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Factory Automation Market Size, Share, and Analysis, By Components (Sensors, Controllers, Switches & Relays, Industrial Robots, and Others), By Control and Safety Systems (Distributed Control System (DCS), Supervisory Control and Data Acquisition System (SCADA), Manufacturing Execution System (MES), Systems Instrumented Systems (SIS), Programmable Logic Controller (PLC), and Human Machine Interface (HMI)), By Industry (Automotive Manufacturing, Food & Beverage, Oil & Gas Processing, Mining, and Others) and By Region (North America, Europe, Asia-Pacific, And Rest of the World) And Regional Forecast 2024-2034
Factory Automation Market is anticipated to grow at a CAGR of 8.4% in the forecast period (2024-2034), with the market size valued at USD 314.2 billion in 2023 and projected to reach USD 761.7 billion by 2034.
Factory automation means the utilization of control systems and technology to streamline and improve industrial processes, therefore reducing the need for human workforce. It covers a wide range of automation technologies, including robots’ programmable logic controllers (PLCs), and computer numerical control (CNC) systems. Businesses that utilize factory automation can increase productivity, improve product quality, and save operational expenses. Automation systems enable tasks to be performed with better precision, consistency, and speed compared to manual labour, resulting in higher efficiency and output. Automation helps in providing better analysis and allowing for real-time monitoring with decision-making to improve production processes. Overall, factory automation has played an important role in modern production, allowing companies to fulfil the increased demands for efficiency, flexibility, and competitiveness.
Factory Automation Market is anticipated to reach USD 761.7 billion, growing at a CAGR of 8.4% during the forecast period due to the increasing demand for enhanced productivity and efficiency across industries promoting the adoption of automation technologies to streamline processes and minimize any form of human error. The ongoing trend of cost reduction and resource optimization motivates organizations to invest in automation solutions. In addition, the necessity for flexibility and adaptability in manufacturing to satisfy changing consumer needs accelerates automation adoption even faster. In future, the factory automation is expected to be to be defined by continued innovation, better integration of automation technologies, and expanded applications across several industries, resulting in sustained market development.
Source: Fatpos Global
Factory Automation Market based on Control and Safety Systems is classified into Distributed Control System (DCS), Supervisory Control and Data Acquisition System (SCADA), Manufacturing Execution System (MES), Systems Instrumented Systems (SIS), Programmable Logic Controller (PLC), and Human Machine Interface (HMI). In the present market scenario, SCADA systems dominate the market due to their adaptability, scalability, and affordability. SCADA systems, which can handle a wide range of applications across industries, can monitor and control both discrete and continuous industrial processes. Their modular architecture allows for easy scalability to match the complexity of production operations. Furthermore, compared to Distributed Control Systems (DCS), SCADA systems provide a more cost-effective choice for observing less essential activities. Their primary strength is in monitoring and data gathering, which involves collecting real-time data from sensors and PLCs and presenting it through HMIs for informed decision-making. This data-driven approach is critical to optimizing production processes and increasing overall efficiency.
Factory Automation Market is segmented based on Components into Sensors, Controllers, Switches & Relays, Industrial Robots, and Others. Industrial Robots have a leading market share in terms of revenue, owing to their adaptability and expandability. Industrial robots have a leading market share in terms of revenue, owing to their adaptability and expandability. With the ability to do undertake a diverse range of tasks, from welding and painting to assembly and material handling, robots are constantly evolving to handle increasingly complex operations, making them important to manufacturers. Furthermore, their exact performance improves efficiency and productivity, resulting in large improvements in output compared to manual labour. Furthermore, while there is an initial investment required, robots efficiently reduce dependency on human labour, especially for repetitive or hazardous tasks, thus cutting overall labour costs. Furthermore, their consistent and exact movements help to improve product quality, resulting in fewer flaws and higher-quality outputs, reinforcing their market supremacy.
Increasing Demand for Efficiency and Productivity has impelled market growth
The growing desire for efficiency and productivity drives the Factory Automation Market in a variety of ways. Firstly, automation, particularly with robots and industrial gear, allows for faster production rates than manual labour, making it possible to satisfy increased output demands more effectively. Furthermore, automated systems have less downtime due to breaks, or injuries, resulting in smoother production lines and more available production time. Furthermore, robots and machines configured for specific jobs execute consistently and flawlessly, reducing manufacturing errors and faults, resulting in higher quality goods and less rework or scrap. Additionally, automation enhances resource use by monitoring operations and modifying parameters to ensure maximum efficiency, lowering waste and overall production costs.
