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The industrial automation software market size is forecast to increase by USD 4.80 billion, at a CAGR of 2.34% between 2023 and 2028. The expansion of the market is intricately tied to several pivotal factors. One such factor is the imperative to curtail overall operational expenditures, driving businesses to seek cost-effective solutions. Additionally, the rise of cloud-based automation software solutions is reshaping industry landscapes, offering scalability and flexibility to meet evolving demands efficiently. Another significant factor influencing market growth is the escalating complexities within industrial plants, necessitating advanced technologies and strategies for streamlined operations. These factors collectively underline the market's trajectory, emphasizing the critical role of innovative solutions in addressing contemporary challenges and driving sustainable growth across diverse sectors.
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The market is witnessing significant growth due to the increasing adoption of digital industrial technologies in automation-driven industries. The market caters to various sectors including process industry, discrete industry, oil and gas, chemicals, and paper and pulp. Product lifecycle management and enterprise-level solutions are popular offerings in the market. Human machine interface, cloud-based segment, system integration capabilities, and 24/7 operations are key features driving the demand. Automation software processes are crucial for automatic operations in industries, reducing human errors and enhancing work efficiency. The market is segmented into the cloud-based and on-premises segments. The cloud-based segment is expected to witness a higher growth rate due to its benefits such as cost savings, flexibility, and scalability.
Further, industrial automation software is essential for industries embracing Industry 4.0, enabling real-time data analysis and predictive maintenance. The market is further segmented into Distributed Control System, Manufacturing Execution Systems, and Programmable Logic Controller. The chemicals and materials sector is a significant end-user industry due to the need for time efficiency and skilled labor. The market is competitive with key players including Siemens AG, Schneider Electric SE, ABB Ltd., Honeywell International Inc., and Rockwell Automation Inc. offering comprehensive solutions. The market is expected to continue its growth trajectory due to the increasing demand for digitalization and automation in various industries.
The emergence of automation software solutions on the cloud is notably driving market growth. The adoption of cloud-based automation software eliminates the expenses related to hardware and IT infrastructure of automation solutions such as MES and SCADA. The shift toward cloud-based solutions has enabled industrial units to significantly reduce costs, enhance functionality, and achieve greater flexibility.
Moreover, the shift of functions such as analyzing and maintaining data from the operators to cloud service providers through cloud-based architecture enables the users to view data on devices such as tablets and smartphones. These devices are also used as portable HMIs to monitor remote machines and enable field technicians to access and control the process that is being followed. It is estimated that the adoption of cloud-based SCADA and MES solutions will reduce end-user's costs by up to 25% compared to on-premise SCADA solutions during the forecast period. Thus, the emergence of industrialisation software solutions on the cloud will drive the market during the forecast period.
Integration of PLM and ERP in industrial automation software is another factor driving the market growth. The integration of PLM and ERP helps manufacturers to develop and launch profitable products in the discrete manufacturing environment. The integration of PLM and ERP helps manufacturers to create a feedback information mechanism that can enhance the performance of the production process and the quality of manufactured parts.
Furthermore, the exchange of information between the two systems allows the adoption and tuning of the manufacturing process in a short time with improved performance. This integration will allow quick detection of the differences between the final product and the expected output (product). End-users are increasingly showing interest in this tri-system integration as it optimizes process and product design, reduces production cost and cycle time, and increases the capacity to manufacture high-quality, innovative products. This improved reactivity enables end-users to better deal with market changes. These factors will positively impact the market during the forecast period.
Cybersecurity threats are the major challenge hindering the growth of the market. The primary cyber threats in the discrete industry include operational downtime, manipulation in the product development procedure, and theft of sensitive information. Most of the common attacks involved ransomware, with smart manufacturers becoming the prime targets. Industries such as medical devices, consumer durables, and automotive are quite sensitive, and with the increasing product patents and the high volume of confidential data, it is becoming very difficult for discrete industrial operators to adopt automated devices and IoT due to the increased risk of cyber threats.
Furthermore, though automation software companies are increasing the security level in automation software and solutions, upgrades and security suits increase the overall cost of the complete automation suits, thereby increasing the CAPEX for industrial manufacturers. Thus, the aforementioned factors will hinder the market during the forecast period.
