Next Move Strategy Consulting Forecasts strong growth in the global industrial process automation market: From USD 58.36 billion in 2023 to USD 96.06 billion by 2030, driven by the rising adoption of industry 4.0.

INDUSTRIAL PROCESS AUTOMATION MARKET OVERVIEW

The rapidly growing industrial process automation market encompasses the development, installation, distribution, and maintenance of interconnected automation systems designed to enhance the efficiency, productivity, and reliability of industrial operations. This market consists of a variety of products and services such as IoT-enabled devices, advanced robotics, control systems, and integrated management platforms. The growing adoption of industry 4.0, combined with the increasing use of digital technology and IoT devices, has significantly contributed to the growth of the industrial process automation industry. With the growth of industrialization and the increasing importance of digital connectivity in modern-day industry, there has been a notable rise in the need for effective and advanced industrial process automation systems, such as smart sensors, robotics, and control systems.

Within this growing market, several leading companies stand out for their innovation, market reach, and commitment to sustainability. Among them Siemens AG, Schneider Electric SE, Honeywell International Inc., ABB Ltd., and Hitachi, Ltd. are prominent players, each contributing significantly to the industry's evolution.

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HIGHLIGHTS OF SIEMENS AG

Siemens AG, a global leader in industrial process automation, reported a revenue of USD 82.58 billion in 2023, marking an 8% increase from the previous year. The company achieved an operating profit of USD 31.48 billion, reflecting its strong financial performance.

Siemens AG offers a comprehensive range of solutions in industrial process automation, including integrated automation, automation systems, identification and locating systems, industrial communication, digital enterprise services, industry software, and operator control and monitoring systems. These offerings position Siemens as a leader in the industry, providing advanced and efficient automation solutions to a wide array of sectors.

In fiscal 2023, Siemens' Digital Industries segment, which dominates the company's portfolio with a 57% share, introduced Industrial Operations X. This innovative portfolio integrates IT capabilities such as AI, low-code programming, edge computing, and cloud computing with automation technology and digital services. Collaborations with companies such as Intrinsic, an Alphabet subsidiary, have accelerated the integration of AI-based robotics and automation technologies, further solidifying Siemens' position at the forefront of industrial automation innovation.

Geographically, Siemens experienced significant growth across various regions. In the Americas and Europe, C.I.S., Africa, Middle East regions, revenue increased significantly, with double-digit growth contributions from digital industries and smart infrastructure.  In the Americas, revenue growth was led by Smart Infrastructure, while the U.S. saw slight decreases in revenue from Mobility and Siemens Healthineers. In the Asia, Australia region, Siemens reported a double-digit revenue increase, primarily driven by the Mobility segment, followed by growth in digital industries and smart infrastructure.

The company's strategic focus on developing industrial-grade AI solutions and integrating cutting-edge technologies into their automation portfolio has positioned Siemens AG as a key player in the global industrial process automation market, driving innovation and efficiency in industries worldwide.

HIGHLIGHTS OF SCHNEIDER ELECTRIC SE

Schneider Electric SE is a leading provider of industrial process automation solutions, dedicated to enhancing efficiency, sustainability, and resilience in various industries. The company offers a comprehensive suite of products and services, including advanced automation systems, energy management solutions, and advanced industrial software platforms. In 2023, Schneider Electric reported a revenue of USD 39.67 billion, reflecting a substantial increase from the previous year. The company's operating profit for the year stood at USD 4.42 billion. Consolidated revenue for the 12 months ending December 31, 2023, totalled USD 39.67 billion, marking a 12.7% organic growth and a 5.1% increase on a reported basis. This growth was driven by strong performance across various end-markets, fuelled by trends in electrification, automation, and digitization, despite some stabilization in consumer-linked areas due to higher interest rates.

Energy Management, a significant segment of Schneider Electric, generated revenues of USD 31,206 million, accounting for 79% of the Group's total revenues and exhibiting a 14% organic growth. The North American market showed remarkable performance with a 19% organic growth, driven by robust demand across end-markets, particularly in Systems, due to the high demand in Data Center and Infrastructure sectors.

Additionally, Schneider Electric has set its 2024 financial targets, aiming for an adjusted EBITA growth of 8% to 12% organically. This target is based on expected revenue growth of 6% to 8% organically, projecting an adjusted EBITA margin of around 18.0% to 18.2%.

In 2023, Schneider Electric ranked first in the Gartner Supply Chain Top 25, climbing from second place in 2022 and marking four consecutive years in the top five. The company also unveiled a new manufacturing plant in Texas, part of a USD 300 million investment in US manufacturing, supporting the energy transition and infrastructure development in America.

Additionally, Schneider Electric announced a USD 3 billion multi-year agreement with Compass Datacenters, extending their collaboration to integrate supply chains for the manufacture and delivery of prefabricated modular data center solutions. The company also launched CONNECT, a new industrial intelligence software platform that combines the industrial ecosystem with data, AI, and deep domain expertise. CONNECT provides customers with integrated intelligence, enabling agile, resilient, and sustainable operations.

