Industrial Automation and Control Systems Market Analysis Report By Control System, By Component Type, By Vertical, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global industrial automation and control systems market size was accounted for USD 126.3 billion in 2018. It is projected to grow at a CAGR of 8.6% over the forecast period, 2019 to 2025. The growing need for process automation in industries like energy utilities, chemicals, and automotive is boosting the market growth. With the adoption of the automation system, the companies are focusing on reducing operational expenses and enhancing efficiency.  In addition, the increasing usage of robots in industrial & manufacturing applications is also proliferating the adoption of automation & control systems.

Manufacturing companies utilize these controlling & automation systems to optimize processes like molding, metalworking, paint works, and others. A control system includes supervisory controls & a data acquisition system (SCADA), a programmable logic controller (PLC), distributed control system (DCS). The adoption of these systems enables to control process in flow, temperature, pressure, and other levels. Thus, these controlling systems are widely used across chemical, oil & gas, telecommunication, and power generation industries.

Additionally, supportive government initiatives are boosting the adoption of automation systems in industries. For example, the government in Germany has introduced an industry 4.0 standard strategy that focuses on industrial IoT, process automation, artificial intelligence, and cloud computing. Moreover, the companies are utilizing PLC systems to communicate across different units at a manufacturing facility.

Furthermore, the shift towards smart manufacturing is expected to proliferate the demand control & automation system in the next few years. However, high installation costs, security concerns, and lack of standards relating to industry 4.0 may hamper the industrial automation and control system market growth.

Control System Insights

Depending on control systems, the market is fragmented into PLC, DCS, SCADA, and others. The distributed control system (DCS) segment led the market with the highest revenue share in 2018. Rising industrialization across countries such as India, China, and Middle East countries is boosting segment growth. Moreover, the increasing number of development projects in the energy, power, and utility sectors is also supporting market growth.

Various security concerns and the growing emergence of the enhanced systems in oil & gas refineries are fostering the market growth. SCADA system is projected to foresee a significant demand from the wastewater and manufacturing sector. Leading companies including Schneider Electric and ABB offer SCADA systems. SCADA systems segment is estimated to expand at the fastest CAGR of 9.6% over the forecast period.

Component Type Insights

Component types comprise control valves, industrial robots, sensors, human-machine interface (HMI), and others. In 2018, the control valves type segment held the highest market share in the overall market. Increasing adoption of control valves across oil and gas industries for temperature, pressure control in upstream, downstream activities is boosting the market growth. Additionally, these valves are used in the power & energy sector to spur the power generation process.

The industrial robots type segment is projected to grow at the fastest CAGR of over 10.0% during the forecast period. Manufacturing firms are using industrial robots for optimizing the operation process. These robots offer various benefits such as continuous workflow, reduced wastage, labor force which are positively impacting industrial control & automation market growth.

Vertical Insights

The vertical segment is comprised of automotive, aerospace & defense, healthcare, transportation, manufacturing, oil & gas, mining & metal, food & beverage, chemical, and energy & utilities. In 2015, the manufacturing vertical segment led the market to occupy the highest share. In the food & beverage industry, several factors like product quality, process improvement, and regulatory compliance are increasing the adoption of control systems.

Healthcare vertical segment is anticipated to register the fastest CAGR of 9.6% during the forecast period. In 2019, GE Healthcare has collaborated with Rockwell Automation to develop an advanced automation solution. The chemical segment is projected to grow at a significant rate over the forecasted period.

Regional Insights

In 2018, Asia Pacific dominated the industrial automation and control system market with the highest market share of over 30.0%. The presence of key players such as Yokogawa Electric Corporation, Mitsubishi Electric, and Kawasaki Robotics in the region is expanding the market growth. Asia Pacific is projected to grow at the CAGR of over 11.0%during the forecast period. Increasing industrialization, and growing demand for automation solutions across China, and India are driving the market growth.

North America is expected to grow at a substantial pace from 2019 to 2025. The rising adoption of automation solutions in large industries is boosting regional growth. In addition, some of the key manufacturers focus on research & development in industrial IoT applications, which is expected to bolster the market growth in the next few years.

Impact of COVID-19

COVID-19 pandemic is projected to negatively impact the industrial and manufacturing activities across the automotive, chemical, among others. Companies in the market are focusing on digital transformation through smart manufacturing, automated control systems to manage resources under the supply chain. During the lockdown, several factors like lack of labor force, uncertainty have influenced manufacturing firms to automate their business processes.

The industrial robots market is expected to grow at a rapid pace in the next few years. The manufacturers in the chemical & packaging industries are projected to shift towards robotic automation to strengthen workforce capabilities amid the coronavirus crisis. 

Industrial Automation and Control Systems Market Share Insights

Leading players in the market include Emerson Electric Co.; ABB; Honeywell International Inc.; Mitsubishi Electric Corporation; Kawasaki Heavy Industries, Ltd.; OMRON Corporation; Schneider Electric; Rockwell Automation, Inc.; Yokogawa Electric Corporation; and Siemens.

Key players in the market are engaged in strategic acquisitions, partnerships, and new product development to remain competitive in the market. Market players in the industry focus on expanding industrial capabilities using robotic automation.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2014 to 2025. For this study, Million Insights has segmented the global industrial automation and control systems market report based on the control system, component type, vertical, and region:

• Control System Outlook (Revenue, USD Billion, 2014 - 2025)
    • DCS
    • PLC
    • SCADA
    • Others

• Component Type Outlook (Revenue, USD Billion, 2014 - 2025)
    • HMI
    • Industrial Robots
    • Control Valves
    • Sensors
    • Others

• Vertical Outlook (Revenue, USD Billion, 2014 - 2025)
    • Aerospace & Defense
    • Automotive
    • Chemical
    • Energy & Utilities
    • Food & Beverage
    • Healthcare
    • Manufacturing
    • Mining & Metal
    • Oil & Gas
    • Transportation
    • Others

• Regional Outlook (Revenue, USD Billion, 2014 - 2025)
    • North America
        • U.S.
        • Canada
    • Europe
        • U.K.
        • Germany
        • France
    • The Asia Pacific
        • China
        • Japan
        • India
    • Latin America
        • Brazil
        • Mexico
    • Middle East & Africa (MEA)