Industrial Control & Factory Automation Market

Industrial Control and Factory Automation: Revolutionizing Manufacturing Processes

Industrial control and factory automation have emerged as transformative technologies revolutionizing the manufacturing sector. With advancements in robotics, artificial intelligence (AI), and Internet of Things (IoT), industrial control systems have become more sophisticated, efficient, and interconnected. This essay explores the impact of industrial control and factory automation on manufacturing processes, highlighting the top factors influencing their adoption. Additionally, we will touch upon relevant government policies that shape the landscape of industrial control and factory automation.

Impact of Industrial Control and Factory Automation

Industrial control and factory automation technologies have a profound impact on manufacturing processes, leading to numerous benefits:

• Increased Productivity: Automation streamlines manufacturing processes, reducing human error and improving efficiency. By automating repetitive tasks, industrial control systems accelerate production cycles, resulting in increased productivity and output.
• Enhanced Quality and Consistency: Automation ensures consistent product quality by minimizing variations caused by human intervention. With precise control over manufacturing parameters, industrial control systems improve product accuracy, reliability, and compliance with industry standards.
• Cost Reduction: Automation reduces labor costs by replacing manual tasks with robotic systems. Moreover, automation optimizes resource utilization, minimizing waste and enhancing energy efficiency, thereby reducing operational costs.
• Improved Workplace Safety: Industrial control and factory automation minimize human involvement in hazardous or physically demanding tasks. By deploying robots and automated systems, workplace accidents and injuries can be significantly reduced, ensuring a safer work environment for employees.

Top Factors Influencing Adoption of Industrial Control and Factory Automation

Several factors influence the adoption of industrial control and factory automation in the manufacturing sector. The following factors are particularly impactful:

• Technological Advancements: Rapid advancements in robotics, AI, and IoT have paved the way for sophisticated industrial control and automation systems. As technology continues to evolve, manufacturers are motivated to adopt these technologies to remain competitive, enhance operational efficiency, and meet the demands of the market.
• Return on Investment (ROI): Manufacturers evaluate the financial viability of implementing industrial control and factory automation. Assessing the potential cost savings, increased productivity, and improved product quality helps determine the ROI of automation projects. The ability to justify upfront investment costs and demonstrate long-term benefits is crucial for widespread adoption.
• Workforce Adaptability: The integration of automation systems requires a workforce capable of operating and maintaining these technologies. Training employees to adapt to new roles, such as overseeing automated systems, programming robots, or managing data analytics, is vital for successful adoption.
• Regulatory Compliance: Compliance with industry-specific regulations and standards is a critical factor driving the adoption of industrial control and factory automation. Automation enables manufacturers to implement robust quality control measures, traceability systems, and data recording capabilities, ensuring compliance with regulatory requirements.

Government Policies and Regulation

Government policies and regulations play a crucial role in shaping the adoption and implementation of industrial control and factory automation. Some key areas of government involvement include:

• Standards and Safety Regulations: Governments establish standards and safety regulations to ensure the safe and reliable operation of industrial control systems. These regulations often encompass areas such as electrical safety, machinery safety, cybersecurity, and data privacy.
• Incentives and Funding: Governments may provide incentives, grants, or funding programs to encourage manufacturers to adopt automation technologies. These initiatives aim to promote innovation, enhance productivity, and drive economic growth by supporting the modernization of manufacturing processes.
• Workforce Development: Governments collaborate with educational institutions and industry stakeholders to develop programs and initiatives that facilitate the development of a skilled workforce for automation technologies. This includes training programs, vocational courses, and partnerships between academia and industry to bridge the skills gap in the workforce.

Dynamics of Industrial Control & Factory Automation Market

DRIVERS in Industrial Control & Factory Automation Market

Government initiatives to promote industrial automation are being implemented worldwide to foster the overall development of countries. This has resulted in the adoption of various automation and communication components and technologies to enhance the structural growth of industries. Governments are prioritizing the expansion of both process and discrete industries. For example, the Government of Singapore has formed partnerships with associations like the Singapore Food Manufacturing Association (SFMA) and the Food Innovation Resource Centre to embrace cutting-edge automation solutions such as SCADA, PLC, DCS, robots, and cables in the food and beverage industry. In India, the government's national manufacturing policy (NMP) is propelling the growth of the manufacturing sector. Initiatives like the Make in India policy have also been introduced to encourage companies to implement automation in their manufacturing plants. The increasing adoption of automation in the automotive sector, driven by the emerging trend of self-automation vehicles, is anticipated to fuel market growth during the forecast period. Moreover, this advanced technology offers high accuracy and efficiency, driving its demand across various verticals. Furthermore, the shift towards electric vehicles in place of conventional ones is contributing to market growth.

