North America Industrial Process Automation Market by Component (Manufacturing Execution System (MES), Distributed Control System (DCS), Programmable Logic Control (PLC), Supervisory Control & Data Acquisition (SCADA), Field Instruments, Industrial Robots, and Process Analyzers and Drives), and by End-User (Oil & Gas, Chemical & Refining, Energy & Power, Pulp & Paper, Metals & Mining, Pharmaceutical, Cement & Glass, and Others) – Opportunity Analysis and Industry Forecast, 2024–2030
Industry: Semiconductor & Electronics | Publish Date: 05-Dec-2024 | No of Pages: 138 | No. of Tables: 96 | No. of Figures: 61 | Format: PDF | Report Code : SE976
North America Industrial Process Automation Market Overview
North America Industrial Process Automation Market size was valued at USD 18.62 billion in 2023, and is predicted to reach USD 27.88 billion by 2030, at a CAGR of 5.4% from 2024 to 2030.The industrial process automation market refers to the industry that provides technologies and systems designed to monitor, control, and optimize industrial operations.
It involves the integration of advanced computer technology, hardware, and software solutions to automate key processes such as inventory management, manufacturing, production, and quality control. The key technologies include sensors, programmable logic controllers (PLCs), human-machine interfaces (HMIs), and supervisory control and data acquisition (SCADA) systems.
This market serves industries such as oil and gas, chemical processing, food and beverage, and pharmaceuticals, where automation is crucial for improving operational efficiency, product quality, and workplace safety. By reducing costs and minimizing human error, industrial process automation enables companies to streamline their production processes, ensuring higher output with greater precision. The demand for industrial process automation solutions continues to grow as businesses seek to enhance productivity and remain competitive in an increasingly automated global manufacturing environment.
The Technological Advancement Drives Market Growth in North America
The technological innovation is driving the widespread adoption of automation across diverse industries, with several key advancements playing a pivotal role. Developments such as 5G networks, edge computing, and blockchain technology are central to this evolution. 5G networks facilitate faster data transmission and lower latency, that are essential for real-time communication and control of automated systems.
Meanwhile, edge computing processes data closer to its source, minimizing delays and enhancing the efficiency of automation. Blockchain technology improves security and transparency in supply chain operations, further enabling the automation of complex processes.
These advancements empower businesses to automate various stages of their supply chains, from production to post-delivery support. The result is greater efficiency, increased productivity, and enhanced responsiveness to market changes. Companies can quickly adapt to shifts in demand and supply, leading to more streamlined and agile operations.
High Labor Costs Driving Growth in Automation
Rising labor costs compared to regions such as Asia and South America are fueling the growth of automation technologies. As labor expenses increase, companies are increasingly adopting automation to remain competitive and manage their costs more effectively.
Technologies such as collaborative robots (cobots) and advanced sensors play a crucial role in reducing reliance on manual labor. These solutions handle tasks that are hazardous or difficult for humans, enhancing both workplace safety and operational efficiency. Additionally, innovations in robotics, artificial intelligence (AI), and machine learning enable the automation of more complex and detailed tasks.
By integrating these technologies, businesses lower their operational costs and improve productivity. This trend not only helps companies manage high labor costs but also provides a strategic advantage in the global market by boosting operational capabilities and reducing overhead expenses.
Lack of Standardization Hinders the Growth of Industrial Process Automation Market
The lack of standardization is a major challenge that can limit the growth of the industrial process automation market. Without common standards, vendors may develop proprietary systems that are hard to replace or upgrade. This can result in vendor lock-in, where companies become dependent on a specific vendor’s technology, restricting their ability to switch to other vendors.
Vendor lock-in often leads to increased costs, reduced flexibility, and less innovation, that negatively affect market growth. Companies might hesitate to invest in automation systems if they are worried about being tied to one vendor’s technology, further slowing market expansion.
Industry 4.0 Technologies Paving the Way for Future Automation Opportunities
Advancements in Industry 4.0 technologies, such as the Internet of Things (IoT), cloud computing, and artificial intelligence (AI), are opening up significant opportunities for the North America industrial process automation market growth. These technologies allow companies to gather and analyze large amounts of data in real-time, offering valuable insights into their operations and highlighting areas for improvement. As technology evolves quickly, market participants are partnering with tech-focused companies to create new solutions based on established technologies.
