The process automation and instrumentation market is anticipated to flourish at an average CAGR of 5.5% between 2023 and 2033. The market is expected to hold a market share of USD 1.72 billion by 2033, while the market is likely to reach a value of USD 1.06 billion in 2023.
The increased use of digital technologies like IoT, machine learning, and artificial intelligence, as well as the growing emphasis on industrial automation and resource efficiency, are all factors that are contributing to the growth of the process automation and instrumentation market. Other factors include the increasing importance of energy efficiency and cost optimization, increased productivity, reduced errors, and better scalability.
| Attributes | Details |
|---|---|
| Process Automation and Instrumentation Market CAGR (2023 to 2033) | 5.5% |
| Process Automation and Instrumentation Market Size (2023) | USD 1.06 billion |
| Process Automation and Instrumentation Market Size (2033) | USD 1.72 billion |
Process automation is the technique through which any process is made automatic, and instrumentation is the means by which the process is made automatic. Adoption of process automation and instrumentation helps industries perform complex processes with ease and faster, reduce labor costs, enhance workplace safety, and improve overall productivity.
To survive in the rapidly changing global industrial environment, industries worldwide are concentrating more and more on enhancing production efficiency and lowering operating costs. A production site's effectiveness is measured by how rapidly it can adapt to sudden and abrupt changes in demand, preferences, and resource availability. For this purpose, companies are increasingly adopting process automation and instrumentation solutions. This may continue to boost market growth during the forecast period.
Similarly, increasing investments in automation technologies, especially across fast-growing economies such as China and India, is likely to propel sales of process automation and instrumentation solutions.
Industries typically requiring automated, near-real-time process controls include chemicals, metals and mining, oil and gas, and power generation. In recent years, industrial enterprises made significant financial investments in APC infrastructure, likely to continue during the forecast period. This may, in turn, create lucrative opportunities for process automation and instrumentation manufacturers.
Regionally, North America, spearheaded by the United States, may continue to dominate the process automation and instrumentation market, accounting for the largest revenue share by the end of the forecast period. The rapid adoption of automation in the oil & gas and food & beverage sectors, increasing government support, and the presence of leading manufacturers are driving growth in the North American process automation and instrumentation market.
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As per FMI, the process automation and instrumentation market is anticipated to record a steady CAGR of 5.5% between 2023 and 2033, in comparison to the 4.7% CAGR registered from 2018 and 2022. Rising need for improving productivity across various industries is a key factor propelling demand for process automation and instrumentation solutions.
Process automation is the application of software, hardware, and computing technology to improve the safety and productivity of end-use industries, including cement, oil & gas, chemical, paper, and others. With sensors, which gather data on flows, pressures, and temperatures, among other devices, the information is saved and evaluated on a computer. The development of the overall process automation and instrumentation market depends on cooperation between manufacturers of semiconductor components, developers of industrial software, and suppliers of industrial automation equipment.
Adopting automation technologies has many advantages for manufacturing organizations, including easy monitoring, waste reduction, and accelerated output. Through standardization and increased quality, these technologies offer clients dependable goods in a timely manner at a much-reduced price.
Growing Emphasis on Reducing Costs and Improving Efficiency Bolstering Demand in the Market.
To survive in the rapidly changing global industrial environment, industries throughout the world are concentrating more and more on enhancing production efficiency and lowering operating costs. As a result, they are embracing process automation and instrumentation solutions.
Process automation involves using software and computer technology to allow end-use industries to operate more safely and efficiently. The information is stored and analyzed on a computer with the help of sensors, which collect data on flows, pressures, temperatures, and others.
Process automation systems help monitor and regulate processes to lower rework costs, minimize inspection expenses, and reduce system failures. Instrumentation equipment aids in measuring and analyzing process parameters, including pressure, temperature, level, and humidity. They enable industrial companies to lower costs and boost revenue.
