Automation is transforming the industrial marketplace, with secular growth driving long-term investment, according to the BGL Industrials Insider, an industry report released by Brown Gibbons Lang & Company (BGL).
Automation architecture is evolving to adapt to an increasingly connected factory floor to secure real-time information. Industrial communication networks continue to expand rapidly with growing investment in automation software and IoT platforms to enhance operational performance.
- Manufacturing and Industrial settings are seeing the highest IoT project initiations, while increased penetration has been observed across diverse industry verticals such as Transportation/Mobility, Energy, Retail, and Healthcare. The industrial IoT platform market is expected to grow at a 20 percent-plus CAGR through 2023.
- Discrete Automation is projected to see steady growth driven by growing adoptions and COVID-19- induced reshoring activity that will boost domestic manufacturing.
- The robotics market is seeing accelerated double-digit growth, with industrial robotics (based on installations) forecasted to grow ~12 percent annually over the next three years. Technological developments, notably machine learning-enabled robots, greater connectivity, and new business models, are expanding robot adoption.
M&A is continuing to shape the digital transformation of factory production. Devices on the “edge” (e.g., valves, sensors, drives, motors, robots, and machine vision) and Linux-based software systems are among the automation market segments ripe for consolidation and likely to see increased acquisition activity in the coming months.