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Global Industrial Controls Market is Set to Offer Revenue Opportunity Worth US$ 341.8 Billion by 2031

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Archives, Global Trade Daily, Technology

Global Industrial Controls Market is Set to Offer Revenue Opportunity Worth US$ 341.8 Billion by 2031

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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
Industrial Sensors
Archives, Global Trade Daily, News

Three Key Aspects that will Influence the Demand for Industrial Sensors by 2027

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Large-scale adoption of industrial robots across manufacturing & processing industries is expected to offer a considerable push to the industrial sensor market outlook. According to the International Federation of Robotics, around 2 million industrial robots are expected to be utilized across factories worldwide by 2022. Robotic Process Automation (RPA) technology in the manufacturing sector, as well as automation equipment such as HMI (human-machine interface) and PLC (programmable logic controllers) in assembly and production lines heavily, rely on industrial sensors.

The demand for such automation equipment may accelerate supported by favorable government initiatives designed to advocate the acceptance of industrial automation in the food & beverage sector. In March 2021, the Government of Australia announced an investment of USD 993 million to support the region’s F&B manufacturers under its MMI (Modern Manufacturing Initiative) scheme.

Projections from a report published by Global Market Insights, Inc., suggest that the industrial sensors market is expected to surpass USD 30 billion by 2027. Although, it is vital to note that the shortage of raw materials & components due to imposed COVID-19 restrictions have severely impacted the industrial sensors market growth in mid-2020. The shift of existing manufacturing facilities to new regions due to political and business obstacles might hinder the market growth during the pandemic.

Here are some of the trends to look for in the industrial sensors market until 2027:

Force Sensors Witnessing High Demand

Industrial IoT is steadily extending its reach across the pharmaceutical, food & beverage, chemical, and oil & gas sector. As a vital component in industrial IoT, industrial sensors are used to detect, measure, and analyze parameters such as level, temperature, pressure, force, and position, among others. Reports indicate that the force sensor segment held a market share of around 8% in 2020.

Force sensors are used to measure various physical parameters such as torque, mass, and weight of an object in the industrial sector. These sensors are commonly used in counting scales, hopper scales, bench scales, platform scales, truck scales, and belt scales. Force sensors have high capabilities to monitor the load and prevent industrial machinery from overloading and find application in force exertion control and industrial test benches in industrial robotics.

Demand Across the European Pharmaceutical Sector

Europe is home to some of the world’s leading pharmaceutical manufacturers such as AstraZeneca, Novo Nordisk, and Pfizer, Inc., among others. These companies are currently emphasizing on the mass production of vaccines and novel drugs. Certain equipment used in the medical industry are integrated with force sensors for fluid monitoring applications, endoscopic surgery, dialysis machines, physical therapy equipment, orthopedics and MRI devices.

Pharmaceutical companies in the region are extensively focusing on new research & development activities, increasing the adoption of industrial sensors. High-volume manufacturing and large-scale investments in the pharmaceutical sector will devise new opportunities for industrial sensor manufacturers in Europe. As per estimates, the industrial sensors of Europe is anticipated to register 7% CAGR from 2021 to 2027.

Use of Gas Sensors in Mining Application

The demand for industrial sensors such as gas sensors is escalating in mining & exploration activities. Generally, industrial gas sensors are used undermining conditions to monitor safety parameters to safeguard miners from toxic & flammable gases. Linking sensors with IoT systems will help mining companies to extract real-time & exact data about the temperature, pressure, and gases in the mines. The mining application segment held a 7% market share in 2020 and is projected to grow at 8% CAGR by 2027.

Source: https://www.gminsights.com/industry-analysis/industrial-sensors-market

MRO
Archives, Global Logistics, Global Trade Daily, International Trade

5 Promising Ways to Reduce the Impact of MRO on the Supply Chain

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Supply chain managers and procurement specialists often must reduce the effects of maintenance, repair and operations (MRO) expenditures on the supply chain. That’s not always easy, but these five tips should spark meaningful and measurable progress.

