Product Code: 66439
The industrial automation software market is expected to witness a CAGR of over 8.0%, during the forecast period, (2021 - 2026). 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 processes are driving the demand for the 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 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 accounted 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 reached almost 40% of total automation expense, which was restricting the customers to adopt the automation systems in the industry.
Key Market Trends
SCADA has a Significant Impact on the Market Growth
- The supervisory control and data acquisition (SCADA) software 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 the human-machine interface (HMI).
- According to a research paper published in the Indian Journal of Science and Technology, the implications 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 of the largest expenses for any business. Also, in 2018, according to the Economy Policy Institute (EPI), the minimum wage in the United States 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 streamlining 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 the industrial automation solution.
Industrial Readiness is Expected to Prompt Europe Market Growth
- Europe accounts for more than one-third of the global investments 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 industrial automation software market has a significant growth in the European market.
- In Europe, countries, like Germany and Ireland, have the largest manufacturing industry and the frontrunners for looking toward technological developments, followed by countries, such as Denmark, Belgium, and the United Kingdom, as the potential countries for adopting industrial automation.
- The European automotive manufacturing industry is a global leader, hence, the giant in the industry and is looking forward to its 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.
- Seven out of the 11 globally leading industrial software companies, such as Siemens, ABB, and Schneider Electric, are from Europe and these companies hold almost 50% of the global revenue from industrial software.
The trend toward consolidation in the market is moderate, as the major market players hold a significant share of the market. Innovations in the market require the developers to have a better understanding of the industrial process, in order to deliver a suitable solution and also drive close collaboration among the stakeholders, during development and customization to suit the end users' needs.
- 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.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
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 Forces 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 and 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