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The Industrial Automation Services Market is undergoing significant dynamics driven by technological advancements, increasing demand for operational efficiency, and the growing adoption of Industry 4.0 principles. One crucial factor shaping the market is the rising need for enhanced productivity and cost-effectiveness in industrial processes. Industries across sectors, including manufacturing, oil and gas, and utilities, are embracing automation services to streamline operations, reduce downtime, and optimize resource utilization. This demand is fueled by the quest for improved efficiency and the ability to respond swiftly to market changes, driving the overall growth of the industrial automation services market.
Technological innovation is a key driver influencing market dynamics. As automation technologies evolve, incorporating elements such as artificial intelligence, machine learning, and the Internet of Things (IoT), industrial automation services become more sophisticated. The integration of advanced technologies enables predictive maintenance, real-time monitoring, and data-driven decision-making, offering industries the tools to enhance overall operational performance. The rapid pace of innovation is a catalyst for market growth, encouraging businesses to invest in cutting-edge automation solutions to stay competitive.
The shift towards Industry 4.0, characterized by the integration of digital technologies into industrial processes, is a transformative dynamic in the industrial automation services market. Smart factories, connected devices, and data-driven decision-making are becoming integral components of modern industrial ecosystems. The convergence of operational technology (OT) and information technology (IT) is fostering a holistic approach to automation, enabling seamless communication between devices and systems. Industry 4.0 adoption is reshaping the landscape of industrial automation services, emphasizing connectivity, interoperability, and the creation of intelligent, self-optimizing systems.
The increasing focus on cybersecurity is a notable factor influencing market dynamics. As industrial automation services become more interconnected and reliant on digital technologies, the vulnerability to cyber threats rises. Protecting critical infrastructure from cyberattacks is paramount, leading to a heightened emphasis on robust cybersecurity measures. The integration of security solutions, secure communication protocols, and comprehensive risk management strategies is essential for building trust in industrial automation services and ensuring the resilience of automated systems.
The demand for remote monitoring and control capabilities is shaping the market dynamics of industrial automation services. With the advent of cloud computing and edge computing technologies, businesses are seeking solutions that enable real-time visibility and control of industrial processes from remote locations. This trend is particularly relevant for global supply chains and industries with distributed operations, allowing for centralized management, predictive maintenance, and rapid response to emerging issues. The need for remote capabilities is influencing the development of user-friendly interfaces and scalable solutions in the industrial automation services market.
Cost considerations and the pursuit of return on investment (ROI) are influential factors in market dynamics. While the benefits of industrial automation services are evident in terms of improved efficiency and reduced operational costs, businesses are keenly focused on ensuring a positive ROI. The affordability and scalability of automation solutions play a critical role in decision-making for organizations looking to invest in automation services. Demonstrating a clear path to tangible returns remains a pivotal factor that drives the adoption and expansion of industrial automation services.
Integration challenges and legacy system compatibility are important considerations in the dynamics of the industrial automation services market. Many industries operate with existing infrastructures and equipment, posing integration challenges when implementing new automation solutions. Compatibility with legacy systems, retrofitting capabilities, and the ability to smoothly transition from manual to automated processes are factors that impact the decision-making process for organizations seeking to adopt industrial automation services. Providers that offer seamless integration solutions and easy transition pathways are better positioned to meet the diverse needs of industries with existing infrastructures.
Regulatory compliance is a significant factor influencing market dynamics, particularly in industries with stringent regulations, such as pharmaceuticals, energy, and aerospace. Industrial automation services must align with regulatory standards to ensure compliance with safety, environmental, and quality requirements. The ability of automation solutions to facilitate adherence to industry-specific regulations becomes a crucial factor in market dynamics, impacting the adoption rates across regulated sectors.
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Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Segment Outlook | The solution, Services, Application and Region |
Industrial Automation Services Market Highlights:
Industrial Automation Services Market Overview
Industrial Automation Services Market Size was valued at USD 127.2 billion in 2022. The industrial automation services market industry is projected to grow from USD 145.26 Billion in 2023 to USD 322.22 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 14.20% during the forecast period (2023 - 2030). The growing adoption of automation and smart manufacturing across manufacturing sectors worldwide and the need to develop new business strategies and improve manufacturing's core competencies are the key industrial automation services market drivers enhancing market growth.
