Demand for Advanced Products and Services Driving Industrial Automation Market

Industrial and specifically factory automation is the use of different control systems, software and other technologies for automation of the factory. The report is segmented based product types, end use verticals and geographic regions.

Automation or automatic  control is the use of various control systems for operating equipment such as machinery, factory processes, boilers and heat treating ovens, switching in telephone networks, steering and stabilization of ships, aircrafts and other applications with minimal or reduced or absolutely no human intervention.

The biggest benefit of Industrial Automation equipment is that it saves labor. However, it is also used to save energy and materials, and to improve quality, accuracy and precision. The Industrial Automation equipment and services market is slated to grow at 7.05% CAGR in the next five years, as reported.

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Demand for more upgraded and advanced products and services are driving the Industry Automation market, which is estimated to reach $283.2 billion by 2018, as per an exclusive report on the market. Segmented into a number of product types, like control systems, software, machine vision, Instrumentation, sensors and others, the market is bound to expand in leaps in the near future.

Innovative products and services are slowly, but surely, on their way to capture the industrial automation market. Companies like Sick AG seek to offer the consumers better miniature sensors which are both affordable and productive. Siemens already has a strong market in the Asia, and they are increasing their production for meeting growing demand for automation in certain new markets, like that of India.

At present, the discrete automation market had a market size of around $75 billion in 2012, and the market is scheduled to grow at a CAGR of 8.4% in the period 2013-2018. Process automation and discrete automation together make up the global industrial automation market significantly.

On the other hand, factory automation will have its growth based on key growth factors, like mass customization, supply chain synchronization, integration of systems, functional costs, and total system cost.  As the competition increases in the manufacturing industry, with the profit margins needing protection, the companies can opt for significant automation of the factories in order to reduce costs, rather than make a move of their factories to China or Taiwan for cheaper labor costs.

Therefore, this can be a strategic decision based on the various trade-offs and the type of products that are manufactured by the company. In many developed countries, the number of robots per 10,000 employees is 149, but it is only 11 in emerging markets, 6 in Latin America and 7 in EMEA emerging regions. This shows the huge scope and opportunity for the industrial automation market.

Control systems currently have the largest market share in the factories, with M2M interaction, which makes the process completely automated. Software like ERP provides business management solutions, PAC aids, with M2M interaction in control systems. Sensors help in differentiating, error control and production management.

IndustryARC believes that the future for the industry automation market is extremely bright. In the next five years, the growth in different parts of the globe is noteworthy, not to mention the fact that energy and control segments are the fastest growing segments in this industry at present, as per the data available.

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Sanjay Matthews

Manager, Client Relationships


Phone: 1- 614-588-8538






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Industry Arc is a research and consulting firm that publishes more than 20 reports every month in various industries, such as Agriculture, Automotive, Contact: Sanjay Matthews,Manager, Client Relationships Industry Arc-Phone: 1- 614-588-8538

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Sep 24, 2014

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