Growing Trend of Industry 4.0 To Supplement Market Growth
Due to the growing acceptance of Industry 4.0 principles in manufacturing sectors like oil & gas, food & beverage, and chemicals, the process automation and instrumentation market is predicted to expand at a significant rate during the forecast period.
With the introduction of Industry 4.0, the majority of manufacturing industry processes and systems are automated using several technologies, including cloud computing, IoT, and cyber-physical systems, which enables production units to run effectively around the clock with no human error. From the stage of acquiring raw materials through the creation of the finished product, these technologies aid in reducing production cycle time and achieving process efficiency.
Automation improves industrial processes by facilitating better self-monitoring and communication, collecting intelligent real-time data, and analyzing and diagnosing problems automatically.
Principal Consultant
| Country | Revenue Share % (2022) |
|---|---|
| United States | 14.5% |
| Germany | 12.3% |
| Japan | 6.3% |
| Australia | 1.3% |
| Country | CAGR % (2023 to 2033) |
|---|---|
| China | 7.3% |
| India | 6.8% |
| United Kingdom | 5.2% |
Rising Penetration of Automation Across Various End-use Industries Boosting Demand in China
As per FMI, the process automation and instrumentation market in China is poised to exhibit a growth rate of 7.3% CAGR during the forecast period, owing to the rapid adoption of automation across various industries to improve productivity and reduce costs, favorable government support, and strong presence of leading market players.
Due to the widespread use of automation, China has made advancements in technologies, including navigation and optoelectronics. The global economy could be significantly changed by contemporary technologies that automate processes and procedures.
Similarly, the growing adoption of Industry 4.0 by manufacturing firms across China may boost sales of process automation and instrumentation over the next ten years.
Growing Focus Towards Improving Efficiency and Reducing Costs Across Industries Fueling Demand in Germany
Germany held a market share of around 12.3% share of the global process automation and instrumentation market in 2022. Furthermore, with rising emphasis on improving productivity and growing adoption of instruments like transmitters, flow meters, analyzers, controllers, switches, etc., the overall process automation and instrumentation market in Germany held a valuation of USD 4.86 billion in 2022.
Process automation refers to a variety of products and services that can use AI, machine learning, computer vision, voice recognition, natural language processing, and other skills to carry out ever-more-complex activities. Manufacturers are making investments in modern, innovative document processing systems.
To boost the efficiency and precision of these solutions, suppliers are integrating artificial intelligence, natural language processing, and machine learning elements, which is further expected to boost the market for process automation and instrumentation in the country during the forecast period.
| Category | By Operation Type |
|---|---|
| Leading Segment | Semi-Automatic |
| Market Share (2022) | 24.6% |
| Category | By End Use |
|---|---|
| Leading Segment | Automotive Industry |
| Market Share (2022) | 26.5% |
Transmitters to Remain the Highly Sought-after Instrument Type in the Market
As per FMI, the transmitters segment held around 17.8% share of the global market process automation and instrumentation market in 2022. This can be attributed to the rising adoption of transmitters in the manufacturing process.
Similarly, the widespread adoption of internet-based technologies by many business verticals may further support the growth of the transmitters segment during the forecast period.
Demand for Process Automation and Instrumentation to Remain High in Chemical Application
Based on application, the chemical segment accounted for 29.0% of the process automation and instrumentation market in 2022 and is poised to grow at a steady pace during the forecast period. This can be attributed to the rising adoption of automation in numerous chemical processes.
Amid rising focus on improving worker safety and reducing overall costs, chemical industries are predicted to see the implementation of cutting-edge technologies such as process automation and instrumentation in the future.
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Leading market players operating in the global process automation and instrumentation market include ABB Limited, Emerson Electric Company, Mitsubishi Electric Company, Rockwell Automation Inc., Siemens AG, Schneider Electric SE, Yokogawa Electric Corporation, Honeywell International Inc., Pepper Fuchs GmbH., General Electric Company.
Given the increased demand for automation across industries, market players of process automation and instrumentation are constantly under pressure to improve their offerings. As a result, they are increasingly adopting strategies such as new product launches, partnerships, collaborations, mergers, facility expansions, and acquisitions.
