(I-BusinessNews.Com, July 06, 2022 ) According to a new market research report titled, “Industrial Automation Spares Market by Type (Electrical Components, Electronic Components, Mechanical Components), End User (Oil & Gas, Automotive, F&B, Semiconductor & Electronics, Power), and Geography - Global Forecast to 2029”, published by Meticulous Research®, the industrial automation spares market is expected to grow at a CAGR of 5.7% from 2022–2029 to reach $16.54 billion by 2029.
The industrial automation spares market is growing rapidly due to the high adoption of automation solutions in the manufacturing, oil & gas, chemicals & materials, and pharmaceutical sectors. The implementation of automation components, such as sensors, electrical components, mechanical components, robots, and machine vision systems, has enabled companies to reduce operating and labor costs. Manufacturing companies are increasingly investing in industrial automation technologies to improve system reliability & efficiency and eliminate production errors caused by manual operations. Thus, the manufacturing sector has witnessed a continuous demand for industrial automation spares in the past few years.
The growth of the industrial automation spares market is mainly attributed to the rising investments and transformation in conventional manufacturing facilities and shift to digitized systems. This transition has created the demand for the deployment of automation systems and thus the need for industrial automation spare part components. Moreover, the rising number of SMEs and the need to improve the safety of the production process are expected to create an ample number of opportunities for the players in the market. However, the high cost of procurement and low-cost competitors restrains and challenges the growth of this market.
Impact of COVID-19 on the Industrial Automation Spare Parts Market
Automation providers witnessed a decline in revenues in 2020 and 2021 due to the rapid spread of COVID-19 and limited operations of industries in the first two quarters. The application sectors in the industrial automation spares market experienced low to high impacts of the COVID-19 pandemic and are expected to recover in the coming years.
Industries severely impacted include oil & gas, construction machinery, rubber & plastic machinery, and power generation. These industries are expected to recover slowly and face high impacts due to changing consumer patterns, low production, and dependency on end markets. Some industries that experienced medium impacts include mining, robotics, building technology, electronics, paper & pulp, and process industry equipment. These industries are expected to recover quickly due to their broad range of application markets.
The least impacted industries include agriculture machinery, food & beverage processing & packaging, and medical & scientific manufacturers as they offer essential goods globally. Additionally, local manufacturing facilities that were temporarily shut down resumed operations in the third quarter due to the removal of lockdowns and the need for economic growth.
The industrial sector was severely impacted by the COVID-19 pandemic due to a decline in the sales of high-cost products and consumer need for purchasing essential goods & services. During the nationwide lockdowns, consumers restricted their purchases of consumer goods, high-cost electronics, textiles, automobiles, and machinery, which impacted the major application sectors in the industrial automation spare parts market. With the steady reopening of countries and stability in consumer lifestyles, the spending on these commodities is expected to increase, resulting in the demand for automation solutions over the coming years. The industry is expected to gain pace in 2022. The increasing need to limit manual contact to curb the spread of COVID-19 infections is expected to result in the increased demand for industrial automation spare part components across various end-user facilities globally.
Industrial Automation Spares Market Overview
The industrial automation spares market is segmented based on type, end user, and geography. The study also evaluates industry competitors and analyzes the market at the country level.
Based on type, the industrial automation spares market is segmented into electrical components, electronic components, pneumatic and hydraulic components, mechanical components, connectors, structural machine parts, cable connectors and wire harnesses, and industrial safety components. In 2022, the electrical components segment is expected to account for the largest share of the overall industrial automation spares market. The growth of this segment is driven by its crucial role in regulating the power supplied to the system and preventing failure. The most commonly used components or spare parts in an electrical setup include circuit breakers, line reactors, variable frequency drives (VFDs), motors and drives, power supply units, actuators, and other electrical components.
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Based on end user, the industrial automation spare part components market is segmented into oil & gas, automotive, food & beverage, semiconductor & electronics, chemical & materials, consumer goods, mining & metals, power, pharmaceutical & biotech, machine & tools, paper & pulp, aerospace & defense, and other end users. In 2022, the oil & gas segment is expected to hold the largest share of the industrial automation spares market. The growth of this segment is driven by the benefits of automation technologies in oil & gas exploration activities, such as improved decision making, troubleshooting, and performance efficiency. Some of the major areas highly influenced by automation in the oil & gas sector include drilling operations, diagnostics & inspections, pipeline monitoring systems, weather monitoring systems, and pressure & flow systems. The increasing implementation of automation components, such as enterprise-level controls and plant-level controls, improves business models and increases operational efficiency.
However, the automotive segment is expected to register the highest growth rate during the forecast period due to the increasing investments in the production of electric vehicles. Electric vehicles are less complex to manufacture, which results in numerous new entrants starting production and streamlining operations. The automotive industry is advancing as automakers and suppliers are moving toward using automation solutions to perform manufacturing and assembly operations.
Based on geography, the global industrial automation spares market is segmented into five major regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2022, Asia-Pacific region is expected to account for the largest share of the global industrial automation spares market. The high market growth in Asia-Pacific region is mainly driven by rapid population growth & urbanization, economic development, increasing wages, and reduced production costs offered by automation. The Asia-Pacific region offers diverse opportunities for adopting automation solutions due to its large manufacturing sector.
The key players operating in the global industrial automation spares market are ABB Limited (Switzerland), Siemens AG (Germany), Honeywell International, Inc. (U.S.), Rockwell Automation (U.S.), Baumer Ltd (Switzerland), Encoder Products Company, Inc (U.S.), Fuji Electric Co. Ltd. (Japan), Delta Electronics, Inc (Taiwan), Emerson Electric (U.S.), Omron Corporation (Japan), Panasonic Corporation (Japan), Baumuller Holding GmbH & Co. KG (Germany), Balluff GmbH (Germany), Sensata Technologies, Inc (U.S.), Festo Corporation (Germany), Parker-Hannifin Corporation (U.S.), SMC Corporation (Japan), DESTACO (U.S.), SWISS Automation, Inc (U.S.), and Mitsubishi Electric Corporation (Japan) among others.
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