The need for process automation and instrumentation technology has increased due to the growing use of industrial automation processes, the desire for energy- and cost-efficient processes, and the focus on digital technologies. The development and expansion of numerous end-user verticals have also aided this market's growth. Additionally, the expansion of this sector has been made possible by the increased use of proactive solutions that identify faults at the component level. However, high initial investment and significant operations and maintenance expenditures will slow the expansion rate. A further obstacle to the market's expansion will be small and medium-sized businesses' hesitation and resistance to embrace process automation and instrumentation procedures.
COVID-19 IMPACT
Worldwide, the COVID-19 pandemic has had an impact on several businesses. The market for process automation and instrumentation is no different. To slow the rapid spread of COVID-19, governments worldwide employed drastic steps like border seals, lockdowns, and the implementation of tight social distancing measures. These acts severely impacted the world economy. Global industrialists were compelled to suspend manufacturing, disrupting the supply chain and hurting several businesses. However, it is anticipated that once trade activities resume, demand on the market will continue to expand steadily during the ensuing years.
DRIVING FACTORS
Growing Focus on Cutting Costs and Increasing Efficiency Supporting Market Demand
Industries worldwide are focusing more and more on increasing production efficiency and reducing operating costs to thrive in the fast-changing global industrial environment. As a result, they are exploring process automation and instrumentation technologies. Process automation involves leveraging software and computer technology to help end-use industries function more safely and effectively. A computer stores and analyzes the data with sensors that gather information on flows, pressures, temperatures, and other variables. Pressure, temperature, level, and humidity are just a few process factors that may be measured and analyzed using instrumentation equipment. They make it possible for industrial businesses to increase profits and cut costs.
RESTRAINING FACTORS
Process Automation has High Installation and Maintenance Costs to Limit Market Growth
Developing a new automated manufacturing facility necessitates using cutting-edge automation technologies, including SCADA, DCS, PLC, and HMI. The necessity for large initial investments to set up an automated production facility is one of the most important issues limiting the growth of the process automation and instrumentation market. Deploying instrumentation instruments like process analyzers and transmitters, as well as automation solutions like DCS and SCADA, requires significant cash. Solutions like DCS must be installed at an industrial site through several stages, including system implementation, process operation, data acquisition, and consultation. As a result, overall costs rise, increasing the plant owner's operating costs. Thus, system installation, upkeep, and upgrading involve significant capital expenditure, which limits industry expansion.
SEGMENTATION
By Instrument Type
Based on instrument type, the process automation and instrumentation market is segmented into transmitters, flow meters, analyzers, controllers, recorders, switches, and vacuum instruments. The transmitters category dominated the market in 2021. This is due to the increasing use of transmitters in industrial processes. In addition, the growing adoption of internet-based technologies by several industry verticals would help the expansion of the transmitters segment during the projection period.
By Solution
The market is segmented by solution: PLC, SCADA, DCS, HMI, APC, MES, and safety automation. The PLC category dominated the market in 2021. A system that combines a PC and a PLC to control various industrial processes is called programmable logic control, or PLC. This controller comprises two or more processors and PC-based software programs with PLC-capable features like asset management, historian, advanced process control (APC), HMI (human-machine interface) operations, and others.
By Application
By application, the market is segmented into chemical, metal & mining, food & beverage, oil & gas, pharmaceutical, pulp & paper, wastewater treatment, and others. The oil & gas category dominated the market in 2021. Exploration and extraction activities have increased, as well as the upgrading of existing oil and gas rigs, due to the rising demand for petroleum products like gasoline, diesel, and natural gas. These are some of the key elements driving process automation and instrumentation demand in the global market.
REGIONAL INSIGHTS
North America is projected to hold the largest share of the process automation and instrumentation market over the forecast period due to a growth in the adoption rate of industrialized automation in the region, particularly in the U.S. Additionally, during the projection period, the U.S. will provide the most revenue to the global market for process automation and instrumentation. The region's governments likewise concentrate on boosting energy production, and the American government funds these initiatives. For instance, the US DOE (Department of Energy) announced in July 2019 that 14 tribal energy infrastructure deployment projects would get USD 16 million in funding.
On the other hand, the Asia Pacific process automation and instrumentation market is anticipated to grow significantly over the forecast period. This results from rising energy infrastructure investments, supported by quickly expanding economies like South Korea, China, and India. For instance, as of October 2018, the Indian government had finished electrifying 95% of the nation's households, up from 86% a year earlier. The government's efforts to increase electricity reliability and emphasize domestic sectors, along with the always-expanding need for energy, are some of the main drivers of market expansion.
LIST OF KEY COMPANIES PROFILED:
- 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
- Hitachi Ltd
- Delta Electronics
- Fuji Electric
- Koyo Electronics Industries Co., Ltd.
- Yokogawa Electric Corporation
KEY INDUSTRY DEVELOPMENTS:
- April 2022: To program heating and HVAC applications to control small and medium-sized buildings, Siemens AG introduced PXC7 smart automation controllers.
- December 2021: NICE unveiled new robotic process automation powered by AI to help businesses increase ROI by speeding up production and harnessing the benefits of automation across the board.
| Attributes | Details |
| Study Period | 2016-2028 |
| Base Year | 2021 |
| Estimated Year | 2022 |
| Forecast Period | 2022-2028 |
| Historical Period | 2016-2020 |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Instrument Type, By Solution, By Application and By Geography |
| By Instrument Type |
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| By Solution |
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| By Application |
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| By Region |
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