factory automation Market

The factory automation market size is expected to grow to US$ 249.29 billion by 2028; it is estimated to grow at a CAGR of 8.2% from 2022 to 2028.

The factory automation market is experiencing growth in the Middle East & Africa as well as South & Central America due to the expansion of the automotive and manufacturing industries. Additionally, governments in these regions are initiating efforts to automate manufacturing facilities, which is further boosting the market growth.

The adoption of factory automation solutions in the region is being driven by significant factors such as government initiatives and policies that support the digitization of manufacturing plants. For instance, China's Made in China 2025 plan includes a five-year smart manufacturing development plan that aims to digitize 70% of the country's large enterprises. Moreover, to automate manufacturing facilities, several countries are deploying industrial robots. For instance, according to the International Federation of Robotics (IFR), China installed 154,000 industrial robots in 2020. Similarly, in 2021, South Korea's robot installation increased by 2% to 31,083 units.

The Europe factory automation market is witnessing a steady growth rate every year. The primary reason for this growth is the abundant presence of market players in the region, including ABB Ltd, Siemens AG, and Bosch Rexroth AG. Moreover, the increasing adoption of industrial robots in various industries such as automobile, chemical, food & beverages, mechanical engineering, and electronics, to enhance productivity, is driving the market growth. Additionally, government initiatives to promote digitization in the manufacturing industry are also contributing to the growth of the factory automation market.

Many companies are focusing on various strategic initiatives. They are expected to create a noteworthy business model and drive the market in the next few years.

• In 2022, Scania, a prominent worldwide transport solutions provider, signed a deal with ABB to supply a broad range of robotic solutions for Scania's new highly automated battery assembly factory in Sweden.
• In 2021, Rockwell Automation released new enhancements to its Allen-Bradley PowerFlex 755TL, TR, and TM AC drives, including new standard corrosive gas protection that is often critical in industries such as pulp & paper, automotive, tire & rubber, metals, and water/wastewater.

Impact of COVID-19 Pandemic on North America Factory Automation Market Growth

The increase in investment by the manufacturing, automotive, and food & beverage industries to automate their production processes is a major factor contributing to the growth of the North American factory automation market. Moreover, the rise in government initiatives to promote automation in manufacturing facilities is further propelling the demand for automation solutions in the market. North America is home to various major market players, including Honeywell, Schneider, and Emerson Electric Co., which offer advanced automation solutions, thereby driving the growth of the factory automation market in the region.

The largest share of the factory automation market in 2021 was held by the US, while Mexico is expected to grow at the highest CAGR during the forecast period in North America. The region has been an early adopter of advanced technologies across all industry verticals since 2010. This adoption of advanced technologies is due to the increasing benefits of automation across factories and rising awareness of automation among small & medium businesses. The implementation of automation has helped factories reduce their overall operational cost and time taken for production and assembly processes, resulting in a yearly increase in production value. Moreover, government initiatives to promote the adoption of advanced technology and industry 4.0 solutions across industries are driving the North American factory automation market. Governments have launched incentive schemes like quality jobs tax credits, R&D tax credits, and the Qualified Facility for Refundable Tax Credits to encourage the adoption of robotics and promote the geographical expansion of manufacturing facilities, including R&D and blockchain adoption, across North America. These investments are motivating major industries in the US to adopt automation, which is contributing to the growth of the factory automation market.

In 2021, the US held the largest market share of the factory automation market in North America. This growth is attributed to multiple industries investing in automating their manufacturing processes. Key sectors, such as manufacturing, automotive, and food & beverages, have been investing in automating their production plants for several years. For example, PepsiCo announced in July 2022 that it intends to construct an automated production facility in Denver spanning 152 acres, which is expected to be operational from September 2023. Nestle has also adopted multiple automated solutions for manufacturing, packing, and assembling its products over the years. Such investments are expected to increase the demand for factory automation solutions across the country. Furthermore, various government initiatives across the country, such as Quality Jobs Tax Credit and Qualified Facility for Refundable Tax Credits, aim to promote the adoption of automation across production facilities, which is expected to fuel the growth opportunities for US factory automation market players.

ABB Ltd.; Emerson Electric Co.; FANUC; General Electric Company; Honeywell International Inc.; Mitsubishi Electric Corporation; Omron Corporation; Robert Bosch GmbH; Rockwell Automation, Inc., and Siemens AG are among the prominent factory automation market players.

To analyze the factory automation market, both primary and secondary sources have been used. The secondary research involved gathering qualitative and quantitative information from internal and external sources. This process helped in obtaining an overview and forecast of the market growth for all market segments. Furthermore, several primary interviews were conducted with industry experts such as VPs, business development managers, market intelligence managers, national sales managers, and external consultants, including valuation experts, research analysts, and key opinion leaders, specialized in the factory automation market. The primary interviews were conducted to validate the data and gather additional analytical insights on the topic.