Industrial Control and Factory Automation: Revolutionizing
Manufacturing Processes
Industrial control and factory automation have emerged as
transformative technologies revolutionizing the manufacturing sector. With
advancements in robotics, artificial intelligence (AI), and Internet of Things
(IoT), industrial control systems have become more sophisticated, efficient,
and interconnected. This essay explores the impact of industrial control and
factory automation on manufacturing processes, highlighting the top factors
influencing their adoption. Additionally, we will touch upon relevant
government policies that shape the landscape of industrial control and factory
automation.
Impact of Industrial Control and Factory Automation
Industrial control and factory automation technologies have
a profound impact on manufacturing processes, leading to numerous benefits:
- Increased Productivity: Automation streamlines manufacturing
processes, reducing human error and improving efficiency. By automating
repetitive tasks, industrial control systems accelerate production cycles,
resulting in increased productivity and output.
- Enhanced Quality and Consistency: Automation ensures
consistent product quality by minimizing variations caused by human
intervention. With precise control over manufacturing parameters, industrial
control systems improve product accuracy, reliability, and compliance with
industry standards.
- Cost Reduction: Automation reduces labor costs by replacing
manual tasks with robotic systems. Moreover, automation optimizes resource
utilization, minimizing waste and enhancing energy efficiency, thereby reducing
operational costs.
- Improved Workplace Safety: Industrial control and factory
automation minimize human involvement in hazardous or physically demanding
tasks. By deploying robots and automated systems, workplace accidents and
injuries can be significantly reduced, ensuring a safer work environment for
employees.
Top Factors Influencing Adoption of Industrial Control and
Factory Automation
Several factors influence the adoption of industrial control
and factory automation in the manufacturing sector. The following factors are
particularly impactful:
- Technological Advancements: Rapid advancements in robotics,
AI, and IoT have paved the way for sophisticated industrial control and
automation systems. As technology continues to evolve, manufacturers are
motivated to adopt these technologies to remain competitive, enhance
operational efficiency, and meet the demands of the market.
- Return on Investment (ROI): Manufacturers evaluate the
financial viability of implementing industrial control and factory automation.
Assessing the potential cost savings, increased productivity, and improved
product quality helps determine the ROI of automation projects. The ability to
justify upfront investment costs and demonstrate long-term benefits is crucial
for widespread adoption.
- Workforce Adaptability: The integration of automation
systems requires a workforce capable of operating and maintaining these
technologies. Training employees to adapt to new roles, such as overseeing
automated systems, programming robots, or managing data analytics, is vital for
successful adoption.
- Regulatory Compliance: Compliance with industry-specific
regulations and standards is a critical factor driving the adoption of
industrial control and factory automation. Automation enables manufacturers to
implement robust quality control measures, traceability systems, and data
recording capabilities, ensuring compliance with regulatory requirements.
Government Policies and Regulation
Government policies and regulations play a crucial role in
shaping the adoption and implementation of industrial control and factory
automation. Some key areas of government involvement include:
- Standards and Safety Regulations: Governments establish
standards and safety regulations to ensure the safe and reliable operation of
industrial control systems. These regulations often encompass areas such as
electrical safety, machinery safety, cybersecurity, and data privacy.
- Incentives and Funding: Governments may provide incentives,
grants, or funding programs to encourage manufacturers to adopt automation
technologies. These initiatives aim to promote innovation, enhance
productivity, and drive economic growth by supporting the modernization of
manufacturing processes.
- Workforce Development: Governments collaborate with
educational institutions and industry stakeholders to develop programs and
initiatives that facilitate the development of a skilled workforce for
automation technologies. This includes training programs, vocational courses,
and partnerships between academia and industry to bridge the skills gap in the
workforce.
Dynamics of Industrial Control & Factory Automation
Market
DRIVERS in Industrial Control & Factory Automation
Market
Government initiatives to promote industrial automation are
being implemented worldwide to foster the overall development of countries.
This has resulted in the adoption of various automation and communication
components and technologies to enhance the structural growth of industries.
Governments are prioritizing the expansion of both process and discrete
industries. For example, the Government of Singapore has formed partnerships
with associations like the Singapore Food Manufacturing Association (SFMA) and
the Food Innovation Resource Centre to embrace cutting-edge automation
solutions such as SCADA, PLC, DCS, robots, and cables in the food and beverage
industry. In India, the government's national manufacturing policy (NMP) is
propelling the growth of the manufacturing sector. Initiatives like the Make in
India policy have also been introduced to encourage companies to implement
automation in their manufacturing plants. The increasing adoption of automation
in the automotive sector, driven by the emerging trend of self-automation
vehicles, is anticipated to fuel market growth during the forecast period.
