Imagine overseeing an entire industrial plant from a single screen, where you can monitor every process and address issues as they arise in real time. This level of control is made possible through industrial automation systems. Industrial automation encompasses control systems, management solutions, and IT solutions & technologies to handle various industrial processes in industries where humans are replaced with computers and machines to achieve efficiency and productivity.
Industrial automation can also be defined as using automation technologies and control devices to automate the operation and control of industrial processes. It uses control systems and equipment, such as computer software and robots, to perform tasks that were historically done manually. Industrial automation involves various technologies and methodologies, including programmable logic controllers (PLCs), robotics, sensors and instrumentation, Supervisory Control and Data Acquisition (SCADA), machine vision systems, and Human-machine Interface(HMI).
Recent insights from Meticulous Research focus on the scope of the industrial automation market. Projections forecast a potential worth of $368.05 billion by 2031, driven by a noteworthy Compound Annual Growth Rate (CAGR) of 9.1% from 2024 to 2031.
Exploring Industrial Automation Applications: Shaping the Future
Industrial automation plays a crucial role in various industries, such as manufacturing, automotive, pharmaceuticals, food & beverage, and aerospace. It helps improve product quality, reduce production time, minimize waste, and enhance personnel safety.
- Oil & Gas: The oil & gas industry has experienced a significant adoption of automation technologies over the past decade to enhance decision-making, troubleshooting, and performance efficiency in oil & gas exploration activities. C are increasingly used for pipeline monitoring in response to rising incidents of criminal attempts to steal pipelines. Automation systems are employed to monitor and control various pipeline operations, such as pressure, flow rate, and temperature. Automated leak detection systems play a crucial role in swiftly identifying and responding to leaks, thereby minimizing environmental impact and enhancing safety. Furthermore, unmanned vehicles and autonomous underwater vehicles are utilized to detect potential attacks and vulnerabilities effectively. These emerging trends are propelling the adoption of industrial automation within the global oil & gas market.
- Food & Beverage: The automating of food & beverage production facilities by integrating advanced technologies such as robotics, the Internet of Things (IoT), and artificial intelligence (AI) is gaining pace to increase the productivity and efficiency of processes. The adoption of advanced and intelligent technology solutions ensures improved shelf life, food safety, consistent quality, and optimum use of machines and software. There is a growing demand for automation systems in the food & beverage industry, driven by the rising need for digitized technologies and automated processing & logistics systems. Additionally, increasing concerns about food safety & hygiene and the imposition of stringent government regulations related to food safety & consumption have fueled the usage of automation systems in the food & beverage industry. Government agencies and food & beverage associations have implemented food safety standards globally to ensure healthy food & beverages and prevent food-borne diseases.
- Chemicals & Materials: Industrial automation is widely used in the chemicals & materials industry, transforming production by using robots and software to control and monitor processes. Industrial automation systems are employed to control various processes involved in chemical manufacturing, such as mixing, heating, cooling, and reaction control. Automated control systems ensure precise monitoring and adjustment of parameters, such as temperature, pressure, flow rates, and chemical concentrations, leading to consistent product quality and reduced wastage. Automation technologies are integrated with safety systems to monitor critical parameters and respond to potential hazards in real time. These systems can automatically shut down equipment or activate safety protocols in case of emergencies, minimizing the risk of accidents, such as chemical leaks or fires.
- Electronics & Semiconductors: Industrial automation plays a crucial role in the electronics semiconductors industry, contributing to increased efficiency, precision, and consistency in manufacturing processes. Semiconductor fabrication involves a series of complex processes such as photolithography, etching, deposition, and doping. Industrial robots are often employed to handle wafers, apply materials, and perform precise operations in these processes. This automation ensures accuracy and repeatability, leading to higher yields and reduced defect rates.
Challenges Ahead: Limitations of Industrial Automation
Despite their advantages, industrial automation systems face several challenges, including cybersecurity risks associated with automated systems. Industrial automation integrates automation with cyber technology as companies undergo digital transformation to safeguard their data. The cost of a data breach in industrial manufacturing is notably high compared to other industries, with a global average cost of around USD 3.86 million per year. As industrial automation adoption accelerates, factories face growing risks related to exploitation, malware attacks, denial-of-service (DoS) incidents, and device hacking.
In 2023, manufacturing ranked as the third-most represented industry in Arctic Wolf Incident Response (IR) ransomware engagements and the fourth-most represented in IR business e-mail compromise (BEC) engagements. The frequency of these incidents has continued to rise annually. Additionally, the median cost of a manufacturing ransomware attack responded to by Arctic Wolf Incident Response is now USD 500,000. For instance, in 2023, Clorox, a major American goods manufacturer, reported a cyberattack on their manufacturing facility that disrupted many automated systems, including those used by large retailers, such as Walmart and Target, to place product orders. This breach resulted in Clorox experiencing a production loss and sales decline amounting to USD 365 million. Similarly, Applied Materials, a significant supplier of semiconductor technology, fell victim to a supply-chain ransomware attack in February 2023, causing disruptions in shipments. This breach resulted in a USD 250 million loss due to decreased sales.
As organizations, especially in the manufacturing sector, become more interconnected, cyberattacks have increased due to threat actors targeting weak points in the supply chain. While disruptions in manufacturing operations may result from these attacks, threat actors are often primarily interested in accessing valuable data rather than disrupting operations. These factors present a significant challenge to the growth of the industrial automation market.
