Electrical Automation Market Overview:
The Electrical Automation Market Size was estimated at 198.21 (USD Billion) in 2022. The Electrical Automation Market Industry is expected to grow from 212.46(USD Billion) in 2023 to 396.82 (USD Billion) by 2032. The Electrical Automation Market CAGR (growth rate) is expected to be around 7.19% during the forecast period (2024 - 2032).
Key Electrical Automation Market Trends Highlighted
The Electrical Automation Market is experiencing significant shifts, driven by advancements in technology and evolving industry demands. Key market drivers include the growing adoption of Industrial Internet of Things (IIoT) solutions, which enable remote monitoring, predictive maintenance, and enhanced decision-making. The increasing focus on energy efficiency and sustainability is also driving the demand for automated systems that optimize energy consumption.
Opportunities arise in the integration of artificial intelligence (AI) and machine learning (ML) into electrical automation systems. These technologies offer enhanced predictive capabilities, anomaly detection, and automated decision-making, leading to improved efficiency and reduced downtime. Additionally, the growing adoption of cloud computing platforms provides cost-effective and scalable solutions for data storage and analytics, further driving market growth.
Recent trends include the rise of modular and standardized automation solutions, which accelerate implementation time and reduce costs. The integration of robotics and collaborative automation is also gaining momentum, enhancing precision and productivity in manufacturing and assembly processes. Furthermore, the increasing emphasis on cybersecurity in industrial automation systems is driving the development of robust security measures to protect against cyber threats.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Electrical Automation Market Drivers
Increasing Demand for Automation in Manufacturing
The manufacturing industry is constantly changing, and new technologies are emerging. One of the most important recent trends is the growing need for automation, which can increase productivity, decrease costs, and improve safety. Consequently, many modern manufacturers choose to invest in electrical automation equipment.
The demand for this type of equipment will rise, which will contribute to the growth of the electrical automation market. There are several factors contributing to the growth of the electrical automation market such as the rise of labor costs, The need to increase productivity, The increasing complexity of manufacturing processes, The development of the need for customization, The necessity to reduce downtime, and The need to improve safety.
Manufacturers will utilize electrical automation equipment to avoid the mentioned issues, which will result in the following benefits like increased productivity, reduced costs, improved safety, greater flexibility, reduced downtime, and improved quality. The benefits achieved by manufacturers, as well as the need to support the growth of the market mentioned above, will result in the broader utilization of electrical automation equipment in different industries: Automotive, Aerospace, Food and beverage, Pharmaceuticals, Electronics, Plastics, Metals, Textiles.
The electrical automation market will grow at a compound annual growth rate of 7.19% from 2024 to 2032. The increasing demand for automation in manufacturing will play a significant role in the described issue. Moreover, it is possible to assume that the rate will be supported by the development of new technologies, such as the Industrial Internet of Things and artificial intelligence. Overall, electrical automation is a global market, with North America, Europe, and Asia-Pacific being the largest regional markets. The Asia-Pacific region will experience the highest growth in this area.
Government Initiatives to Promote Automation
Government emphasis on the importance of automation to economic growth has resulted in the implementation of policies and programs to promote the adoption of automation in industry by many governments around the world. Most of these policies and programs are in the form of tax incentives, grants, low-interest loans, or even both the action research for automation in the short term and the training of the personnel in the long term.
This support for automation is a manifestation of several factors: there is a belief that automation facilitates economic growth by increasing the productivity of the industry, the need to create employment opportunities in various industries, and the need to reduce costs by increasing the efficiency of industrial processes. Government initiatives to promote automation have enhanced the performance of the electrical automation market.
The Chinese Government has implemented several policies to promote the adoption of automation in manufacturing. These policies and other actions by the Chinese Government have made China an important market for the electrical automation market. Different governments have similar policies to promote automation. The Indian Government has initiatives to promote the adoption of automation in the manufacturing industry.
The “Make in India” and the “Skill India” program are two of these programs. Overall, the government’s support for the adoption of automation in the industry will continue in the future which will drive the growth of the electrical automation market.
Technological Advancements in Electrical Automation
The electrical automation market is constantly evolving, with new technologies emerging all the time. These new technologies are making electrical automation equipment more powerful, more efficient, and more affordable.
