Industrial automation finally ready to accelerate growth, IHS reports

Improving global economy will drive market to $185.3B in 2014


The industrial automation market is a $185.3 billion enterprise and is expected to exceed $200 billion by 2016. Courtesy: IHS TechnologyViewed one way, industrial automation is the force that drives manufacturing worldwide. Viewed as if it were a country, it would be the 53rd largest economy in the world.

IHS Technology looks at it both ways, and both ways they look at it, the industrial automation market is going to show strong growth in 2014 and for the foreseeable future. The global research and analytics company presented its finding on the global industrial automation market at the 2014 Hannover Messe in Germany April 9.

Slowdowns in growth in Europe and Asia over the last two years have stymied expansion of the automation market, but Alex Chausovsky, manager and principal analyst for IHS's industrial automation business, said there is a different atmosphere at Hannover Messe this year. There's a bright light at this show," Chausovsky said. "There is an air of optimism."

Most of that optimism centers on the U.S., which is expected to see 6.9% growth in 2014 in industrial automation. "The U.S. is one of the dominant growth engines," Chausovsky said. "At almost 7% growth, that means it's a really good place to do business."

Data courtesy: IHSThe other major regions also expect to see steady growth in 2014 as manufacturers prepare to emerge from the recession and upgrade equipment now that manufacturing growth has normalized. The Europe, Middle East and Africa region is expected to grow 4.3%, according to IHS, while China's growth is at 10.7% and Japan at 5.4%.

"Following two years of weak development in the (industrial automation) trade, 2014 will see stronger market conditions that will help generate business opportunities," said Jenalea Howell, associate director for rotating machines & controls at IHS. "In particular, the stabilizing economies of China and Europe will be beneficial to spurring growth this year in overall industrial automation, allowing the market to outstrip last year's performance."

That growth will be split evenly between process industries, fueled by the growth of the North American oil and gas market, and discrete manufacturing growth. IHS research as the machine production market growing by 6.3%, while capital expenditures in the process industry are expected to climb by 5.4%.

Overall, the industrial automation market is a $185.3 billion enterprise, with 40.1% in motors and motor controls, 31.1% in automation equipment and 28.8% in power transmission equipment.

Snapshot of the Americas

The 2014 IHS Technology Industrial Automation Report released at Hannover Messe shows strong growth for this year from a strong base over the last three years. Among the report highlights:

Key customer demands:

  • High customer support and quick response time
  • Reliability, focus on faster throughput
  • Functionality and ease of use
  • Split focus on initial cost vs. long-term ROI

No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
Safety for 18 years, warehouse maintenance tips, Ethernet and the IIoT, GAMS 2016 recap
2016 Engineering Leaders Under 40; Future vision: Where is manufacturing headed?; Electrical distribution, redefined
Strategic outsourcing delivers efficiency; Sleeve bearing clearance; Causes of water hammer; Improve air quality; Maintenance safety; GAMS preview
SCADA at the junction, Managing risk through maintenance, Moving at the speed of data
Safety at every angle, Big Data's impact on operations, bridging the skills gap
The digital oilfield: Utilizing Big Data can yield big savings; Virtualization a real solution; Tracking SIS performance
Applying network redundancy; Overcoming loop tuning challenges; PID control and networks
Driving motor efficiency; Preventing arc flash in mission critical facilities; Integrating alternative power and existing electrical systems
Package boilers; Natural gas infrared heating; Thermal treasure; Standby generation; Natural gas supports green efforts

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
This article collection contains several articles on the vital role of plant safety and offers advice on best practices.
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.
This article collection contains several articles on strategic maintenance and understanding all the parts of your plant.
click me