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Factory Automation Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Component, Type, Technology, and Industry Vertical
The factory automation market size is expected to grow to US$ 249. 29 billion by 2028; it is estimated to grow at a CAGR of 8. 2% from 2022 to 2028. The growth of automotive and manufacturing industries in the Middle East & Africa and South & Central America is driving the factory automation market.
New York, Nov. 16, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Factory Automation Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Component, Type, Technology, and Industry Vertical" - https://www.reportlinker.com/p06362978/?utm_source=GNW
Furthermore, an increase in initiatives by governments to automate manufacturing facilities in the region is fueling the market growth.
Government initiatives and policies supporting the digitization of manufacturing plants are the significant factors boosting the uptake of factory automation solutions in this region.For instance, under Made in China 2025, the Chinese government has released a five-year smart manufacturing development plan to digitize 70% of the country’s large enterprises.
Also, to automate manufacturing facilities, various countries are installing industrial robots.For instance, according to the International Federation of Robotics (IFR), in 2020, China installed 154,000 industrial robots.
Similarly, South Korean robot installation increased by 2% to 31,083 units in 2021.
Europe factory automation market share in Europe is growing at a decent rate year-over-year.The key reason for the growth of the factory automation market is the presence of a large number of market players, such as ABB Ltd, Siemens AG, and Bosch Rexroth AG, in the region.
Also, the growing installation of industrial robots to increase productivity in automobile, chemical, food & beverages, mechanical engineering, and electronics industry is fueling the market growth. In addition, government investment in the digitization of the manufacturing industry is propelling the factory automation market growth.
Many companies are focusing on various strategic initiatives. They are expected to create a noteworthy business model and drive the market in the next few years.
• In 2022, Scania, a prominent worldwide transport solutions provider, signed a deal with ABB to supply a broad range of robotic solutions for Scania’s new highly automated battery assembly factory in Sweden.
• In 2021, Rockwell Automation released new enhancements to its Allen-Bradley PowerFlex 755TL, TR, and TM AC drives, including new standard corrosive gas protection that is often critical in industries such as pulp & paper, automotive, tire & rubber, metals, and water/wastewater.
Impact of COVID-19 Pandemic on North America Factory Automation Market Growth
The growth of the North American factory automation market size is majorly attributed to the rise in investment by the industries such as manufacturing, automotive, and food & beverages to automate their manufacturing processes.Furthermore, the increasing government initiatives to promote the adoption of automation across production facilities is boosting the demand for automotive solutions in the market.
The region consists of several key market players, such as Emerson Electric Co., Schneider, and Honeywell, which provide advanced automation, thereby boosting the growth of the factory automation market.
North America is segmented into the US, Canada, and Mexico.The US held the largest share of the factory automation market in 2021, whereas Mexico is projected to grow at the highest CAGR during the forecast period.
North America has been a pioneer in adopting advanced technologies across all industry verticals since 2010.This rise in the adoption of advanced technologies across industries is catalyzed by the increasing benefits of automation across factories and rising awareness of automation among small & medium businesses.
Automation is aiding the factories in reducing their overall operational cost and time taken for production and assembling processes, thereby increasing the production value year-on-year. Additionally, the rise in government initiatives to promote the adoption of advanced technology and industry 4.0 solutions across industries is also driving the North America factory automation market. The incentive schemes launched by governments include quality jobs tax credits and R&D tax credits to promote the adoption of robotics and the Qualified Facility for Refundable Tax Credits to boost the geographical expansion of manufacturing facilities across North America, including R&D and the adoption of blockchain. These investments are encouraging the major industries across the US to adopt automation, thereby contributing to the growth of the factory automation market.
The US accounted for the largest factory automation market share in North America in 2021.This growth is attributed to the rise in investment by several industry verticals across the country to automate their manufacturing processes.
Manufacturing, automotive, and food & beverages are the major industries across the region, investing in automating their production plants over the years.For instance, in July 2022, PepsiCo announced its intentions to build a 152-acre automated production facility in Denver, which is expected to be operational from September 2023.
Similarly, Nestle has adopted several automated solutions for manufacturing, packing, and assembling its products over the years.Such investments are expected to contribute to the rise in demand for factory automation solutions across the country.
Moreover, the increasing government initiative across the country to promote the adoption of automation across production facilities through various incentive schemes such as Quality Jobs Tax Credit and Qualified Facility for Refundable Tax Credits is further expected to boost the growth opportunities for the US factory automation market players.
ABB Ltd.; Emerson Electric Co.; FANUC; General Electric Company; Honeywell International Inc.; Mitsubishi Electric Corporation; Omron Corporation; Robert Bosch GmbH; Rockwell Automation, Inc., and Siemens AG are among the prominent factory automation market players.
The overall factory automation market has been derived using both primary and secondary sources.To begin the factory automation market analysis, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the factory automation market.
The process also serves the purpose of obtaining an overview and market forecast of the market growth with respect to all market segments.Also, multiple primary interviews with industry participants and commentators have been conducted to validate the data and gain more analytical insights about the topic.
Participants in this process include industry experts such as VPs, business development managers, market intelligence managers, national sales managers, and external consultants—such as valuation experts, research analysts, and key opinion leaders—specializing in the factory automation market.
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