Market Trends of Industrial Control Systems Industry
Food and Beverage Sector to Widely Use Industrial Control Systems
- The demand for the food and beverage industry is growing yearly because of the economy's growth and disposable incomes. The increasing population is also contributing to this industry.
- Moreover, the demand for processed goods is increasing, with increased buying power and changing lifestyles. This has made it necessary for food manufacturers to implement automation to improve the processing rate to meet consumers' demands. Furthermore, the rapid development of computer technology, dynamic changes in consumers' preferences, and regulatory bodies have boosted the need for food quality and safety. This has resulted in the growing adoption of automated systems in the food industry.
- In June 2022, PepsiCo India announced an additional INR 1.86 crore investment in expanding its food manufacturing plant in Kosi Kalan, Mathura, Uttar Pradesh, to produce the Doritos cornflakes brand. PepsiCo's total investment in its largest Greenfield Foods manufacturing plant, which manufactures Lay's potato chips, will reach INR 1,022 crore.
- Moreover, the Pet food manufacturer plans to invest USD145 million in a 200,000 expansion and equipment upgrades at their FORT SMITH, AR processing facility. The project has recently received approval. The project is expected to be completed in 2022, further driving the market growth.
- Successful integration of different automation stages in the food and beverage industry leads to value-creation in the supply chain, which ensures a long-term competitive edge and efficient production. Hence, food companies are finding ways to improve reliability, increase productivity, reduce waste, and decrease total costs through process automation. This automation requirement also makes controls significant to a company's production.
- In addition, the adoption of process automation has also reduced the number of workers required per plant while providing flexibility in product pricing for industrial operators. Such a rising need for controlling significant expenses is likely to further proliferate the growth of the industrial process automation market during the forecast period.
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North America to Dominate the Market
- North America is on the verge of the fourth industrial revolution. The data generated is being used on a large scale for production while integrating the data with various manufacturing systems throughout the supply chain.
- The region is also one of the largest automotive markets in the world and is home to over 13 major auto manufacturers. Automotive manufacturing has been one of the largest revenue generators, in the region, in the manufacturing sector. As the automotive industry accounts for the significant adoption of industrial control systems and automation technologies, the region offers a huge opportunity for market growth.
- Multiple major key vendors operating in the country are launching new updates to help in the growth of smart factories with developments in industrial control systems. Such technological advancement is indicative of the growth of the region in the studied market.
- Moreover, supporting government policies and competitively priced natural gases are enabling the US and Canadian chemical companies to build plants, expand, automate, and control their facilities. Hence, the growth of industrial controls in the North American region is also expected to further drive the market studied over the forecast period.
- General Motors signed three sourcing agreements for EV battery materials in August 2022, potentially aiding the automaker in achieving its objective of manufacturing one million EVs annually. The multi-year contracts with LG Chem, POSCO Chemical, and Liventwill supply GM with critical materials such as lithium, nickel, cobalt, and active cathode material (CAM). Such expansion in the automotive sector in the country may further create significant demand for PLCs.
- The country is one of the largest crude oil producers and a prominent oil and gas industry player. For instance, according to EIA, by 2030, the production is expected to reach 30.01 quadrillions Btu in the region. Texas produces the major share of crude oil in the country and is expected to generate significant demand for production equipment.
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