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![Automation Solutions Market - Forecast (2022 - 2027)](https://fortunetelleroracle.com/public/index.php/upload/media/posts/2022-07/04/automation-solutions-market-forecast-2022-2027_1656936674-b.jpg)
The manufacturing industry is poised to play a crucial role in 2030 sustainable development goals (SDGs) of the United Nations (UN), and the industry will observe the incorporation of new manufacturing units and production plants. However, according to the United Nations Industrial Development Organization (UNIDO), the share of manufacturing employment in the industrialized economies has been decreasing from around 22% in 1991 to under 13% in 2016, and the employment rate is projected to decrease even further in the future.[1] This tectonic shift in the industrial sector is largely attributable to the digital control system (DCS) that has penetrated into the manufacturing plants worldwide. Similar changes have been observed in sectors that are leveraging automation, which is influencing the automation solutions market that was valued to be $160.29 billion as of 2018. Furthermore, the demand for automation solutions in the various sector is estimated to escalate with a healthy compound annual growth rate (CAGR) of 9.23% during the forecast period of 2019 to 2025.
Owing to the growth prospects in the residential real estate, home automation and building automation is making strides in APAC. Additionally, the manufacturing sector is booming with tons of goods manufactured only in China, India, and other countries of APAC such as Indonesia and the Philippines. The discernible digitization in the banking sector has made banking automation imperative, which is proving to be a lucrative automation solutions marketplace in APAC. The region had the maximum automation solutions market share of 38.86% in 2018.
Automation Solutions Market Outlook:
Automation solutions represent technology that enables execution of jobs with minimum human assistance using a control system that can have PID controller, programmable logic controller, discrete control (on/off), and sequential control depending on the requirements. Automation is incorporated in many sectors, and some of the prevalently known examples are Laboratory automation, integrated library system, Database administration and automation, broadcast automation, and console automation.
Advanced automation solutions such as machine vision and collaborative robots have disrupted the automation industry. These robots are handling complex processes and executing production tasks faster than workers. Furthermore, the future foresees the emergence of artificial intelligence in self-driven trucks, automated guided vehicles (AGV), and autonomous vehicles at large. This innovation will be coupled with cognitive computing in the IoT connected cars that will bring more opportunities in the automation solutions market. Evidently, the automation industry is proving to be a beneficial automation solutions marketplace, and the application of automation in the automotive industry is projected to observe a substantial CAGR of 7.56% through to 2025.
Automation Solutions Market Growth Drivers:
· The Demand Influx in the Warehouse Robotics Market –
There is a continuously rising demand for automation in warehouses across the globe as the warehouse operations are highly vulnerable to human errors. Subsequently, to ameliorate the problem of erroneous management in warehouses, there is a penetration of automation solutions in the warehouse robotics market that had a market size of $2.79 billion in 2018, and the demand for automation and robotics in warehouses is projected to observe a significant increment of 10.46% over the forecast period, which will further flourish the automation solutions market.
· The Need for Stringent Security & Surveillance –
According to the Office for Victims of Crime (OVC), burglary, theft, and robbery account for billions of dollars in total monetary losses each year. However, the organization also documents that there is a conspicuous decline in the rates of burglary and thievery worldwide since last two decades, and the reduction rate translates to a 67% decline from 1995 to 2015.[2] A major improvement in the security sector has been observed after the application of automation solutions in the last few years. Moreover, the crime investigation organizations across the globe have a vision for a crime-free world, and a lot of initiatives are taken for the same. One of the most effective initiatives is proving to be the incorporation of automation in the form of cameras and sensors that help in avoiding crimes such as robbery and burglary. Furthermore, automation is largely helping reduce organized crime. The future foresees entirely automated security & surveillance sector which will chiefly support the automation solutions market.
· The Application of Automation Solutions in Other Industries –
Automation solutions have also made their way into industries such as food & beverages, banking, and oil & gas industry that is totally operated on DCS. Moreover, the retail automation market is also booming, and it’s quite evident given that its market size was gauged to $18.37 billion as of 2018, and the growth is projected to catapult at a CAGR of 8.60% over the forecast period. These industries are creating a myriad of opportunities in the automation solutions market.
