Industrial Control & Factory Automation Market

Industrial Control & Factory Automation Market Outlook 2032

The global industrial control & factory automation market size was USD 251.28 Billion in 2023 and is expected to reach USD 568.17 Billion by 2032, expanding at a CAGR of 8.6 % during 2024–2032. The market growth is attributed to the increasing demand for enhanced operational efficiency and productivity in manufacturing processes.

Growing demand for increased efficiency and productivity in industrial processes is driving significant advancements in the industrial control & factory automation market. Companies across various sectors are increasingly adopting automation solutions to streamline operations, reduce costs, and improve overall performance. This trend is fueled by the integration of advanced technologies such as artificial intelligence (AI), machine learning (ML), and Internet of Things (IoT) into industrial control systems, enabling real-time monitoring, predictive maintenance, and data-driven decision-making.

Rising emphasis on safety and regulatory compliance is shaping the landscape of the market. Industries are investing in automation solutions to enhance workplace safety and mitigate risks associated with manual operation, due to the stringent safety standards and regulations in place. Automation technologies such as robotics and remote monitoring systems are being deployed to minimize human intervention in hazardous environments, ensuring a safe working environment for employees.

Increasing focus on sustainability and environmental conservation is driving the adoption of eco-friendly automation solutions in the market. Companies are implementing energy-efficient processes, renewable energy sources, and waste reduction measures to minimize their carbon footprint and comply with environmental regulations. Automation technologies play a crucial role in optimizing resource utilization, reducing energy consumption, and minimizing environmental impact, thereby supporting sustainable industrial practices. For instance,

• In March 2021, SUEZ and Schneider Electric formed a joint venture to develop digital solutions for water management. The partnership offers innovative software tools for planning, operation, and maintenance of water treatment infrastructure, supporting digital transformations in municipal and industrial sectors. Leveraging SUEZ's water expertise and Schneider Electric's EcoStruxure platform, the venture aims to optimize water cycle management efficiently.
  

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Impact of Artificial Intelligence (AI) in Industrial Control & Factory Automation Market

Artificial Intelligence (AI) is revolutionizing the industrial control and factory automation, impacting various aspects of manufacturing processes. Through AI-powered systems, factories are able to optimize production schedules, predict equipment failures, and enhance overall operational efficiency. AI algorithms analyze vast amounts of data collected from sensors and machinery in real-time, enabling proactive decision-making and preventive maintenance strategies.

This proactive approach minimizes downtime, increases equipment lifespan, and reduces maintenance costs, thereby improving the overall productivity and profitability of manufacturing operations. Moreover, AI-driven predictive analytics enable manufacturers to forecast demand accurately, optimize inventory levels, and enhance supply chain management. By leveraging AI technologies, factories achieve high levels of automation, flexibility, and adaptability, paving the way for the next generation of smart manufacturing.

Industrial Control & Factory Automation Market Dynamics

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Major Drivers

Increasing demand for enhanced operational efficiency and productivity is driving the industrial control & factory automation market. Manufacturers are continually seeking ways to optimize their production processes and reduce costs, driving the adoption of automation solutions. Automation technologies such as robotics, PLCs, and SCADA systems enable streamlined workflows, faster production cycles, and improved resource utilization. Additionally, automation enhances quality control and reduces errors, leading to a high product consistency and customer satisfaction.

Growing focus on workplace safety and regulatory compliance is propelling the market. Industries are investing in automation technologies to create safe working environments, driven by increasing awareness of occupational hazards and stringent safety regulations. Automation systems minimize human involvement in hazardous tasks, reducing the risk of accidents and injuries. Moreover, automation enables real-time monitoring of equipment and processes, allowing for immediate response to safety issues.

High demand for customized and flexible manufacturing solutions is driving the adoption of industrial control and factory automation technologies. Automation technologies such as programmable logic controllers (PLCs) and robotics enable rapid reconfiguration of production lines and quick changeovers between product variants.

Rising adoption of Internet of Things (IoT) technology is fueling the market. IoT-enabled devices and sensors provide real-time data on equipment performance, energy consumption, and production metrics, enabling predictive maintenance and proactive decision-making. By connecting machines, systems, and processes, IoT facilitates seamless communication and integration across the manufacturing ecosystem. This connectivity enhances visibility and transparency, enabling manufacturers to optimize operations, improve asset utilization, and reduce downtime. For instance,

• On December 12, 2023, Mitsubishi Electric unveiled a manufacturing plant valued at INR 2.2 Billion in India, covering an area of 40,000 sq.m. This state-of-the-art facility, dedicated to advanced Factory Automation Systems, represents a significant investment by Mitsubishi Electric India in expanding its manufacturing capabilities in the region.