Some of the most important technological advancements in electrical automation include: The development of new sensors and actuators, The increasing use of artificial intelligence (AI) The adoption of the Industrial Internet of Things (IIoT). These new technologies are making electrical automation equipment more capable and more versatile.
As a result, electrical automation is being used in a wider range of applications. For example, AI is being used to develop new algorithms for controlling electrical automation equipment. These algorithms can help to improve the performance of electrical automation systems and make them more efficient. The IIoT is being used to connect electrical automation equipment to the internet. This allows electrical automation equipment to be monitored and controlled remotely. This can help to improve the efficiency of electrical automation systems and reduce downtime.
Electrical Automation Market Segment Insights:
Electrical Automation Market End-User Industry Insights
The end-user industry segment plays a crucial role in the Electrical Automation Market, shaping its growth trajectory and dynamics. Key end-user industries that drive the market demand for electrical automation solutions include Manufacturing: The manufacturing sector remains a prominent end-user, leveraging electrical automation to enhance production efficiency, reduce operational costs, and improve product quality. By automating processes such as assembly, packaging, and material handling, manufacturers can optimize resource allocation, minimize downtime, and increase production capacity.
The segment is expected to account for a substantial share of the Electrical Automation Market revenue, driven by the growing adoption of Industry 4.0 technologies and the need for increased productivity. Power Generation and Distribution: The power industry heavily relies on electrical automation to ensure reliable and efficient power generation and distribution. Automation solutions help monitor and control power plants, optimize energy consumption, and enhance grid stability. As the demand for sustainable energy sources grows, the power generation and distribution segment are anticipated to contribute significantly to the Electrical Automation Market growth.
Oil and Gas: The oil and gas industry utilizes electrical automation to improve exploration, extraction, and refining processes. Automation technologies enable remote monitoring of pipelines, enhance safety measures, and optimize production efficiency. With the rising global energy demand, the oil and gas segment are poised for steady growth, driving the adoption of electrical automation solutions.
Water and Wastewater Treatment: The water and wastewater treatment industry are increasingly adopting electrical automation to improve water management and sanitation. Automation systems monitor water quality, optimize treatment processes, and ensure efficient distribution and disposal of wastewater. As concerns over water scarcity and environmental sustainability intensify, the water and wastewater treatment segment are expected to witness significant growth, fueling the demand for electrical automation solutions.
Mining: The mining industry employs electrical automation to enhance safety, productivity, and resource extraction efficiency. Automation technologies facilitate remote operation of heavy machinery, improve ventilation and lighting systems, and optimize blasting and drilling processes.
The growing demand for minerals and metals is expected to drive the growth of the mining segment, leading to increased adoption of electrical automation solutions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Electrical Automation Market Component Type Insights
The Electrical Automation Market is segmented by component type into Programmable Logic Controllers (PLCs), Distributed Control Systems (DCSs), Human Machine Interfaces (HMIs), Industrial Ethernet Switches, and Sensors and Actuators.
The Programmable Logic Controllers (PLCs) segment is expected to account for the largest market share in 2023 due to the increasing demand for automation in manufacturing and process industries. The Distributed Control Systems (DCSs) segment is expected to witness the highest growth rate during the forecast period, owing to the rising adoption of DCSs in power plants, oil and gas facilities, and other critical infrastructure applications.
The Human Machine Interfaces (HMIs) segment is also expected to grow at a significant rate, driven by the growing need for user-friendly and intuitive interfaces for industrial automation systems. The Industrial Ethernet Switches segment is expected to benefit from the increasing adoption of Ethernet-based automation networks. The Sensors and Actuators segment is expected to grow steadily, driven by the increasing demand for accurate and reliable sensing and actuation devices in industrial automation applications. Overall, the Electrical Automation Market is expected to witness significant growth in the coming years, driven by the increasing demand for automation and efficiency in various industries.
Electrical Automation Market Application Insights
The Electrical Automation Market is segmented by Application into Process Control, Machine Control, Building Automation, Motion Control, and Factory Automation. Process Control held the largest market share in 2023, accounting for over 30% of the Electrical Automation Market revenue. This is due to the increasing demand for automation in process industries such as oil, gas, chemical, and power generation. Machine Control is another significant segment, with a market share of around 25% in 2023. The growth of this segment is driven by the rising adoption of automation in manufacturing industries, particularly in the automotive and electronics sectors.
