Industrial Automation Market Trends

Growth Drivers

• Rising demand for automation for trustworthy and qualitative manufacturing - The manufacturing companies to increase accuracy, optimize costs, and boost production efficiency. Automation facilitates the simple flow of information across the company's components and aids in the collection of all of its actions. In the industrial sector, automation reduces the need for human labor while enhancing accuracy, uniformity, and operational effectiveness. It also boosts output while ensuring trustworthy manufacturing.
  
  Moreover, as stated by the International Trade Administration (ITA), the automotive and other transportation manufacturing sectors experienced a positive gain of 15.1 industrial robots per million hours worked, which was the biggest improvement in industrial robot density among all industries

• Rising adoption of Industry 4.0 globally - The industrial revolution of the 21st century is digital. Businesses, consumers, and stakeholders along the value chain may find it easier to access and transmit goods and services due to the Fourth Industrial Revolution. Therefore, companies and industries are more and more incorporating construction 4.0 in their businesses.
  
  According to the most recent Industry 4.0 acceptance report from 2022, businesses have progressed even further. Remarkably, 72% of survey participants said they are putting their Industry 4.0/Smart Factory plans into practice, with many of them already underway and some having been finished.
   
• Increasing government initiatives to encourage industrial automation - Growing government programs to support industrial automation are opening up a lot of potential for the global industrial automation market. The potential advantages of automation for raising industrial sectors' competitiveness, productivity, and efficiency are being recognized by governments worldwide.
  
  As a result, they are putting in place a number of rules and initiatives to encourage companies to use automation technology. To entice businesses to invest in automation solutions, these programs frequently take kind of tax breaks, grants, subsidies, and training courses.

Challenges

• Volatility in the end-use industry - The rising volatility in different end-use industries can impede the market expansion of industrial automation by the end of 2035. For instance, the recent reduction in global oil demand can affect the market economy. Although the extent of the global recovery is not entirely clear, statistics on oil demand and mobility indicators point to a significant slowdown in the recovery's speed and the end of the period of demand growth above the historical average.
   
• Shortage of competent workforce to implement industrial automation - The demand for specialized knowledge and abilities has expanded due to the automation technologies' fast progress. Because of this, employees must constantly update their knowledge, which results in a skills gap between the current workforce and the changing needs of the workforce.