The Industrial and Factory Automation Market was valued at $133.1 billion in 2021 and is estimated to reach $197.8 billion by 2028, with a CAGR of 3.16% from 2022 to 2027.
Among the factors causing the growth are the emergence of business partnerships and the need for large-scale production of goods, a supportive government initiative to encourage automation systems, the implementation of cutting-edge technologies like IoT and AI in industry applications, the insistence on automation technology and optimized resource consumption, and financial policies developed by local financial firms to maintain production facilities during the COVID-19 emergency. Industrial automation refers to the use of control systems, such as robots or machines, and information technology to handle various manufacturing processes and equipment in order to replace humans. After mechanization, this is the next stage of industrialization. The majority of sectors can operate with greater flexibility and efficiency thanks to this automation.
Market Drivers and Restraints:
The idea of corporate partnerships is growing, which is driving the global industrial and factory automation market ahead. For effective manufacturing processes, there must be a smooth information flow among the various business divisions. By leveraging IoT and IP technologies, it enables organizations to understand the process of converting resources into goods. The location of field devices can be tracked, the proper flow of materials can be ensured, inventory status can be tracked, and commodities can be alerted as they move through the supply chain using internet-of-things systems. Integrated businesses can more easily respond to changes in the business environment because they can instantly get the flow of data through the production chain. Real-time data helps producers reduce operating costs, identify dangers of cybercrime, and produce in accordance with market expectations. The increased demand for increased productivity and the creation of product lines of superior quality is driving the development of cutting-edge machinery and software. Industrial and factory automation's advanced production techniques and applications can be used to fulfill this demand.
Modern automation innovations and technologies are required for the implementation of a new automated production plant. With their help, data collecting helps to decrease calculation errors while enhancing product quality and manufacturing facility efficiency. The construction of these production facilities requires large capital expenditures for equipment, operating systems, and training. Such a big investment is difficult for young businesses setting up their first site. As a result, these companies must carefully evaluate their return on investment before deploying industrial and factory automation technologies.
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The report is segmented as follows:
The Industrial and Factory Automation Market is segmented by Solution; the Market is segmented by Component; the Market is segmented by Industry:
By Solution (SCADA, PLC, DCS, MES, Industrial Safety, PAM)
By Component (Sensors, Industrial Robots, Machine Vision, Control valves, Industrial PC, Control devices)
By Industry (Process and Discrete)
Based on regional analysis, the industrial and factory automation market is segmented into three continents: North America, Europe, and Asia Pacific. Asia Pacific is estimated to have considerable expansion in the Industrial and Factory Automation market over the forecast period, followed by Europe. Three nations make up North America: the United States, Mexico, and Canada. The seamless integration of marketplaces is what makes this region prosperous. The market is consistently expanding in terms of profits. Due to its extremely broad industrial demand, the United States controls the majority of the North American economy. In terms of advancements and upgrades, producers in this region have a lot more freedom than those in Europe and some parts of Asia. Yet, a few companies in North America have reached a saturation point, prompting the creation of fresh strategies to address market shortcomings.
Impact of COVID-19 pandemic on the market:
In 2020, COVID-19 hurt the market for industrial and factory automation, resulting in reduced consignments of those products and the earnings generated from them. As a result, in the first half of 2020, the industry's overall growth decreased. The second half of the year is expected to see a reversal of this momentum as demand increases due to growing concern over intelligent automation and increasing energy efficiency. The industrial & factory automation market's value chain has been significantly impacted by the COVID-19 epidemic. The epidemic has had a severe impact on the United States, China, South Korea, and Japan, who together produce a substantial portion of the world's industrial and factory automation industry. Due to the global slowdown, there is now low demand in the discrete and process industries, which is anticipated to last for the foreseeable future.