Industrial Automation Market size is set to witness a lucrative growth journey from 2021 to 2027 due to the expanding scope of industrialization and rising adoption of Industry 4.0.
Rising government initiatives and protocols to promote industrial automation is also expected to benefit the development of industrial automation market across various developing and developed economies. For instance, Niti Aayog and ABB India had in 2018, announced that they would be working closely with the government ministries to amplify the adoption and development of AI in various sectors across the country.
Industrial automation has been playing a crucial role in alleviating the chances of workspace accidents and hazards as most of the industries today are equipped with efficient robotic systems that complete majority of the task.
Although the market is observing stellar growth globally, increased cost of implementation, declining employment rate, and scarcity of skilled workforce are expected to impede the rising market numbers over the foreseeable time frame.
Industrial robots have been gaining immense popularity worldwide given their ability to effectively function tedious and complex tasks. According to International Federation of Robots, about 373,000 industrial robots were installed in 2019, while about 2.7 million robots are being used globally today.
Manufacturers are installing industrial robots to make production and distribution effective and easy. The installation of these is eventually reducing human intervention in the production process, thus reducing the cost of manufacturing with enhanced quality and improved production capacity. These factors are likely to propel the growth of industrial automation market in the near future.
Industrial automation is being largely used in mining and metals industry owing to which, the segment is projected to record massive gains in the overall market. The industry is related to extraction of mineral and metal reserves and fabrication of metals. Since mining operations are quite difficult to execute and manage, industrial automation solves the problem. Equipment used in metal processing calls for efficient and quick movement of metals with accuracy that is driven by PLCs and drives. Adoption of automation in this field offers enhanced productivity, ensures safety, improves reliability, and minimizes wear.
Regionally, Asia Pacific is expected to seize a major share in the overall industrial automation industry. This can be ascribed to the increasing adoption of industrial robotics in the region and expanding production of microchips, sensors, and components that form the main elements of IoT systems. According to a French multinational firm, Axa S.A, the globe is expected to witness production of 200 billion connected devices and IoT components of which 95% is estimated be manufactured in China.
Various business professionals partaking in industrial automation market including ABB Group, Siemens AG, Hitachi Ltd., Honeywell International, Danfoss Group, Rockwell Automation, General Electric Company, Schneider Electric SE, and several others, have been undertaking business strategies like acquisitions, mergers, collaborations, and product diversification to gain a competitive edge over others.
In 2020, Schneider Electric SE had announced taking over Larsen and Toubro’s electrical and automation unit. This move is expected to emerge as a milestone in the latter’s long-term strategy while potentially strengthening its balance sheet.
In parallel to this, Hitachi, had in 2020 declared successful acquisition of ABB Power Grids to address the burgeoning demand for renewable energy. The transaction deal was valued at USD 7.8 billion.
One of the factors that is driving the growth of industrial automation industry worldwide in the current era is the outbreak of COVID-19. Although the dreaded pandemic claimed millions of lives and paralyzed various small and medium-scale industries during 2020 and first half of 2021, it has been generating huge returns for the industrial automation market as various industries were dependent on robotic and automatic operations.
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