Automation Components Market Size, Share, and Trends 2024 to 2034

The global automation components market size was estimated at USD 129.85 billion in 2023 and is projected to hit around USD 301.19 billion by 2032, registering a CAGR of 9.80% during the forecast period from 2023 to 2032.

Key Takeaways

• Europe contributed more than 34% of revenue share in 2022.
• Asia Pacific is estimated to expand the fastest CAGR between 2023 and 2032.
• By component, the motors segment has held the largest market share of 23% in 2022.
• By component, the stages segment is anticipated to grow at a remarkable CAGR of 10.4% between 2023 and 2032.
• By end-user industry, the automotive segment generated over 24% of revenue share in 2022.
• By end-user industry, the 3D printing segment is expected to expand at the fastest CAGR over the projected period.

Automation Components Market in the Europe 2023 To 2032

The Europe automation components market size was valued at USD 44.19 billion in 2023 and is expected to reach USD 103.34 billion by 2032, growing at a CAGR of 9.90% from 2023 to 2032.

Europe held the largest revenue share of 34% in 2022. Europe, as a region, defines a dynamic landscape in the automation components market. It encompasses diverse industries and sectors, with a notable emphasis on precision engineering, manufacturing, and industrial innovation. Recent trends in the European automation components market highlight a growing adoption of Industry 4.0 principles, integrating advanced sensors, actuators, and controllers into smart manufacturing systems.

Additionally, there is a heightened focus on sustainable automation solutions to reduce energy consumption and environmental impact, aligning with Europe's commitment to sustainability. These trends signify a region at the forefront of automation technology adoption and environmental consciousness in industrial practices.

Asia Pacific is estimated to observe the fastest expansion. In the automation components market, this region is witnessing substantial growth owing to rapid industrialization and a thriving manufacturing sector. Notable trends in the Asia Pacific automation components market include a pronounced focus on Industry 4.0 technologies, a rising need for smart manufacturing solutions, and an increasing adoption of automation in sectors such as automotive, electronics, and healthcare. The region's vibrant economic environment remains a driving force behind innovation and the expansion of automation technologies.

Automation Components Market Overview

Automation components refer to integral elements in industrial automation systems, serving as the core components that facilitate the automation of tasks and processes. These components encompass a diverse set of physical and digital tools, including sensors, actuators, controllers, and communication systems. Sensors are responsible for gathering data from the environment by monitoring variables like temperature, pressure, and position. Controllers process this data and make informed decisions, subsequently transmitting commands to actuators such as motors and valves to execute specific actions. Furthermore, communication systems ensure seamless data exchange among these components, enabling real-time control and monitoring.

Automation components serve as the fundamental building blocks of modern industrial automation, enabling industries to optimize operations, enhance productivity, and minimize human involvement in repetitive or potentially hazardous tasks. Their integration across various sectors, spanning manufacturing, agriculture, and healthcare, has catalyzed a transformation in operations, leading to increased precision, reduced errors, and enhanced safety across a wide array of applications.

Growth Factors

• The rising adoption of automation components is driven by the growing demand for industrial robots in manufacturing processes.
• Automation components contribute to increased efficiency and productivity by streamlining production and reducing manual labor.
• Automation reduces operational costs through reduced labor requirements and improved resource utilization.
• Automation components help maintain consistent product quality and reduce defects.
• The incorporation of Industry 4.0 principles is boosting the demand for smart automation components that enable data-driven decision-making.
• These sectors utilize automation for precision manufacturing, testing, and maintenance.
• The automotive sector benefits from automation components in vehicle assembly and quality control.
• Automation components aid in environmental monitoring and management, ensuring compliance with regulations.
• The development of smart cities relies on automation components for infrastructure management and services.
• Automation supports network management and data center operations.
• The renewable energy sector uses automation components for efficient power generation and distribution.
• Precision agriculture utilizes automation for planting, harvesting, and monitoring crop health.
• Automation components play a role in efficient water treatment and distribution systems.
• The integration of artificial intelligence with automation components is driving innovation in various industries, leading to enhanced decision-making and autonomous systems.

Automation Components Market Scope

Automation Components Market Dynamics

Driver

Efficiency and productivity and quality control

Efficiency and productivity are pivotal drivers behind the growing demand for automation components in various industries. Automation systems, equipped with advanced components, enable businesses to streamline their operations and enhance productivity significantly. By automating routine tasks, organizations can operate around the clock, reducing downtime and improving overall output. This boost in efficiency leads to reduced operational costs, as fewer human resources are required for manual labor, and resources are utilized more effectively.

Quality control is another vital factor propelling the market demand for automation components. These components ensure consistent and precise quality standards, minimizing errors and defects in manufacturing and production processes. By automating inspections, measurements, and quality assurance procedures, businesses can deliver higher-quality products or services to their customers.

Improved quality control not only enhances the reputation of businesses but also reduces costly recalls and rework, ultimately leading to increased customer satisfaction. As industries increasingly prioritize efficiency, productivity, and quality, the demand for automation components continues to surge, driving innovation and growth in the automation components market.

Restraint

High initial investment

The substantial initial investment required for automation components serves as a notable impediment to the growth of the market. Incorporating automation systems necessitates a significant financial commitment, encompassing the procurement of hardware, software, and essential infrastructure. This financial outlay can be a formidable deterrent, especially for smaller businesses with constrained budgets, as justifying this upfront cost may be challenging, despite the potential long-term benefits in terms of operational efficiency, productivity gains, and cost reduction.

Moreover, the return on investment (ROI) associated with automation may not manifest immediately, making it a less attractive option for organizations seeking more immediate financial returns. Alongside the cost of the components, there are supplementary expenses tied to system integration, employee training, and potential disruptions during the implementation process. Overcoming this obstacle entails a thorough evaluation of the enduring advantages automation offers and exploring financial strategies or incentives to make the initial investment more feasible. As technology continues to advance and costs potentially decrease, this hindrance may become less onerous over time.