Moreover, this advanced technology offers high accuracy and efficiency, driving
its demand across various verticals. Furthermore, the shift towards electric
vehicles in place of conventional ones is contributing to market growth.
RESTRAINTS in Industrial Control & Factory Automation
Market
Fluctuations in end-use industries have posed challenges to
the industrial automation market. In 2020, according to the BP Statistical
Review of World Energy, the average oil price reached its lowest point since
2005, with global oil consumption experiencing a record decline of 9 million
barrels per day (b/d) or 9.2%, the lowest level since 2012. Major economies,
including the US, the entire European Union (EU), and India, witnessed a
decrease in oil demand. Global oil production also contracted by 6.6 million
b/d, leading to a significant decline in refinery utilization to its lowest
level since 1985. The market has also been impacted by the shortage of
semiconductor chips, primarily due to the ongoing trade war between the US and
China, which has adversely affected the manufacturing of various electronic
products and equipment. Other significant geopolitical events, such as the
Russia-Ukraine war and the relocation of major manufacturing hubs from China to
other countries, have disrupted the entire supply chain. As industrial control
systems and factory automation increasingly rely on connected devices and
networks, the risk of cyberattacks and data breaches becomes a significant
concern. Safeguarding critical infrastructure and sensitive data from
unauthorized access or manipulation is a top priority, necessitating robust
cybersecurity measures and vigilance against evolving threats. Adhering to
regulatory standards and compliance frameworks is another challenge for the industrial
control and factory automation industry. Compliance with safety standards,
environmental regulations, data protection laws, and industry-specific
requirements often entails additional costs and complexities for manufacturers
and system integrators. Many industrial facilities still operate with legacy
control systems and automation technologies that may not be compatible with
modern solutions. Upgrading or integrating new technologies with existing
systems can be challenging and costly, impeding the adoption of advanced
automation solutions and delaying efficiency gains. Bridging the skills gap is
crucial for the industry's growth and development, as there is a shortage of
qualified professionals in areas such as industrial cybersecurity, robotics,
and data analytics. Training and education programs are essential to address
this shortage and cultivate a skilled workforce. The implementation of
industrial control and factory automation solutions often involves significant
upfront costs for equipment, software, and integration. This initial investment
can be a barrier for smaller enterprises or those operating on limited budgets.
Striking a balance between the cost of implementation and the expected return
on investment and long-term benefits is crucial. Additionally, achieving
seamless interoperability and standardization among the wide range of devices,
systems, and protocols from different manufacturers in the industry poses a
challenge, as lack of interoperability can limit flexibility, scalability, and
effective integration of automation systems.
OPPORTUNITIES in Industrial Control & Factory Automation
Market
Adoption of Industry 4.0 principles for manufacturing
The manufacturing, oil & gas, food & beverage,
chemical, and automotive industries are experiencing rapid growth in the
industry control market due to the implementation of Industry 4.0 principles.
By embracing Industry 4.0, the manufacturing sector is automating various
processes and systems, allowing production units to operate continuously
without human errors. This leads to a reduction in production cycle time and
ensures high-quality processes from raw material procurement to final product
development. Automation solutions like SCADA, HMI, DCS, and PLC enable the
operation and control of machines in manufacturing plants.
Industry 4.0 encompasses cyber-physical systems, IoT, and
cloud computing, and it provides valuable support to the manufacturing
industry. It enables remote manufacturing operations and real-time intelligent
data collection. The adoption of Industry 4.0 principles in various industries
is expected to create profitable opportunities for market players during the
forecast period. It facilitates enhanced operational efficiency, productivity,
product quality, asset utilization, supply chain management, workplace safety,
and environmental sustainability.
Industrial Control & Factory Automation offer a higher
level of interactivity and engagement compared to traditional toys. These
advanced toys incorporate features such as voice recognition, motion sensors,
and touchscreens, providing children with immersive and dynamic interactions.
They can also personalize learning experiences according to each child's unique
needs and abilities. By analyzing data on a child's interactions and
preferences, these toys can offer customized content, adaptive learning paths,
and targeted feedback to support educational development. Additionally,
Industrial Control & Factory Automation can connect to the internet,
granting access to a wide range of digital content and resources, including
educational materials, interactive games, storytelling, and multimedia content.
This enables children to have diverse and enriching experiences.
