According to our latest market study, titled "Factory Automation Market Forecast to 2028 - Global Analysis - by Component, Type, Technology, and Industry Vertical," the market is expected to grow from US$ 154.99 billion in 2022 to reach US$ 249.29 billion by 2028; it is anticipated to grow at a CAGR of 8.2% from 2022 to 2028.
The Middle East and North Africa (MENA) region saw manufacturing contribute 14% to its GDP in 2018, and with initiatives like Vision 2030, governments in the region are actively promoting further growth in the sector. As the manufacturing industry continues to expand, there will be an increasing need for industrial robots and factory automation solutions to boost production efficiency and reduce labor costs. This, in turn, is expected to drive the growth of the factory automation market in the Gulf Cooperation Council (GCC) countries, where infrastructure development and technology adoption are also on the rise.
The factory automation market in the Middle East and Africa can be further divided into South Africa, Saudi Arabia, the UAE, and the rest of MEA. These countries are increasingly adopting factory automation and smart working techniques to improve their manufacturing capabilities. For example, in Saudi Arabia, 4,000 factories are being automated to reduce dependence on low-skilled labor. The Future Factories Program, launched by the Ministry of Industry and Mineral Resources, aims to establish a robust tech ecosystem to transform the country's manufacturing sector. Similarly, the UAE is prioritizing Industry 4.0, also known as the Fourth Industrial Revolution, to enhance productivity and deliver more innovative products using automated systems. With these and other initiatives, the MEA region is moving toward automation, which is expected to fuel growth in the factory automation market in the region.
The Middle East & Africa is the largest oil producer in the world. The oil & gas industry is always looking for solutions to improve operations and reduce risks. This has led to an investment in process automation, which boosted the factory automation market. For instance, Nabors has developed an advanced rig operating system to improve the drilling operation in the oil & gas industry. Nabors SmartROS rig operating system is built on a Linux platform and uses activity-based workflows that are viewable on an intuitive user interface. Thus, the growth of the oil & gas industry through automation and digitalization is further boosting the factory automation market growth.
Impact of COVID-19 Pandemic on Middle East & Africa Factory Automation Market
Lockdowns and supply chain disruptions caused by the COVID-19 pandemic had a severe impact on the Middle East & Africa (MEA). The pandemic led to the suspension of manufacturing activities due to the disruption of import and export activities in the region. The MEA experienced three waves of the pandemic that disrupted the entire ecosystem. To curb the spread of the virus, governments had to impose containment measures that brought various activities across multiple sectors to a standstill. In the early stages of the pandemic, all manufacturing facilities were closed, which had a negative impact on the factory automation market and the region's economy, as well as the market players operating in the region. Nevertheless, due to the containment measures imposed by governments, the MEA region has shown a positive trend in the adoption of automation systems such as robots, sensors, and machine vision systems, which is expected to continue in 2021 and beyond.
Key Findings of Market Study
In 2021, Saudi Arabia held the largest share of the factory automation market. The country has been focusing on developing its manufacturing and processing sector, which has led to various product approvals that have enhanced its factory automation market. For instance, in 2020, 10xDS provided an automation solution to multinational food and drink processing conglomerates in the Middle East to automate the Saudi Food and Drug Authority (SFDA) approval process. Additionally, the government and private companies are working on transforming and developing the industrial and manufacturing sectors in the country. In May 2020, GE announced plans to support the Saudi Arabian manufacturing sector by establishing new partnerships and investments, which will also support the Saudi Vision 2030 initiative aimed at accelerating the country's growth across various industries. Furthermore, Saudi Arabia has manufacturing facilities for major multinational and domestic companies like PepsiCo and SAVOLA, which is expected to drive the adoption of robots, control systems, brewing equipment, and other automation solutions. All of these factors are likely to contribute to the growth of the factory automation market in Saudi Arabia.
Although the manufacturing sector in the UAE is still in its developmental stage and lags behind other countries and regions, the oil and gas industry remains a significant contributor to the country's GDP, accounting for approximately 30% according to the CIA World Factbook. However, the UAE has also witnessed development in several other industries, including automotive, food and beverage, pharmaceuticals, consumer goods, and electronics. Of these, the food and beverage sector is experiencing substantial economic growth, although the country relies heavily on imports to meet its requirements. Additionally, the evolving consumer demand for high-end automobiles, consumer goods, and electronics has created a need for automation systems, further propelling the growth of the factory automation market in the UAE.
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