Drives and Controls Magazine
Industrial automation market will approach $210bn in 2018
Published:  11 July, 2018

The global market for industrial automation equipment was worth an estimated $202.2bn in 2017, and is predicted to grow by 3.8% this year to reach $209.8bn, and by a further 4% during 2019 to hit $218.2bn, according to the latest analysis by IHS Markit. It says that the growth is being driven by the strong global economy, and by the expanding production of increasingly automated machines.

According to IHS, rising industrial production typically follows a stronger world economy. It reports that the global GDP (gross domestic product) expanded by 3.2% during 2017, and forecasts that it will increase by a further 3.4% in both 2018 and 2019.

The forecaster expects that total industrial capital expenditure will grow by 6% in 2018 (double the 2017 figure), before dropping to 4% in 2019.

In 2017, many smart manufacturing initiatives began to emerge, especially in countries such as the US, Germany and China. However, IHS Markit predicts that until these projects start to achieve returns, many multinational end-users will only accept trials of new technologies that are funded by equipment vendors.

The global market for industrial automation equipment 2011-2021: after a volatile first half of the decade, the market is now much more stableSource: IHS Markit

It expects some companies to close their doors to new proof-of-concept smart manufacturing projects in 2018, until existing and ongoing projects have been completed, or show a return on investment.

The analyst says that during 2017, automation equipment accounted for 37.1% of the total global automation market, followed by power transmission equipment on 32.9%, and motors and motor controls on 30%.