Rising Labour Costs Has Accelerated the Adoption of Factory Automation Devices
The rising labour costs has been a significant driver for factory automation for various essential reasons. Automation is well equipped with replacing manual labour for repetitive, risky, or physically demanding activities, lowering the need for a big workforce and saving significantly on benefits, salaries, and training costs. In addition, technology enables human workers to concentrate on higher-level tasks such as programming, maintenance, and quality control, resulting in a more appealing work environment and contributing in talent attraction and retention. Also, automation increases productivity, allowing businesses to reduce production costs and offer more competitive pricing in the market, which is critical for remaining relevant against overseas manufacturers with possibly lower labour costs.
Complexity of Integration of Automated Systems acts as a major challenge for the market
Integration challenges remains a significant challenge in the Factory Automation Market, restricting greater adoption due to various reasons. Integration attempts are complicated by the dissimilar systems of factories, which are made up of a combination of old and new equipment with multiple software platforms and communication protocols. Furthermore, modification requirements to meet individual factory needs and interoperability issues between automation components from different vendors add to this complexity. Successful integration requires qualified engineers who are familiar with both automation systems and current manufacturing infrastructure, which presents issues due to a shortage of available expertise. Despite these hurdles, businesses can handle integration complexity through standardization, vendor relationships, investment in expertise, and simulation-based testing to guarantee perfect operation.
Factory Automation Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. The Asia Pacific region currently holds the prominent market position in the market, with nations in South-East Asia and East Asia experiencing significant market growth in manufacturing sectors, that drive overall demand for better automation solutions. Manufacturing wages in the region have been increasing, making automation a more attractive option for companies to reduce labour costs. Many governments across the region are actively promoting automation through better policies and subsidies.
In parallel, regions such as Europe has a strong tradition in manufacturing with a well-established industry, and is expected to maintain mature growth. North America with a strong market has shown moderate growth, and still competes with overseas manufactures. Latin America and Middle East & Africa, all are in the earlier stage of automation adoption, but are expected to see significant growth in coming years.
Source: Fatpos Global
The Covid-19 pandemic had a multifaceted impact on the Factory Automation Market. In short term, it resulted in supply chain interruptions factory closures which reduced demand for automation, and economic uncertainty that led to postponed investments. However, in the long term, the pandemic accelerated trends towards automation. Businesses started to focus on resilience, with automation serving as a means of ensuring operational continuity amidst disruptions. Labour shortages also helped in fuelling adoption, with automation providing a method in order to fill any form of workforce problems. Furthermore, the e-commerce boom raised the overall demand for scalable production, which accelerated automation adoption. Despite these initial setbacks, the market has shown resilience, with better signs of recovery and anticipated growth.
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ATTRIBUTE |
DETAILS |
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Study Period |
2018-2034 |
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Base Year |
2023 |
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Forecast Period |
2024-2034 |
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Historical Period |
2019-2022 |
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Growth Rate |
CAGR of 8.4% from 2024-2034 |
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Unit |
Value (USD Billion) |
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Segmentation |
Main Segments List |
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By Component |
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By Control and Safety System |
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By Industry |
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By Region |
Rest of Middle East & Africa |
Factory Automation Market size was values at USD 314.2 billion in 2023 and is projected to reach the value of USD 761.7 billion in 2034, exhibiting a CAGR of 8.4% during the forecast period.
The factory automation market covers the use of various technologies, including robotics, control systems, and software, to automate industrial processes such as manufacturing, assembly, and material handling, aiming to enhance efficiency, productivity, and safety in factory operations.
The SCADA segment and Industrial Robots segment accounted for the largest Factory Automation Market share.
Key players in the Factory Automation Market include ABB Ltd., Honeywell International Inc., Schneider Electric SE, Siemens AG, Rockwell Automation, Inc., General Electric Company, Mitsubishi Electric Corporation, Emerson Electric Co., Omron Corporation, Fanuc Corporation, Yokogawa Electric Corporation, Bosch Rexroth AG, Keyence Corporation, Toshiba Machine Co., Ltd., Yaskawa Electric Corporation and Other Prominent Players.
Rise in increasing demand for higher productivity, efficiency and quality in manufacturing process is driving the overall factory automation market.
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