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The Industrial Automation Services Market is influenced by a myriad of factors that collectively shape its dynamics and growth trajectory. One critical factor is the persistent need for increased operational efficiency and productivity across industries. As organizations seek ways to streamline processes, reduce costs, and enhance overall performance, the demand for industrial automation services rises. This factor is especially pertinent in sectors like manufacturing, energy, and logistics, where the integration of automation technologies is seen as a strategic imperative for staying competitive in the global market.
Technological advancements play a pivotal role in driving the industrial automation services market. As automation technologies evolve, incorporating innovations such as artificial intelligence, machine learning, and the Internet of Things (IoT), industries are presented with new opportunities to optimize their processes. The continuous development of cutting-edge technologies enhances the capabilities of automation services, enabling predictive maintenance, real-time monitoring, and data-driven decision-making. The pace of technological advancements remains a key factor that shapes the competitive landscape and drives investments in industrial automation services.
The increasing emphasis on Industry 4.0 principles is a transformative factor in the industrial automation services market. Industry 4.0 represents the convergence of digital technologies, connectivity, and intelligent data-driven processes within industrial settings. The adoption of Industry 4.0 principles is driven by the pursuit of smarter, more connected, and flexible manufacturing processes. As industries strive to align with the tenets of Industry 4.0, the demand for automation services that facilitate interconnected and intelligent industrial ecosystems continues to grow.
Globalization is a significant factor influencing the industrial automation services market. With businesses operating on a global scale, there is a heightened need for standardized and efficient industrial processes across diverse geographical locations. Industrial automation services provide a means to achieve consistency in operations, optimize supply chain management, and facilitate seamless coordination between global facilities. The globalization factor contributes to the widespread adoption of automation services by multinational corporations seeking to standardize their industrial operations.
The imperative for improved safety and regulatory compliance is a driving force in the industrial automation services market. Industries operating in sectors such as chemicals, pharmaceuticals, and manufacturing must adhere to stringent safety standards and regulatory requirements. Automation services play a crucial role in ensuring compliance by enabling precise control, monitoring, and reporting of industrial processes. The focus on safety and compliance influences the decision-making process for organizations evaluating and implementing automation solutions.
Cost considerations and return on investment (ROI) expectations are essential factors shaping the adoption of industrial automation services. While the benefits of automation in terms of efficiency and productivity are evident, organizations must weigh the initial costs of implementation against the expected returns. The affordability and scalability of automation solutions play a critical role in decision-making, influencing the pace and scale of adoption across industries.
The skilled workforce and talent pool are crucial factors impacting the industrial automation services market. As industries invest in automation technologies, there is a growing demand for professionals with expertise in areas such as control systems, robotics, data analytics, and cybersecurity. The availability of a skilled workforce capable of implementing, managing, and optimizing automation solutions is vital for the successful deployment of industrial automation services. Addressing the talent gap becomes a strategic consideration for industries seeking to harness the full potential of automation technologies.
The integration challenges with existing infrastructures and legacy systems pose a notable factor in the industrial automation services market. Many industries operate with established systems and equipment, presenting challenges when implementing new automation solutions. Compatibility with legacy systems, retrofitting capabilities, and seamless integration into existing infrastructures are factors that impact the feasibility and ease of adopting automation services.
Cybersecurity concerns are increasingly influencing the industrial automation services market. As industrial systems become more connected and reliant on digital technologies, the risk of cyber threats escalates. Protecting critical infrastructure from cyberattacks becomes paramount, leading to an increased emphasis on robust cybersecurity measures within automation services. The integration of secure communication protocols, intrusion detection systems, and continuous monitoring is essential for ensuring the resilience of automated industrial processes.
The influence of regulatory frameworks and standards is a critical market factor in the industrial automation services sector. Industries must navigate complex regulatory landscapes governing safety, environmental impact, and ethical considerations in the deployment of automation technologies. Adhering to industry-specific regulations is essential for gaining regulatory approvals, ensuring legal compliance, and building trust with stakeholders.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Size Value In 2022 | USD 127.2 Billion |
| Market Size Value In 2023 | USD 145.26 Billion |
| Growth Rate | 14.20% (2023-2030) |
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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