Furthermore, Industrial Control & Factory Automation
promote collaborative play and social interaction among children. They can
connect with other compatible toys, allowing multiplayer experiences, virtual
team activities, and even remote play sessions with friends or family members.
Moreover, these toys generate valuable data on children's play patterns,
preferences, and interactions, which manufacturers can utilize to gain insights
into consumer behavior, product usage, and emerging trends. This data-driven
knowledge can inform product development, marketing strategies, and
customization options.
CHALLENGES in Industrial Control & Factory Automation Market
Lack of skilled workforce to operate industrial automation
devices and systems
The operation of industrial automation devices and systems
requires skilled personnel due to the complexity of manufacturing processes.
Unskilled personnel may misinterpret these complexities, leading to errors and
faults. The lack of appropriate content, human resources, and financial
resources, as well as usability issues and technical difficulties, can hinder
the effective operation of industrial automation devices. Therefore, the lack
of expertise acts as a barrier to the widespread adoption of automation in many
industries, posing a challenge to the growth of the industrial control &
factory automation market.
The National Council for Advanced Manufacturing (NACFAM), a US-based
organization, has adopted strategies centered around technological innovations,
supply chain integration, sustainable manufacturing, and talent development for
advanced manufacturing. According to NACFAM, limited knowledge about new and
advanced technologies prevents some small and medium-sized enterprises (SMEs)
from supporting the defense industry. This lack of expertise ultimately hampers
the automation of the defense industry.
Ecosystem of Industrial Control & Factory Automation
Market
The industrial control and factory automation market was
largely dominated by the industrial sensors segment, holding the largest share.
The growth of this segment can be attributed to the increasing adoption of
Industry 4.0 and IIoT, as well as the expansion of the wireless sensors market.
In the coming years, there are lucrative opportunities expected for players in
the industrial sensors market, particularly in the field of predictive
maintenance. This involves capturing sensor data, facilitating data communications,
and making predictions. As the sensor plays a crucial role in predictive
maintenance solutions, there is a significant anticipated increase in the
demand for industrial sensors.
During the forecast period, the industrial robots segment is
projected to have a significant market share with a compound annual growth rate
(CAGR) of 12.6%. This growth is driven by the extensive use of industrial
robots and advanced machinery by manufacturing companies to optimize operations
that require speed, strength, and accuracy. Industrial automation through
robots not only reduces raw material waste, labor requirements, and energy
usage but also ensures a smooth and uninterrupted workflow in the manufacturing
process. These factors are expected to drive the growth of the industrial
robots segment.
Among the various segments, the distributed control systems
(DCS) segment emerged as the dominant player, accounting for the largest
revenue share of over 31.7% during the forecast period. The rapid adoption of
IIoT and the preference of industrialists to deploy automated control systems
are driving the market growth for DCS. Furthermore, the integration of IoT and
DCS using 5G technology is expected to receive a boost with the advent of 5G in
the power generation sector, leading to enhanced output efficiency.
Additionally, the Supervisory Control and Data Acquisition (SCADA) control
system segment is anticipated to experience the highest CAGR of over 10.6%
during the forecast period. This growth is fueled by the increasing adoption of
industry 4.0, where the SCADA control system finds applications across various
industry verticals such as aerospace & defense, automotive, chemical,
energy & utilities, manufacturing, and healthcare. Its ability to gather
real-time data and provide instant feedback to controller systems makes it a
preferred choice. The demand from manufacturers for smart and digitized
production processes to enhance production efficiency is expected to further
drive the growth of the SCADA control system segment.
In terms of process industries, the oil & gas industry
held the largest share of the industrial control & factory automation
market. The adoption of industrial control and factory automation technologies
in this industry allows operators to remotely monitor facilities and obtain
real-time information about inventories and equipment. Remote monitoring
enables the collection of equipment data from a distance, leading to reduced
risks and improved safety and efficiency of the workforce.
During the forecast period, the industrial 3D printing
segment is expected to contribute the highest revenue share. This can be
attributed to the ease of developing customized products, design flexibility,
and minimal wastage offered by 3D printing. The versatility of printing devices
allows for the production of parts tailored to specific industries, thereby
reducing material costs and saving time in the production process. This factor
is expected to drive the market growth of the industrial 3D printing segment.
Additionally, the adoption of 3D printing by original equipment manufacturers
(OEMs) to stay agile and innovative with emerging trends is on the rise. The
ongoing digitization efforts have also facilitated the printing of complex
designs while maintaining operational agility and reducing costs, further
contributing to the growth of the segment during the forecast period.