Building Automation is a rapidly growing segment, with a projected CAGR of over 9% from 2024 to 2032. This growth is attributed to the increasing demand for energy-efficient and smart buildings, as well as the growing adoption of IoT devices in building management systems. Motion Control is a niche segment, with a market share of around 10% in 2023. However, it is expected to witness significant growth in the coming years, driven by the increasing adoption of robotics and autonomous systems in various industries. Factory Automation is another important segment, with a market share of around 15% in 2023.
The growth of this segment is driven by the increasing demand for automation in manufacturing processes to improve efficiency and productivity.
Electrical Automation Market Communication Protocol Insights
Among the various communication protocols available, EtherCAT, PROFINET, Modbus, CANopen, and Ethernet/IP hold significant market shares. EtherCAT, developed by Beckhoff Automation, offers deterministic real-time communication with high bandwidth and low latency, making it suitable for high-speed applications. PROFINET, developed by Siemens, is widely used in industrial automation due to its reliability and flexibility.
Modbus, an open communication protocol, is commonly found in industrial settings and is supported by a wide range of devices. CANopen, developed by the CAN in Automation (CiA) organization, is a robust and cost-effective protocol designed for distributed control systems.Ethernet/IP, developed by Rockwell Automation, is a high-performance protocol that provides seamless integration with industrial Ethernet networks. The adoption of these communication protocols is driven by the increasing demand for automation in various industries, including manufacturing, automotive, and energy, to enhance productivity and efficiency.
Electrical Automation Market Power Rating Insights
The Electrical Automation Market is segmented by Power Rating into Low Voltage (under 1000V), Medium Voltage (1000V to 36kV), and High Voltage (above 36kV). Among these, the Low Voltage segment held the largest market share of around 45% in 2023. The growth of this segment can be attributed to the increasing demand for low-voltage electrical automation solutions in various industries, including residential, commercial, and industrial sectors.
The Medium Voltage segment is also expected to witness significant growth in the coming years due to the rising adoption of medium voltage electrical automation systems in power distribution and transmission networks. The High Voltage segment is anticipated to grow at a steady pace, driven by the increasing demand for high voltage electrical automation solutions in heavy industries, such as mining and oil gas.
Electrical Automation Market Regional Insights
The Electrical Automation Market is segmented into North America, Europe, APAC, South America, and MEA. North America held the largest market share in 2023, accounting for 35.2% of the Electrical Automation Market revenue, and is expected to maintain its dominance during the forecast period. The growth in the North American region is primarily attributed to the increasing adoption of automation technologies across various industries, government initiatives to promote industrial automation and the presence of major automation suppliers in the region.
Europe is the second-largest market for Electrical Automation, accounting for 28.5% of the global market share in 2023. The region is home to several leading automation companies and has a strong manufacturing base. The adoption of automation technologies in the automotive, food and beverage, and pharmaceutical industries is driving the growth in the European Electrical Automation Market. APAC is the fastest-growing region in the Electrical Automation Market, with a CAGR of 8.2% during the forecast period. The growth in the APAC region is driven by the increasing demand for automation solutions in emerging economies such as China, India, and South Korea.
The growing manufacturing sector and government initiatives to promote industrial automation are key factors contributing to the growth in the APAC Electrical Automation Market. South America and MEA are expected to witness steady growth in the Electrical Automation Market during the forecast period. The increasing adoption of automation technologies in the mining, oil and gas, and manufacturing industries is driving the growth in these regions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Electrical Automation Market Key Players And Competitive Insights:
Leading Electrical Automation Market players are investing heavily in research and development to introduce innovative products and solutions. This competitive landscape is expected to intensify in the coming years as new entrants emerge and existing players expand their global footprint. Key players in the Electrical Automation Market are focusing on strategic collaborations, acquisitions, and partnerships to strengthen their market position and gain a competitive edge. These players are also investing in expanding their production capacities and distribution networks to cater to the growing demand for electrical automation solutions. Schneider Electric is a leading Electrical Automation Market player with a comprehensive portfolio of electrical automation solutions.
