Key Highlights
- The global industrial automation market size was valued at approximately $172 billion in 2022
- By 2027, the automation industry is projected to reach a market value of $345 billion
- The adoption of automation technologies in manufacturing increased by 13% year-over-year in 2023
- 68% of industrial companies reported improved safety due to automation
- Approximately 59% of manufacturing companies plan to increase automation investments in 2024
- The number of industrial robots deployed worldwide reached 3 million units in 2022
- Asia-Pacific remains the largest market for automation, accounting for over 45% of the global market share in 2022
- The adoption of AI-driven automation solutions is expected to grow at a CAGR of around 23% through 2030
- Small and medium enterprises (SMEs) are increasingly adopting automation, with 70% planning to automate at least one process by 2025
- The use of collaborative robots ("cobots") increased by 25% in 2023
- The average time savings per task due to automation in manufacturing is approximately 35%
- The global automation software market is projected to grow at a CAGR of 9.5% from 2023 to 2030
- The labor cost savings attributed to industrial automation range from 20% to 40% depending on the industry
The automation industry is surging into a new era, with projected market values reaching $345 billion by 2027, a 100% increase from 2022, driven by rapid technological advancements, widespread adoption across industries, and a strategic focus on safety, efficiency, and digital transformation.
Innovation and Emerging Technologies
- The automation industry's R&D expenditure grew by 8% in 2022, emphasizing continued innovation investments
Innovation and Emerging Technologies Interpretation
Market Size and Forecasts
- The global industrial automation market size was valued at approximately $172 billion in 2022
- By 2027, the automation industry is projected to reach a market value of $345 billion
- The number of industrial robots deployed worldwide reached 3 million units in 2022
- The adoption of AI-driven automation solutions is expected to grow at a CAGR of around 23% through 2030
- The global automation software market is projected to grow at a CAGR of 9.5% from 2023 to 2030
- The integration of IoT into manufacturing automation is expected to grow at a CAGR of 24% through 2028
- The robotics market is expected to reach $87.8 billion globally by 2030, from $21.4 billion in 2022
- The renewable energy sector is increasingly relying on automation, with a projected CAGR of 12% for clean energy automation solutions until 2026
- Autonomous vehicles and automated logistics are expected to grow industry revenues by over 30% annually through 2025
- The automotive manufacturing automation market is projected to reach $19.9 billion by 2025, from $12.5 billion in 2020
- The global PLC (Programmable Logic Controller) market is expected to grow at a CAGR of 7.2% from 2023 to 2030
- The global industrial sensors market size is projected to reach $27.4 billion by 2027, expanding at a CAGR of 8.3%
- Cloud-based automation solutions are expected to account for nearly 40% of the market share by 2025, reflecting a shift towards cloud integration
- The electronics manufacturing automation market is forecasted to reach $36 billion globally by 2027, from $20 billion in 2022
- The global market for industrial automation hardware is expected to reach $56 billion by 2025, growing at a CAGR of 6.8%
Market Size and Forecasts Interpretation
Regional and Industry Insights
- Asia-Pacific remains the largest market for automation, accounting for over 45% of the global market share in 2022
- The Asia-Pacific automation market is expected to grow at a CAGR of 10.2% through 2028, driven by manufacturing expansion
Regional and Industry Insights Interpretation
Technology Adoption and Trends
- The adoption of automation technologies in manufacturing increased by 13% year-over-year in 2023
- Approximately 59% of manufacturing companies plan to increase automation investments in 2024
- Small and medium enterprises (SMEs) are increasingly adopting automation, with 70% planning to automate at least one process by 2025
- The use of collaborative robots ("cobots") increased by 25% in 2023
- The aerospace industry is forecasted to adopt automation solutions at a CAGR of 8.3%, due to the need for precision and safety
- The adoption of smart sensors in automation increased by 18% in 2023, improving predictive maintenance efficiency
- The use of automation in warehousing is expanding rapidly, with a forecasted compound annual growth rate of 16% through 2027
- The adoption of digital twin technology in manufacturing automation is expected to grow by 40% annually through 2026
- Approximately 80% of manufacturing processes will be automated by 2030, according to industry forecasts
- The use of augmented reality (AR) in automation maintenance is expected to grow at a CAGR of 19% through 2028, enhancing training and troubleshooting
- The adoption of predictive analytics in automation solutions increased by 22% in 2023, enabling better maintenance scheduling
- The adoption of edge computing in automation systems is projected to grow at a CAGR of 18%, facilitating real-time data processing
- The use of machine learning algorithms in automation has increased by 35% in manufacturing applications during 2023, improving process optimization
- The use of digital assistants and voice-controlled automation in industrial settings increased by 29% in 2023, enhancing operational efficiency
Technology Adoption and Trends Interpretation
Workforce Impact and Cost Savings
- 68% of industrial companies reported improved safety due to automation
- The average time savings per task due to automation in manufacturing is approximately 35%
- The labor cost savings attributed to industrial automation range from 20% to 40% depending on the industry
- 45% of manufacturing companies reported that automation has enabled them to improve product quality
- 58% of automation projects fail to meet their initial ROI targets, highlighting implementation challenges
- 75% of control and automation engineers believe that digitalization will drastically change their workflows in the next five years
- 63% of industrial firms utilizing automation reported shorter lead times, boosting operational efficiency
- In 2023, the manufacturing sector's automation workforce increased by 22% from the previous year, indicating rapid technological adoption
- The largest barrier to automation adoption remains high initial investment costs, cited by 43% of companies surveyed
- 52% of companies using automation reported improved compliance and safety standards, reducing incidents and penalties
- 66% of industrial IoT deployments are aimed at improving asset utilization and maintenance, leading to higher efficiency
- 41% of industrial organizations plan to increase their automation budgets in 2024, reflecting ongoing investments
- Automation-driven labor cost reductions are most significant in the food and beverage industry, with average savings of 30% in labor costs
- The integration of automation in the pharmaceutical industry is projected to reduce manufacturing errors by up to 90%
- 55% of companies implementing automation reported faster onboarding and training of new employees, reducing ramp-up time
- 48% of industrial firms indicate that automation helps reduce operational costs, with savings typically between 15% and 25%
- 65% of industrial automation deployments are driven by the need to enhance safety standards and reduce workplace accidents
- The automation-driven productivity increase in manufacturing can reach up to 20% in the first year of implementation, according to industry reports
Workforce Impact and Cost Savings Interpretation
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