Automation Market Trends: Growth Rates & Revenues
Rapid development of electronic components and industrial robotics has fueled automation growth in well-established manufacturing sectors such as automobiles and computers. Other market-driven segments include delivery systems, extraction (gas, mines, oil, etc.), food, life science, packaging, and transportation. Dozens of commercial and online reports have analyzed historical and projected global market revenues, sectors, strategies, technologies, etc. Selected comparisons and highlights are presented below.
Market Estimates & Forecasts
In 2014, a report published by ReportsnReports.com emphasized the role of application and field device technologies in factory automation. “Smart factory” elements included drives, industrial control, motors, network, relays, robotics, sensors, and switches. At the time, corporate objectives emphasized integration and streamlined production. Global revenues were expected to rise from about $160.0 billion in 2013 to $246.0 billion by 2018. [1] For comparison, an estimate from Market Research Future suggested that “global industrial automation” market revenues were approximately $130.0 million in 2017 and could reach $149.0 million by 2022. [2]
Online reports provide additional perspectives. For example, a 2017 HW&Co. white paper examines the role of artificial intelligence. Anticipated benefits include better quality control, improved resource usage / waste management, manufacturing flexibility, and reduced labor expenses
Global investment rose from an estimated $65.0 billion (2000) to $155.0 billion (2016) and future expenditures may reach $300.0 billion by 2020. Additional interconnectivity is expected in artificial intelligence platforms, data analytics, and process operations. A chart attributed to the International Federation of Robotics (Wall Street Research) offered a succinct three-decade overview of market growth. Initially, segments expanded from “traditional automation” (standard and process automation / machine tools) through 2010 with a single-digit compound annual growth rate (CAGR). Double-digit CAGR gains were projected through 2020 in the “next-gen” phase (flexible robotics, machine vision, and internet of manufacturing). From 2020 to 2034, a return to single-digit growth was forecast for the “disruptive intelligent automation” phase (artificial intelligence and big data analytics). [3]
Adopters and Competitors
A major benefit of automation is the ability to compete with cheap human labor while also improving quality control. Trillions of dollars may be accumulated in “process savings” from 2020 through 2070. [4]
Commercial market reports identify the following automation vendors as global leaders: ABB Ltd., Emerson Electric, General Electric, and Schneider Electric. Other competitors include Adept Technology, Applied Materials, Aspen Technology, Bosch, DENSO, FANUC, Honeywell, Mitsubishi, Rockwell Automation, and Siemens.
Investment companies and trade organizations offer interesting insights about the global automation market and its participants. For example, the broadest interpretation of “automation” can include 3D printing, artificial intelligence, drone, factory, process, robotic, software, and other technology developments. [5] Global revenues are forecast in billions of dollars. In the process automation segment, four companies accounted for an estimated $38.0 billion in 2017: Siemens, Honeywell, Emerson, and ABB (between $9.0 and $10.0 billion each). [5] Among the competitors with lower market share positions, Rockwell Automation contributed $6.3 billion in 2017 and posted a 7.3% growth rate over 2016 levels. [6]
The take-home message is that smart factories are on the rise regionally and worldwide. Several Asian countries have fewer workers who are willing to take low-wage manufacturing jobs, so robots are filling the void. Globally, the need for faster production is also fueling factory automation.
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[1] https://www.prnewswire.com/news-releases/factory-automation-market-getting-smart-2018-technology-field-devices--applications-report-249265591.html
[2] https://www.marketresearchfuture.com/reports/industrial-automation-market-2212 and http://www.nbcrightnow.com/story/39055848/industrial-automation-market-2018-global-size-share-gross-margin-analysis-growth-factors-regional-trends-development-status-opportunity-assessment
[3] https://www.harriswilliams.com/system/files/white-paper/intelligent_automation_whitepaper_vfinal_4.12.2017.pdf (PDF)
[4] https://www.harriswilliams.com/system/files/white-paper/intelligent_automation_whitepaper_vfinal_4.12.2017.pdf (PDF)
[5] https://www.ubs.com/content/dam/WealthManagementAmericas/documents/lti-2018-01-30-automation-and-robotics.pdf (PDF)
[6] https://www.macrotrends.net/stocks/charts/ROK/rockwell-automation/net-income