According to a report released by market research organization MarketsandMarkets, the global industrial control and factory automation market will reach US$147.9 billion in 2022, and is expected to grow to US$218.8 billion by 2027, with a compound annual growth rate of 8.2% during the period.
Currently, governments around the world are taking more and more measures to promote the development of industrial automation. The application of the Internet of Things and artificial intelligence in industry is also becoming increasingly popular. Manufacturing companies continue to pursue higher efficiency and higher productivity, which have become the driving force behind global industrial control. and key factors in the development of the factory automation market.
1) “Industry 4.0” helps the development of manufacturing industry
“Industry 4.0” is a cyber-physical system
The combination of IoT and cloud computing, which promotes manufacturing development by enabling remote operations and real-time intelligence. The implementation of “Industry 4.0” can improve corporate operating efficiency, production efficiency, product quality, asset utilization, supply chain management, workplace safety and environmental sustainability at multiple levels.
At present, industries such as oil and gas, food and beverage, chemicals, and automobiles are promoting the construction of “Industry 4.0”, and the industrial control and factory automation markets are developing rapidly. With the popularity of “Industry 4.0”, most processes and systems in the manufacturing industry are gradually being automated, which will make it possible for production links to run around the clock with zero human errors in the future, reducing the total production time and ensuring The quality of the process from the raw material procurement stage to the development of the final product. In this process, companies use automation solutions (such as SCADA, HMI, DCS, and PLC) to operate and control machines deployed in manufacturing plants.
2) Rising demand for augmented reality (AR) technology
In recent years, the development of augmented reality technology has enhanced the perception and presentation of real-life scenarios. The technology overlays digital information on images viewed with a compatible device, such as a smartphone camera, human-machine interface, or smart glasses. These devices are typically voice-controlled and used by the wearer through hands-free interaction. Machine learning combined with physics-based modeling allows engineers to create a complete augmented reality experience to show technicians in the factory the process of repairing shop machines. in industrial automation
During the construction process, companies are increasingly using augmented reality technology on the factory floor to increase production efficiency and improve production processes.
The application of augmented reality technology in industrial production processes increases worker productivity. For example, GE Healthcare uses Skylight, Upskill’s augmented reality industrial platform, which increased the completion speed of GE Healthcare’s warehouse order tasks by 46%. According to Upskill statistics, the Skylight platform has helped customers increase productivity by an average of 32%.
3) The government promotes the development of industrial automation
At the same time, governments around the world are vigorously supporting industrial development to ensure the overall development of their countries, so many countries have adopted various automation and communication technologies to promote the structural evolution of industry. It is worth mentioning that governments around the world are also paying attention to the expansion of process industries and discrete industries. For example, the Singapore government seeks to collaborate with various associations such as the Singapore Food Manufacturers Association (SFMA) and the Food Innovation and Resource Center (FIRC) to adopt the latest technologies such as SCADA, PLC, DCS, robotics and cables in the food and beverage industry. Automation solutions; the Indian government’s National Manufacturing Policy (NMP) is promoting the development of the country’s manufacturing industry. In addition, the Indian government has also adopted a series of measures such as the “Make in India” plan to encourage companies to implement automation.
While the scale of the global industrial control and factory automation market is expanding day by day, the challenges faced by the industry are also constant. For the participants, only by understanding the challenges can they better seize the opportunities.
1) Shortage of skilled labor
Only skilled workers should operate industrial automation equipment and systems because complex manufacturing processes can be misunderstood by unskilled workers, leading to operational errors and malfunctions. The shortage of skilled workers and funds, reasonable automation configuration; ease of use issues; technical difficulties will hinder the operation of industrial automation equipment. Therefore, lack of expertise becomes a barrier to automation in many industries and is a major challenge for the growth of the industrial control and factory automation market.
2) Fluctuations in terminal industries
According to the “Statistical Review of World Energy 2021” report released by BP, oil prices averaged US$41.84/barrel in 2020, the lowest level since 2004. Global oil consumption fell by a record 9.1 million barrels per day, or 9.3%, the lowest level since 2011. Oil demand has fallen in major economies including the United States, the European Union (EU) as a whole and India. Global oil production fell by 6.6 million barrels per day. As a result, refinery utilization fell 8 percentage points to 74.1%, the lowest level since 1985.
In addition, the ongoing trade war between China and the United States has led to an increasingly serious shortage of semiconductor chips in the market, which has adversely affected the manufacturing of various products and equipment, including electronic products. Other major geopolitical events such as the Russia-Ukraine war
and the shift of major manufacturing centers from China to other countries, etc., have disrupted entire supply chains.
Currently, automation equipment and factory automation solutions are widely used in a variety of applications in the oil, gas, semiconductor, and electronics industries, including the measurement of process parameters, such as pressure, liquid level, and oil and gas flow detection, etc., global oil and semiconductor market Any fluctuations in will affect the growth of the industrial control and factory automation market.
Market yesterday and tomorrow
Based on research data, MarketsandMarkets has predicted the development trend of the industrial control and factory automation market from 2022 to 2027. What information can we get from it, and what enlightenment does it have for future development?
1) The industrial sensor market may grow rapidly
The growth of the industrial sensors segment is driven by the increasing popularity of Industry 4.0 and Industrial Internet of Things (IIoT) and the expansion of the wireless sensor market. Predictive maintenance
It is expected to provide lucrative opportunities to players in the industrial sensors market in the coming years, including capturing sensor data, assisting in data communication, and making predictions, etc. The market demand for industrial sensors is expected to increase significantly in the coming years as sensors are an important component of predictive maintenance solutions.
2) DCS is expected to occupy the largest share during the forecast period
The distributed control systems (DCS) segment is expected to account for the largest share of the industrial control and factory automation market during the forecast period. The growth of this segment is driven by rapid industrialization in emerging economies. Expansion and capacity addition plans related to the power sector in developing countries will drive the demand for DCS during the forecast period.
3) Significant growth in the oil and gas sector in the process industry
Industrial control and factory automation technology enables operators in the oil and gas industry to remotely monitor facilities and obtain daily status information about inventory and equipment in use. Remote monitoring enables the collection of equipment data remotely while also reducing risk and improving workforce safety and efficiency.
4) The Asia-Pacific region has a bright future
In 2021, the industrial control and factory automation market in Asia Pacific accounted for the largest share (35.9%) of the overall market. The growth of the market in this region can be attributed to the increasing popularity of industrial automation technology, especially in China and India. The growth of the Chinese market stems from the increase in labor remuneration and the existence of a large number of automobile manufacturing companies.