The market growth analysis report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
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 industrial automation software to improve productivity, minimize cost, and extend the useful life of products and systems.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth of the SCADA software segment will be significant during the forecast period. The demand for SCADA systems is increasing because of the rise in the need to monitor, control, and visualize the whole process to optimize the cost and reach operational efficiency. Factors such as the rise in smart grid technology in the power industry, the rise in smart wastewater treatment technology, and the need to reduce energy losses in metal, mining, and mineral processing industries drive the global SCADA market toward growth.
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The SCADA software segment was valued at USD 13.39 billion in 2018. The plant monitoring process and integration of various PLCs and databases using SCADA systems are gaining traction in the process and discrete industries. Advances in new tools to design SCADA applications for process control as per the plant requirement have eased the SCADA installation process in industries. The growing demand for Internet of Things (IoT)-enabled devices, as well as the need to efficiently manage and distribute data across operating areas, will increase the demand for SCADA systems, especially in the process industry, during the forecast period.
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APAC is estimated to contribute 49% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional market trends and drivers that shape the market during the forecast period. Moreover, factors such as rising population coupled with improved purchase power parity, growing expense on food products, and the increasing need for substitute food (packaged food and ready-to-eat food) are expected to foster the growth of the food and beverages industry in the region during the forecast period. Oil and gas investments are being aimed at downstream activities due to the rising need for energy resources in APAC to fuel its industrial growth and support its growing population. For instance, China Rongsheng Petrochemical built a 400,000 barrels per day refining facility in 2018, with a further addition in the refining capacity by 2020. Moreover, the oil and gas industry in APAC is expected to witness sustainable growth during the forecast period, considering the rising need for fuels and hydrocarbons.
The market research and growth research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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Industries Industrial automation software plays a pivotal role in the digital transformation of various industries, including automotive, chemicals and materials, mining and metals, food and beverages, power, machine manufacturing, semiconductor and electronics, aerospace and defense, medical devices, and more. These industries are increasingly adopting digital industrial technologies, such as Industry 4.0, IIoT, and automation technologies, to streamline operations, improve work efficiency, and enhance productivity. Product lifecycle management is a crucial aspect of industrial automation software, enabling enterprises to manage design specifications, automate processes, and integrate systems for seamless workflows. Human machine interface (HMI) is another essential component, ensuring effective communication between human operators and machines, reducing human errors, and enhancing time efficiency. Industrial automation software is available in both on-premise and cloud-based segments. Cloud-based solutions offer benefits like dynamic schedules, 24/7 operations, and real-time data access, while on-premise solutions provide data security and control framework leaks protection.
Further, robotic solutions are also gaining popularity, offering automation of repetitive tasks and freeing up skilled labor for more complex tasks. Cloud automation, multi-factor authentication, remote wipe technologies, and denial-of-service attack prevention are essential features for ensuring data security and system integrity. Industries like automotive, power, and aerospace and defense face unique challenges, requiring specialized MES solutions for effective implementation and integration of industrial automation software. The market is expanding rapidly, driven by advancements in robotics, artificial intelligence, and machine vision. Manufacturing and processing companies, including small- and medium-sized enterprises, are increasingly adopting supervisory control and data acquisition (SCADA), distributed control systems (DCS), and programmable logic controllers (PLC) to optimize production processes. Government initiatives support the integration of IT and software environments, enhancing production process test systems and automated material handling systems. Coordinated data management systems and automatic storage and retrieval systems improve efficiency in aerospace and defense sectors. The industrial Internet of Things (IoT) facilitates virtual machine condition monitoring and human-robot collaboration, ensuring in-process control and compliance.
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Market Scope |
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Report Coverage |
Details |
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Page number |
192 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 2.34% |
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Market Growth 2024-2028 |
USD 4.80 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
2.26 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 49% |
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Key countries |
US, China, Germany, Japan, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ABB Ltd., Advantech Co. Ltd., AMETEK Inc., Baosteel Group Corp., Beckhoff Automation, Eaton Corp. Plc, Emerson Electric Co., General Electric Co., Hitachi Ltd., Honeywell International Inc., Mitsubishi Electric Corp., OMRON Corp., Oracle Corp., Parsec Automation Corp., Rockwell Automation Inc., Schneider Electric SE, Siemens AG, Tata Consultancy Services Ltd., Toshiba Corp., and Yokogawa Electric Corp. |
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Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
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
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