RESTRAINTS in Industrial Control & Factory Automation Market

Fluctuations in end-use industries have posed challenges to the industrial automation market. In 2020, according to the BP Statistical Review of World Energy, the average oil price reached its lowest point since 2005, with global oil consumption experiencing a record decline of 9 million barrels per day (b/d) or 9.2%, the lowest level since 2012. Major economies, including the US, the entire European Union (EU), and India, witnessed a decrease in oil demand. Global oil production also contracted by 6.6 million b/d, leading to a significant decline in refinery utilization to its lowest level since 1985. The market has also been impacted by the shortage of semiconductor chips, primarily due to the ongoing trade war between the US and China, which has adversely affected the manufacturing of various electronic products and equipment. Other significant geopolitical events, such as the Russia-Ukraine war and the relocation of major manufacturing hubs from China to other countries, have disrupted the entire supply chain. As industrial control systems and factory automation increasingly rely on connected devices and networks, the risk of cyberattacks and data breaches becomes a significant concern. Safeguarding critical infrastructure and sensitive data from unauthorized access or manipulation is a top priority, necessitating robust cybersecurity measures and vigilance against evolving threats. Adhering to regulatory standards and compliance frameworks is another challenge for the industrial control and factory automation industry. Compliance with safety standards, environmental regulations, data protection laws, and industry-specific requirements often entails additional costs and complexities for manufacturers and system integrators. Many industrial facilities still operate with legacy control systems and automation technologies that may not be compatible with modern solutions. Upgrading or integrating new technologies with existing systems can be challenging and costly, impeding the adoption of advanced automation solutions and delaying efficiency gains. Bridging the skills gap is crucial for the industry's growth and development, as there is a shortage of qualified professionals in areas such as industrial cybersecurity, robotics, and data analytics. Training and education programs are essential to address this shortage and cultivate a skilled workforce. The implementation of industrial control and factory automation solutions often involves significant upfront costs for equipment, software, and integration. This initial investment can be a barrier for smaller enterprises or those operating on limited budgets. Striking a balance between the cost of implementation and the expected return on investment and long-term benefits is crucial. Additionally, achieving seamless interoperability and standardization among the wide range of devices, systems, and protocols from different manufacturers in the industry poses a challenge, as lack of interoperability can limit flexibility, scalability, and effective integration of automation systems.

OPPORTUNITIES in Industrial Control & Factory Automation Market

Adoption of Industry 4.0 principles for manufacturing

The manufacturing, oil & gas, food & beverage, chemical, and automotive industries are experiencing rapid growth in the industry control market due to the implementation of Industry 4.0 principles. By embracing Industry 4.0, the manufacturing sector is automating various processes and systems, allowing production units to operate continuously without human errors. This leads to a reduction in production cycle time and ensures high-quality processes from raw material procurement to final product development. Automation solutions like SCADA, HMI, DCS, and PLC enable the operation and control of machines in manufacturing plants.

Industry 4.0 encompasses cyber-physical systems, IoT, and cloud computing, and it provides valuable support to the manufacturing industry. It enables remote manufacturing operations and real-time intelligent data collection. The adoption of Industry 4.0 principles in various industries is expected to create profitable opportunities for market players during the forecast period. It facilitates enhanced operational efficiency, productivity, product quality, asset utilization, supply chain management, workplace safety, and environmental sustainability.

Industrial Control & Factory Automation offer a higher level of interactivity and engagement compared to traditional toys. These advanced toys incorporate features such as voice recognition, motion sensors, and touchscreens, providing children with immersive and dynamic interactions. They can also personalize learning experiences according to each child's unique needs and abilities. By analyzing data on a child's interactions and preferences, these toys can offer customized content, adaptive learning paths, and targeted feedback to support educational development. Additionally, Industrial Control & Factory Automation can connect to the internet, granting access to a wide range of digital content and resources, including educational materials, interactive games, storytelling, and multimedia content. This enables children to have diverse and enriching experiences.

Furthermore, Industrial Control & Factory Automation promote collaborative play and social interaction among children. They can connect with other compatible toys, allowing multiplayer experiences, virtual team activities, and even remote play sessions with friends or family members. Moreover, these toys generate valuable data on children's play patterns, preferences, and interactions, which manufacturers can utilize to gain insights into consumer behavior, product usage, and emerging trends. This data-driven knowledge can inform product development, marketing strategies, and customization options.

CHALLENGES in Industrial Control & Factory Automation Market

Lack of skilled workforce to operate industrial automation devices and systems

The operation of industrial automation devices and systems requires skilled personnel due to the complexity of manufacturing processes. Unskilled personnel may misinterpret these complexities, leading to errors and faults. The lack of appropriate content, human resources, and financial resources, as well as usability issues and technical difficulties, can hinder the effective operation of industrial automation devices. Therefore, the lack of expertise acts as a barrier to the widespread adoption of automation in many industries, posing a challenge to the growth of the industrial control & factory automation market.

The National Council for Advanced Manufacturing (NACFAM), a US-based organization, has adopted strategies centered around technological innovations, supply chain integration, sustainable manufacturing, and talent development for advanced manufacturing. According to NACFAM, limited knowledge about new and advanced technologies prevents some small and medium-sized enterprises (SMEs) from supporting the defense industry. This lack of expertise ultimately hampers the automation of the defense industry.

Ecosystem of Industrial Control & Factory Automation Market

The industrial control and factory automation market was largely dominated by the industrial sensors segment, holding the largest share. The growth of this segment can be attributed to the increasing adoption of Industry 4.0 and IIoT, as well as the expansion of the wireless sensors market. In the coming years, there are lucrative opportunities expected for players in the industrial sensors market, particularly in the field of predictive maintenance. This involves capturing sensor data, facilitating data communications, and making predictions. As the sensor plays a crucial role in predictive maintenance solutions, there is a significant anticipated increase in the demand for industrial sensors.

During the forecast period, the industrial robots segment is projected to have a significant market share with a compound annual growth rate (CAGR) of 12.6%. This growth is driven by the extensive use of industrial robots and advanced machinery by manufacturing companies to optimize operations that require speed, strength, and accuracy. Industrial automation through robots not only reduces raw material waste, labor requirements, and energy usage but also ensures a smooth and uninterrupted workflow in the manufacturing process. These factors are expected to drive the growth of the industrial robots segment.

Among the various segments, the distributed control systems (DCS) segment emerged as the dominant player, accounting for the largest revenue share of over 31.7% during the forecast period. The rapid adoption of IIoT and the preference of industrialists to deploy automated control systems are driving the market growth for DCS. Furthermore, the integration of IoT and DCS using 5G technology is expected to receive a boost with the advent of 5G in the power generation sector, leading to enhanced output efficiency. Additionally, the Supervisory Control and Data Acquisition (SCADA) control system segment is anticipated to experience the highest CAGR of over 10.6% during the forecast period. This growth is fueled by the increasing adoption of industry 4.0, where the SCADA control system finds applications across various industry verticals such as aerospace & defense, automotive, chemical, energy & utilities, manufacturing, and healthcare. Its ability to gather real-time data and provide instant feedback to controller systems makes it a preferred choice. The demand from manufacturers for smart and digitized production processes to enhance production efficiency is expected to further drive the growth of the SCADA control system segment.

In terms of process industries, the oil & gas industry held the largest share of the industrial control & factory automation market. The adoption of industrial control and factory automation technologies in this industry allows operators to remotely monitor facilities and obtain real-time information about inventories and equipment. Remote monitoring enables the collection of equipment data from a distance, leading to reduced risks and improved safety and efficiency of the workforce.

During the forecast period, the industrial 3D printing segment is expected to contribute the highest revenue share. This can be attributed to the ease of developing customized products, design flexibility, and minimal wastage offered by 3D printing. The versatility of printing devices allows for the production of parts tailored to specific industries, thereby reducing material costs and saving time in the production process. This factor is expected to drive the market growth of the industrial 3D printing segment. Additionally, the adoption of 3D printing by original equipment manufacturers (OEMs) to stay agile and innovative with emerging trends is on the rise. The ongoing digitization efforts have also facilitated the printing of complex designs while maintaining operational agility and reducing costs, further contributing to the growth of the segment during the forecast period.

