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Industrial Control & Factory Automation Market By Component, Solution and Geography - Forecast (2024 – 2031)

Category : Machinery & Equipment | Report Code : 1939 | Pages : 144 | Oct 2024

Report Overview

The Global Industrial Control & Factory Automation Market in terms of revenue was estimated to be worth USD XX billion in 2023 and is poised to grow at a CAGR of 9% from 2024 to 2031.

The market is undergoing significant transformation driven by AI-enabled predictive maintenance, which minimizes downtime by forecasting hardware failures through real-time data analysis. Additionally, machine learning enhances production efficiency by creating self-learning systems that continuously optimize processes.

 

AI-powered autonomous vehicles and drones are also being utilized in logistics and manufacturing, taking over material handling tasks without human intervention, particularly in repetitive or hazardous environments. At the same time, collaborative robots, or cobots, are reshaping automation by enabling flexible manufacturing environments where humans and robots work side by side. These cobots are becoming game-changers, especially for small and medium-sized enterprises (SMEs), by providing affordable automation solutions.

 

Furthermore, with government initiatives promoting industrial development, there has been a strong push toward adopting advanced automation and communication technologies, accelerating the structural evolution of industries across various sectors.

Industrial Control & Factory Automation Market Dynamics

Drivers: Growing Adoption of IoT and AI in Industrial Settings

In manufacturing plants, artificial intelligence (AI) encompasses advanced technologies such as deep learning, computer vision, natural language processing (NLP), and context awareness. These tools enable machines to perform tasks with human-like capabilities, streamline business processes, and address complex manufacturing challenges. The adoption of AI-based solutions is particularly growing in industries such as semiconductors and electronics, energy and power, pharmaceuticals, automotive, heavy machinery, and food and beverage manufacturing, with big data and computer vision playing key roles.

The Internet of Things (IoT) is transforming operations across multiple sectors, especially manufacturing, where it is known as Industrial IoT (IIoT). IoT sensors and connected devices allow for real-time monitoring of machinery, processes, and environmental conditions. This data can be analyzed instantly to support smarter decision-making and optimize operations. IIoT facilitates the creation of functionally digital plants through interconnected devices linked to SCADA systems, revolutionizing industrial processes.

The increasing adoption of IoT and AI in industrial environments is driving the growth of the industrial control and factory automation market by enabling real-time monitoring, predictive maintenance, and improved operational efficiency.

Restraints: Substantial Initial Capital Investment and Ongoing Maintenance Costs

Establishing a new automated manufacturing plant involves deploying advanced automation technologies, including SCADA, DCS, RTU, PLC, and HMI. Utilizing SCADA for data collection helps minimize calculation errors and enhances product quality and production efficiency. However, significant capital investments are necessary for equipment, software, and staff training, which can be a challenge for new entrants setting up their first facility. These companies must conduct thorough analyses of potential returns on investment before implementing industrial control and factory automation systems.

Many companies find it impractical to replace their existing legacy systems due to the high costs of new technologies and the lack of interoperability with older systems. Legacy systems typically use proprietary protocols for communication, making integration with modern technologies difficult. Additionally, automation software requires ongoing maintenance and upgrades, which can be financially burdensome for small businesses. The need for substantial initial investments, coupled with the costs associated with maintaining and upgrading industrial control and factory automation systems, is a significant constraint on the growth of the market.

Opportunities: Growing Demand for Automation Solutions in Safety Compliance

Industrial manufacturing involves several processes that can pose risks to human safety. Fatal accidents may occur due to human errors or mechanical failures, underscoring the necessity for the industry to implement effective safety measures to prevent such incidents. Safety compliance automation solutions play a crucial role in mitigating these risks. For example, safety automation instruments can alert operators during emergencies and execute pre-programmed actions to minimize their impact on human lives. These systems detect malfunctions in machinery and processes and perform diagnostics to provide timely solutions. As a result, rapid and reliable responses are expected from safety instrument systems (SIS).

According to the Occupational Safety and Health Administration (OSHA), the rate of serious workplace injuries and illnesses in the U.S. significantly decreased from 3.3 to 2.8 per 100 workers between 2018 and 2019, largely due to the integration of safety components and industrial automation.

