Pharmaceutical and power industries are expected to create potential growth opportunities for process automation and instrumentation vendors
The global process automation and instrumentation market size is projected to reach around USD 98.6 billion by 2028. In addition, it is projected to gather a CAGR of around 7.98% over the forecast years 2020-2028. Process automation and instrumentation is the use of computer software and technologically advanced equipment to track, manage, and reduce costs by improving productivity at various manufacturing plants. Process automation simplifies processes and maintenance by using sensors at various locations around the plant to help track optimal working conditions and other parameters including temperature and pressure. Overall, growing concerns related to the planned functional safety and protection, increasing demand for energy-efficient production processes, rising labor costs, high productivity levels with minimum costs are the primary drivers of process automation and instrumentation market development. Additionally, advancing technology in process automation and instrumentation and increasing penetration of process automation and instrumentation in developing countries such as China, India, and others will create new opportunities for the process automation and instrumentation markets. However, the primary constraints for the process automation and instrumentation market are higher research and development costs and higher implementation and maintenance costs of technologies and equipment.
The COVID-19 outbreak has reduced the process automation and instrumentation market globally. This is because of supply chain problems around the globe. The economies across the world have weakened as demand for goods is declining considerably. Output in all sectors has been reduced due to the pandemic, raw material shortages, export declines, and supply chain disruptions are the key factors leading to a reduction in manufacturing as well as the decrease in the process automation and instrumentation sector.
The future and existing process automation and instrumentation market progress are outlined to know the market attractiveness. Key influencing factors focus on the market opportunities for the process automation and instrumentation market over the forecast years. The main factors driving process automation and instrumentation market growth are increasing adoption of IoT technology across different industrial domains, increasing strict regulation and enforcement in process industries, improving efficiency in production, and reducing operating costs. Also, the other driving factor behind the growth of the process automation and instrumentation market is the growing attention of companies on improving productivity as well as reducing operating costs across multiple industries. However, the lack of skilled labor and sluggish growth in developed markets are the key barriers that hinder the development of the market for process automation and instrumentation. Furthermore, rising demand for safety automation systems is anticipated to be an opportunity for the process automation and instrumentation market.
The report also outlines the various characteristics of the global process automation and instrumentation industry by assessing the market from value chain analysis. Moreover, the process automation and instrumentation market report comprises various qualitative parts of the process automation and instrumentation industry in market restraints, essential industry drivers, and opportunities. Furthermore, the report provides a complete assessment of the market through company profiling and the competitiveness of the local as well as global vendors.
The process automation and instrumentation market have solid competition amongst the already well-known and new market players. Also, the process automation and instrumentation industry players are pursuing potential markets to seize a competitive lead among the other industry players by forming mergers & acquisitions, agreements, acquiring other companies & new startups, establishing collaboration & partnerships, and growing their business existence.
Based on the instrument segment, the market is segmented into a field instrument, control valve, and analytical instrument. In 2019, the control valve segment had major growth and it is likely to maintain its dominant position during the forecast period. The market growth of this segment is primarily ascribed to the oil & gas industry since it is amongst the most promising industry for bringing control valves into different systems and thus anticipated to drive the process automation and instrumentation market.
The North American region is projected to accumulate the highest growth during the forecast period. Market growth is anticipated during the forecast period due to factors such as increasing investment in infrastructure in the energy & power sector due to the growth in electricity consumption and the drive for greater reliability of power by policymakers; augmented demand of oil & gas and food & beverage due to increasing population needs, industrial development, and steady growth in US industrial production, along with favorable government policies. Even in North America, the process automation and instrumentation market for the pharmaceutical industry is growing due to low-cost factors and a changing regulatory environment. However, the North American region held the highest market share in 2019 and is anticipated to remain the dominant market during the forecast years 2020-2028.
The major players of the global process automation and instrumentation market are Siemens, Yokogawa, Endress+Hauser, Emerson, General Electric, ABB Ltd, HOLLYSYS, Schneider Electric, Honeywell, Mitsubishi Electric, Rockwell Automation. The process automation and instrumentation market comprises well established local as well as global players.
Segment Overview of Global Process Automation and Instrumentation Market
Instrument Overview, 2018-2028 (USD Billion)
- Field Instrument
- Control Valve
- Analytical Instrument
Solution Overview, 2018-2028 (USD Billion)
- Advanced Process Control (APC)
- Distributed Control System (DCS)
- Human Machine Interaction (HMI)
- Manufacturing Execution System (MES)
- Programmable Logic Controller (PLC)
- Safety Automation
- Supervisory Control and Data Acquisition (SCADA)
Industry Overview, 2018-2028 (USD Billion)
- Oil and Gas
- Food and Beverage
- Pharmaceutical and Bio-pharma
- Chemical and Petrochemical
Regional Overview, 2018-2028 (USD Billion)
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia-Pacific
- Middle East and Africa
- South Africa
- Rest of Middle East and Africa
- South America
- Rest of South America