The growth of automotive and manufacturing industries in the Middle East & Africa and South & Central America is driving the factory automation market. Furthermore, an increase in initiatives by governments to automate manufacturing facilities in the region is fuelling the market growth.
Government initiatives and policies supporting the digitisation of manufacturing plants are the significant factors boosting the uptake of factory automation solutions in this region. For instance, under Made in China 2025, the Chinese government has released a five-year smart manufacturing development plan to digitise 70% of the country’s large enterprises. Also, to automate manufacturing facilities, various countries are installing industrial robots.
For instance, according to the International Federation of Robotics (IFR), in 2020, China installed 154,000 industrial robots. Similarly, South Korean robot installation increased by 2% to 31,083 units in 2021.
Europe factory automation market share in Europe is growing at a decent rate year-over-year. The key reason for the growth of the factory automation market is the presence of a large number of market players, such as ABB Ltd, Siemens AG, and Bosch Rexroth AG, in the region. Also, the growing installation of industrial robots to increase productivity in automobile, chemical, food & beverages, mechanical engineering, and electronics industry is fuelling the market growth. In addition, government investment in the digitisation of the manufacturing industry is propelling the factory automation market growth.
Many companies are focusing on various strategic initiatives. They are expected to create a noteworthy business model and drive the market in the next few years.