According to a report released by market research institute MarketsandMarkets, the global industrial control and factory automation market will reach $147.9 billion in 2022 and is expected to grow to $218.8 billion by 2027, with a compound annual growth rate of 8.2%.
At present, more and more measures by governments around the world to promote the development of industrial automation, the application of the Internet of Things and artificial intelligence in industry is also becoming more and more popular, and manufacturing enterprises continue to pursue higher efficiency and higher productivity, etc., have become the key factors driving the development of the global industrial control and factory automation market.
Many factors help the industry grow
1) "Industry 4.0" helps the development of manufacturing
Industry 4.0 is a combination of cyber-physical systems, the Internet of Things and cloud computing that drives manufacturing by enabling remote operations as well as real-time intelligence. The implementation of "Industry 4.0" can improve the efficiency of enterprises' operations, production efficiency, product quality, asset utilization, supply chain management, workplace safety and environmental sustainability.
At present, industries such as oil and gas, food and beverage, chemical and automotive have promoted the construction of "Industry 4.0", and the industrial control and factory automation market has developed rapidly. With the spread of "Industry 4.0", most processes and systems in the manufacturing industry are gradually being automated, which will make it possible for production to operate around the clock with zero human error in the future, reducing the overall production time and guaranteeing 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 PLCs 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 by compatible devices such as smartphone cameras, human-machine interfaces, or smart glasses. These devices are typically voice-controlled and are used by the wearer in a submission-free manner. Machine learning, combined with physics-based modeling, enables engineers to create a complete augmented reality experience that shows technicians in the factory the process of repairing machines on the shop floor. In the process of building industrial automation, companies are increasingly using augmented reality on the factory floor to increase production efficiency and improve production processes.
Upskill's Skylight app (Image: Upskill)
The application of augmented reality in industrial production processes has increased worker productivity. For example, GE Healthcare used Upskill's augmented reality industrial platform, Skylight, which increased GE Healthcare's warehouse order tasks by 46 percent faster. According to Upskill, 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 strongly 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 are also paying attention to the expansion of process industries and discrete industries. For example, the Singapore government has sought to collaborate with various associations such as the Singapore Food Manufacturers Association (SFMA) and the Food Innovation and Resource Centre (FIRC) to adopt the latest automation solutions such as SCADA, PLC, DCS, robotics and cables in the food and beverage industry; The Indian government's National Manufacturing Policy (NMP) is boosting the country's manufacturing sector, and the government has adopted a series of measures such as the "Make in India" program to encourage companies to automate.
Multiple challenges come with them
While the global industrial control and factory automation market is growing, the industry is constantly facing challenges, and for those involved, understanding the challenges can better grasp the opportunities.
1) Skilled labor shortage
Only skilled workers should operate industrial automation equipment and systems, as complex manufacturing processes can be misunderstood by unskilled workers, leading to operational errors and breakdowns. shortage of skilled workers and funds, reasonable automation allocation; Ease of use issues; Technical difficulties can hinder the operation of industrial automation equipment. Therefore, the lack of expertise has become a barrier to automation in many industries, which is also a major challenge for the growth of the industrial control and factory automation market.
(Image: Upskill)
2) Fluctuations in the terminal industry
According to BP's 2021 World Energy Statistics Review, oil prices averaged $41.84/barrel in 2020, the lowest level since 2004. Global oil consumption fell by a record 9.1 million bpd, or 9.3%, the lowest since 2011. Oil demand has declined in major economies such as the United States, the European Union as a whole and India. Global oil production shrank by 6.6 million bpd. As a result, refinery utilization fell 8 percentage points to 74.1 percent, the lowest since 1985.
In addition, the ongoing trade war between China and the United States has led to an increasing shortage of semiconductor chips in the market, which has adversely affected the manufacture of various products and devices, including electronics. Other major geopolitical events, such as the Russia-Ukraine war and the shift of major manufacturing centers from China to other countries, have disrupted the entire supply chain.
At present, automation equipment and factory automation solutions are widely used in multiple applications in the oil, gas, semiconductor, and electronics industries, including the measurement of process parameters such as pressure, level, and oil flow detection, etc., any fluctuation in the global oil and semiconductor market will affect the growth of the industrial control and factory automation market.
Yesterday and tomorrow of the market
According to the survey data, MarketsandMarkets has predicted the development trend of the industrial control and factory automation market from 2022 to 2027, what information can we gain from it, and what are the implications for future development?
1) The industrial sensor market may grow rapidly
The growth in the industrial sensor segment is driven by the growing popularity of Industry 4.0 and the Industrial Internet of Things (IIoT) and the expansion of the wireless sensor market. Predictive maintenance is expected to provide lucrative opportunities for players in the industrial sensors market in the coming years, including capturing sensor data, assisting in data communication, and making predictions, among others. Since sensors are an important part of predictive maintenance solutions, the demand for industrial sensors is expected to increase significantly in the coming years.
2) DCS is expected to account for the largest share during the forecast period
The distributed control system (DCS) segment is expected to account for the largest share of the industrial control and factory automation market during the forecast period. Growth in this segment has benefited from the rapid industrialization of emerging economies. Plans to expand and increase capacity 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 technologies enable operators in the oil and gas industry to remotely monitor facilities and obtain daily status information about inventory and equipment used. Remote monitoring enables remote acquisition of equipment data, while reducing risk and improving workforce safety and efficiency.
4) The future of the Asia-Pacific region is promising
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 growing adoption of industrial automation technologies, especially in China and India. The growth of the Chinese market is due to the increase in labor compensation and the existence of a large number of automobile manufacturing enterprises.
Source: Intelligent Manufacturing - Ringier Industrial Resources Network
Edited by Elita Zhang
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