The advent of industry
4.0 and high advances in the automation technology are surging across multiple industrial
verticals. Most
of these recent innovations are end-user driven, which is a current trend in
the automation market. The proliferation of cutting-edge technologies
such as artificial intelligence (AI), robotics, machine learning, and Internet
of Things (IoT), smart devices are now a ubiquity in manufacturing sectors. These devices enable users
to automate repetitive tasks and also to reduce the complexity of infrastructure
and operations, thereby ensuring a smooth flow which enhances efficiency of the
overall supply chain. Owing to these benefits offered by automation, investments
are pouring in for restructuring of legacy production methods. As a result, the Global Process Automation and Instrumentation Market attained a valuation of
$60 billion in 2018, and is estimated to rise at a CAGR of 5.5% during
2019-2025.
A Glimpse into
Investment Patterns of Market Players –
With advancements in automation,
industry players across different verticals are trying to stay ahead of the
game, which is resulting in huge investments and associations in the automation
industry. High
incidence of automation investments comes from the cohort of small and medium
scale manufacturers that are likely to meet with the demand to fortify the
supply chain of these companies. On the other hand, major investments by global
manufacturers are observed to reduce their production costs and reinforce
their operations by fixing their technological and infrastructural impediments.
Investments by key
organizations in the form of acquisitions and partnerships with automation
companies are popular in the process automation and instrumentation industry.
Few of them include:
Partnership to enhance
automation operations – In June 2019,
the ExOne Company, a global leader in industrial sand and metal 3D printers,
partnered with Siemens, a global company in automation and digitization. With
this partnership, ExOne will deliver industrial 3D printers, to manufacturing
customers, that integrate with the sensing, control, and motion technologies of
Siemens.
Acquisition – In 2019, KPM Analytics acquired
Sensortech Systems, a company with expertise in radio frequency (RF) technology
and near infrared resonance (NIR). With this acquisition, KPM Analytics expands
NIR technology portfolio while adding RF technology of Sensortech Systems to automate
their real-time moisture measurement and quality control.
Asia-Pacific to Dominate
the Automation Market –
The Asia-Pacific region has
a strong base for automation and manufacturing sectors. Industrial
robots constitute a major part of the automation and
instrumentation market. Owing to this, Asia has emerged as the strongest market
for robot installations and witnessed an annual growth rate of 25% during
2012-2017. Besides, China is emerging as a global leader in automation owing
to its share of 36% in the global robots market. Moreover, programs such
as “Made in China 2025”, “Make in India” are strengthening the market size and
investments in the manufacturing sectors of China and India. As a result, the
region has emerged with a share of 33.75% in the global process automation
& instrumentation market.
Customer-Centric
Environment in Food & Beverage Augment the Process Automation and
Instrumentation Market Demand
The food and beverage industry
is embracing customer-centric
environment with the advent of automation process. Quality control and
fault-tolerance are the vital aspects of food and beverage supply chain. Along
with these aspects, end-to-end traceability of the food products is being
effectively implemented with the help of automation and analytics tools. This
reduces consumer complaints and food inspection as the food product can be
tracked from inception to fulfillment. Besides, automation through effective
traceability safeguards against detrimental effects such as labeling and
packaging errors, microbial impurities, and contaminated shipments. This in
turn profits the overall supply chain in the food industry. Owing to these
benefits, the food and beverages sector is thriving in the process automation
and instrumentation market, and will grow with a CAGR of 8.74% during the
forecast period.
Process Automation &
Instrumentation Market Trends and Growth Drivers
Industry 4.0 Boosting Development
of Automation Pyramid of Industries –
· Industry
4.0 acts as a significant driver for the process automation and instrumentation
market living
up to its hype. Collecting data and applying analytics are the
most important aspects of processes in the Industry 4.0,
also known as the Industrial Internet of Things (IIoT). This process should be achieved in an IT-friendly
manner to be adopted by a large proportion of industries. Owing to this, equipment and processes are
integrated and automated without increasing complexity to collect the data. This
is driving the demand for process automation across different verticals such as
pharmaceutical, healthcare, paper & pulp, and oil & gas.
· Automation
at MES level - Manufacturing
Execution Systems (MES) have become more crucial than ever for industries
owing to the Industry 4.0. MES, which resides at the operation level in industrial
automation, is evolving with new smart technologies. Next gen smart robots,
cobots, enhanced connected equipment, increasing data analytics, smart sensors
are a few aspects of automation in MES. These aspects of Industrial 4.0
pertaining to automation at the MES level are propelling demand for the automation
and instrumentation market, especially in the manufacturing sector.
Demand for Business Systems Integration for Real-Time Automation
To withstand competition
from the market, companies are enhancing their visibility for customers as well
as for other stakeholders. Business integration systems enable companies to
improve automation of business and functional operations, real-time visibility
of operations, and integration among stakeholders. In order to meet these
requirements, continuous testing and working on multiple tools is increasing.
The ever-growing adoption of continuous delivery and deployment practices of
these tools and technologies are driving demand for more robust and
industry-specific automation strategies. Besides, automation in these processes
provide cost-cutting, more fault-tolerance, and application and maintenance
flexibilities. This demand from the business systems integration to enhance operations is boosting the process automation and instrumentation
market demand.
Increasing Demand for
Cybersecurity in Safety Automation -
Process safety
automation is undergoing radical changes with the advent of cybersecurity. With
increasing industrial automation, cybercrime is becoming an important issue within
industrial automation and control systems around the world. In 2018,
about 91% of the global countries reported to have a cybercrime legislation and
the measures are taken by individual governments to implement robust strategies
to implement sustainable environments. These
initiatives are gaining huge traction across various verticals. Industrial
cybersecurity solutions are deployed in industrial automation equipment,
plants, and other applications and tools.
The approach of these cybersecurity solutions
is hybrid and effective.
However, the demand is further increasing to extend functionality in non-PC-based
industrial equipment and control systems, and also to meet and manage cybersecurity
in industry-specific integrated systems. This increasing demand for automated
and customized industrial cyber-security solutions is gaining demand in the
process safety automation market.
Key Players Perspective
in the Process Automation & Instrumentation Market
The key companies
operating in the global process automation and instrumentation industry are
Honeywell International Inc., Emerson Electric Co., Schneider Electric Se,
Yokogawa Electric Corporation, ABB Ltd., General Electric Co., Mitsubishi
Electric Corporation, Metso Corporation, Yokogawa Electric Corporation, and
Beckhoff Automation GmbH & Co., Kg. These key players are providing a wide
range of solutions coupled with the outreach services, and tailored as per industry
requirements.
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