Opportunity

AI and machine learning integration

The integration of AI and machine learning is creating substantial opportunities in the automation components market. These technologies are revolutionizing automation systems by making them smarter and self-learning. Machine learning algorithms excel at sifting through extensive datasets, detecting patterns and trends, ultimately leading to better predictive maintenance, quality assurance, and process optimization. This data-driven methodology elevates efficiency, trims expenses, and lessens operational interruptions.

Moreover, AI integration enables automation components to make autonomous decisions and adapt to changing circumstances, leading to more responsive and intelligent systems. This advancement benefits various industries, boosting efficiency, productivity, and competitiveness. With ongoing progress in AI and machine learning, the automation components market is projected to witness continuous growth, offering opportunities to develop increasingly intelligent and adaptive automation solutions.

Component Insights

According to the component, the motors segment held a 23% revenue share in 2022. Motors in the automation components market are electromechanical devices designed to convert electrical energy into mechanical motion. They are pivotal for driving various automated systems, including conveyor belts, robotic arms, and manufacturing equipment.

Trends in motor technology are increasingly geared towards energy efficiency and compact designs. Brushless DC motors, for instance, offer improved efficiency and longevity compared to traditional brushed motors. Additionally, the integration of smart sensors and IoT connectivity is becoming more prevalent, allowing for remote monitoring, predictive maintenance, and enhanced automation control, contributing to the evolving landscape of automation components.

The stages segment is anticipated to expand at a significant CAGR of 10.4% during the projected period. In the automation components market, the "Stages" segment refers to the various stages of the automation process, encompassing critical elements such as sensors, actuators, controllers, and communication systems. These components collectively enable the automation of tasks and processes across industries.

Current trends in this segment revolve around the integration of advanced sensors, IoT-enabled devices, and smart controllers. The industry is witnessing a shift towards greater connectivity and data-driven decision-making, enhancing the precision and adaptability of automation systems. As a result, the "Stages" segment continues to evolve to meet the increasing demand for more efficient, intelligent, and interconnected automation solutions.

End User Industry Insights

In 2022, the automotive segment had the highest market share of 24% based on the end-user industry. In the automation components market, the automotive segment encompasses the integration of automation solutions within the automobile manufacturing process. This involves the use of robotic arms, sensors, actuators, and control systems to streamline vehicle assembly, quality control, and testing procedures.

Trends in the automotive segment of the automation components market include the increasing adoption of collaborative robots (cobots) to work alongside human operators, enhancing precision and safety. Additionally, there is a growing emphasis on the integration of artificial intelligence and machine learning for predictive maintenance, real-time quality control, and the development of autonomous vehicles, driving innovation in the industry.

The 3D printing segment is anticipated to expand fastest over the projected period. In the automation components market, the 3D printing segment refers to the utilization of automated systems and components for additive manufacturing processes across various industries. This technology involves the layer-by-layer creation of physical objects from digital designs, with applications in aerospace, automotive, healthcare, and more.

A notable trend in the 3D printing segment is the increasing integration of automation components to enhance precision and speed in the production of complex, customized parts. Additionally, advancements in materials and software are expanding the capabilities of 3D printing in end-user industries, driving its growth and adoption.

Recent Developments

• In October 2022, Rockwell Automation, Inc. bolstered its portfolio by acquiring CUBIC, a specialist in modular systems for constructing electrical panels.
• In March 2023, Rockwell Automation, Inc. furthered its capabilities with the acquisition of Knowledge Lens, a provider of services and solutions that harness the power of data science, AI, and engineering expertise to deliver valuable business insights. This acquisition allowed Knowledge Lens to join forces with Rockwell's premier digital services division, Kalypso, to drive transformative outcomes for manufacturers worldwide.
• In October 2022, Rockwell Automation, Inc. unveiled the FactoryTalk Design Hub, empowering industrial organizations to streamline their automation design processes through cloud-powered tools. This initiative fosters improved collaboration, efficient lifecycle management, and on-demand access to cloud-based software, ultimately enhancing design productivity, reducing time-to-market, and minimizing system development and maintenance costs.
• In August 2022, Emerson made a strategic investment through Emerson Ventures in Spearix Technologies, Inc., a trailblazer in adaptive, multi-core radio processor technology for Industrial Internet of Things (IIoT) wireless communication systems.
• In June 2020, SKF solidified its commitment to bolstering its manufacturing capabilities in China, aligning with the company's region-specific manufacturing strategy to enhance the production of ball bearings.
• In July 2022, SKF and ABB joined forces to advance automation in manufacturing processes. ABB's solutions were integrated into SKF's cutting-edge manufacturing facility, marking a significant milestone in their collaborative efforts.

Automation Components Market Players

• Siemens AG
• ABB Ltd
• Rockwell Automation, Inc.
• Schneider Electric SE
• Mitsubishi Electric Corporation
• Emerson Electric Co.
• Honeywell International Inc.
• General Electric Company
• Omron Corporation
• Keyence Corporation
• Yokogawa Electric Corporation
• FANUC Corporation
• Bosch Rexroth AG
• Parker Hannifin Corporation
• Schneider Electric SE

Segments Covered in the Report

By Component

• Rollers
• Stages
• Linear Shafts
• Bushings
• Linear Guides
• Locating Pins
• Bearings
• Gears
• Couplings
• Actuators
• Motors
• Sensors
• Screws

By End User Industry

• Automotive
• Consumer Electronics
• Pharmaceuticals
• Food and Beverage
• Packaging
• 3D Printing
• Semiconductors
• Chemical
• Others

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa