Industrial Automation Software Market

According to Stratistics MRC, the Global Industrial Automation Software Market is accounted for $214.53 billion in 2022 and is expected to reach $418.93 billion by 2028 growing at a CAGR of 11.8% during the forecast period. The support system for managing the entire industrial process is industrial automation software. It helps to reduce operational cost and manage workforce optimization. The automation of various industries has provided a number of advantages, including easy monitoring, reduced waste, and accelerated production. Automation provides customers with products that are more consistent, dependable, delivered on time, and cost significantly less.

According to the International Federation of Robotics (IFR), the highest robot densities worldwide were found in Western Europe and the Nordic European Countries in January 2021. Germany comes in fourth among the most automated nations in the world.



Market Dynamics:

Driver:

Emergence of automation software solutions on the cloud

The emergence of cloud-based automation software solutions is notably fueling market expansion. By using cloud-based automation software, costs associated with hardware and IT infrastructure for automation solutions like MES and SCADA are eliminated. Industrial units can now significantly cut costs, improve functionality, and achieve greater flexibility due to the shift to cloud-based solutions. Users can view data on devices like tablets and smartphones like data analysis and maintenance from operators to cloud service providers through cloud-based architecture. In comparison to on-premise SCADA solutions. Therefore, during the forecast period, the market for industrial automation software will be driven by the emergence of automation software solutions on the cloud.

Restraint:

High cost of industrial automation software and lack of standardization

The initial capital investment needed for the adoption of technology and employee training is expensive. Due to the fragmented nature of the industry, it is also unable to forecast the return on investment. Despite this, small and medium-sized businesses are hesitant to adopt technology's advantages due to its high cost and unpredictable returns. Additionally, there is no market standardization, and the software is still in its early stages of development. This might make it challenging for businesses to collaborate with one another, which might impede the market's expansion.

Opportunity:

Growing need for mass production with reduced operation costs

Government support and initiatives, the high demand for industrial automation for mass production, and growing pressure to cut operating costs are all contributing to the growth of the automation software market. Enterprise-level solutions and product lifecycle management are in high demand worldwide. Mass production enables businesses to produce more with fewer employees. As a result, businesses can sell their goods for less without losing money. The increased use of automation in manufacturing demonstrates how quickly technological advances have eliminated the need for human intervention in the development, design, and assembly of a product's component parts. In the upcoming years, this is anticipated to fuel a demand for industrial automation software.

Threat:

Cybersecurity issues

Threats to cybersecurity are the main issue impeding the market's expansion. Operational outages, tampering with the process of product development, and theft of private data are the main cyber threats facing the discrete industry. Ransomware was used in the majority of common attacks, and smart manufacturers were the main targets. It is becoming increasingly difficult for discrete industrial operators to adopt automated devices and IoT due to the increased risk of cyber threats in sectors like medical devices, consumer durables, and automotive due to the growth of product patents and the high volume of confidential data. Therefore, during the forecast period, the aforementioned factors will hamper the market.

Covid-19 Impact

The COVID-19 pandemic resulted in the closure of numerous companies and had a detrimental effect on the expansion of the industrial automation software market. Many small and medium-sized businesses cannot afford the significant investment required to implement process automation. As restrictions have been lifted and more mobility and functionality have been restored, new strategies are being used with the goal of quickly recovering from losses.

The supervisory control and data acquisition (SCADA) segment is expected to be the largest during the forecast period

The SCADA system enables industry staff to analyze data and reach important decisions from a distance. It also helps to mitigate the problems by responding quickly as it distributes, processes, and displays the data on the human-machine interface (HMI). Due to this, supervisory control and data acquisition (SCADA) software experienced the largest share during the forecast period. Additionally, SCADA systems are crucial for a variety of industrial applications. Water and wastewater systems, electric generation, transmission, and distribution systems, as well as oil and gas systems, are just a few of the industries that use SCADA on a daily basis.

The chemicals & materials segment is expected to have the highest CAGR during the forecast period

Due to the rising adoption of IoT and process automation solutions, the chemicals and materials segment is anticipated to grow at the highest CAGR during the forecast period. Cost control is required in the chemical industry due to fierce global competition and a lack of product differentiation. Automation solutions provide two advantages in such a setting: innovation in consumer-important areas and increased cost effectiveness through optimized production. The IIoT and automation technologies can help the chemicals and materials industry control the costs of energy and raw materials, which will further open up opportunities for market expansion.

