Industrial Automation and Control Systems Market Size

Industrial Automation and Control Systems Market Size

Industrial Automation and Control Systems Market was valued at over USD 165 billion in 2023 and is estimated to register a CAGR of over 9.5% between 2024 and 2032. The growing demand for customization and flexibility is a significant factor driving the IACS market growth.

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Industries across various sectors are increasingly seeking ways to adapt their manufacturing processes to meet specific customer requirements, respond to changing market demands, and enhance overall operational agility. For instance, In August 2023, Yokogawa Electric Corporation released an upgrade of Collaborative Information Server (CI Server), a product in the OpreX Control and Safety System family, with more robust alarm management, improved access to maintenance information, and expanded support for international communications standards.
 

Automation systems including PLCs & robotics enable quick reconfiguration and adaptation of production lines. The concept of mass customization, where products are tailored to individual customer needs on a large scale, is gaining prominence. IACS facilitates the implementation of flexible & adaptable production systems that can accommodate the customization required for mass customization strategies. Customizable automation systems support agile manufacturing practices, allowing industries to respond rapidly to market changes. Agility is crucial for staying competitive in dynamic markets, and IACS enables quick adjustments in production processes to meet the evolving demands.
 

The upfront investment required for purchasing hardware, software, sensors, controllers, and other solutions of automation systems can be substantial. Many businesses, especially Small- & Medium-sized Enterprises (SME), may face constraints in allocating the necessary capital for these initial expenditures, leading to hesitancy in adopting automation solutions. Integrating new automation systems with the existing infrastructure can be complex and costly. Businesses often need to retrofit or upgrade their current systems to ensure compatibility and seamless integration. The expenses associated with integrating automation technologies into the existing workflow contribute to the overall high implementation costs.