Industrial automation has become a big ticket industrial vertical in itself. The industries dole out huge sums of money annually installing automation systems. We can define industrial automation as a process that involves use of information technologies and control system for performing different industrial tasks with the use of computers and robots replacing human beings. Automation streamlines the functioning making it more efficient and reduces human intervention.
Size of the Industrial Automation Market
The size of the industrial automation market was around USD164.2 billion in 2020. The industry experts project that the market will grow at compound annual growth rate (CAGR) of 9% till 2027. With the said grow the industrial automation market would reach the valuation of around USD 307 billion in 2027. It presents a great opportunity for entrepreneurs to enter the industry and ride the growth in the industry. Automation has now become an indispensable part of the modern industrial landscape.
Overall Assessment of Industrial Automation Market
The valuation of the market was USD 164.2 billion in 2020. There are projections that the industrial automation will reach USD 307 billion by the end of 2027 with a CAGR of 9%. It is clear that there is decent scope for growth in the industry for the next 6 years.
There is anticipation of robust growth considering the rising adoption of industrial automation across all industrial sectors including power, capital goods, and metallurgy, automobile and chemical. During the forecast period, the pent-up demand because of the global pandemic will release.
Process automation is an inescapable aspect of industry 4.0. It will result in greater efficiency with less labor besides decreasing the costing. Moreover, the reliability of processes running smoothly will substantially increase. Factories are opting for industrial robots for performing varied tasks for providing reliable customer service.
Direct Impact on Different Sectors
Industries has got inbuilt tendency to innovate, optimize and find better ways to handle different tasks of industrial processes. Arrival of industrial automation has provided a new impetus to the industry leaders for implementing industrial automation systems.
Since the advent of automation on a big scale, the industries are trying to adopt various new control systems for substantially improving their procedures. These automation systems are widely used in metallurgy, manufacturing, molding, assembly lines, power, etc.
Automation is achieved by PLC systems equipped with control loops that execute numerous processes with data received from meters and sensors requiring little to no manual or human intervention. The automation is instrumental in controlling processes that oversee variables such as flow, pressure and temperature levels.
Because of their numerous advantages, there are numerous industries that use the control systems for automating their work processes. Industries such as telecommunications, refineries, electricity, chemicals, etc, are using the automation processes on a wide scale than ever before.
During the first half of 2020, the industrial automation market received a huge setback owing to the outbreak of global pandemic. In the later half, the demand was picking up. However, the demand for smart automation and resource efficiency is again picking up.
As a result of increasing automation, various industries are able to streamline their processes and substantially increase their productivity. The adoption of automation also helps in considerably reducing the labor cost thus enhancing the profitability of the companies. It is here to stay and will continue to grow exponentially in the near future.
Scope of Industrial Automation with Digital Technology
The merging of industrial automation with digital technologies has provided a huge boost to the industrial and automation market. It has fundamentally altered the very nature of the industry or will in the near future.
Internet of Things (IoT) have made it easier for the information to flow across different units in industries has become a great factor in the enhancement of efficiencies. Industrial IoT assists manufacturers in making the processes a lot leaner and efficient.
It would be possible for companies to make finished goods using raw materials with greatly improved processes using IoT and IP networks. The deployment of IoT is very effective in tracking location of raw materials and machinery and keeping track of raw materials and their movement.
Moreover, the technology will also monitor the status of inventories besides overseeing the flow of products through the supply chain. Monitoring of all these operations is seamless with the use of the IoT technology.
Industrial automation combined with digital technology is a great boon for the industries. Businesses in different sectors will greatly benefit for its adoption. It will enable them to access the flow of information throughout the supply chain and respond to the conditions imposed by the market.
Industrial automation market is witnessing such a huge demand because there is a pressure on the businesses to increase the productivity of their businesses and improve their margins.
Why Should Investment in Industrial Automation Sector?
There is no denying the fact that installing industrial automation needs significant capital investments. And, the return it is supposed to deliver justifies it. Besides, it also keeps you in step with newer technology.
Quicker adoption of newer technologies ensures that you do not lose ground against your competition. Establishing a new manufacturing business needs to be done with the latest technologies. Even the entrenched businesses would also be required to update.
The companies in various industrial verticals are already installing fully automated manufacturing plants with industrial automation technologies such as PLC, HMI, RTU, SCADA and many other reputed techniques.
Systems such as SCADA are excellent for collecting data and are instrumental in making reliable calculations thus helping in the innovation and improvement of finished products. Consequently, the efficiency of production in such plants is increased manifold.
As stated earlier, setting of such production plants would need significant capital for the purchase of software, hardware and other machinery. On the other hand, providing training to the employees in the use of the technology will also require investment.
Capital-intensive as the automation technologies are, it is difficult for new businesses to enter such businesses. However, the businesses must do their own analysis before deciding to deploy the industrial automation systems.