Automation Solutions Market Trends –
· Machine Learning – The most significant trend in the automation solutions market is the progress of machine learning which is leading to new horizons in the industry. Machine learning will improve the efficiency of automation solutions, and manufacturing units will be able to leverage data analytics for improvements in various processes.
· The Virtual Reality and Augmented Reality Wave – VR and AR will enter consumer to manufacturing applications.
· User Experience and Journey to Disrupt the Market – In the coming years, consumer trust will become an indispensable part of various businesses, and transparent artificial intelligence (AI) will gain propitious prominence in the automation solutions market. This will help build trust in all the processes including hiring, marketing, and even manufacturing.
Automation Solutions Market Challenges –
The major challenge dwarfing the automation solutions market size is the fact that it is expensive, and not all the vendors in the industry and domestic consumers can afford it. Even though the smart homes market has created opportunities for the vendors in the automation solutions market, it is yet to gain prevalence, especially because of maximum consumers in underdeveloped and developing economies aren’t yet finding it affordable. Similarly, the lack of “human touch” in automation is reducing the “customer trust” factor, and the vendors are facing difficulty to convince about the authenticity of the solutions. However, there is a lot of awareness owing to the easy access of information pertaining to automation on the Internet, and hence, the future is poised to observe an augmented adoption of automation solutions in various sectors.
Automation Solutions Market Key Players Perspective –
The major players crusading for greater automation solutions market share are General Electric, Schneider Electric, Mitsubishi Electric, Rockwell Automation, Honeywell, Yokogawa, Omron, ABB, Emerson, and Siemens.
Automation Solutions Market Research Scope:
The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the automation solutions market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The automation solutions the market research report also analyses the application of automation solutions in the automotive, food and beverage, security and surveillance, and others.
Automation Solutions Market Report: Industry Coverage
This report also documents the product demand on the solutions that include PLM, DCS, machine controllers, instrumentation, security, and others.
The automation solutions market report also analyzes the major geographic regions as well as the major countries in these regions. The regions and countries covered in the study include:
- North America: The U.S., Canada, Mexico
- South America: Brazil, Venezuela, Argentina, Ecuador, Peru, Colombia, Costa Rica
- Europe: The U.K., Germany, Italy, France, the Netherlands, Belgium, Spain, Denmark
- APAC: China, Japan, Australia, South Korea, India, Taiwan, Malaysia, Hong Kong
- Middle East and Africa: Israel, South Africa, Saudi Arabia
Key Questions Addressed in the Automation Solutions Market Report
Is the market demand for automation solutions growing? How long will it continue to grow and at what rate?
Which type of home security system presents the major growth opportunities?
Is there a possibility for change in the market structure over time?
Are additional developments needed for the existing product or services offerings or do the existing products meet the customer demands?
Do the key vendors look for partnerships to expand their businesses with respect to geography or product?
What are the short-term, long-term, and medium-term growth drivers for the market?
What are the short-term, medium-term, and long-term challenges for the market?
What are the short-term, medium-term, and long-term opportunities for the market
Who are the top players/companies of the market?
What are the recent innovations in the market?
How many patents have been filed by the leading players?
What are the types of patents filed by the leading players?
What is our Vision 2030 for the automation solutions market?
A Few Focus Points Of This Research Are Given Below:
- Give a deep-dive analysis of the key operational strategies with focus on the corporate structure, R&D strategies, localization strategies, production capabilities, and sales performance of various companies
- Provide an overview of the product portfolio, including product planning, development, and positioning
- Discuss the role of technology companies in partnerships
- Explore the regional sales activities
- Analyze the market size and giving the forecast for current and future global automation solutions market during the forecast 2019–2025
- Analyze the competitive factors, competitors’ market shares, product capabilities, and supply chain structures
References -
[1] https://sustainabledevelopment.un.org/content/documents/2537IDR2018_FULL_REPORT_1.pdf
[2] https://ovc.ncjrs.gov/ncvrw2018/info_flyers/fact_sheets/2018NCVRW_Burglary_508_QC.pdf