Figure1: Industrial Automation Services Market, 2018 - 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Industrial Automation Services Market Trends
Industry demands for industrial automation are on the rise, driving the industrial automation services market growth
Market CAGR for the industrial automation services market is driven by the increasing demand for industrial automation in manufacturing Industries. The increasing need for greater throughput and lower costs has led manufacturers to adopt automation and Industry 4.0 solutions to enhance efficiency. Automation has become synonymous with machines performing tasks that humans previously performed. This technology involves electromechanical systems that are programmed to perform a wide variety of processes. As automation improves and continues to influence manufacturing, manufacturers strive for a digital system that tracks materials, supply chains, production, and delivery. A growing number of manufacturers are using automation to ensure precision and consistency and to boost operational efficiency.
Additionally, many companies worldwide are adopting robots in their industrial sectors. In the next decade, robotics will see significant improvements in price and performance with the integration of artificial intelligence and other technological advances, including better machine vision and sensors. Robotics can perform various manual tasks more efficiently and accurately than humans, which is why robotics are considered vital tools for increasing productivity today. Robots have most commonly been adopted in the manufacturing industry, where robots perform manual tasks more efficiently. With the incorporation of artificial intelligence, robots are becoming cheaper, more flexible, and more autonomous. Some robots replace human workers, while others—collaborative robots, or "cobots," which complement them—are used in conjunction.
For instance, Tetra Pak's warehouse was integrated with a supply chain solution based on a digital twin by DHL International GmbH in July 2019. It would help facilitate scalable, cost-effective, and agile operations across the supply chain. Transport vehicles have Internet of Things (IoT) technology to create a digital twin. This keeps shipments of essentials, such as food and drinks, safe during transportation. The growing demand for automation solutions in the coming years has contributed to adopting digital twin technology. Thus, driving the industrial automation services market revenue.
Industrial Automation Services Market Segment Insights
Industrial Automation Services Solution Insights
The Industrial Automation Services Market segmentation, based on solution, includes a programmable logic controller (PLC), supervisory control & data acquisition (SCADA), distributed control system, manufacturing execution system (MES), product lifecycle management (PLM), functional safety, and plant asset management (PAM). The distributed control system segment dominated the industrial automation services market, accounting for 34.4% of industrial automation services market revenue. Due to the fast pace of adoption of IIOT by industrialists, automated control systems are becoming increasingly popular, driving DCS market growth.
Industrial Automation Services Services Insights
The Industrial Automation Services Market segmentation, based on services, includes consulting services, system integration, professional service, technical training, and others. The consulting services category generated the most income (31.5%) due to the consultations and services offered for treating patients' health issues, including curative, palliative, rehabilitative, and curative care. Through automation and control, operational costs are reduced, supply chain errors are reduced, and customer service is improved, which results in better patient care.
Industrial Automation Services Application Insights
The Industrial Automation Services Market data, based on application, includes aerospace & defense, others, transportation & logistics automotion, energy & power systems, and mining & metals. The automotive segment dominated the industrial automation services market, accounting for 35% of market revenue (78.48 billion). The automotive industry is expected to receive further growth as more people opt to replace conventional vehicles with alternative fuel vehicles. The production facilities of various automakers are automated to maintain accuracy and efficiency. Moreover, the growing trend of replacing conventional vehicles with EVs will further augment the industry's demand.
Figure 2: Industrial Automation Services Market, by Application, 2022 & 2030 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Industrial Automation Services Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia-Pacific industrial automation services market will dominate the industrial automation services market, owing to the growing emphasis on enhancing process efficiency and reducing production costs throughout various industry verticals. Several factors are influencing the regional economy, including the number of government initiatives for digitalization, the increasing demands for workplace safety, and improved efficiency in industrial processes. A key revenue-generating country in the Asian-Pacific industrial automation services market is China.
Further, the major countries studied in the industrial automation services market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: INDUSTRIAL AUTOMATION SERVICES MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
North America's industrial automation services market accounts for the second-largest market share due to increased competition and end-user expectations. Manufacturing units in the region are implementing the latest technological advances and digital transformation capabilities to make their business processes more efficient and effective. Further, the US industrial automation services market held the largest market share, and the Canadian industrial automation services market was the fastest-growing market in the North-American region
The Europe industrial automation services market is expected to grow at the fastest CAGR from 2023 to 2030. In January 2021, Western Europe and Nordic European Countries had the highest robot densities in the world, according to the International Federation of Robotics (IFR). Moreover, Germany’s industrial automation services market held the largest market share, and the UK industrial automation services market was the fastest-growing market in the European region.
For instance, as part of the new services and asset lifecycle management solution, Siemens AG expanded its partnership with SAP SE. Through digital twins and remote condition monitoring, the partnership aims to facilitate collaboration across the asset lifecycle by connecting plant floor operations, product development, and remote condition monitoring.
