The industrial automation sector was valued at approximately US$ 171.23 billion in 2022 and is projected to grow to US$ 322.67 billion by 2030, reflecting a compound annual growth rate (CAGR) of 8.2% during the period from 2022 to 2030.
For nearly four decades, users of machine vision and systems integrators have harnessed advancements in imaging, optics, illumination, and software. Although machine vision has reached a level of maturity, the ongoing reduction in costs for components, software, and engineering, along with enhanced ease of use and broader application possibilities, continues to fuel its adoption across various sectors.
In 2021, the COVID-19 pandemic prompted manufacturers to expedite the integration of machine vision technology into their industrial automation processes. This shift was essential for maintaining operational efficiency and meeting the rising demand as companies sought to enhance their digital infrastructure to support remote work, thereby accelerating the growth of the industrial automation sector.
Furthermore, logistics applications saw significant growth due to an increase in online shopping. Imaging systems were implemented in retail distribution centers and automated storage and retrieval systems, particularly for manufacturers producing personal protective equipment (PPE) such as masks, face shields, and protective clothing. Other factors driving the adoption of machine vision systems in industrial automation include predictive maintenance, packaging inspection, automated barcode scanning, assembly of products and components, defect reduction, and 3D vision inspection.
Additionally, the surge in corporate investments aimed at developing innovative products through machine vision technology is further stimulating growth in the industrial automation market. For example, in January 2022, the Khronos Group initiated a collaboration with the European Machine Vision Alliance (EMVA) to create an open, royalty-free API standard for regulating camera system runtimes across various sectors, including embedded, mobile, industrial, XR, automotive, and scientific fields. This increase in investment is significantly contributing to the expansion of the industrial automation market.
Europe stands out as an early adopter of robotic systems within manufacturing environments. The ongoing advancements in IoT technologies are further enhancing the integration of robots, thereby driving the growth of the industrial automation market in this region. The European Commission (EC) is heavily investing in research and development (R&D) to enhance the competitiveness of its manufacturing sector and maintain its leadership in global technology. From 2018 to 2020, the EC allocated a budget of US$ 780 million for R&D in robotics and related technologies, including artificial intelligence (AI) and collaborative robots (Cobots).
The automotive industry is a significant investor in new production capabilities and Industry 4.0 infrastructure. It is a leading sector for robotic applications, accounting for approximately half of all robot shipments in Europe, which is a key driver for the industrial automation market. Automation in automotive assembly focuses on optimizing repetitive tasks such as material handling, welding, and the assembly of vehicle components. By integrating vision systems, robotics, and software, automotive manufacturers can reduce rework and labor costs while enhancing quality and consistency. Europe hosts numerous major car manufacturers, including BMW, Volkswagen, Renault, and Peugeot, which further propels the adoption of automated solutions in the region, thus driving the industrial automation market's growth.
France, recognized as a technologically advanced nation and the third-largest economy in Europe after Germany and the UK, is a significant market for packaging robots due to its strong manufacturing base. The country is known for its advancements in industrial technology. Material handling applications, including pick and place, palletizing, and packaging, are among the primary uses of industrial robots. France is making notable strides in industrial IoT and other automation technologies to enhance productivity within its manufacturing sector. Key industries such as food and beverage, aerospace, and metals and machinery are increasingly adopting robotic solutions to improve efficiency. The presence of automotive manufacturers like Peugeot and Renault in the region further drives the demand for automated solutions, contributing to the growth of the industrial automation market.
Key players in the industrial automation market include ABB Ltd., Bosch Rexroth AG, Emerson Electric Co., Hitachi Ltd., Honeywell International, Inc., Mitsubishi Electric Corporation, Omron Corporation, Rockwell Automation, Inc., Schneider Electric SE, and Siemens AG. The report also examines several other significant players in the industrial automation market to provide a comprehensive overview of the market landscape and its ecosystem. Insights from the industrial automation market report are valuable for key players in formulating their growth strategies.