The industrial PC market is expected to grow at a compound annual growth rate of 6.45% to reach a market size worth US$7.756 billion by 2026. This market was valued at US$5.006 billion in 2019. Industrial PC is specially designed computers meant for industrial use only. These PCs have the capability to withstand harsh industrial environments, including vibration, shocks, high temperature, and high humidity. In addition to these capabilities, industrial PCs have a longer life cycle and are technically different from general computer systems.
Since industrial PCs are special designed for industrial use, they have the capability to handle a variety of tasks, ranging from stock information, monitoring the production line, and others. Owing to these features, these PCs have wide adaption in various industries. However, these PCs are more expensive than general computers which will constrain the market growth during the forecasted period.
The Surging Automation Industry Will Significantly Boost the Market
The industrial PC market is segmented based on end-users industry as IT & Telecom, chemicals, Aerospace & Defense, Semiconductors & Electronics, Energy & Power, Automotive, and others. A surge in automation around these industrial sectors will significantly boost the market. The automotive and electronics Industrial PC markets will grow at an exponential rate during the forecasted period owing to a surge in disposable income and expenditure on these comfort goods. Technological advancement in IT and telecom with growing technology penetration and increasing demand will boost the IT and Telecom Industrial PC market. The energy and power and aerospace & defense sectors will also show robust growth.
Industrial automation facilitates improvement in production-output rates, improvement in quality and consistency, improving working conditions, reduction in wastes, flexibility in production, reduction in cost, and others. owing to numerous advantages offered by industrial automation, companies in every industrial sector are adopting it. Increasing automation across manufacturing industries for greater productivity will specifically boost the market of industrial PC. A study conducted by the World Economic Forum, in 2019, concludes with the prediction that by 2022, 42% of industrial manufacturing will be automated producing superior products. A study conducted by Oxford Economics in June 2019 forecast that owing to increasing automation in the manufacturing sector, the turnover by the industry will increase by US$4.9 trillion annually till 2030.
The report also extends that such automation would result in 20 million job losses to the automation environment by 2030. The International Federation of Robotics announced in 2020, based on their study, that the use of industrial robots in the manufacturing sector has surged by 12%. Further, the Federal Reserve Bank of St. Louis, the US, observes a 265% surge in robots per thousand workers, from 0.49 robots per thousand workers in 1995 to 1.79 robots per thousand workers in the year 2017.
The High Purchasing Cost of Industrial Pcs Will Constrain the Market Growth During the Forecasted Period
A major constrain faced by the industrial PC market is its high cost. Since industrial PCs are specially designed computers having advantageous capability, the cost of the PC increases with these additional features. This high cost discourages the buyer to install these PCs. While large enterprises may easily raise funds to accommodate industrial PCs in their budgets, small and medium enterprises (SMEs) may not be able to afford these PCs owing to tight budget constraints. World Bank reports that 40% of SMEs in developing economies are unable to meet their financial needs, making them unable to operate at their potential. However, the Industrial PC market must capture the SME group of end-users since SMEs have a large share in the global economy.
The SME sector plays a major role in most of the developing economies while having a significant share in the developed economies. As per data published by the World Bank, the SMEs sector represents around 90% of global business and employees more than 50% of the global labor market. further, in major emerging economies, SMEs generate 7 out of 10 formal sector jobs. In India, SMEs contribute 33.4% of Indian manufacturing output and 6.11% of the Indian manufacturing GDP (Source: Confederation on Indian Industry), making them the backbone of the manufacturing sector of the economy. In Bangladesh, more than 10 million SMEs contribute towards 23% of the GDP and provides 80% of jobs in the industrial sector.
Asia Pacific Industrial PC Market Will Witness the Highest Growth in the Global Economy
The Industrial PC market is regionally segmented as the Asia Pacific region, the North American region, the Middle East and African region, the South American region, and the European region. The North American industrial PC market is expected to dominate the global market during the forecasted period owing to the region’s state-of-art infrastructure and early adoption of technology for better productivity. However, the Asia Pacific industrial PC market will grow at the fastest rate due to the booming manufacturing sector and support from government and international organizations such as the World Bank. The region has observed a mushrooming growth of SMEs which drive the market manufacturing and service sectors. These SMEs are being supported by the regional government bodies to grow and bring in the international market. Further, financial support by international organizations will surge this mushrooming growth.
The World Bank, for instance, incorporated Innovation and Inclusive Financial Project in India for the country’s MSMEs sector (Micro, Small, and Medium Enterprise). Under this project, the organization formulated a credit line of US $500 million to be provided through the Small Industry Development Bank of India (SIDBI). In Bangladesh, the World Bank launched credit lines to finance women's SMEs project by establishing a credit guarantee scheme. Further, regional government training and support policies will increase the adoption of automation in the sector, surging the market size of Industrial PCs.
The analysis report covers in detail the adverse effect of the pandemic and lockdown on the Industrial PC market, globally and regionally.