The global industrial controls market is poised for significant growth in the coming years, driven by advancements in technology and increasing demand for automation and control solutions in industries such as manufacturing, energy, and automotive. The market is projected to reach a size of US$ 341.8 billion by 2031 from US$ 212.3 billion in 2022, growing at a compound annual growth rate (CAGR) of 5.5% during the forecast period of 2023-2031. This growth is expected to be driven by the increasing need for efficiency and productivity in industrial processes, as well as the growing trend towards Industry 4.0 and the Industrial Internet of Things (IIoT). In terms of volume, the market is expected to grow at a CAGR of 4.2% during the same period.
North America and Europe are currently the largest markets for industrial controls, but the Asia-Pacific region is expected to exhibit the highest growth rate during the forecast period, driven by rapid industrialization and increasing adoption of automation technologies in countries such as China and India.
Sustainability and Efficiency: Trends in Industrial Controls Market in the Era of Green Technologies
- Industry 4.0 and IIoT: The adoption of Industry 4.0 and IIoT is expected to continue driving the growth of the industrial controls market. These technologies enable the integration of physical and digital systems, leading to greater automation, data exchange, and real-time decision-making. This trend is expected to drive demand for advanced sensors, software, and communication technologies.
- Robotics and Automation: The demand for robotics and automation is increasing across various industries, including manufacturing, healthcare, and logistics. Industrial controls play a critical role in ensuring the seamless integration and control of robotic systems. The integration of robotics and automation with IIoT is expected to create new opportunities for the industrial controls market.
- Edge Computing: The growing adoption of edge computing is expected to create new opportunities for the market. Edge computing allows for the processing and analysis of data closer to the source, reducing latency and enabling real-time decision-making. Industrial controls that can operate at the edge and provide secure communication with central control systems will be in high demand.
- Cybersecurity: With the increasing adoption of IIoT and the growing use of interconnected systems, cybersecurity is becoming a critical concern. Industrial controls that provide secure communication and prevent unauthorized access will be in high demand. The market is expected to see an increased focus on developing secure industrial control systems.
- Sustainable and Green Technologies: The focus on sustainability and reducing carbon emissions is driving the adoption of sustainable and green technologies. Industrial controls that enable greater energy efficiency and enable the integration of renewable energy sources will be in high demand. This trend is expected to create new opportunities for the industrial controls market.
Europe to Generate Over 35% Revenue of the Global Industrial Control Market
Europe has been dominating the global industrial controls market for several years. This is due to various factors such as the presence of established market players, a strong demand for automation technologies, government support for industrial development, and advanced manufacturing processes.
One of the key reasons for Europe’s dominance in the industrial controls market is the high demand for automation technologies in industries such as manufacturing, oil and gas, and power generation. The region’s manufacturing sector is one of the largest in the world, with countries such as Germany, France, and the UK being major players. As these industries continue to automate their operations to improve efficiency and productivity, the demand for industrial control systems increases.
Europe is also home to several major players in the industrial controls market, such as Siemens AG, ABB Ltd., Schneider Electric SE, and Emerson Electric Co. These companies have a strong presence in the region and are actively involved in research and development to improve their products and services. Moreover, governments in Europe have been supportive of the development of the industrial sector, providing incentives for businesses to invest in automation technologies. For instance, the European Union’s Horizon 2020 program has provided funding for research and innovation in the industrial sector, promoting the adoption of advanced manufacturing technologies.
In terms of supply, Europe has a well-established supply chain for industrial control systems. The region has a highly skilled workforce in the engineering and manufacturing fields, with a focus on innovation and quality. This has led to the development of high-quality and reliable industrial control systems, which are in high demand globally.
Automotive Industry to Remain the Largest Consumer of Industrial Control Market, with 29% Revenue Contribution
The industrial controls market is expected to continue its growth trajectory as more industries recognize the benefits of automation, energy efficiency, and improved production processes. This growth is attributed to factors such as the increasing need for industrial automation and the growing demand for energy-efficient production processes. The use of industrial controls can lead to significant cost savings for companies. Schneider Electric estimates that the use of automation and control systems in manufacturing processes can lead to cost savings of up to 30%. Additionally, the use of energy-efficient industrial controls can help companies reduce energy consumption and costs. According to the International Energy Agency, the use of energy-efficient motors and drives can lead to energy savings of up to 40%.
Improved end-user experience is another key benefit of industrial controls. The use of industrial controls can ensure that products are of high quality and meet customer demands. The automotive industry accounted for the largest share of the industrial controls market in 2022, with a revenue share of 29%, according to a report by Astute Analytica. The use of industrial controls in the automotive industry can help manufacturers produce vehicles that are reliable, safe, and meet customer specifications.
End-user preferences also play a role in the industrial controls market. For example, the food and beverage industry is a key market for industrial controls that meet strict sanitation requirements. The oil and gas industry is a key market for industrial controls that can withstand harsh environmental conditions. Our study estimates that the food and beverage industry accounted for the second-largest share of the market in 2022, with a revenue share of over 18%.
Top 10 Players Dominate Global Industrial Controls Market, Capturing Over 74% of Total Revenue
The global market is highly concentrated, with the top 10 players holding over 74% of the revenue share. One of the leading players is Siemens AG, a German multinational conglomerate specializing in industrial automation, power generation, and transportation systems. Siemens AG’s industrial automation division offers a wide range of products and solutions, including programmable logic controllers (PLCs), human-machine interfaces (HMIs), and industrial PCs. With operations in over 200 countries, Siemens AG’s industrial automation division serves customers in various industries, including automotive, aerospace, chemical, and pharmaceuticals.
Siemens AG has a strong focus on innovation, investing heavily in research and development (R&D) to develop new products and technologies for the industrial automation in the global industrial controls market. In 2020, the company invested over EUR 5.5 billion in R&D, accounting for 6.4% of its total revenue. Siemens AG has a dedicated R&D division and has won several awards for its innovative technology.
Siemens AG is also committed to sustainability, setting ambitious targets to reduce its carbon footprint and investing heavily in renewable energy sources. The company has implemented sustainable practices in its manufacturing processes, reducing waste and improving energy efficiency.
Some of the Top Market Players Are:
- ABB Ltd.
- Emerson Electric Co.
- Endress+Hauser AG
- General Electric
- Honeywell International Inc.
- Mitsubishi Electric Corp.
- Omron Corporation
- Rockwell Automation Inc.
- Schneider Electric SE
- Siemens AG
- Yokogawa Electric Corporation
- Other Prominent Players