Allied Market Research

Factory Automation Market is Expected to Reach $368,372.4 million, Globally, by 2025


Report Code : A04341

quote The factory automation market has widespread demand in Europe, owing to the presence of key factory automation companies in the region. Moreover, increased pace of digital transformation and rise in adoption of Industry 4.0 trend have fueled the demand for factory automation in Europe. Furthermore, developing economies in the Asia-Pacific and LAMEA regions are expected to witness rapid growth in the factory automation market during the forecast period, on account of factors such as supportive government policies, availability of cheap labor, and increased investment by key companies for business expansions. quote

Komal Sharma
Sr. Research Analyst, Construction and Manufacturing at AMR

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According to a new report published by Allied Market Research, titled, Factory Automation Market by Control and Safety System, Component, and Industry Verticals: Global Opportunity Analysis and Industry Forecast, 2017-2025, the global factory automation market accounted for $190,882.2 million in 2017, and is expected to reach $368,372.4 million by 2025, registering a CAGR of 8.8% from 2018 to 2025. In 2017, the factory automation market in Europe dominated the global market share in terms of revenue by accruing 35.5% share, which was followed by Asia-Pacific.

Factory automation comprises a set of technologies and automatic control devices, which are used to enhance the productivity and quality of products and simultaneously decrease the production cost. The market is driven by factors such as rise in demand for mass production in manufacturing industries that minimizes operational cost. Moreover, adoption of Industry 4.0 to promote smart manufacturing units that have minimal energy requirements has supplemented the market growth. However, limited inflow of funds, high investment in implementation of factory automation systems, and dearth of professionals are expected to hamper the growth of the global factory automation market.

The supervisory control and data acquisition system (SCADA) segment accounted for the highest share of about 22.0% in the global market in 2017 and is expected to grow at a CAGR of 9.1% during the forecast period. Among industry verticals, the automotive manufacturing sector is expected to be the leading revenue contributor in the coming years, owing to the increasing trend of automating processes to reduce human intervention, improve accuracy, reduce errors, and optimize redundant tasks. The industrial robots segment accounted for a major share of about 31.0% of the global market in 2017. The adoption of industrial robots has increased in in developing economies owing to factors such as rapid urbanization, technological advancements, availability of cheap labor, and low manufacturing costs.

Asia-Pacific is one of the fastest growing regions in the global factory automation market. It is expected to witness higher growth rate during the forecast period, owing to supportive government policies, increased investment by key companies for expansion of business, and low manufacturing & labor cost.

Key Findings of the Factory Automation Market :

  • In 2017, the automotive manufacturing segment dominated the global factory automation market, in terms of revenue, and is projected to grow at a CAGR of 9.5% during the forecast period.
  • The supervisory control and data acquisition system (SCADA) segment is projected to grow at a CAGR of 9.1% during the forecast period.
  • Asia-Pacific is projected as one of the fastest growing markets for factory automation, and is expected to witness significant growth rate in the near future.

Prominent players, such as ABB Ltd., Mitsubishi Electric Factory Automation, Siemens AG, Honeywell International Incorporation, Emerson Electric Corporation, Schneider Electric SA, Omron Corporation, Rockwell Automation, Inc., GE Company, and Yokogawa Electric Corporation, have focused on developing new products and acquiring small businesses to sustain the competition and expand their market presence.

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quote Factory Automation Market by Control and Safety System (Distributed Control System (DCS), Supervisory Control and Data Acquisition System (SCADA), Manufacturing Execution System (MES), Safety Instrumented System (SIS), Programmable Logic Controllers (PLC), and Human Machine Interface (HMI)), Component (Sensor, Controllers, Switches & Relays, Industrial Robots, Drives, and Others), and Industry Vertical (Automotive Manufacturing, Food & Beverage, Oil & Gas Processing, Mining, and Others) - Global Opportunity Analysis and Industry Forecast, 2017-2025 quote

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