Enjoy complimentary customisation on priority with our Enterprise License!
The automation market in automotive industry size is forecast to increase by USD 2.45 billion at a CAGR of 4.36% between 2023 and 2028. The automation market in the automotive industry is experiencing a surge in demand for enhanced visibility and flexibility in manufacturing processes. This trend is driven by technological advances in Programmable Logic Controllers (PLC), which are integral to automating production lines. However, the integration of Manufacturing Execution Systems (MES), Product Lifecycle Management (PLM), and Enterprise Resource Planning (ERP) systems poses significant security challenges for industrial control systems. These systems facilitate growth but also increase complexity and costs. The PLC market growth is slow due to high upfront and upgrading costs of MES, which acts as a barrier for smaller players in the industry. To mitigate these challenges, it is crucial to prioritize cybersecurity measures and adopt cost-effective solutions that streamline the integration of these systems. Our report examines historic data from 2018 - 2022, besides analyzing the current and forecasted market scenario.
To learn more about this report, Request Free Sample
The industry drives efficiency through programmable automation and motion control, facilitated by advanced automation/control software and industrial PCs. Panels and web panels streamline operations, complemented by industrial monitors for enhanced visualization. With the advent of 5G wireless technology and augmented reality, alongside concepts like digital twins and digitalization, industrial IoT reshapes production landscapes. Precision engineering aided by AC and DC motors, and precision sensors ensure quality in manufacturing. Amidst trade wars, locations like Singapore emerge as pivotal hubs for smart manufacturing. Automation in manufacturing is significantly enhanced by the use of industrial sensors, which provide precise data for efficient and accurate operations. Semiconductor and electronics sectors, allied with machine learning and artificial intelligence, drive innovation in components and 3D printing, defining the future of industrial automation in the automotive industry.
Our researchers studied the market research and growth data for years, with 2023 as the base year along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The demand for enhanced visibility and flexibility in the manufacturing process is one of the key drivers fueling the market growth. There are some automation solutions that enable automakers to integrate long supply chains into production lines, including DCS, MES, and SCADA. This is because The integration of IIoT with automation solutions in the manufacturing process enhances and optimizes plant efficiency and helps manual labor work effectively. For instance, in September 2020, BYD announced its intention to build an electric bus battery production plant in Brazil. The plant will be highly automated and deploy robotics, and the company expects to manufacture 1,000 battery modules in a month.
Moreover, such integration also increases the visibility and flexibility of the plant with the help of advanced analytics and predictive modeling techniques. These factors are encouraging the demand for automation market in the automotive industry during the forecast period.
The emergence of smart manufacturing is one of the key market trends contributing to market growth. The adoption of smart manufacturing enables industrial advances with advanced computing, analytics, low-cost sensing, and new levels of connectivity enabled by the Internet. Automation and machine vision are increasingly integrated to enhance operational efficiency, where machine vision systems provide real-time, precise visual data that drives automated processes and decision-making in manufacturing environments. Significantly, smart manufacturing is adopted for optimization and customization, asset tracking, predictive maintenance, and real-time inventory optimization.
Moreover, to enable smart manufacturing, industrial machines, and robots must be equipped with IoT-integrated microprocessors, microcontrollers, sensors, and switches that can optimize production efficiency. To make it happen, IIoT plays a key role in integrating all these systems and transferring information among the control systems. Thus, the innovations in sensors and automation solutions are leading to increased productivity in the automotive industry. Such factors will increase the market growth during the forecast period.
Security challenges of industrial control systems are one of the factors hindering market growth. Securing the legacy systems that are designed to communicate point-to-point is one of the major challenges, as securing new industrial control systems is relatively easy compared with securing legacy systems. Most of the control systems operating in Europe and the US were set up during the pre-Internet era. These industrial control systems are not designed for connectivity or to authenticate the commands received, making them vulnerable to security threats. Replacing these legacy systems is not a viable option, as it increases the cost to the companies.
The new industrial control systems also need to incorporate new technologies and software in both information technology (IT) and operation technology (OT) to improve system functions and productivity. Increased adoption of modern technologies, integration of IT and OT, and the emergence of IoT and cloud computing are also increasing the security challenges in companies, making the systems vulnerable to threats. One of the common flaws of security solutions witnessed in the OT infrastructure is its inability to protect legacy systems such as SCADA. The open architecture of the SCADA system not only enables greater integration of hardware and software but also increases the risk of security threats. Though technical advancements are expected to improve productivity, the rising vulnerability to security threats is expected to hamper the adoption of automation solutions in the automotive industry during the forecast period.
