Product Code: 66439
The industrial automation software market is expected to witness a CAGR of over 8.0% during the forecast period (2020 - 2025). The industrial automation software is the support system in controlling the overall industrial process. The increasing dynamic needs of the industry, demanding complex operations and process are driving the demand for industrial automation software.
- Industrial automation helps in reducing the machine hours required for the respective operations, which is made possible only through robust software. PLC has been dominating in the market for decades until Honeywell pioneered with Distribution Control Systems (DCS), with computers and minicomputers replacing large central mainframes.
- After the raw material and power costs, the employee wages account for one of the largest chunks of the variable costs for any industry, and the rising wage rates globally are making it more critical to manage. The reduction in the required number of employees for the process is minimizing the cost of wages by adopting industrial automation. This is one of the driving factors for the market.
- On the other hand, the cost of industrial automation software has reached almost to 40% of total automation expense, which is restricting the customers to adopt the automation systems in the industry.
Scope of the Report
The technological advancements impacting the industry floor such as in process control, robotic equipment is increasing and hence drives the demand for the industrial automation solution. Major end-user industry players are investing to upgrade their infrastructure to realize the potential of industry 4.0. The scope of the report is limited to different industrial automation solution such as SCADA, PLC, HMI and their application across the end-user industries.
Key Market Trends
SCADA has a Significant Impact on the Market Growth
- Supervisory Control and Data Acquisition (SCADA) software have experienced rapid growth over the past decade. SCADA system helps the end-user industry employees to analyze the data and make crucial decisions from a remote location. It further assists to mitigate the issues with a quick response as it processes, distributes, and displays the data, on Human Machine Interface (HMI).
- According to a research paper published in the Indian Journal of Science and Technology, the implication of SCADA systems with electric microgrids of the power distribution system in rural areas network has improved the overall process metrics by up to 75%.
- The labor wage is one the largest expense for any business. Also, in 2018, According to the Economy Policy Institute (EPI), the minimum wage rose by in the US rose by 2.6%, which is the highest growth since 2008. Owing to such factors, the business organizations are pushed to comprise in its margin with the high competition in their market. The industrial automation enables the reduction in required labor hours for the particular task by assisting them in their work and streamline the process.
- In addition, the increase in the efficiency of the machines and waste reduction achievement with eased access to the data analysis has gained popularity among the industries of such industrial automation solution.
Industrial Readiness is Expected to Prompt Europe Market Growth
- Europe accounts for more than a third of the global investment for Industry 4.0, and its manufacturing industry accounts for at least 15% of its GDP. Hence, being one of the early adopters of industry 4.0, the Industry automation software market has significant growth in the European market.
- Countries like Germany and Ireland have the largest manufacturing industry in Europe and the frontrunners for looking towards technological developments following by countries such as Denmark, Belgium, and the United Kindom as the potential countries for adopting industrial automation.
- European automotive manufacturing industry is a global leader hence giant in the industry look forward to their expansion in the region. For instance, BMW has planned to open a new factory in Hungary by 2023 having a capacity of producing 150,000 vehicles per year.
- Global leading 7 out of 11 industrial software companies such as Siemens, ABB, and Schneider Electric are from Europe and holds almost 50% of the global industrial software revenue.
The competition in the market is high as a significant share of the market lies with the major market players. innovation in the market requires the developers to have a better understanding of the industrial process to deliver a suitable solution and also drives close collaboration among the stakeholders during development, customization to suit the end users need.
- May 2019 - ABB launched a cloud-based SCADA system for offshore oil well drilling machines. This cloud-based visualization system enables the small scale operators to gather insights about their onshore oil well drillings remotely similar to the big organizations without investing for the full on-premise SCADA system.
- Feb 2019 - ABB and Dassault Systemes entered global partnership for digital solutions. By collaborating ABB Ability and Dassault's 3DEXPERIENCE platform, the two companies plan to provide end-to-end offerings of advanced digital solutions while increasing flexibility, speed, and productivity of the consumers.
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Table of Contents
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.2.1 Increase in Demand for Automation for Qualitative and Reliable Manufacturing
- 4.2.2 Growing Need for Mass Production with Reduced Operation Cost
- 4.2.3 Surge in Adoption of Industry 4.0 and Enabling Technologies
- 4.3 Market Restraints
- 4.3.1 Limited Availability of Professionals and Awareness Regarding Security
- 4.3.2 High Implementation Expenses for Factory Automation Solutions
- 4.4 Industry Value Chain Analysis
- 4.5 Industry Attractiveness - Porter's Five Force Analysis
- 4.5.1 Threat of New Entrants
- 4.5.2 Bargaining Power of Buyers/Consumers
- 4.5.3 Bargaining Power of Suppliers
- 4.5.4 Threat of Substitute Products
- 4.5.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 By Product
- 5.1.1 Supervisory Control and Data Acquisition (SCADA)
- 5.1.2 Distributed Control System (DCS)
- 5.1.3 Manufacturing Execution Systems (MES)
- 5.1.4 Human Machine Interface (HMI)
- 5.1.5 Programmable Logic Controller (PLC)
- 5.2 By End-user Industry
- 5.2.1 Power Industry
- 5.2.2 Automotive Industry
- 5.2.3 Oil & Gas Industry
- 5.2.4 Other End-user Industries
- 5.3 Geography
- 5.3.1 North America
- 5.3.2 Europe
- 5.3.3 Asia-Pacific
- 5.3.4 Latin America
- 5.3.5 Middle East & Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 Emerson Electric Company
- 6.1.2 ABB Ltd.
- 6.1.3 Siemens AG
- 6.1.4 General Electric Company
- 6.1.5 Schneider Electric SE
- 6.1.6 Honeywell International Inc.
- 6.1.7 Rockwell Automation Inc.
- 6.1.8 HCL Technologies Limited
- 6.1.9 Parsec Automation Corporation
- 6.1.10 SAP SE
- 6.1.11 Tata Consultancy Services Limited
- 6.1.12 Hitachi Ltd.
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS