Factory Automation Market: Challenges and Opportunities

The factory automation market is expected to grow from US$ 154.99 billion in 2022; it is estimated to grow at a CAGR of 8.2% from 2022 to 2028.

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Leading factors boosting the growth of the factory automation market are the rise in the adoption of IoT, constant improvement in industrial robotics, and the emergence of the 5G technology. Further, the demand for safety compliance automation products is expected to provide significant growth opportunities to the factory automation market in the near future. However, the need for substantial capital investment to establish an error-free automation system is anticipated to pose a big challenge to the market’s growth during the forecast period.

Rising Adoption of Factory Automation Across Automotive Industry

The growing demand for automobiles is leading to the need for an automation system as it helps manufacturers increase outputs while decreasing the cost and risk on human workers. In the current scenario, collaborative robots, robotic arms, and the Internet of Things coupled with AI are widely adopted in the automotive industry, making the manufacturing process faster and more accurate. According to the report by the International Federation of Robotics, in 2019, the robot density in the US automotive industry was 1,287 installed units per 10,000 employees, making the country ranked seventh worldwide.

Further, KUKA and Universal Robots produce and supply cobots to automotive companies such as Tesla to build cars. Tesla has developed driverless car hardware called “Autopilot,” which uses AI technology. Companies such as IBM and BMW are combining cognitive computing and IoT to invent autonomous cars, which can communicate while linking driving patterns with the human driver’s emotional response in all possible scenarios. In addition, automakers such as Ford Motor Co. and BMW AG are working on deploying 3D printer technology. Moreover, various other automakers are also utilizing virtual and augmented reality to address manufacturing issues. Thus, the aforementioned advanced automation technologies ease the automotive manufacturing process at nearly every stage of vehicle production, in turn, catalyzing the factory automation market growth.

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