For instance:
Industries all across the globe are aware of the huge advantages of process automation and instrumentation. In addition to helping companies save massively on human resource costs, process automation, and instrumentation is advantageous as far as energy efficiency is concerned.
However, with the stiff competition in this space, players have to continuously execute their strategic plans. From spinoffs and new product launches to investment in cutting-edge technologies, leading players are ensuring they are at the forefront in this space.
ABB Limited, a leading provider of process automation and instrumentation, is viewing expansion as a winning strategy. To ensure its operating costs are optimal, it is opening new units in countries where the expense of doing business is not that high.
For instance, in order to keep up with the high demand for its energy operation technologies, ABB India announced the expansion of its smart power plant in Bangalore, India. The new factory may have advanced cooperative robotics technology, artificial intelligence (AI), and advanced digitalization technologies to create a sophisticated, automated, and adaptable future-ready facility.
Further, the company has inked a contract to deepen its strategic partnership with Hydrogen Optimized Inc. (HOI), a Canadian technological pioneer enabling green hydrogen production at scale.
Companies operating in the process automation and instrumentation space are on the lookout for creating value for their stakeholders. To achieve this, the players usually take steps such as cost-cutting measures or spinoffs. For instance, ABB, in July 2022, announced its plan to spin off Accelleron (formerly ABB Turbocharging).
Gaining a long-term contract is a key win for process automation and instrumentation service providers, as these contracts ensure a regular supply of revenues. Therefore, it is a key strategy of leading players to bag contracts, especially from governments.
For instance, Siemens, one of the leading players in this space, announced in September 2022 that it has been chosen to improve the distribution management system and advanced metering infrastructure for Alexandria Electricity Distribution Company (AEDC), a division of the state-owned Egyptian Electricity Holding Company (EEHC).
Similarly, in August 2022, the company announced an agreement with MAHLE to boost the overall electric vehicle inductive charging. Tapping into the growing demand for wireless charging of electric automobiles is a key goal of this collaboration.
In June 2022, the company launched Siemens Xcelerator, an open digital business platform to accelerate digital transformation and value creation for customers of all sizes in industry, buildings, and others.
The market is valued at USD 1.06 billion in 2023.
China is projected to generate a 7.3% CAGR by 2033.
The market is expected to reach USD 1.72 billion by 2033.
The automotive segment is expected to lead the market.
Cost reduction and efficiency are key market trends.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Instrument Type 5.1. Transmitters 5.2. Flow Meters 5.3. Analyzers 5.4. Controllers 5.5. Switches 5.6. Recorders 5.7. Vacuum Instruments 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Solution 6.1. PLC 6.2. SCADA 6.3. DCS 6.4. HMI 6.5. APC 6.6. MES 6.7. Safety Automation 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 7.1. Chemical 7.2. Metal & Mining 7.3. Food & Beverage 7.4. Oil & Gas 7.5. Pharmaceutical 7.6. Pulp & Paper 7.7. Wastewater Treatment 7.8. Others 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1. North America 8.2. Latin America 8.3. Western Europe 8.4. Eastern Europe 8.5. South Asia and Pacific 8.6. East Asia 8.7. Middle East and Africa 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Key Countries Market Analysis 17. Market Structure Analysis 18. Competition Analysis 18.1. ABB Limited 18.2. Emerson Electric Company 18.3. Mitsubishi Electric Company 18.4. Rockwell Automation Inc. 18.5. Siemens AG 18.6. Schneider Electric SE 18.7. Yokogawa Electric Corporation 18.8. Honeywell International Inc. 18.9. Pepper Fuchs GmbH 18.10. General Electric Company 18.11. Hitachi Ltd 18.12. Delta Electronics 18.13. Fuji Electric 18.14. Koyo Electronics Industries Co., Ltd. 19. Assumptions & Acronyms Used 20. Research Methodology
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Process Automation and Instrumentation Market