HIGHLIGHTS OF HONEYWELL INTERNATIONAL INC.

Honeywell International Inc. is at the forefront of industrial process automation, providing innovative solutions to enhance operational efficiency, safety, and productivity across various industries. The company's extensive portfolio includes advanced automation systems, cutting-edge industrial software, and integrated technology solutions tailored to meet the evolving needs of industrial enterprises.

In 2023, Honeywell reported a revenue of USD 36.66 billion, marking a notable increase of 3% from the previous year. The company's strategic focus on innovation and expansion was evident with the acquisition of U.S. Digital Designs, a public safety communications company. This acquisition enhances Honeywell's building technologies portfolio and aligns with its ESG-focused strategy by providing first responders with better situational awareness and faster response times than standard 911 calls. Honeywell invested USD 1,317 million in R&D activities in 2023, representing approximately 4.1 percent of its consolidated revenues and reflecting a 13% increase year on year. Additionally, the company spent USD 55 million on order-related development activities. These investments underscore Honeywell's commitment to driving technological advancements and maintaining its leadership in the industrial automation industry.

Honeywell employed approximately 95,000 individuals across 79 countries, with 33,000 employees based in the United States as of December, 2023. This global workforce supports the company's mission to deliver innovative industrial process automation solutions and sustain its growth trajectory in the competitive market landscape.

HIGHLIGHTS OF ABB LTD.

ABB Ltd, one of the prominent players in industrial process automation, reported a revenue of USD 32.23 billion, reflecting a 9% increase from the previous year, and an operating profit of USD 5.42 billion. This growth was supported by strategic investments and expansions to meet the rising demands for electrification and automation solutions. The company's portfolio includes cutting-edge robotics, integrated automation systems, and advanced electrification solutions that cater to the evolving needs of modern industrial enterprises.

Additionally, ABB announced a USD 170 million investment in various sites in the U.S., creating approximately 400 new jobs, and a USD 280 million investment in a European robotics hub in Sweden, which will expand production capacity by 50%. The company's commitment to innovation and environmental sustainability is evident in its expanded Robotics & Discrete Automation portfolio. In 2023, ABB introduced four new robot models and 22 variants, enhancing performance, choice, and coverage. This expansion highlights ABB's dedication to providing advanced automation solutions that not only improve industrial processes but also deliver significant environmental benefits.

ABB's continuous investment in innovation and capacity expansion positions it as a key player in driving the future of industrial automation, helping industries worldwide to achieve greater operational excellence and sustainability.

HIGHLIGHTS OF HITACHI LTD.

Hitachi Ltd. is a global powerhouse in industrial process automation, renowned for its advanced technologies and comprehensive solutions that drive efficiency, productivity, and sustainability across various industries. With a commitment to innovation and excellence, Hitachi's offerings span a wide range of automation systems, digital services, and integrated industrial solutions.

In 2023, Hitachi reported a revenue of USD 64.34 billion, representing an 11% decrease from the previous year, and an operating profit of USD 4.90 billion. Despite the revenue decline, Hitachi continues to demonstrate its resilience and strategic focus on growth and technological advancement. The company employs over 322,525 people worldwide and derives 39% of its total revenue from Japan, underscoring its strong domestic market presence and global reach.

Hitachi operates primarily in five segments that includes digital systems & services, green energy & mobility, connective industries, and hitachi astemo, and other busiensses. In the current year, the connective industries segment has been particularly dominant, capturing a 30% market share. This segment's success highlights Hitachi's leading role in providing interconnected industrial solutions that enhance operational efficiencies and drive transformative outcomes for businesses.

With its extensive portfolio and global footprint, Hitachi Ltd. continues to shape the future of industrial process automation, leveraging its expertise to deliver cutting-edge solutions that meet the evolving needs of industries worldwide.

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SUMMARY OF INDUSTRIAL PROCESS AUTOMATION INDUSTRY

The industrial process automation industry focuses on implementing advanced technologies to optimize manufacturing and production processes, improving efficiency, accuracy, and reliability. This sector encompasses a wide range of solutions, including automated control systems, robotics, process sensors, and software applications that streamline operations and enhance productivity. The increasing need for operational efficiency, advancements in automation technology, and the rise of digital transformation in manufacturing is significantly driving the market growth. Companies such as Siemens AG, Schneider Electric SE, Honeywell International Inc., ABB Ltd., and Hitachi, Ltd. invest heavily in research and development to innovate and improve automation solutions, responding to the evolving demands of industries such as automotive, chemical, and energy. The integration of artificial intelligence, machine learning, and IoT technologies continues to shape the future of industrial process automation, enabling more sophisticated and responsive systems that support complex industrial environments and contribute to global industrial advancement.

About the author

Saurav Sarkar is an accomplished researcher and writer with over three years of experience in conducting thorough research. His passion for exploring various subjects and delving into in-depth analysis has led him to develop a keen understanding of research nuances. He remains committed to staying current with the latest market trends, recognizing their impact on businesses and society. The author can be reached info@nextmsc.com