Region with largest share:

Throughout the projection period, Europe is likely to dominate the market. The area of robotics and automation in German mechanical engineering is one of the most cutting-edge. German OEMs are among the best R&A companies in the world. Human-robot cooperation (HRC) and machine vision (MV) technology are considered to be the primary benefits of a global hub that houses robotics businesses from various market sectors. Furthermore, the need for industrial automation software is growing among businesses in nations like Germany, France, the United Kingdom, Italy, and Spain in order to increase productivity, which is anticipated to spur market expansion. Additionally, rising adoption of cutting-edge automation solutions is anticipated to further fuel market revenue growth in this region.

Region with highest CAGR:

During the forecast period, Asia-Pacific is anticipated to experience profitable growth. The rise in industry 4.0 adoption and the adoption of cutting-edge technologies like AI, IoT, and cloud computing, among others, are driving the growth of this regional market. Other factors include the growing demand for mass production with lower operating costs. Additionally, it is anticipated that the region's expanding interest in the idea of a smart factory will further increase demand. Furthermore, innovative manufacturing methods are adopted by small and medium-sized businesses in India due to government initiatives like Make in India and MSME. The government's aggressive measures in this area are anticipated to fuel market expansion.



Key players in the market

Some of the key players profiled in the Industrial Automation Software Market include ABB Ltd, Advantech Co. Ltd., Aspen Technology Inc., Bosch Rexroth AG, Dassault Systèmes SE, Emerson Electric Co., Endress+Hauser AG, Fanuc Corporation, General Electric Company, HCL Technologies Limited, Hitachi Ltd, Honeywell International Inc., Mitsubishi Electric Corporation, National Instruments Corporation, Omron Corporation, Parsec Automation Corporation, PTC Inc., Rockwell Automation Inc., SAP SE, Schneider Electric SE, Siemens AG, Tata Consultancy Services Limited and Yokogawa Electric Corporation.

Key Developments:

In May 2023, Global technology and software company Emerson has been chosen by Syzygy Plasmonics to automate its innovative catalyst reactor technology that uses light instead of thermal energy, such as heat generated from burning fossil fuels, for chemical manufacturing. The all-electric production method is designed to replace fossil fuel-based combustion, helping reduce industrial greenhouse gas emissions and operational costs while advancing global sustainability goals. Syzygy estimates its reactor systems could eliminate 1 gigaton of CO2 emissions by 2040.

In April 2023, Advantech, a leading provider of advanced video processing solutions, is pleased to announce a cooperation relationship with Semtech, a high-performance semiconductor, IoT systems and Cloud connectivity service provider. The aim of this collaboration is to develop Software Defined Video over Ethernet (SDVoE) solutions that benefit the entire SDVoE Alliance® ecosystem.

In March 2023, HCLTech, a leading global technology company, announced the launch of its Automated Technology Modernization Accelerator (ATMA), an automated code transpiler that significantly accelerates the modernization of legacy programs. The automated modernization solution helps enterprises significantly reduce dependencies on application subject matter experts for transition from legacy platforms. The deployment can lead to reduction of up to 70% in effort and modernization costs while delivering high-quality applications on the latest technology stacks with consistent design patterns, coding and architecture standards.

Product Types Covered:
• Distributed Control System (DCS)
• Enterprise Resource Planning (ERP)
• Human Machine Interface (HMI)
• Maintenance Management Systems (MMS)
• Manufacturing Execution Systems (MES)
• Plant Asset Management (PAM) Systems
• Product Lifecycle Management (PLM)
• Programmable Logic Controller (PLC)
• Quality Management Systems (QMS)
• Supervisory Control and Data Acquisition (SCADA)
• Warehouse Management Systems (WMS)
• Other Product Types

Deployments Covered:
• On-premise
• Cloud-based

End Users Covered:
• Aerospace & Defense
• Automotive
• Chemicals & Materials
• Consumer Goods
• Food & Beverage
• Machines & Tools
• Mining & Metals
• Oil & Gas
• Paper & Pulp
• Pharmaceuticals & Biotech
• Power
• Semiconductors & Electronics
• Other End Users

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances