Industrial Automation Services Market Report

Industrial Automation Services Market Size:

The global industrial automation services market size reached US$ 216.6 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 434.9 Billion by 2032, exhibiting a growth rate (CAGR) of 7.8% during 2024-2032. The heightened need for automation to improve operational efficiency, increasing addition of advanced technologies, such as internet of things (IoT), artificial intelligence (AI), and big data analytics, and rising number of smart factories are impelling the market growth.

Industrial Automation Services Market Analysis:

• Major Market Drivers: The market is experiencing moderate growth owing to the increasing adoption of industry 4.0 systems in various sectors to improve the work efficiency. Moreover, the heightened focus on not relying on human labor is propelling the market growth.
• Key Market Trends: Major trends include the rising need for automation for improving operational efficiency in industrial settings and join requirements for compliance with various regulations and standards. Apart from this, the increasing awareness about the benefits of lowering energy consumption is encouraging companies to invest in automation.
• Geographical Trends: Europe represents the largest segment due to the increasing number of smart factories and heightened usage of industry 4.0 technologies.
• Competitive Landscape: Some of the major market players in the industrial automation services industry include Siemens AG, Honeywell International Inc., General Electric Company, Mitsubishi Electric, Rockwell Automation, Johnson Controls Inc., Schneider Electric, Yokogawa Electric Corporation, OMRON Corporation, and Danaher Corporation.
• Challenges and Opportunities: The high initial costs, along with cyber security concerns, are some of the challenges. However, the integration of cloud computing and the rise of smart manufacturing are expected to overcome these issues.
   

Industrial Automation Services Market Trends:

Increasing Adoption of Industry 4.0 Technologies

Industry 4.0 is characterized by the addition of advanced technologies like Internet of Things (IoT), artificial intelligence (AI), and big data analytics. Businesses are increasingly adopting these technologies to improve their production processes, make product quality better, and lower downtime. The shift towards smart factories, where machines and systems are intertwined and capable of facilitating normal decision making, is catalyzing the requirement for advanced automation services. This transition not only streamlines operations but also presents time insights and predictive maintenance capabilities. The IMARC Group predicts that the global industry 4.0 market is expected to reach US$ 547.1 Billion in 2032.

Growing Requirement for Compliance with Stringent Regulatory Standards

According to the industrial automation services market insights, industries are extremely regulated by strict regulatory policies focused on guaranteeing product quality, safety, and environmental sustainability. It usually requires careful documentation, a lot of testing, and strict steps to follow for these aspects. However, all of these areas are perfect for automation. Automated systems help to create processes that are needed to be done in the exact way, ensuring that the processes are automatic with detailed recordings for auditing. This cuts down unnecessary complexities in compliance and potential human errors resulting in hefty fines and tarnishing your image. It also contributes to lower emissions and meet environmental criteria.

Rising Demand for Operational Efficiency and Productivity

Businesses across various sectors are continuously seeking ways to enhance their operational efficiency and productivity to remain competitive in the market. Industrial automation services offer significant advantages in achieving these goals by optimizing resource utilization, minimizing human errors, and speeding up production processes. Automated systems can operate continuously without the need for breaks, thereby significantly increasing output and reducing lead times, thereby propelling the industrial automation services market growth. Moreover, automation allows for precise control over production parameters, leading to consistent quality and reduced waste. The capability to rapidly scale operations in response to market demands without compromising on efficiency further drives the adoption of automation services. For instance, in 2023, WALTER Surface Technology launched an automation service to present robotic solutions for metalworking companies.

Industrial Automation Services Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global and regional levels for 2024-2032. Our report has categorized the market based on type of service, product type, and end user.

Breakup by Type of Service:

• Project Engineering and Installation
• Maintenance and Support Services
• Consulting Services
• Operational Services
   

The report has provided a detailed breakup and analysis of the market based on the type of service. This includes project engineering and installation, maintenance and support services, consulting services, and operational services.

Project engineering and installation services govern the design, planning, and implementation of automation systems within industrial environments, thereby influencing the industrial automation services market dynamics. This aspect often involves detailed project management, including system integration, hardware and software installation, and the starting of setup process.

In the lifecycle of an automation system, maintenance and support services help in ensuring ongoing efficiency and reliability. It provides ongoing maintenance, troubleshooting, and repair services to ensure that you have automated systems that operate efficiently with minimal downtime.

Consulting services focus on presenting expert advice and strategy guidance to businesses seeking to implement or enhance their automation infrastructure and capabilities.

Operational services involve the everyday management and optimization of automation systems. This segment includes monitoring system performance, managing operational workflows, and continuously improving processes to enhance the productivity and efficiency.

Breakup by Product Type:

• DCS
• SCADA
• PLC
• MES
• Others
   

DCS holds the largest share of the industry

A detailed breakup and analysis of the market based on the product type have also been provided in the report. This includes DCS, SCADA, PLC, MES, and others. According to the report, DCS accounted for the largest industrial automation market share.