The market growth is supported by the increasing demand for
3D printing in various industries such as automotive, defense, aerospace, and
robotics. Key players in the market are also collaborating to develop printers
tailored to different end-use industries. For example, Ozo & Rob Pvt Ltd
has introduced the Anant Pro XL 3D printer, addressing challenges related to
material shortage, compatibility, and high-precision design.
In the healthcare sector, which is expected to experience
significant market growth, automation and control play a crucial role in
improving operational costs, reducing supply chain errors, and enhancing
patient care and treatment. The segment accounted for the second largest
revenue share of around 16% during the forecast period. Automation has
facilitated remote surgeries and minimally invasive procedures, enhancing
precision and safety, which contributes to the growth of this segment.
Last year, the manufacturing vertical segment dominated the
market with the largest share of over 17%. The ongoing trend of autonomous
processes in factories and industries, driven by automated systems and
processes, fueled the growth of this segment. It is projected to grow at a CAGR
of over 13.5% during the forecast period. Automated systems enable
manufacturers to reduce process time and error rates, as they require minimal
human intervention, thereby driving the segment's growth.
The demand for Process Analytical Technology (PAM) is driven
by the need for real-time tracking and monitoring in various industries, which
improves efficiency and productivity. The adoption of technologies like IoT and
automation in different sectors further contributes to the market's growth.
Additionally, sectors generating large amounts of data seek effective
approaches to meet enterprise requirements and ensure safety, longevity, and
operational excellence, which supports market growth. The oil & gas and
energy & power industries have adopted PAM to enhance operational accuracy
and performance, boosting the market.
The discrete industry is expected to witness a significant
surge in demand during the forecast period due to its ability to manufacture
complex products in low volumes. Furthermore, the medical device industry
contributes to the market's revenue growth through technological advancements
and innovations in the healthcare sector.
Moreover, the market is supported by the growing preference
for innovative industrial and factory automation solutions aimed at improving
product quality and reducing production time. Manufacturers are focusing on
automation to enhance their competitive edge and create flexible and agile
medical manufacturing systems, leading to increased demand. The reduction of
paperwork, errors, and maintenance of high-quality standards significantly
improves the throughput of medical manufacturing plants, thereby bolstering
market growth.
Regional Insights
Asia Pacific emerged as the dominant player in the Industrial
Automation Market, accounting for the largest share (39.5%) in 2021. This
region's market growth can be attributed to the widespread adoption of
industrial automation technologies, particularly in China and India. In China,
the market has witnessed significant expansion due to rising labor wages and
the concentration of numerous automobile manufacturing plants.
Furthermore, the proliferation of IoT devices and the
increasing adoption of smart factory automation in emerging economies have
further fueled the uptake of industrial automation. For instance, the Japanese
government's "Rebirth of Japan" plan, which involves a substantial
investment of $1.4 trillion to bolster the manufacturing sector, is expected to
drive the industrial sector's growth by $500 billion within this year, thus
stimulating market growth in the region.
In addition to Asia Pacific, Europe is also poised for
growth during the forecast period, primarily driven by the rising demand for
advanced technologies among consumers. Key market players are actively
embracing novel technologies to enhance their business processes' efficiency
and productivity in response to mounting competition, contributing to the
overall market expansion.
Moreover, the market is witnessing the introduction of new
industrial automation products by various companies in line with evolving
consumer preferences. For instance, Schneider Electric recently launched
CkimaSys, an AI-powered smart ventilation system designed to filter and manage
airflow efficiently. Such product innovations are expected to drive market
growth throughout the forecast period.
Dominating Companies in Industrial Control & Factory
Automation Market
- ABB
- EMERSON
- SIEMENS
- SCHNEIDER ELECTRIC
- MITSUBISHI ELECTRIC
- GENERAL ELECTRIC CO.
- ROCKWELL AUTOMATION
- HONEYWELL
- YOKOGAWA ELECTRIC CORPORATION
- OMRON CORPORATION
- ENDRESS+HAUSER
- FANUC CORPORATION
- WIKA GMBH
- DWYER INSTRUMENTS
- STRATASYS
- 3D SYSTEMS CORPORATION
- FUJI ELECTRIC
- HITACHI
- KROHNE
- AZBIL CORPORATION
- VEGA GRIESHABER
- DANFOSS
- TEGAN INNOVATIONS
- WIN-911 SOFTWARE
- PINPOINT INFORMATION SYSTEMS
- PROGEA
- CHAOS PRIME
- INXPECT S.P.A.