The U.S. Dominates the North America Industrial Process Automation Market Share
Technological innovation is significantly driving the North America industrial process automation market expansion, with advancements such as 5G networks, edge computing, and blockchain playing a crucial role. 5G enhances data transmission speed and reduces latency, vital for real-time control of automated systems. Edge computing processes data near its source, minimizing delays and increasing operational efficiency.
Blockchain further boosts security and transparency, especially in automating complex supply chain processes. These innovations enable businesses to automate various stages, from production to post-delivery, leading to improved efficiency, productivity, and adaptability in response to market demands, resulting in more streamlined and agile operations.
The manufacturing industry in the country is undergoing significant growth, even as employment in the sector has declined over the past two decades due to offshoring and economic recessions. This reduction in the workforce has accelerated the adoption of automation within the industrial sector as companies seek to maintain productivity and reduce costs. By implementing automation technologies, businesses are able to streamline operations, lower production costs, and improve efficiency.
These factors are driving the expansion of the industrial process automation market, as industries increasingly turn to advanced automation solutions to address labor shortages, enhance competitiveness, and adapt to shifting production demands. This trend is expected to further boost the market as automation becomes a critical tool for sustaining growth and operational efficiency.
Mexico to Witness Substantial Growth in the North America Industrial Process Automation Market
Mexico's growing economy is fueling an increase in manufacturing and industrial activities, that is driving the demand for industrial process automation solutions. Rising labor costs and a stronger focus on workplace safety are prompting companies to invest in automation as a way to reduce operating expenses and enhance safety standards.
The advancement of technologies such as automation, robotics, and artificial intelligence is accelerating this shift, as these innovations improve the efficiency and accuracy of industrial processes. As a result, companies are experiencing reduced costs and increased productivity, boosting the industrial process automation market in Mexico.
For instance, ABB's establishment of a new technology and engineering center in January 2023 is aimed at strengthening automation capabilities in sectors such as mining, pulp & paper, and battery manufacturing, further supporting the market's growth by driving advancements in automation, electrification, and digitalization.
The Mexican government is actively promoting the adoption of automation technologies in key manufacturing sectors, including aerospace, medical devices, and automotive, as part of efforts to enhance the country's economic competitiveness. To facilitate this transition, the government offers tax incentives and grants to businesses investing in automation.
These financial incentives help offset the costs of implementing advanced technologies, making it more accessible for companies to integrate automation into their operations. This governmental support is driving the growth of the industrial process automation market while also improving productivity and efficiency in these vital industries, further strengthening Mexico's manufacturing landscape.
Competitive Landscape
Several key players operating in the North America industrial process automation industry include Hitachi Ltd., Siemens AG, Mitsubishi Electric, Schneider Electric, Honeywell International, ABB Ltd., Toshiba Corp., Emerson Electric Co., Rockwell Automation, Omron Corp., Fanuc Corp., Valmet OYJ, Yokogawa Electric, Endress Hauser, Dwyer Instruments, and others.
North America Industrial Process Automation Market Key Segments
By Component
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Manufacturing Execution Systems
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Hardware
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Software
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Services
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Distributed Control Systems
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Hardware
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Software
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Services
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Programmable Logic Control
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Hardware
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Software
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Services
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Supervisory Control and Data Acquisition (SCADA)
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Hardware
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Software
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Services
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Field Instruments
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Industrial Robots
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Process Analyzers & Drives
By End-User
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Oil & Gas
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Chemical & Refining
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Energy & Power
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Pulp & Paper
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Metals & Mining
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Pharmaceutical
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Cement & Glass
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Others
By Country
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The U.S.
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Canada
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Mexico
Key Players
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Siemens AG
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Mitsubishi Electric
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Schneider Electric
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Honeywell International
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ABB Ltd.
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Toshiba Corp.
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Emerson Electric Co.
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Rockwell Automation
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Omron Corp.
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Fanuc Corp.
REPORT SCOPE AND SEGMENTATION:
|
Parameters |
Details |
|
Market Size in 2023 |
USD 18.62 Billion |
|
Revenue Forecast in 2030 |
USD 27.88 Billion |
|
Growth Rate |
CAGR of 5.4% from 2024 to 2030 |
|
Base Year Considered |
2023 |
|
Forecast Period |
2024–2030 |
|
Market Size Estimation |
Billion (USD) |
|
Growth Factors |
|
|
Countries Covered |
3 |
|
Companies Profiled |
10 |
|
Market Share |
Available for 10 companies |
|
Customization Scope |
Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope. |
|
Pricing and Purchase Options |
Avail customized purchase options to meet your exact research needs. |
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