Existing Restraints

Increasing concerns about cybersecurity pose a significant restraint on the industrial control & factory automation market. Automation systems become interconnected and digitally integrated, as they become vulnerable to cyber threats and attacks. Cybersecurity breaches result in data theft, operational disruptions, and potential safety hazards, leading to significant financial and reputational damage for manufacturers. Despite advancements in cybersecurity technologies, the evolving nature of cyber threats remains a persistent challenge for the market.

Growing complexity in integration and interoperability is hampering the market. As manufacturers adopt diverse automation technologies and systems, integrating these disparate solutions into a cohesive ecosystem becomes increasingly challenging. Compatibility issues, data silos, and interoperability gaps hinder the seamless exchange of information and hinder the effectiveness of automation initiatives.

High initial investment cost is hindering the market. Implementing automation technologies requires substantial upfront investments in equipment, software, infrastructure, and training. Small and medium-sized enterprises (SMEs) face difficulties in allocating resources for automation projects, limiting their ability to compete with large counterparts. Additionally, the complexity of automation systems may require specialized expertise and technical support, further adding to the overall cost of implementation and maintenance.

Emerging Opportunities

Increasing demand for smart manufacturing solutions presents significant opportunities for the industrial control & factory automation market. Smart manufacturing integrates automation technologies with data analytics, artificial intelligence, and the Internet of Things (IoT) to create interconnected, intelligent production systems. This enables real-time monitoring, predictive maintenance, and adaptive manufacturing processes, resulting in high efficiency, agility, and competitiveness for manufacturers.

Growing emphasis on industrial robotics offers lucrative opportunities for automation vendors in the market. Robotics technology plays a vital role in automating repetitive tasks, increasing production speed, and improving precision in manufacturing operations. Manufacturers achieve high levels of flexibility and customization in their production processes, due to advancements in robotics capabilities such as collaborative robots (cobots) and advanced vision systems. Additionally, the integration of robotics with AI and machine learning enables autonomous decision-making and adaptive control, further enhancing manufacturing efficiency and productivity.

Surging demand for cloud-based automation solutions presents a compelling opportunity for the market. Cloud computing offers scalability, flexibility, and accessibility advantages over traditional on-premises automation systems. By leveraging cloud-based platforms, manufacturers centralize data management, facilitate remote monitoring and control, and enable seamless collaboration across geographically dispersed facilities. Moreover, cloud-based automation solutions require low upfront investment costs and offer fast deployment times, making them attractive to small- and medium-sized enterprises (SMEs) seeking to adopt automation technologies.

Rising trend toward Industry 4.0 and digital transformation initiatives is driving the adoption of advanced connectivity solutions in the market. Industry 4.0 technologies, such as Industrial Internet of Things (IIoT) and cyber-physical systems, enable seamless integration and communication between machines, sensors, and production systems. This connectivity facilitates real-time data exchange, predictive analytics, and decision support, empowering manufacturers to optimize processes and adapt to changing market conditions.

Scope of the Industrial Control & Factory Automation Market Report

The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics are included in the report.

Industrial Control & Factory Automation Market Segment Insights

Component Type Segment Analysis

Based on component type, the industrial control & factory automation market is segmented into control valves, industrial robots, HMI, sensors, and others. The sensors segment held a major share of the market in 2023, owing to their crucial role in collecting real-time data and enabling efficient decision-making processes in industrial settings. The ability to enhance automation, optimize operations, and safety measures is driving the market.

The industrial robots segment is expected to grow at a substantial pace during the forecast period, due to the increasing adoption of automation in manufacturing processes. Industrial robots offer enhanced efficiency, precision, and flexibility, leading to improved productivity and cost savings for industries.

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Product Segment Analysis

On the basis of product, the market is bifurcated into field devices and industrial control systems. The industrial control systems segment held a major share of the market in 2023, owing to its widespread application across various industries and its ability to integrate multiple control functions into a single system, enhancing operational efficiency, and productivity.

The field devices segment is anticipated to grow at a substantial pace during the forecast period, due to increasing adoption of sensors, actuators, and other devices for real-time data acquisition, monitoring, and control purposes, facilitating automation, and optimization of industrial processes.

Control System Segment Analysis

In term of control system, the industrial control & factory automation market is segregated into PLC, DCS, SCADA, and others. The PLC (programmable logic controller) segment held a major share of the market in 2023, owing to its versatility, reliability, and widespread use in industrial automation applications across various sectors. PLCs offer real-time monitoring, control, and data processing capabilities, making them essential for optimizing manufacturing processes and improving operational efficiency.