- ALGOLUX
- INUITIVE
- EAVE
- CANARIA
- FUELICS
- ULTIMAKER
- NANO DIMENSION
- DEEP LEARNING ROBOTICS
- PICK-IT 3D
- ONROBOT
- TRIVISION
- CLEVEST
Recent Developments in Industrial Control & Factory
Automation Market
- In 2021, Siemens, a global leader in industrial automation,
announced the acquisition of Edge Technology, a provider of edge computing
solutions for industrial settings. This strategic acquisition aims to enhance
Siemens' portfolio of Industrial Internet of Things (IIoT) solutions and
strengthen their capabilities in edge computing and data analytics for factory
automation.
- In 2020, Rockwell Automation, a leading provider of
industrial automation solutions, partnered with PTC, a software company
specializing in digital transformation solutions. This partnership resulted in
the launch of FactoryTalk InnovationSuite, powered by PTC, which combines
Rockwell Automation's expertise in industrial automation with PTC's
capabilities in augmented reality, analytics, and industrial IoT. The
collaboration aims to enable manufacturers to achieve operational efficiencies
and drive innovation in their factory automation processes.
- ABB, a multinational corporation specializing in robotics,
automation, and power technologies, completed the acquisition of B&R
Industrial Automation in 2017. This acquisition strengthened ABB's position in
the field of factory automation by expanding their portfolio of integrated
automation solutions. B&R Industrial Automation is known for its innovative
technologies in machine and factory automation, including programmable logic
controllers (PLCs) and human-machine interfaces (HMIs).
- In 2019, Emerson, a global technology and engineering
company, acquired General Electric's Intelligent Platforms business. This
acquisition bolstered Emerson's capabilities in automation solutions for
various industries, including industrial control and factory automation. The
addition of GE's Intelligent Platforms business enhanced Emerson's portfolio of
automation technologies and software, enabling them to offer comprehensive
solutions for digital transformation in manufacturing.
- Honeywell, a multinational conglomerate specializing in
industrial automation and control systems, announced the acquisition of
Transnorm in 2018. Transnorm is a leading provider of high-performance conveyor
solutions for e-commerce and parcel handling industries. This acquisition
expanded Honeywell's presence in the field of intralogistics and warehouse
automation, complementing their existing portfolio of automation and control
solutions.
- In 2022, Schneider Electric, a global leader in energy
management and automation, announced the acquisition of Group Tempo, a leading
provider of automation software solutions. This acquisition strengthened
Schneider Electric's portfolio of software offerings for industrial automation,
allowing them to provide advanced solutions for process control and
optimization.
- In 2021, Emerson acquired Open Systems International (OSI),
a provider of advanced automation software solutions for the electric utility
industry. This acquisition expanded Emerson's capabilities in grid optimization
and control technologies, enabling them to offer comprehensive solutions for
digital grid management and renewable energy integration.
- Rockwell Automation formed a strategic partnership with PTC
and Microsoft in 2018 to develop and deliver innovative Industrial IoT
solutions. This partnership combines Rockwell Automation's expertise in
industrial automation, PTC's capabilities in augmented reality and digital
transformation, and Microsoft's cloud technologies to enable manufacturers to
accelerate their digital transformation journey.
- Mitsubishi Electric Corporation acquired ICONICS, Inc. in
2020. ICONICS is a leading provider of advanced visualization and HMI/SCADA
software solutions for industrial automation. This acquisition strengthened
Mitsubishi Electric's software portfolio, allowing them to offer comprehensive
solutions for monitoring, control, and optimization of manufacturing processes.
- In 2019, Siemens and AVEVA announced a strategic partnership
to provide an end-to-end solution for industrial digitalization. This
partnership integrates Siemens' industrial automation hardware and software
with AVEVA's engineering and industrial software portfolio, enabling customers
to optimize their operations and drive digital transformation across the entire
asset lifecycle.
Industrial control and factory automation technologies have revolutionized manufacturing processes, bringing increased productivity, enhanced quality, cost reduction, and improved workplace safety. The adoption of industrial control and factory automation is influenced by factors such as technological advancements, ROI considerations, workforce adaptability, and regulatory compliance. Government policies and regulations play a significant role in shaping the adoption landscape by establishing standards, providing incentives, and fostering workforce development. As manufacturers continue to embrace automation, the manufacturing sector is poised for further advancements, driving efficiency, competitiveness, and innovation in the global market.