Automation is set to drive industrial growth

Automation

Automation is forecast to drive industry growth as manufacturers seek to reduce costs raise productivity and overcome skills shortages.

Automation of manufacturing processes is forecast to grow at a 3.3 per cent CAGR with the global market predicted to reach $233.5 billion by 2027.

Most countries are seeking to enhance their manufacturing industry. The government of India announced various schemes such as Production Linked Incentive (PLI) scheme, Electronics Manufacturing Cluster (EMC) scheme, electronic development fund and Modified Special Incentive Package Scheme (MSIPS) to boost electronic manufacturing in the country and allocated approximately $2.4 billion for 2021.

The adoption of automation components such as programmable logic controller, distributed control systems, manufacturing execution system, human machine interface, safety instrumented system and data acquisition system are driving market growth.

The demand for PLC systems is rising owing to its applications in complex automation, having extensive process control requirements, network connectivity, device interoperability and enterprise data integration.

The adoption of SCADA in industry has accelerated owing to its various advantages consisting updating and upgrading through cloud, easy retrieval of files and more.

The use of MES is growing in industries such as pharmaceuticals, consumer packaged goods, automotive industry and many others. The major driving forces for utilising MES includes development of production systems, modern logistic concepts and advanced product development processes.

Programmable logic control is an integration of PC and PLC in a single system to control various processes in industries and is projected to reach $29.5 billion by 2027.

Industry 4.0 revolution in manufacturing

The Industry 4.0 revolution is driving adoption of automation and the Internet of Things (IoT) across industrial processes bringing benefits such as productivity gains, improved team performance, enhanced managerial reporting, error reduction, cost reduction and higher quality.

The main motivation for mechanisation of IoT is to lower operational costs when automation devices, sensors, transmitters and actuators are converted to internet enabled devices. Labour cost is up to 65 per cent of the total cost. In majority of the cases, manual jobs typically consist of two categories: direct staff and indirect staff. Direct staff is responsible for executing the process, while indirect staff is the backend support for direct staff. In developing nations, there is a constant growth in ageing workforce, resulting in issues related to safety, quality control and productivity.

Automation of industry has become a means to tackle rising wages, workforce age and to reduce operational costs while maintaining productivity at optimum levels. The growing need to achieve process optimisation in lesser time is coupled with government initiatives to adopt automation.

According to International Federation of Robotics R & D Programs data the government of China, being the largest investor in robotics research, invested $577 million in 2021 for the research and development of intelligent robots with IoT capabilities.

Azerbaijan is planning to invest more in automotive industry which is expected to drive the deployment of automation and controls in the country. Along with the increasing investments in automotive industry key players in oil and gas and utility sector are planning to upgrade manufacturing units which is expected to drive market growth. In September 2020, U.K. government announced to invest $180 million in the second phase of its ‘Manufacturing Made Smarter’ scheme, to boost interconnectivity and innovation in the manufacturing sector.

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