1. Understand the Impacts of Poor MRO Management

MRO encompasses essential items that are not part of the finished products — sometimes referred to as indirect costs. For example, the category might include lubricant for a machine, safety goggles for workers and scheduled maintenance appointments for equipment.

MRO expenditures typically account for 5 to 10% of the cost of goods sold. Some people initially view that percentage range as small and do not manage MRO procurement as well as they should or at all. However, that’s a mistake, because running out of critical items or failing to stay on top of maintenance could bring knock-on effects.

For example, if a production line machine runs out of an essential chemical, its output could completely stop until someone re-supplies. Alternatively, running out of safety gear could put lives at risk and expose a company to scrutiny from regulators if accidents happen. Weighing the consequences of inadequate MRO management should provide the encouragement any company needs to take it more seriously.

2. Determine How to Mitigate Climate Change-Related Effects

Many leaders across all industries are paying more attention to how climate change could affect MRO expenditures. For example, some scientists believe climate change makes hurricanes more severe, causing more rainfall than past storms did. In that case, maintaining a building may involve purchasing and installing flood barriers or changing a warehouse layout, so the most valuable items stay out of the reach of rising water.

Imagine an area starts experiencing more severe winter storms. In that case, a company’s MRO budget may include more salt and other de-icing products to keep loading bays and other regularly used areas safe and accessible. Alternatively, business leaders may need to invest in cloud software that lets some people work from home if they can’t reach their workplaces due to icy roads. When companies take preventive measures like these, their overall weather-linked MRO costs should decrease due to better preparedness.

Inclement weather’s effects on the supply chain are not merely hypothetical. A report showed that the 2011 floods in Thailand affected more than 14,500 entities that used Thai suppliers. Those weather events resulted in billions of dollars worth of losses for the companies that had operations disrupted. Thus, inclement weather could raise operational expenses if a business ramps up production to meet the needs of clients affected by production stoppages from other suppliers in hard-hit areas.

3. Create an Effective Preventive Maintenance Program

When maintaining the equipment that helps the supply chain run smoothly, there are two primary approaches to pursue — reactive and preventive care. The first type centers on addressing problems once they appear. Conversely, proactive maintenance is all about having technicians assess machines often enough to catch minor issues before they cause significant outages or require total machine replacement.

One survey showed that 80% of maintenance personnel preferred preventive maintenance. The respondents found it especially valuable as part of a multidimensional maintenance plan. Such an approach lets companies avoid the costliest or most time-consuming repairs. That’s because technicians notice most issues while the abnormalities are still small and simple to address.

Business leaders may not immediately associate some MRO expenditures with preventive maintenance. For example, one professional accepted a position as the maintenance manager of a fully automated warehouse. Soon after assuming the role, he assessed how cleanliness supported preventive maintenance by showing more details about functionality. He gave the example of how it’s more challenging to spot a machine leak when the floor below the equipment is dirty.

4. Set Relevant Key Performance Indicators

Many company leaders — especially those who recognize data’s value — set key performance indicators (KPIs) to track whether improvements on particular metrics occur over time. If they do, that generally means the business is moving toward its goals. On the other hand, if KPIs get worse or stay static despite employees’ best efforts, it’s time to assess what’s going wrong and make the necessary alterations.

Specific KPIs are exceptionally valuable for decreasing MRO’s impact on the supply chain. For example, measuring the percentage of slow-moving inventory and keeping it under 10% is a suggested ideal. Achieving that aim shows company leaders are not making the common mistake of buying a product that falls under their MRO expenditure umbrella, but finding it expires before they can use all or even most of it.

Inventory accuracy is another worthwhile KPI to track. An ideal is 95% or above. Incorrect MRO product counts could prove disastrous — particularly when many purchasing representatives buy PPE to keep supply chain workers safe. Imagine a scenario where a computer system says a company has 1,000 masks, but, due to human error, they only have 10 in stock. That’s an extreme example that illustrates the importance of staying on top of inventory counts.

