Analysts from Research and Markets have announced in their latest report on industrial automation that the global industrial automation services market was US$35.2 billion (A$44.5 billion) in 2016 and is estimated to reach US$64.5 billion (A$80.6 billion) by 2022 growing at a compound annual growth rate (CAGR) of 10.6 per cent for the forecasted period.
Industrial automation involves automation of manufacturing, quality control and material handling processes. It involves usage of control systems, information technologies and robots to handle different processes in an industry. Various types of industrial automation include fixed or hard automation, programmable automation and flexible or soft automation. Project engineering and installation holds major share in this market. Advantages of industrial automation include increased productivity, improved product quality, reduced routine checks and improved operational efficiency.
According to the report, North America currently is at the head of the industrial automation market followed by Europe. Asia-Pacific (which includes Australia) is expected to be the fastest growing region in this industry. The reports says during 2015-16, US companies exported nearly US$10.5 billion worth of products to foreign markets.
Need for operational efficiency, rapidly growing SMEs, growing inclination towards Internet of Things(IoT) and cloud-based automation, growing demand for smart factories, mass customisation, supply chain synchronisation, integration of systems, increasing R&D and innovation in Artificial intelligence and advancement in the M2M communication technology are some of the key growth factors of this industry. High installation and maintenance costs and lack of trained professions are some of the constraints in this industry.
Major companies in this industry include Honeywell International Inc., General Electric Company, Mitsubishi Electric , Rockwell Automation, Johnson Controls Inc., ABB Ltd., Samsung Electronics Co., Ltd., Siemens AG and Schneider Electric. The report also pointed out that most of the regional and local vendors are vertically integrated. International players can grow by acquiring regional or local players.