Industrial Automation Global Demand Continues to Rise

The global industrial automation market, which is expected to witness a CAGR of ~10% between 2012 to 2018, will be led by China and the US

Global industrial automation market (US$ billion)

End-markets of global industrial automation, 2012

Growth Drivers

As of 2012, North America and Asia accounted for nearly 65% of the demand for industrial automation

More than half of the demand for industrial automation is being driven by the need to increase machine output in the manufacturing sector

The Automotive, Pharma, Power , and Packaging sectors together accounted for close to 48% of the revenues from global industrial automation

As of 2012, factory and process automation accounted for 46% and 54% of the demand for global industrial automation, respectively

2012 2013e 2014e 2015e 2016e 2017e 2018e

155171

189210

232256

283

CAGR: 10.5%

Factory Automation (US$72bn) Process Automation (US$83bn)

Packaging19%

Textile12%

Food Processing6%

Others28%

Automotive35%

Power19%

Oil & Gas17%

Plastic10%

Food Processing5%

Others26%

Pharma23%

Increased focus of car manufacturers on cost management strategy

Countries looking to expand downstream petrochemical capacity to reduce dependence on energy imports

Strict enforcement of food safety regulations in emerging markets

Increase of factory automation in automotives

Increase of process automation in oil & gas

Increase of factory and process automation in food & beverage sector

IMPACT

Source: Credit Suisse, Roland Berger, Industry Arc, Desk Research

DRIVERS

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Compiled by: Arpit khullar

As the global manufacturing industry is becoming increasingly competitive, companies are forced

to meet international standards while maintaining cost controls and delivering optimal

productivity. All these factors are expected to drive the demand for industrial automation

especially in emerging manufacturing hubs like China and India. Industrial automation is also set

to benefit many process driven industries such as pharmaceuticals and power sectors, among

others, which are major end-users of plant automation solutions - a rapidly growing segment in

China, India and Eastern Europe countries.

Aranca’s Views