithm.
Mergers & Acquisitions
- In January 2024, Edwin James Group acquired Automated Control Solutions Holdings Limited, including its subsidiaries Automated Control Solutions Limited and ACS Electrical Engineering Limited, collectively known as ACS. This acquisition enhances the Group's digitalization capabilities, expanding its systems integration and OT automation capacity. This strategic move strengthens Edwin James' process engineering capabilities and expands its capacity to support customer's sustainability, digital, and energy transitions.
- In April 2024, Hitachi Ltd.acquired all shares of MA Micro Automation GmbH, a Germany-based leading provider of robotic and automation technology. The acquisition is valued at EUR 71.5 million and includes MA micro automation's high-speed linear handling systems, high-precision assembly lines, and high-speed vision inspection technology, which have a strong presence in Europe, North America, and Southeast Asia.
Partnerships & Collaborations
- In February 2023, Schneider Electric, Capgemini, and Qualcomm Technologies collaborated to reveal a unique 5G-enabled automated hoisting solution. The 5G Private Network solution, which replaces wired connections with wireless and consolidates existing wireless connections from Schneider Electric's industrial automation system, showcases how digital technology deployment simplifies and optimizes across various industrial sites, from steel plants to ports.
Industrial Automation and Control Systems Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2018-2031 |
| Market Size in 2031 | USD 864.94 Billion |
| CAGR (2024-2031) | 10.8% |
| By Type |
|
| By Application |
|
| By End-User |
|
| By Region |
|
| Key Players |
|
| North America | U.S. Canada Mexico |
| Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
| APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
| Middle East and Africa | GCC Turkey South Africa Rest of MEA |
| LATAM | Brazil Argentina Chile Rest of LATAM |
| Report Coverage |
|
Key Questions Answered in the Report
How big is the industrial automation and control systems market? +
Global industrial automation and control systems market size is estimated to reach over USD 864.94 Billion by 2031 from a value of USD 379.47 Billion in 2023 and is projected to grow by USD 413.87 Billion in 2024, growing at a CAGR of 10.8% from 2024 to 2031.
What specific segmentation details are covered in the industrial automation and control systems report? +
The industrial automation and control systems report includes specific segmentation details for components, applications, end-users, and regions.
Which is the fastest segment anticipated to impact the market growth? +
In the hardware segment, the HMI segment is the fastest-growing segment during the forecast period due to increasing industrial automation, technological advancements, and the integration of the Internet of Things (IoT) and Artificial Intelligence (AI) in industrial automation and control systems and others.
Who are the major players in the industrial automation and control systems market? +
The key participants in the industrial automation and control systems market are Siemens (Germany), ABB (Switzerland), Rockwell Automation (U.S), Emerson Electric Co. (U.S), Schneider Electric (France), Honeywell International Inc. (U.S), Mitsubishi Electric Corporation (Japan), Yokogawa Electric (Japan), Omron Corporation (Japan), Danaher Industrial Ltd (U.S) and others.
What are the key trends in the industrial automation and control systems market? +
The industrial automation and control systems market is being shaped by several key trends including smart factories, the advent of AR and VR in industries, and others.
