The Factory Automation market is projected to grow from US$ 181.45 billion in 2023 to US$ 340.78 billion by 2031; it is expected to expand at a CAGR of 8.2% from 2023 to 2031. Integration of machine vision systems with deep learning is anticipated to be a key trend in the market.
The manufacturing business has expanded rapidly during the last decade. Globalization is expanding the market, attracting a large number of new players. Competitive advantage in the factory automation market for key companies may be built through product differentiation, cost leadership, target marketing, and great after-sales service. Automation is a critical factor for production processes. Further, advanced automation solutions make it possible to achieve consistently high quality, high throughput, and low production costs. Thus, the factory automation market is expected to grow during the forecast period.
Factory automation is the integration of automation into all stages of the manufacturing process. Automation in manufacturing frequently combines technologies like pneumatic systems, hydraulic systems, and robotic arms to produce a more complicated system. In a competitive environment, factory automation can assist in boosting output and efficiency while lowering costs. Factory automation delivers a compelling method to boost efficiency, quality, sustainability, safety, and security in a rapidly changing modern factory setting.
The revolutionary power of the Fourth Industrial Revolution (Industry 4.0) is altering global production. Industry 4.0, which is defined (in part) by intelligent systems, artificial intelligence (AI), big data, and advanced IT architecture, represents the next step in the evolution of manufacturing as a whole and many businesses are adopting these technologies. The benefits of Industry 4.0 processes, technologies, and systems include improved productivity and efficiency, better agility and flexibility, and increased profitability. Thus, the adoption of Industry 4.0 for automation in numerous industries is anticipated to fuel the factory automation market growth during the forecast period.
The growing focus of key market participants on strategic activities such as mergers, acquisitions, and collaboration, among others, is expected to boost the growth of the factory automation market. For instance, in July 2021, Rockwell Automation, Inc., engaged in industrial automation and digital transformation, announced the acquisition of Plex Systems, the leading cloud-native smart manufacturing platform. Further, in September 2021, Rockwell Automation, Inc. announced a partnership with Kezzler, a cloud-based product digitization and traceability platform, to help manufacturers capture the journey of their products from raw material sources to point-of-sale or beyond using cloud-based supply chain solutions that focus on product traceability.
The key segments that contributed to the derivation of the factory automation market analysis are component, type, technology, and industry vertical.
Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America.
North America is expected to hold a prominent share of the factory automation market during the forecast period. This growth may be attributed to the early technological adoption and a strong emphasis on research and development activities. Further, the growing popularity of collaborative robots and government initiatives for digital transformation across industries is anticipated to fuel the factory automation market during the forecast period.
The regional trends and factors influencing the Factory Automation Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Factory Automation Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 181.45 Billion |
| Market Size by 2031 | US$ 340.78 Billion |
| Global CAGR (2023 - 2031) | 8.2% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Component
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Factory Automation Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Factory Automation Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The factory automation market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the factory automation are listed below:
The factory automation market forecast is estimated based on various secondary and primary research findings, such as key company publications, association data, and databases. The market report "Factory Automation Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering below areas-
The global factory automation market is expected to grow at a CAGR of 8.2% during the forecast period 2024 - 2031.
The adoption of Industry 4.0 principles in manufacturing and government initiatives to support industrial automation are the major factors driving the factory automation market.
Integration of machine vision systems with deep learning to play a significant role in the global factory automation market in the coming years.
The leading players operating in the factory automation market are ABB Ltd., Emerson Electric Co., Fanuc Corporation, General Electric Company, Mitsubishi Electric Corporation, Honeywell International Inc., OMRON Corporation, Rockwell Automation, Inc., and Siemens AG.
North America is expected to dominate the factory automation market with the highest market share in 2023.
The factory automation market size is projected to reach US$ 340.78 billion by 2031.