Growing Demand for Energy-efficient Systems: Emerging Opportunities
The manufacturing industry generates nearly one-third of global CO2 emissions, primarily from energy use in manufacturing processes. Despite previous energy efficiency efforts, there is now a renewed push among industry leaders to address the current energy crisis and climate emergency by developing energy efficiency programs. Manufacturers are seeking to differentiate themselves by integrating “greener” machines into their manufacturing processes that conserve energy while maintaining flexibility and throughput. Automation technologies—including robotics, machine vision, and artificial intelligence—play a pivotal role in this feat.
Industrial automation enables companies to design and develop processes that reduce negative impacts on the environment, helping them increase overall equipment effectiveness and become more energy-efficient. Industrial robots can execute tasks quickly, efficiently, and accurately across various industries, reducing cycle time and minimizing energy consumption within manufacturing processes. Automation systems ensure precise quality control, helping to prevent defects that could lead to energy-intensive rework or waste.
For instance, Elliptical Design (U.K.), a British design and manufacturing company, partnered with TM Robotics to leverage industrial automation technology to improve traditional cheese-cutting methods, which were proving to be imprecise. Elliptical Design developed an ultrasonic cutting system that utilizes microscopic blade vibrations to make precise cuts without damaging the product. The integrated robotic system includes pick-and-place applications with vision and conveyor tracking. The robots handle the cheese block, seamlessly moving it through weighing and cutting stations. This automation replaces the previously manual process, reducing production time from four to five days to two days and achieving an 83% reduction in waste. Such advancements are expected to drive the adoption of industrial automation systems, driving the market’s growth during the forecast period.
Asia-Pacific’s Leading Role in the Industrial Automation Market: What to Expect
According to recent market analyses by Meticulous Research for the industrial automation market, in 2024, Asia-Pacific is expected to account for the largest share of 39.3% of the global industrial automation market. The growth of the regional market is driven by the presence of key market players in the region, including ABB Ltd (Switzerland), Rockwell Automation Inc. (U.S.), Siemens AG (Germany), Yaskawa Electric Corporation (Japan), Yokogawa Electric Corporation (Japan), Mitsubishi Electric Corporation (Japan), OMRON Corporation (Japan), Advantech Co., Ltd. (Taiwan), and Hitachi Ltd. (Japan). Moreover, rapid urbanization & industrialization, the growing adoption of smart manufacturing solutions, the increasing utilization of industrial robots, and the adoption of Industry 4.0 technologies are boosting the growth of this regional market. Additionally, the expanding automotive industry, the rising need for enhanced productivity and efficiency in manufacturing industries such as electronics, machinery, automotive, and consumer goods, technological advancements in robotics, AI, and IoT, and the increasing automation of production processes to reduce manual labor and increase cost-competitiveness is also supporting the market growth.
Asia-Pacific is the manufacturing hub for various sectors, including automobiles, electronics, consumer goods, pharmaceuticals, and numerous other products. This contributes to the increased adoption of automation technologies in the region. Industrial Internet-of-Things (IIoT) solutions are experiencing increasing adoption across Asian countries such as China, Japan, South Korea, and India, primarily due to ongoing initiatives aimed at transforming manufacturing facilities. Additionally, the growing emphasis on enhancing process efficiencies and reducing costs in the production process is fueling the market’s growth. As the market evolves, the APAC region will continue to be a major player, shaping the future of industrial automation systems and setting benchmarks for other regions.
Leading Innovators in Industrial Automation Technology
Some of the key players operating in the industrial automation market are ABB Ltd. (Switzerland), Rockwell Automation Inc. (U.S.), Siemens AG (Germany), Yaskawa Electric Corporation (Japan), Schneider Electric SE (France), Yokogawa Electric Corporation (Japan), KUKA AG (Germany), Emerson Electric Co. (U.S.), FANUC CORPORATION (Japan), Honeywell International Inc. (U.S.), Mitsubishi Electric Corporation (Japan), OMRON Corporation (Japan), Advantech Co., Ltd. (Taiwan), Hitachi Ltd. (Japan), and General Electric Company (U.S.). The industrial automation market report from Meticulous Research offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years.
Industrial Automation Systems: Key Takeaways and Future Outlook
Industrial automation systems are transforming the manufacturing landscape by enhancing efficiency, precision, and scalability. As industries continue to evolve, embracing the advancements in industrial automation technology will be key to staying competitive and ensuring operational excellence. By leveraging industrial automation, organizations can achieve greater efficiency, safety, and control over their processes, driving innovation and growth in the industrial sector. The future outlook remains optimistic, with anticipated growth driven by rising demand for energy efficiency and increased productivity. Moreover, the promising opportunities in the Asia-Pacific region highlight the global potential for industrial automation market expansion. The growth of the industrial automation market in Asia-Pacific is driven by the rapid transformation of manufacturing and warehousing infrastructure, increasing investments in innovative technologies, technological advancements, and a growing emphasis on robotics and automation. As technology evolves, automation systems will provide new opportunities for innovation and better performance in the industrial sector. This comprehensive overview of the industrial automation market from Meticulous Research provides a valuable perspective on the evolving landscape and its future directions.
