Market Trends of Factory Automation and Industrial Controls Industry
This section covers the major market trends shaping the Factory Automation & Industrial Controls Market according to our research experts:
Automotive is Expected to Register a Significant Growth
- The automotive industry is one of the prominent sectors that hold a significant share in worldwide automated manufacturing facilities. It is observed that the production facilities of various automakers are automated to maintain accuracy and efficiency. Further, the growing trend of replacing conventional vehicles with EVs is expected to augment the automotive industry's demand.
- In many industrial areas, the demand for automated solutions like robots has increased due to developments in Industry 4.0 technology. Because of technology, factories can operate without human supervision for 24 hours daily, 365 days per year. For instance, assembly robots are simpler to use than specialized equipment and can move more quickly and precisely than people. Robotic arms can do activities like screw driving, windshield installation, and wheel mounting in auto manufacturing facilities. They have a reputation for boosting productivity and efficiency while lowering expenses and dangers for human workers.
- Additionally, AI is used in the automotive value chain, from manufacturing duties like design and production to supporting activities like insurance and predictive maintenance. However, one of AI's fascinating uses today is transportation, where it powers the creation of driverless vehicles and driver assistance systems.
- Further, brands such as Hyundai have invested heavily in smart mobility solutions to stay ahead of their competitors. With cars becoming smarter and more connected, having a company specializing in robotics and AI can be a great asset in the long run. In June 2021, Hyundai Motor Company recently confirmed that they had bought a controlling interest in Boston Dynamics from SoftBank. According to the deal, the American robotics developer has been valued at USD 1.1 billion, and Hyundai has 80% shares while SoftBank still owns 20%.
- The automotive industry has chances to increase production, decrease manufacturing downtime, improve supply chain efficiency, and respond more quickly to market demands thanks to smart factories. The length of a project is one of the top issues facing the automotive sector. Rapidly paying off projects, together with affordable automation and cost innovation, aid manufacturers in becoming more competitive by enhancing productivity.
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North America to Hold a Significant Market Share
- Major automotive OEMs are based in the nation, benefiting from a substantial infrastructure and the government's support for electric vehicles. In addition, the increasing inclination of young people for luxury and premium vehicles is predicted to present lucrative opportunities.
- The automotive industry's attention has switched to electric vehicles due to the growing emphasis on decreasing vehicle emissions. Governments and environmental agencies are rolling out stringent emission rules and laws to address growing environmental concerns, which could increase the cost of producing electric drive trains and fuel-efficient diesel engines. As a result, over the past five years, battery electric car demand in North America has reached an all-time high.
- Additionally, the automotive industry will similarly undergo a change fueled by digitization, rising automation, and new business models. Four disruptive technology-driven trends are emerging in the automobile industry as a result of these factors: diversified mobility, autonomous driving, electrification, and connection. However, market participants may face difficulties due to the growing popularity of rental and used car markets. Growing logistics and delivery services, along with the expansion of vehicle fleets by major e-commerce players like Amazon, etc., significantly impact the demand for commercial cars.
- The adoption of factory automation solutions can help these manufacturers in cost savings, enhance productivity, and improve quality. Recently, the Royal Bank of Canada (RBC) collaborated with Microsoft and launched the Go Digital program to help Canadian businesses invest in smart automation technologies and cloud solutions. The program is available to Canadian food manufacturers and will continue expanding to other industries.
- In addition, in North America, orders for robots from automakers and component manufacturers accounted for 47% of all orders in the first quarter of 2022. Several automakers have announced investments better to outfit their plants for future electric drive car models or to boost battery production capacity. These significant initiatives will increase the demand for industrial robots in the coming years.
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