The industrial sensors segment will account for a major share of the market's growth during the forecast period. Industrial sensors sense and measure physical parameters, such as temperature, humidity, pressure, flow, speed, vibration, and position, and convert them to electrical signals that are sent to control systems such as PLC. Industrial sensors play a key role in the manufacturing of automobiles by ensuring consistency in product quality.
Customized Report as per your requirements!
The industrial sensors segment was valued at USD 3.76 billion in 2018. Currently, industrial robots are being widely adopted in the automotive industry because of the increasing demand for faster production and optimum efficiency. These industrial robots are equipped with industrial sensors that sense their movements and enable them to work efficiently with a pre-defined set of instructions. Advances in sensors, hardware, and software have made robots more intelligent and autonomous. The emergence of smart sensors is also one of the driving factors for the growth of the global industrial sensors market in the automotive industry. The adoption of Industry 4.0 involves the use of numerous sensors in manufacturing plants because of the need for real-time data from remote locations. Such factors will increase segment growth during the forecast period.
Based on end-user, the market has been segmented into vehicle manufacturers and component manufacturers. The vehicle manufacturers segment will account for the largest share of this segment. The vehicle manufacturers segment in the global automation market in the automotive industry refers to the application of automation technologies and solutions within the manufacturing processes of automotive companies. Vehicle manufacturers utilize automation to enhance productivity, efficiency, and quality in their production lines. Thus, automation in the automotive industry for vehicle manufacturers offers numerous benefits, including increased production efficiency, improved product quality, reduced costs, and enhanced worker safety. As technology continues to advance, automation is expected to play an even more significant role in the automotive manufacturing sector, which will drive the growth of the segment during the forecast period.
For more insights on the market share of various regions Download Sample PDF now!
APAC is estimated to contribute 41% to the growth during the forecast year. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period.
One of the key technological factors that are driving the growth of the automation market in the automotive industry is the adoption of industrial robots in plants. APAC is a major region for the adoption of industrial robots that simplify the manufacturing process and automate the production line. The automotive market in China is the largest consumer of robots, accounting for 40% of the total robot supply in China. According to the International Federation of Robotics, the trend of building automotive manufacturing plants in China, along with wage inflation, is expected to propel the industrial robots market in China by the end of 2022. However, it decreased in India, Singapore, and Japan, while it increased in South Korea and Australia, driven by higher orders in the industrial automation industry in 2020.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ABB Ltd.: The company offers automation in automotive industry services and solutions such as press automation, body in white, paint, and final assembly.
We also have detailed analyses of the market’s competitive landscape and offer information on key companies, including:
ABB Ltd., Applied Materials Inc., Aurotek Corp. Inc., Auto Control Systems, DENSO Corp., Emerson Electric Co., FANUC Bulgaria EOOD, Festo SE and Co. KG, General Electric Co., Kawasaki Heavy Industries Ltd., MIDEA Group Co. Ltd., Mitsubishi Electric Corp., OMRON Corp., Rockwell Automation Inc., Schneider Electric SE, Siemens AG, Yaskawa Electric Corp., and Yokogawa Electric Corp.
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
Market Analyst Overview
In the automotive technologies, automation is bolstered by advanced technologies such as digital twin technology, edge computing, and Siemens Industrial IoT solutions. Turbocharging enhances engine performance, while companies like Schmalz innovate with panel solutions and photoelectric sensors. Laser and inductive sensors ensure precision in manufacturing, and logistics supported by servo and micro electromechanical systems. AC motor and DC motor power various components, contributing to efficient operations across industry verticals. With a focus on product launch and development, management software and cloud-based solutions streamline processes, while cobots revolutionize collaborative workflows. Traceability platforms ensure quality and accountability, shaping the future of automation in the automotive sector with seamless integration of cutting-edge technologies.
Market Scope |
|
Report Coverage |
Details |
Page number |
191 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.36% |
Market Growth 2024-2028 |
USD 2.45 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.11 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 41% |
Key countries |
China, Japan, US, Germany, and India |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Applied Materials Inc., Aurotek Corp. Inc., Auto Control Systems, DENSO Corp., Emerson Electric Co., FANUC Bulgaria EOOD, Festo SE and Co. KG, General Electric Co., Kawasaki Heavy Industries Ltd., MIDEA Group Co. Ltd., Mitsubishi Electric Corp., OMRON Corp., Rockwell Automation Inc., Schneider Electric SE, Siemens AG, Yaskawa Electric Corp., and Yokogawa Electric Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technology
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.