The company has a strong global presence and serves a wide range of industries, including energy, manufacturing, and infrastructure. Schneider Electric is focused on innovation and sustainability, and it continuously invests in developing new technologies and solutions to meet the evolving needs of its customers. The company's automation solutions include programmable logic controllers (PLCs), variable frequency drives (VFDs), and distributed control systems (DCSs).ABB is another major player in the Electrical Automation Market with a strong focus on automation and digitalization.
The company offers a wide range of automation solutions, including PLCs, VFDs, robotics, and control systems. ABB has a global presence and serves a diverse range of industries, including automotive, food and beverage, and pharmaceuticals. The company is committed to developing innovative and sustainable automation solutions that help its customers improve productivity and efficiency. ABB's automation solutions are designed to be modular and scalable, allowing customers to customize their systems to meet their specific needs.
Key Companies in the Electrical Automation Market Include:
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Rockwell Automation
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Emerson
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General Electric
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Danfoss
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Mitsubishi Electric
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Beckhoff Automation
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Phoenix Contact
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Yokogawa Electric
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Schneider Electric
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Siemens
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Eaton
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ABB
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Honeywell
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Omron
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Pilz
Electrical Automation Market Industry Developments
Recent advancements in the electrical automation industry include the growing adoption of the Industrial Internet of Things (IIoT) and cloud-based solutions. These technologies enable remote monitoring and control of electrical systems, leading to increased efficiency and reduced downtime.
Additionally, the integration of artificial intelligence (AI) and machine learning (ML) into electrical automation systems is driving innovation and enhancing decision-making capabilities. The increasing demand for energy efficiency and sustainability is also the adoption of smart grid technologies and renewable energy integration. These developments are expected to shape the future of the electrical automation market, creating new opportunities for growth and innovation.
Electrical Automation Market Segmentation Insights
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Electrical Automation Market End-User Industry Outlook
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Electrical Automation Market Component Type Outlook
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Programmable Logic Controllers (PLCs)
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Distributed Control Systems (DCSs)
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Human Machine Interfaces (HMIs)
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Industrial Ethernet Switches
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Sensors and Actuators
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Electrical Automation Market Application Outlook
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Process Control
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Machine Control
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Building Automation
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Motion Control
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Factory Automation
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Electrical Automation Market Communication Protocol Outlook
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EtherCAT
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PROFINET
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Modbus
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CANopen
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Ethernet/IP
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Electrical Automation Market Power Rating Outlook
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Low Voltage (under 1000V)
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Medium Voltage (1000V to 36kV)
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High Voltage (above 36kV)
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Electrical Automation Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
198.21(USD Billion) |
| Market Size 2023 |
212.46(USD Billion) |
| Market Size 2032 |
396.82(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
7.19% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Rockwell Automation, Emerson, General Electric, Danfoss, Mitsubishi Electric, Beckhoff Automation, Phoenix Contact, Yokogawa Electric, Schneider Electric, Siemens, Eaton, ABB, Honeywell, Omron, Pilz |
| Segments Covered |
End-User Industry, Component Type, Application, Communication Protocol, Power Rating, Regional |
| Key Market Opportunities |
Industrial IoT advancements Growing adoption of cloud-based solutions Smart grid infrastructure development Rising demand for energy efficiency Government initiatives for automation adoption |
| Key Market Dynamics |
Rising demand for automation Increased adoption of IoT Focus on energy efficiency Growing industrialization Technological advancements |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Global Electrical Automation Market is projected to reach USD 212.46 billion in 2023.
The Global Electrical Automation Market is anticipated to grow at a CAGR of 7.19% from 2024 to 2032.
North America is expected to account for the largest market share in 2023.
Electrical automation systems are utilized in various applications, including industrial automation, building automation, and energy management.
Leading players in the market include Schneider Electric, Siemens, Rockwell Automation, and ABB.
The Global Electrical Automation Market is projected to reach USD 396.82 billion by 2032.
Factors driving growth include rising demand for automation in industries, increasing adoption of IIoT, and government initiatives promoting industrial automation.
Industrial automation is expected to account for a substantial market share due to the increasing adoption of automation technologies in manufacturing and process industries.
The Asia-Pacific region is anticipated to exhibit significant growth due to rapid industrialization and increasing investments in infrastructure development.
Challenges include cybersecurity concerns, lack of skilled workforce, and the high cost of implementation.
