The global manufacturing industry is becoming increasingly competitive with heavy focus on international standards. Demand for industrial automation especially in emerging manufacturing hubs like India and China is on the rise.

1. 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)
283 CAGR: 10.5%
2012 2013e 2014e 2015e 2016e 2017e 2018e
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
End-markets of global industrial automation, 2012
35% Automotive
23% Pharma
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
Growth Drivers
155
171
189
210
232
256
Factory Automation (US$72bn) Process Automation (US$83bn)
19% Packaging
12% Textile
6% Food Processing
28% Others
19% Power
17% Oil & Gas
10% Plastic
5% Food Processing
26% Others
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
DRIVERS
IMPACT
Source: Credit Suisse, Roland Berger, Industry Arc, Desk Research
Aranca’s Views
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.
Compiled by: Arpit khullar
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