The market growth is supported by the increasing demand for 3D printing in various industries such as automotive, defense, aerospace, and robotics. Key players in the market are also collaborating to develop printers tailored to different end-use industries. For example, Ozo & Rob Pvt Ltd has introduced the Anant Pro XL 3D printer, addressing challenges related to material shortage, compatibility, and high-precision design.

In the healthcare sector, which is expected to experience significant market growth, automation and control play a crucial role in improving operational costs, reducing supply chain errors, and enhancing patient care and treatment. The segment accounted for the second largest revenue share of around 16% during the forecast period. Automation has facilitated remote surgeries and minimally invasive procedures, enhancing precision and safety, which contributes to the growth of this segment.

Last year, the manufacturing vertical segment dominated the market with the largest share of over 17%. The ongoing trend of autonomous processes in factories and industries, driven by automated systems and processes, fueled the growth of this segment. It is projected to grow at a CAGR of over 13.5% during the forecast period. Automated systems enable manufacturers to reduce process time and error rates, as they require minimal human intervention, thereby driving the segment's growth.

The demand for Process Analytical Technology (PAM) is driven by the need for real-time tracking and monitoring in various industries, which improves efficiency and productivity. The adoption of technologies like IoT and automation in different sectors further contributes to the market's growth. Additionally, sectors generating large amounts of data seek effective approaches to meet enterprise requirements and ensure safety, longevity, and operational excellence, which supports market growth. The oil & gas and energy & power industries have adopted PAM to enhance operational accuracy and performance, boosting the market.

The discrete industry is expected to witness a significant surge in demand during the forecast period due to its ability to manufacture complex products in low volumes. Furthermore, the medical device industry contributes to the market's revenue growth through technological advancements and innovations in the healthcare sector.

Moreover, the market is supported by the growing preference for innovative industrial and factory automation solutions aimed at improving product quality and reducing production time. Manufacturers are focusing on automation to enhance their competitive edge and create flexible and agile medical manufacturing systems, leading to increased demand. The reduction of paperwork, errors, and maintenance of high-quality standards significantly improves the throughput of medical manufacturing plants, thereby bolstering market growth.

Regional Insights

Asia Pacific emerged as the dominant player in the Industrial Automation Market, accounting for the largest share (39.5%) in 2021. This region's market growth can be attributed to the widespread adoption of industrial automation technologies, particularly in China and India. In China, the market has witnessed significant expansion due to rising labor wages and the concentration of numerous automobile manufacturing plants.

Furthermore, the proliferation of IoT devices and the increasing adoption of smart factory automation in emerging economies have further fueled the uptake of industrial automation. For instance, the Japanese government's "Rebirth of Japan" plan, which involves a substantial investment of $1.4 trillion to bolster the manufacturing sector, is expected to drive the industrial sector's growth by $500 billion within this year, thus stimulating market growth in the region.

In addition to Asia Pacific, Europe is also poised for growth during the forecast period, primarily driven by the rising demand for advanced technologies among consumers. Key market players are actively embracing novel technologies to enhance their business processes' efficiency and productivity in response to mounting competition, contributing to the overall market expansion.

Moreover, the market is witnessing the introduction of new industrial automation products by various companies in line with evolving consumer preferences. For instance, Schneider Electric recently launched CkimaSys, an AI-powered smart ventilation system designed to filter and manage airflow efficiently. Such product innovations are expected to drive market growth throughout the forecast period.

Dominating Companies in Industrial Control & Factory Automation Market

• ABB
• EMERSON
• SIEMENS
• SCHNEIDER ELECTRIC
• MITSUBISHI ELECTRIC
• GENERAL ELECTRIC CO.
• ROCKWELL AUTOMATION
• HONEYWELL
• YOKOGAWA ELECTRIC CORPORATION
• OMRON CORPORATION
• ENDRESS+HAUSER
• FANUC CORPORATION
• WIKA GMBH
• DWYER INSTRUMENTS
• STRATASYS
• 3D SYSTEMS CORPORATION
• FUJI ELECTRIC
• HITACHI
• KROHNE
• AZBIL CORPORATION
• VEGA GRIESHABER
• DANFOSS
• TEGAN INNOVATIONS
• WIN-911 SOFTWARE
• PINPOINT INFORMATION SYSTEMS
• PROGEA
• CHAOS PRIME
• INXPECT S.P.A.
• ALGOLUX
• INUITIVE
• EAVE
• CANARIA
• FUELICS
• ULTIMAKER
• NANO DIMENSION
• DEEP LEARNING ROBOTICS
• PICK-IT 3D
• ONROBOT
• TRIVISION
• CLEVEST