5. Assess and Tweak the MRO Budget

Some people make the mistake of treating the MRO budget as a static entity. However, doing that could cause them to miss out on money-saving opportunities. For example, using one MRO supplier instead of several can reduce transactional overhead. In addition to saving on shipping, they may also become eligible for volume discounts.

Regularly scrutinizing the MRO budget can also illuminate whether businesses may be reducing costs in the wrong ways. Maybe they switched to cheaper cutting tools to minimize spending. These may have a lower upfront cost, but add more expenses to the overall budget. Perhaps employees complained and said the tools broke often or quickly became dull during typical use. Thus, managers would probably buy more of the items than before while trying to accommodate those shortcomings.

Making MRO Spending Reductions a Priority

These five tips show how businesses can act strategically to limit MRO spending’s adverse effects on the supply chain. Doing so can keep a company within its budget, plus make it more responsive to marketplace changes that may require operational changes to meet demands.

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Emily Newton is an industrial journalist. As Editor-in-Chief of Revolutionized, she regularly covers how technology is changing the industry.

material handling
Archives, Global Trade Daily, News

Material Handling Equipment Market Revenue to Hit $200 Billion by 2027

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The global material handling equipment industry is touted to gain massive proceeds over the coming years, owing to the expanding e-commerce sector and a subsequent increase in the automation of warehouses for ensuring on-time shipments and deliveries. The surging popularity of warehouse automation for streamlining the process of material handling is expected to stimulate industry growth.

According to the latest study by Global Market Insights, Inc., the global material handling equipment market size is projected to surpass USD 200 billion by 2027.

This growth is attributed to an increase in the adoption of acquisition and merger strategies by key material handling equipment manufacturers.

For instance, in April 2017, A.T.E. entered into a collaboration with Jost’s Engineering Company Limited for bringing the best material handling equipment to the textile industry across India and Bangladesh. The deal helped in enhancing the penetration of a range of products such as electric forklifts, racking systems, reach trucks, custom-built trucks, hand pallet trucks, scissor lifts, and others in the region.

Moreover, various integration technologies, comprising IoT and RFID, into the equipment will also play a pivotal role in augmenting material handling equipment market revenue through the estimated span.

Some major trends impelling material handling equipment industry expansion comprise:

Globally expanding 3PL industry

The expansion of the 3PL market at the global level is expected to augment the product deployment in distribution centers and warehouses, spurring material handling equipment market share over the coming years. Given that online retailing is in high demand, various companies are leveraging the advantages of third-party logistics providers for catering to an upsurge in the demand from consumers.

This, in turn, is expected to encourage 3PL service providers for the modernization of their storage facilities and warehouses so as to ensure fast and on-time delivery of shipments. Material handling equipment enables people to proceed with the efficient unloading/loading of products from transportation trucks, storing products at large heights in racks, and moving products easily throughout the facility through constrained spaces.

Surging demand for industrial trucks

An escalation in the demand for industrial trucks, that allow the transfer of heavy goods in an efficient and easy manner, is expected to drive material handling equipment market share through 2027. In addition, there is an increase in the demand for automated guided vehicles as they carry loads along the floor of the facility without the requirement of an onboard operator or a driver.

These vehicles are operated by means of an integrated system of hardware and software components. Furthermore, advancements in the sensor industry are set to fuel the research and development associated with AGVs, bolstering business expansion through the assessment period.

Expanding manufacturing sector in Latin America

Latin American material handling equipment industry is poised to register commendable growth through 2027, owing to the expansion of the manufacturing sector in the region. Mexico stood first amongst the trade partners of the U.S. in total trade in 2019 with a value amounting to USD 614.5 billion.

Moreover, the demand for bulk material handling equipment from the expanding processed foods industry is likely to boost the business landscape in the region. In addition, various regulatory bodies are encouraging the expansion of the overall industrial sector, increasing product adoption through 2027.

Source: Global Market Insights, Inc.