During the 1950s and 1960s, new technologies incorporated in production – referred to as automation – have introduced renaissance in the relationship between the characteristics of the labor force and technological change. With substantial investment in research and development, the global industrial automation market has evolved to cut down the burden of labor on humans and ensure operational efficiency. According to a research report by Transparency Market Research (TMR), the market was valued at US$182.64 bn in 2015 and is expected reach US$352.02 bn by 2024.
A TMR analyst projects that the market will grow steadily over the forecast horizon as the benefits of automating repetitive and menial tasks are being increasingly acknowledged. The market is anticipated to progress at a CAGR of 6.6% from 2016 to 2024. However, there are a number of roadblocks in the growth of the global industrial automation market. The deployment of automated systems often requires high installation and maintenance costs, vast resources, and high technical acumen. Thus, the adoption of these systems is particularly low in emerging markets.
How are technological advancements single-handedly driving the global industrial automation market?
As manufacturing facilities implement higher levels of automation, the demand for the latest technologies continues to grow. Changes have started occurring in manufacturing as a result of the advancements in software, processors, sensors, and communication technology underlying industrial automation. The advent of novel technologies that allow manufacturing industries to escalate their processes and ensure utmost efficiency is fuelling the global industrial automation market. The flexibility offered by these technologies is being widely acknowledged and are being increasingly implemented across various industrial verticals including metals and mining, automotive and transportation, oil and gas, and paper and pulp industries. Moreover, the growing adoption of the Internet of Things (IoT) across the construction sector is augmenting the market.
Which factors are supplementing the dominance of Europe in the global industrial automation market?
Europe will continue to command the lion’s share until 2024, accounting for nearly 30% of the overall market revenue. The European Union Commission aims to expand industrial production in Europe to 20% of GDP by 2020 from its current share of 15.5%. The new policies are focusing on investments in innovation, improved market conditions, access to capital, and increased automation. Therefore, the rising focus on increasing industrial activities is driving the growth of the region. Germany will be the leading contributor throughout the forecast period. The development of strategic initiatives associated with industrial automation such as Industrie 4.0 in the country is assisting the growth of the region.
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Why are players in the global industrial automation market shifting their focus towards Asia Pacific?
The industrial automation market in the Asia Pacific region is beginning to upgrade and modernize, creating lucrative opportunities for companies to innovate and propose new solutions. The rapid industrialization in the region is providing a significant boost to the overall market. Countries such as India and China will emerge as major destinations for players as these economies are inclined towards boosting their manufacturing activities.