Industrial Automation Services Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines, which will help the industrial automation services market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The industrial automation services industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global industrial automation services industry to benefit clients and increase the market sector. In recent years, the industrial automation services industry has offered some of the most significant advantages to manufacturing industries. Major players in the industrial automation services market, including Siemens AG (Germany), ABB Ltd. (Switzerland), Johnson Controls Inc. (Ireland), General Electric Company (US), Schneider Electric SE (France), Honeywell International Inc. (US), Mitsubishi Electric Corporation (Japan), Yokogawa Electric (Japan), Rockwell Automation Inc. (US), and Ametek Inc. (US)
The ABB Group provides power and automation technologies. In addition to power products, the Company also makes power systems, automation products, process automation, and robotics. In March 2021, as part of its SCADA system, ABB developed an automation control solution that improves the efficiency of solar plants, enabling plant operators to monitor and analyze relevant data about solar projects easily.
The Rockwell Automation India Private Limited company was founded in 2001. The company manufactures a range of electronic components, including antennas, switches, and waveguides. In November 2020, With LifecycleIQ services, Rockwell Automation combined the power of digital technology with expert human knowledge in a transformative partnership. As a result of the services, companies can work faster, smarter, and more agile at every part of the business cycle. Companies can benefit from connecting their operations and maintenance in greenfield and brownfield facilities during the design, operations, and maintenance phases.
Key Companies in the Industrial Automation Services market include
- Siemens AG (Germany)
- ABB Ltd. (Switzerland)
- Johnson Controls Inc. (Ireland)
- Schneider Electric SE (France)
- General Electric Company (US)
- Honeywell International Inc. (US)
- Mitsubishi Electric Corporation (Japan)
- Yokogawa Electric (Japan)
- Rockwell Automation Inc. (US)
- Ametek Inc. (US)
Industrial Automation Services Industry Developments
Schneider Electric and Suez, an American water service company, have formed a joint venture to provide new digital solutions for water cycle management. The joint venture is expected to combine EcoStruxure with SUEZ’s technical expertise in the water business. Additionally, industry players are enhancing automation control systems to be applicable in transportation, mining, metal, aerospace, and defense.
In February 2021, ABB introduced a cobots portfolio in GoFa and SWIFTI cobots. These cobots are of high capacity, making robot movements easier.
In November 2020, Rockwell Automation launched the new release of asset management software, i.e., Factory Talk Asset Centre Software. This newly developed software makes workflow and management easy, as well as the development of new devices.
In October 2020, Yokogawa Electric Corporation introduced Plant Resource Manager (PRM) with a developed version of the software. The plant condition-based maintenance is supported by these types of software, which can detect both manufacturing equipment and instruments involved in data management.
ABB has partnered with Scania to deliver a full range of robotic technologies for Scania’s newly automated battery assembly plant based in Sweden. It is also a significant step forward on Scania’s journey towards electrification of heavy trucks. The following ABB robots, IRB 390s, IRB 4600s, and IRB6700, will be used in conjunction with other complementary equipment that would facilitate production processes during the assembly process. This will mark the first time that ABB’s IRB 390 robot has been used at a battery production facility.
Rockwell Automation Inc. joined Kezzler AS (cloud-based product digitalization & traceability platform) in July 2021. This collaboration looks at leveraging cloud-based supply chain technologies so that manufacturers can track their products’ end-to-end journeys from raw material suppliers up to either point-of-sale or beyond it. The integrated offering is great for customers concerned with meeting regulatory requirements as well as consumer expectations around product quality, safety, and sustainability in industries such as health sciences, food and beverage, and consumer packaged products.
Industrial Automation Services Market Segmentation
Industrial Automation Services Solution Outlook
- Programmable Logic Controller (PLC)
- Supervisory Control & Data Acquisition (SCADA)
- Distributed Control System
- Manufacturing Execution System (MES)
- Product Lifecycle Management (PLM)
- Functional Safety
- Plant Asset Management (PAM)
Industrial Automation Services Services Outlook
- Consulting Services
- System Integration
- Professional Service
- Technical Training
- Others
Industrial Automation Services Application Outlook
- Aerospace & Defense
- Others
- Transportation & Logistics
- Automotive
- Energy & Power Systems
- Mining & Metals
Industrial Automation Services Regional Outlook
-
North America
- US
- Canada
-
Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
-
Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
-
Rest of the World
-
Middle East
-
Africa
-
Latin America
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