Challenges: Challenges in Deploying Industrial Control and Factory Automation Solutions

The deployment of industrial control and factory automation solutions is hindered by the need for seamless integration of existing and new systems, customization for specific industrial processes, and scalability. The diverse needs of different industries make the implementation of technologies like MES and SCADA particularly challenging. Manufacturing processes vary significantly across sectors, and different stages of production, such as staging and material handling, introduce unique obstacles due to the complexity of the plant floor's hardware infrastructure. As a result, factory automation solutions often struggle to adapt to changing circumstances and optimize performance effectively.

 

Integrating these solutions with all aspects of production can be time-consuming, potentially impacting manufacturers' sustainability. Additionally, high costs, time constraints, and technical difficulties further complicate the implementation process, making it both resource-intensive and demanding. Challenges related to custom configuration, cybersecurity risks, the need for a skilled workforce, and compliance with various industry standards add to the complexities of deployment, often leading to longer implementation timelines and increased expenses.

Industrial Control & Factory Automation Market: Dynamics

The Industrial Control & Factory Automation market is experiencing significant growth, driven by a convergence of key factors. One major catalyst is the rise in territorial conflicts around the globe, prompting nations to enhance their defense capabilities with advanced rockets and missiles. As the complexity of modern warfare increases, there is a pressing need for sophisticated weaponry that can address emerging threats, particularly with the rise of hypersonic missile technology garnering considerable attention.

Furthermore, the substantial defense budgets of emerging economies like China, India, and Brazil are contributing to the market's expansion. The ongoing pursuit of innovation is reshaping the industry, with new technologies such as precision guidance systems, stealth capabilities, and hypersonic propulsion systems transforming the effectiveness and performance of these powerful weapons. Additionally, the rapid pace of urbanization, the ongoing threat of terrorism, and a strong commitment to protecting lives and assets are influencing the direction of this dynamic market.

Extensive research indicates that the Industrial Control & Factory Automation market offers considerable opportunities for growth and innovation. The development of hypersonic missiles, which can achieve unprecedented speeds and enhanced strike capabilities, is likely to create new avenues for market expansion. Moreover, the increasing demand for air defense systems, driven by concerns about missile threats, presents favorable prospects for the integration of Industrial Control & Factory Automation systems.

Global Industrial Control & Factory Automation Market Ecosystem

Prominent companies in this market include well-established manufacturers and service providers of Industrial Control & Factory Automation Market. These companies have been operating in the market for several years and possess a diversified product portfolio, organic & inorganic strategies, strong global sales and marketing networks. Prominent companies include Honeywell International Inc., ABB Limited, Rockwell Automation Inc., Schneider Electric SE, Emerson Electric Company, Siemens AG, Omron Corporation, Yokogawa Electric Corporation.

Industrial Control & Factory Automation Market Report Scope:

Report Metric

Details

Market size available for years

2020–2031

Base year considered

2023

Forecast period

2024–2031

Forecast units

Million/Billion (USD)

Segments covered

By Component, By Solution and By Region.

Geographies covered

North America, Europe, Asia Pacific, And Rest of the World

Companies covered

Honeywell International Inc., ABB Limited, Rockwell Automation Inc., Schneider Electric SE, Emerson Electric Company, Siemens AG, Omron Corporation, Yokogawa Electric Corporation.

This report categorizes the market based on Type of Drone, Service Type and Application.

By Component

Control Valves

Machine Vision

Industrial Robots

By Solution

Industrial Safety

Distributed Control System (DCS)

Frequently Asked Questions?

Ans - The growth rate of the Industrial Control & Factory Automation Market is 9% in the forecast period by 2031.

Ans - Component and Solutions are the factors on which the Industrial Control & Factory Automation Market research is based.

Ans - The purpose of a Industrial Control & Factory Automation market research report is to provide data-driven insights and analysis on a Industrial Control & Factory Automation market. It helps businesses understand industry trends, competition, consumer behavior, market size, growth potential, and risks, supporting strategic decision-making.

Ans - Major companies in the Industrial Control & Factory Automation Market are Honeywell International Inc., ABB Limited, Rockwell Automation Inc., Schneider Electric SE, Emerson Electric Company, Siemens AG, Omron Corporation, Yokogawa Electric Corporation.

Ans - Market research reports typically include both quantitative (market size, revenue, growth rates) and qualitative (trends, consumer preferences, competitive analysis) data. It often includes industry statistics, surveys, expert opinions, historical data, and future forecasts.