Global Factory Automation Market Size was USD 185.4 billion in 2017 and is anticipated to reach a market size of USD 355.7 billion in 2025, growing at a CAGR of 7.7% from 2018 to 2025.
Global Factory Automation Market, 2017 - 2025
Factory automation requires a set of technologies along with automatic control devices for the enhancement of productivity and quality of the manufactured products and also simultaneously reduce the production costs. It reduces the human intervention in the production facilities and also ensures a greater performance.
Factory automation standardizes all kinds of industrial processes and also ensures consistent, and superior-quality outcomes; thus, witnessing high demand in a wide range of end-use industries for reliable and quality manufacturing. Furthermore, it has the capability to fulfill the increasing demand for mass production in various industries due to its advantageous features such as improved quality, lesser labor expenses, and minimal human intervention, which thereby reduces overall operational costs. The factory automation demand will witness an additional boost, owing to the increasing adoption of Industry 4.0 trend, along with rising IoT enabled smart manufacturing trends.
However, global factory automation growth is expected to decline due to the high investments involved in upgrading current manufactories, along with the limited availability of professionals in developing economies, and less awareness regarding security issues.
Automation Type Overview
Global factory automation market size has been segmented into two types, namely components and software. Components are further segmented into Control Systems, Instrumentation, Sensors, and others. The components for factory automation market size is predicted to have the dominant market over the projected period, owing to high demand, coupled with high prices of all kinds of components. Distributed Control System (DCS), Safety Instrumented System (SIS), Manufacturing Execution System (MES), Supervisory Control And Data Acquisition system (SCADA), Human Machine Interface (HMI), and Programmable Logic Controllers (PLC) are some of the key automation technologies used for factory automation practices.
End-Use Industry Overview
Increasing demand for automobiles will significantly drive the global factory automation market over the projected period. Factory automation market size for the automotive end-use industry was over USD 74.2 billion in 2017 and is expected to reach USD 138.6 billion by 2025, increasing at a CAGR of more than 8.2% over the projected period.
Global factory automation market for food & beverage end-use industry was over USD 24.1 billion in 2017 and is predicted to surpass USD 46.6 billion, growing at a prime CAGR over the projected period till 2025.
Europe factory automation market held the prime market share, primarily owing to the presence of key automation players such as ABB, Schneider, Siemens, and many others. Also, the Industry 4.0 initiative among the European countries is increasing and is further predicted to improve the overall manufacturing productivity. Moreover, the huge presence of automotive manufacturers in the developed economies such as Germany will provide an additional boost to the growth of Europe factory automation market size over the projected period.
Asia Pacific factory automation market share is expected to grow at a prime CAGR over the forecast period, primarily owing to increasing brownfield projects among various end-use industries such as pharmaceutical, chemical, mining, etc. Moreover, rapid industrialization activities in the developing economies such as China and India will further provide an additional boost to the growth of Asia Pacific factory automation market over the projected period.
Major players in the global factory automation market include Mitsubishi Electric Factory Automation, ABB Ltd., Honeywell International Incorporation, Siemens, Schneider Electric SA, Emerson Electric Corporation, Rockwell Automation, Inc., Omron Corporation, Yokogawa Electric Corporation, and GE Company among several other small and medium scale players.
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