Recent Developments in Industrial Control & Factory Automation Market

• In 2021, Siemens, a global leader in industrial automation, announced the acquisition of Edge Technology, a provider of edge computing solutions for industrial settings. This strategic acquisition aims to enhance Siemens' portfolio of Industrial Internet of Things (IIoT) solutions and strengthen their capabilities in edge computing and data analytics for factory automation.
• In 2020, Rockwell Automation, a leading provider of industrial automation solutions, partnered with PTC, a software company specializing in digital transformation solutions. This partnership resulted in the launch of FactoryTalk InnovationSuite, powered by PTC, which combines Rockwell Automation's expertise in industrial automation with PTC's capabilities in augmented reality, analytics, and industrial IoT. The collaboration aims to enable manufacturers to achieve operational efficiencies and drive innovation in their factory automation processes.
• ABB, a multinational corporation specializing in robotics, automation, and power technologies, completed the acquisition of B&R Industrial Automation in 2017. This acquisition strengthened ABB's position in the field of factory automation by expanding their portfolio of integrated automation solutions. B&R Industrial Automation is known for its innovative technologies in machine and factory automation, including programmable logic controllers (PLCs) and human-machine interfaces (HMIs).
• In 2019, Emerson, a global technology and engineering company, acquired General Electric's Intelligent Platforms business. This acquisition bolstered Emerson's capabilities in automation solutions for various industries, including industrial control and factory automation. The addition of GE's Intelligent Platforms business enhanced Emerson's portfolio of automation technologies and software, enabling them to offer comprehensive solutions for digital transformation in manufacturing.
• Honeywell, a multinational conglomerate specializing in industrial automation and control systems, announced the acquisition of Transnorm in 2018. Transnorm is a leading provider of high-performance conveyor solutions for e-commerce and parcel handling industries. This acquisition expanded Honeywell's presence in the field of intralogistics and warehouse automation, complementing their existing portfolio of automation and control solutions.
• In 2022, Schneider Electric, a global leader in energy management and automation, announced the acquisition of Group Tempo, a leading provider of automation software solutions. This acquisition strengthened Schneider Electric's portfolio of software offerings for industrial automation, allowing them to provide advanced solutions for process control and optimization.
• In 2021, Emerson acquired Open Systems International (OSI), a provider of advanced automation software solutions for the electric utility industry. This acquisition expanded Emerson's capabilities in grid optimization and control technologies, enabling them to offer comprehensive solutions for digital grid management and renewable energy integration.
• Rockwell Automation formed a strategic partnership with PTC and Microsoft in 2018 to develop and deliver innovative Industrial IoT solutions. This partnership combines Rockwell Automation's expertise in industrial automation, PTC's capabilities in augmented reality and digital transformation, and Microsoft's cloud technologies to enable manufacturers to accelerate their digital transformation journey.
• Mitsubishi Electric Corporation acquired ICONICS, Inc. in 2020. ICONICS is a leading provider of advanced visualization and HMI/SCADA software solutions for industrial automation. This acquisition strengthened Mitsubishi Electric's software portfolio, allowing them to offer comprehensive solutions for monitoring, control, and optimization of manufacturing processes.
• In 2019, Siemens and AVEVA announced a strategic partnership to provide an end-to-end solution for industrial digitalization. This partnership integrates Siemens' industrial automation hardware and software with AVEVA's engineering and industrial software portfolio, enabling customers to optimize their operations and drive digital transformation across the entire asset lifecycle.

Industrial control and factory automation technologies have revolutionized manufacturing processes, bringing increased productivity, enhanced quality, cost reduction, and improved workplace safety. The adoption of industrial control and factory automation is influenced by factors such as technological advancements, ROI considerations, workforce adaptability, and regulatory compliance. Government policies and regulations play a significant role in shaping the adoption landscape by establishing standards, providing incentives, and fostering workforce development. As manufacturers continue to embrace automation, the manufacturing sector is poised for further advancements, driving efficiency, competitiveness, and innovation in the global market.