Report : North America Factory Automation Market Forecast to 2028 – COVID-19 Impact and Regional Analysis – by Component (Hardware and Software), Hardware (Sensors, Controllers, Robots, Drives, and Others), Type (Programmable Automation, Fixed Automation, and Flexible Automation), Technology [Programmable Logic Controller (PLC), Distributed Control System (DCS), Supervisory Control and Data Acquisition System (SCADA), Human Machine Interface (HMI), and Others], and Industry Vertical (Automotive, Food & Beverage, Oil & Gas, Manufacturing, Mining, and Others)

Rising Adoption of Factory Automation across Automotive Industry to Boost Market Growth during 2022–2028

According to a new market study on "North America Factory Automation Market Forecast to 2028 – COVID-19 Impact and Regional Analysis – by Component, Hardware, Type, Technology, and Industry Vertical," the market is expected to grow from US$ 46,797.4 million in 2022 to US$ 74,823.3 million by 2028; it is estimated to grow at a CAGR of 8.1% from 2022 to 2028. The report provides trends prevailing in the market along with drivers and restraints.

The growing demand for automobiles is subsequently leading to the need for an automation system as it helps manufacturers increase outputs while decreasing the cost and risk of human workers. Collaborative robots, robotic arms, and the Internet of Things coupled with AI are widely adopted in the automotive industry, making the manufacturing process faster and accurate. According to the report by International Federation of Robotics, in 2019, the robot density in the US automotive industry was 1,287 installed units per 10,000 employees, making the country ranked 7th worldwide.

Further, KUKA and Universal Robots produce and supply cobots to automotive companies, such as Tesla, to build cars. Tesla has developed driverless car hardware called Autopilot, which uses AI technology. Companies, such as IBM and BMW, are combining cognitive computing and IoT to invent autonomous cars, which can communicate while linking driving patterns with the human driver's emotional response in all possible scenarios. In addition, Ford Motor Co., BMW AG, and other automakers are working on the deployment of the 3D printer technology. Moreover, various other automakers are also utilizing virtual and augmented reality to address manufacturing issues. Thus, the advanced automation technologies ease the automotive manufacturing process at nearly every stage of vehicle production. Therefore,  rising factory automation across the automotive industry is catalyzing the North America factory automation market size.

Factory automation regulates industrial components and guarantees consistent, superior-quality results. Therefore,  there is a high demand for factory automation in various industries, such as automotive, oil & gas, manufacturing, and mining, for qualitative manufacturing. Moreover, automation fulfils the need for mass production in industries with several features, such as improved quality, minimal human intervention, and less labor expenses.

Leading factors boosting the factory automation market growth are the uptake of IoT, constant improvement in industrial robotics, and the upcoming engineering 5G technology. Further, the demand for safety compliant automation products is expected to provide significant growth opportunities to the market in the future. However, the need for substantial capital investment to establish an error-free automation system is anticipated to pose a big challenge for the factory automation market player’s growth during the forecast period.

Emerson Electric Co., Schneider ABB, Siemens AG, and Honeywell International Inc. are among the key North America factory automation market players profiled in the research study. The players adopt organic growth strategies, such as product launches and expansions, to sustain their position in the industry.

 North America Factory Automation Market Revenue and Forecast to 2028 (US$ Million)

The North America factory automation market size is segmented on the basis of component, hardware, type, technology, and industry vertical. Based on component, the North America factory automation market is segmented into hardware and software. Based on hardware, the North America factory automation market share is segmented into sensors, controllers, robots, drives, and others. Based on type, the North America factory automation market is segmented into programmable automation, fixed automation, and flexible automation. By technology, the North America factory automation market is segmented into programmable logic controller (PLC), distributed control system (DCS), supervisory control and data acquisition system (SCADA), human machine interface (HMI), and others. Based on industry vertical, the North America factory automation market is segmented into automotive, food & beverage, oil & gas, manufacturing, mining, and others. Based on country, the North America factory automation market is segmented into the US, Canada, and Mexico.

North America has been a pioneer in adopting advanced technologies across all industry verticals since the last decade. This rise in adoption of advanced technologies across industries is catalyzed by the increasing benefits of automation across factories and its spreading awareness among small & medium businesses. Automation is aiding the factories in reducing their overall operational cost and time taken for production and assembling processes, thereby increasing the production value year-on-year.

The constant adoption of automation across countries, such as the US and Canada, has helped companies grow by improving resilience against economic disruption. Robotics has experienced a rise in investment since 2017. According to Jay Jacobs, the CFA of Global X, the industrial robots market is expected to grow to US$ 37 billion by 2030. The Association for Advancing Automation (A3) stated that the US ordered approx. 29,000 robots in the first nine months of 2021, representing a 37% increase compared to the same period in 2020. These factors are expected to contribute to the North America factory automation market growth during the forecast period.

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