Factory Automation Market Size, Share, Opportunities, And Trends By Type (Sensors, Motion & Drives, Industrial Control System, Manufacturing Execution Systems, Software, Others), By Industry Vertical (Oil And Gas, Pharmaceutical, Automotive, Energy And Power, Printing And Packaging, Chemical, Manufacturing, Others), And By Geography - Forecasts From 2023 To 2028

The factory automation market is estimated to grow at a CAGR of 9.17% to reach US$54.372 billion in 2028 from US$29.421 billion in 2021.

The factory automation market has been swiftly developing with the continuous introduction of advanced technologies like robots, artificial intelligence, and others. With the aid of intelligent industrial infrastructure, automation also facilitates quick production and material handling activities. To boost efficiency and save labour costs, industries are using industrial automation and control systems.

Growth Drivers of the market

The adoption of industrial automation worldwide has been accelerated by new technical development, manufacturing, and logistics chain, also known as smart factory automation. For instance, the Japanese government recently authorized the "Rebirth of Japan" plan, which lays out the steps to take to further improve the manufacturing sector by aiming to generate USD 1.3 trillion. By the end of 2023, it is anticipated that enterprises in the industrial sector would increase their sales to USD 490 billion because of Industry 4.0.

According to Industrial Trade Administration, U.S. industrial automation equipment exports for various NAICS category for the year 2020 was $23.96 billion, which is segmented into process controls, electric motors & generators, switch gears, and industrial control & relays.

Product Innovation is anticipated to fuel the market growth.

Several businesses are expanding their manufacturing capacities and launching new product lines to meet the demand for factory automation. For instance, the primary production process lines of Ola's plant, such as the welding and painting lines, are being automated using ABB's technologies. The motor and battery production lines would simultaneously use many ABB robots. These include the IRB 6700 robots from ABB for assembly and material handling.

Additionally, to work together and create a use case for a 5G-enabled smart factory for the production platform of the Hyundai Motor Group Innovation Centre Singapore, Singapore Telecommunications and Hyundai Motor Company signed an MoU in March 2021. Also, Mitsubishi Electric announced in February 2021 the opening of Industrial Mechatronics Systems Works on the grounds of its Nagoya Works in Nagoya, Japan.

North America is an Expected Dominant Market

The regional market is growing due to the growing deployment of robotic technologies in North America. For instance, as part of a project to improve its technical assistance in the Midwest of the United States, in March 2020, the renowned SCARA robot maker Epson Robots cooperated with Air Automation Engineering (AAE), a US-based developer of automation systems. By using industrial automation technologies, these enterprises may save costs, increase production, and raise the standard of their products. The Go Digital programme was recently introduced by the Royal Bank of Canada (RBC) in partnership with Microsoft, primarily to support Canadian businesses investing in intelligent automation technology and cloud solutions. The programme is currently accessible to Canadian food makers, and it will eventually be extended to other sectors of the economy.

Further, there are more and more programmes like "Advanced Manufacturing Partnership (AMP)" aimed at encouraging local businesses, academic institutions, and the federal government to invest in new automation technology. The Canadian government established the Automate Canada programme, which unites businesses from around the world that provide solutions for factory automation. It has also contributed USD 230 million in the past to help Ontario's manufacturing industry become more automated.

The United States in North America is an Expected Dominant Market

The United States has traditionally been a pioneer in the adoption of significant technological advancements. These patterns have been seen to continue. Ford recently used cobots at its paint shop in Cologne. The 35-second body sanding time provided by the six cobots enhances the manufacturing procedure. Additionally, the nation is home to several businesses that are progressively implementing automation to improve operations.

Further, PLC systems for automation activities have seen significant demand growth from the US oil and gas industry. Automation has been crucial in the nation's high oil and gas production as well as the efficient distribution of oil products around the nation. For instance, as per the 2022 annual report by Exxon Mobil Corporation, crude oil production increased from 482 barrels per day in 2021 to 523 barrels per day in 2022.

Further, most market players are using partnership and acquisition strategies, which are also advancing the world economy. For instance, to strengthen its presence in the US, Empire Petroleum, declared in May 2021 that it was purchasing ExxonMobil's oil and gas holdings. The assets total roughly 40,000 net acres of Permian leasehold and include over 700 oil, gas, and injector wells. Additionally, in the United States, a new robotics and safety automation business headquarters was established by Omron Corporation in March 2020. In the new facility, where it would design, develop, test, and produce robotic and safety automation solutions, the company invested USD 10 million.

Key Developments

• In March 2023, Fuji Electric Co. Ltd. announced the release of MICREX-VieW FOCUS Evolution, a new member of the MICREX-VieW FOCUS Series automation monitoring and control systems for plants that allow for flexible system development to address client needs.
• In August 2022, Rockwell Automation debuted its new line of affordable and simple-to-apply photoelectric sensing systems, the Allen-Bradley 42JA VisiSight M20A and 42EA RightSight S18.
• In May 2022, Emerson declared the availability of its PACSystems RSTi-EP CPE 200 programmable automation controllers (PAC). The new line of tiny PACs reduces OEMs' demand for specialized software engineering personnel, enabling them to successfully satisfy client needs.
• In June 2022, 3.1 billion yen, or around 2.2 billion Indian rupees, was invested by Mitsubishi Electric Corporation in its subsidiary Mitsubishi Electric India Pvt. Ltd. to build a new plant in India. The new facility, whose activities are scheduled to begin in December 2023, will produce inverters and other factory automation (FA) control system goods, enhancing the company's capacity to satisfy India's booming demand.
• In January 2023, Vention achieved high revenue, driven by increased demand for its Manufacturing Automation Platform on a worldwide scale. In 2022, Vention had strong net sales growth, ground-breaking product releases, and a considerable expansion of its footprint in Europe and North America.
• In May 2023, Renishaw, a leading provider of engineering solutions, introduced a brand-new product range created especially for the industrial automation industry.
• In April 2023, to automate and manage industrial production, Siemens presents Industrial Operations X, a portfolio that is open and interoperable. The new portfolio is a component of Siemens Xcelerator, an open digital business platform that includes an ecosystem of partners, a portfolio of linked hardware and software, and other components.

Factory Automation Market Scope:

Segmentation:

• By Type
  • Sensors
  • Motion & Drives
  • Industrial Control System
  • Manufacturing Execution Systems
  • Software
  • Others
• By Industry Vertical
  • Oil and Gas
  • Pharmaceutical
  • Automotive
  • Energy and Power
  • Printing and Packaging
  • Chemical
  • Manufacturing
  • Others
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Spain
    • Italy
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Indonesia
    • Thailand
    • Others