The SCADA (Supervisory Control and Data Acquisition) segment is expected to grow at a substantial pace during the forecast period, due to increasing demand for centralized monitoring and control of complex industrial processes. SCADA systems enable remote supervision, data acquisition, and process visualization, facilitating real-time decision-making and improving overall productivity in manufacturing operations.

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End-user Segment Analysis

On the basis of end-user, the market is divided into automotive, chemical & petrochemical, aerospace & defense, energy & utility, pharmaceutical, food & beverage, oil & gas, and others. The automotive segment held a major share of the market in 2023, owing to the increasing integration of automation and robotics in automotive manufacturing processes. This adoption improves production efficiency, enhances product quality, and reduces operational costs, thereby driving the segment.

The pharmaceutical segment is anticipated to grow at a substantial rate during the forecast period, due to the rising demand for automation solutions to streamline manufacturing processes and ensure compliance with stringent regulatory requirements. Automation in pharmaceutical production enhances accuracy, reduces errors, and ensures consistency, thereby driving this segment.

Regional Outlook

In terms of region, the global industrial control & factory automation market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America held the largest share of the market, due to its established manufacturing base, technological advancements, and strong adoption of automation solutions. The diverse industrial sectors, including automotive, aerospace, electronics, and pharmaceuticals in the US led the market in the region. Skilled workforce, robust R&D capabilities, and significant investments in automation technologies to enhance productivity, efficiency, and competitiveness are some of the factors which are boosting the market. For instance,

• In September 2022, ABB Ltd. bolstered its manufacturing presence in the US through investments in new EV charger stations, aiming to address the escalating demand for electric vehicle chargers in the region. This investment expanded production capacity, and enable the manufacturing of up to 10,000 chargers annually, ranging from 20kW to 180kW in power, catering to public charging, school buses, and fleet applications, including Buy America Act compliant units.

Asia Pacific is anticipated to hold the largest share of the market, due to rapid industrialization, urbanization, and growing demand for automation solutions across diverse manufacturing sectors. China is expected to lead the region, supported by its vast manufacturing ecosystem, government initiatives promoting automation and digitalization, and investments in smart manufacturing technologies under the ‘Made in China 2025’ initiative.

Furthermore, countries such as Japan, South Korea, and India are poised to contribute significantly to the region's market growth, driven by their strong manufacturing capabilities, technological innovation, and focus on industrial automation to improve efficiency and competitiveness.

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Segments

The Industrial Control & Factory Automation Market has been segmented on the basis of

Component Type

• Control Valves
• Industrial Robots
• HMI
• Sensors
• Others

Product

• Field devices
• Industrial Control Systems

Control System

• PLC
• DCS
• SCADA
• Others

End-user

• Automotive
• Chemical & Petrochemical
• Aerospace & Defense
• Energy & Utility
• Pharmaceutical
• Food & Beverage
• Oil & Gas
• Others

Region

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• ABB Ltd.
• Emerson Electric Co.
• Honeywell International, Inc.
• Kawasaki Heavy Industries, Ltd.
• Mitsubishi Electric Corporation
• OMRON Corporation
• Rockwell Automation, Inc.
• Schneider Electric
• Siemens AG
• Yokogawa Electric Corporation

Competitive Landscape

Key players competing in the global industrial control & factory automation market are ABB Ltd.; Emerson Electric Co.; Honeywell International, Inc.; Kawasaki Heavy Industries, Ltd.; Mitsubishi Electric Corporation; OMRON Corporation; Rockwell Automation, Inc.; Schneider Electric; Siemens AG; and Yokogawa Electric Corporation.

• In April 2021, Accenture plc acquired Pollux, a leading provider of industrial robotics and automation solutions based in Joinville, Brazil. The acquisition aims to enhance Accenture's capabilities in assisting clients across consumer goods, pharmaceutical, and automotive industries in improving productivity, safety, and sustainability within their factories, plants, and supply chains.

• In November 2020, PDF Solutions Inc. acquired Cimetrix Incorporation, a leading provider of equipment connectivity products for smart manufacturing and Industry 4.0. The acquisition is poised to drive the expansion of smart factories within the semiconductor, packaging, and electronics manufacturing sectors.

• In May 2022, DENSO and Honeywell announced their collaboration to develop an electric motor for Lilium's All-Electric Jet. This partnership between DENSO Corporation and Honeywell, industry leaders in mobility and aerospace respectively, marks DENSO's debut in the aerospace sector. The small and lightweight electric motor aims to deliver high output power to propel Lilium's innovative aircraft, advancing the development of electric vertical take-off and landing (eVTOL) technology.