Distributed control systems (DCS) have been the primary solution for controlling complex processes such as those found in the oil and gas, chemical and power generation industries. DCSs are designed to interconnect and control multiple subsystems throughout a plant, making them the central hub for all monitoring and control. This centralized implementation ensures effective processing of tremendous data volumes with striking accuracy, which is paramount for any mission-critical industrial process, hence making DCSs an imperative tool of use in such commanding industrial operations. Increasing the complexity of industrial functions and ensuring real-time data analysis and process optimization are the key factors driving the demand for DCS. Moreover, DCS are increasingly improving with technological evolutions. The best DCS systems offer improved connectivity, integration with IoT, and even AI capabilities, so DCSs are more practical and exciting than ever. The IMARC Group reports that the global distributed control systems market is expected to reach US$ 31.5 Billion by 2032.

Breakup by End User:

• Discrete Industries
• Process Industries
   

Process industries represent the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the end user. This includes discrete industries and process industries. According to the report, process industries represented the largest segment.

The largest segment underlined for the industrial automation services market revenue caters to process industries that consist of oil and gas, chemicals, power generation, water and wastewater treatment, pharmaceuticals, and food and beverages (F&B). Continuous production and a necessity for reliable monitoring and control have led to these industries being governed by strict standards of safety and quality adhering to strict regulatory requirements. The nature of the process industries is such that they have major scale of operations and complexity, driving the need for a high level of automation to control and optimize production. An example is in 2024 when SLB combined efforts with Nabors Industries to deploy the use of fully automated drilling solutions for the oil and gas operators as well as drilling contractors.

Breakup by Region:

• North America
• Asia Pacific
• Europe
• Middle East and Africa
• Latin America
   

Europe leads the market, accounting for the largest industrial automation services market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America, Asia Pacific, Europe, the Middle East and Africa, and Latin America. According to the report, Europe represents the largest regional market for industrial automation services.

Europe's market is witnessing massive adoption of Industry 4.0 technologies such as AI, IoT, and advanced robotics, providing a favorable industrial automation services industry outlook. European industries are now increasingly integrating these technologies to drive higher operational efficiency, lower downtime, attain better levels of accuracy, and improve overall productivity. In addition, the concentration on sustainability and energy conservation is becoming more important. European companies are under pressure to minimize energy consumption and reduce carbon footprints, aligning with stringent environmental regulations and the EU's Green Deal objectives. The emphasis on smart factories, powered by automation systems that support real-time data analytics and predictive maintenance, is also gaining momentum. For example, to address the increased need for engineering-to-order products associated with energy transition and digitalization, Schneider Electric opened a new smart factory in Hungary in 2024.

Competitive Landscape:

• The industrial automation services market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the industrial automation services industry include Siemens AG, Honeywell International Inc., General Electric Company, Mitsubishi Electric, Rockwell Automation, Johnson Controls Inc., Schneider Electric, Yokogawa Electric Corporation, OMRON Corporation, Danaher Corporation, etc.

  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

• Businesses are pouring huge amounts of capital into advanced technology like artificial intelligence, machine learning, and IoT. It allows the incorporation of advanced automation solutions, such as predictive maintenance, real-time tracking, and analytics. These companies can deploy even smarter, more flexible automation systems that actually learn and self-adapt as the need arises by utilizing AI within the systems and combining it with IoT. One example is that Siemens developed in 2024 as an innovative solution to the traditional problem of tightly managing the multitude of hardware control points in factory environments. The most successful industrial automation service providers are moving towards more customer-centric support and custom solutions. Companies are scaling their consulting armies to cater to more comprehensive scope discovery to provide tailored automation strategies that match business purposes. Better customer training and stronger aftermarket support allow users to get the most out of their automation equipment and helps ensure greater customer satisfaction and repeat sales.

Industrial Automation Services Market News:

• June 2024: Honeywell announced the launch of its Battery Manufacturing Excellence Platform (MXP), which is an artificial intelligence (AI)-powered software solution created to optimize the operation of giga factories from the initial day by improving battery cell yields and expediting facility startups for manufacturers.
• December 2023: Mitsubishi Electric India declared the launch of its state-of-the-art smart manufacturing facility for advanced factory automation systems in Talegaon industrial area in India. This manufacturing facility is managed by best industry practices to deliver the products with the highest quality and reliability.

Industrial Automation Services Industry Report Scope:

Key Questions Answered in This Report:

• How has the global industrial automation services market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global market?
• What is the impact of each driver, restraint, and opportunity on the global market?
• What are the key regional markets?
• What is the breakup of the market based on the type of service?
• Which is the most attractive type of service in the market?
• What is the breakup of the market based on the product type?
• Which is the most attractive product type in the market?
• What is the breakup of the market based on the end-user?
• Which is the most attractive end-user in the market?
• What is the competitive structure of the market?
• Who are the key players/companies in the global industrial automation services market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, industrial automation services market forecasts, and dynamics of the market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global industrial automation services market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the industrial automation services industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.