Latin America Factory Automation And Industrial Controls - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

Key Highlights

• Factory automation and control solutions facilitate the automation of entire manufacturing/production facilities by designing and building fully integrated intelligent control systems, including robots, sensors, industrial equipment, computers, and advanced data processing solutions. Applying industrial automation technology allows production lines to run more efficiently and reliably, allowing products to be manufactured quickly to meet customer expectations. This is expected to fuel the adoption of factory automation and industrial control solutions in all the end-user verticals in Latin America, supported by industrialization growth, during the forecast period.
• Factors driving the market include the growing demand for adopting the Internet of Things (IoT) and machine-to-machine technologies. Also, incremental technological advancement, coupled with a sustained increase in the development of manufacturing facilities, is expected to impact the market growth rate during the forecast period. The increasing adoption of IoT in Latin America can be attributed to factors like rapid digitalization, technological advancements, government initiatives, policies, and investments aimed at promoting digital transformation and Industry 4.0., which support market growth.
• Factory automation can aid manufacturing organizations in decreasing costs by eliminating waste, reducing errors, and enhancing efficiency. By automating routine tasks, manufacturers can save time and lessen the cost of labor-intensive manual processes. Due to automation, manufacturers can make better use of their resources. Automated systems can handle tasks like material handling, inventory management, etc., reducing the need for employees to complete these tasks manually. This can free up resources like labor, time, and equipment for other more critical tasks. Also, by avoiding overstocking or stockouts, factories can reduce carrying costs, inventory holding costs, and the risk of obsolete inventory.
• The lack of skilled workforce in Latin America can be attributed to several factors. Inadequate access to quality education and training programs hinders the development of a skilled workforce. Limited resources, an outdated curriculum, and a lack of emphasis on practical skills contribute to a shortage of skilled professionals in the region. This is expected to hinder the market's growth.
• The COVID-19 pandemic forced manufacturing industries to re-evaluate their traditional production processes, primarily driving digital transformation and smart manufacturing practices across production lines. Manufacturers must also devise and implement multiple new and agile approaches to monitor product and quality control, which would fuel market growth.

Latin America Factory Automation And Industrial Controls Market Trends

The Automotive End-user Industry is Expected to Hold a Significant Market Share

• Smart factories offer the automotive industry options to react faster to market requirements, enhance the efficiency of supply chains, reduce manufacturing downtimes, and expand productivity. The automotive industry is a primary sector with significant automated manufacturing facilities. Automakers' production facilities are automated to maintain accuracy and efficiency. Further, the increasing trend of replacing conventional vehicles with electric vehicles (EVs) is expected to augment the industry's demand.
• Automobile manufacturers in the region have been integrating virtual and augmented reality to address manufacturing difficulties, such as machine failure, occupational injuries, and technical shutdown. Like many other industries, the auto industry is expected to make the most of Industry 4.0, with "connected" machines communicating with one another and human operators to deliver workplace safety and productivity benefits. As a result, the rising need for automation in the vehicle industry affects automakers' attitudes about worker safety, driving the growth of the overall market.
• The growth of smart automobile manufacturing plants in Latin America is supported by the application of automation and industrial control systems in smart manufacturing plants, such as the application of SCADA. The growth of such plants and supervisory control and data acquisition solutions to monitor and control industrial processes are fueling the growth of the automotive industry.
• Government funds and private entities have been investing significantly in the automotive industry to make it self-sufficient in manufacturing. This was supported by the significant production of various type of motor vehicles in Brazil and Argentina for 2023, published by the data from the Organisation Internationale des Constructeurs d'Automobile. Such instances are expected to create market growth opportunities for control and automation solutions, including robotics and sensors, in the region during the forecast period.
• The increasing expansion of global OEMs in the region to address market demand for the industry creates market growth opportunities. For instance, in April 2024, BYD, an electric vehicle maker, announced its plans to expand its manufacturing capacity in Mexico to produce over 100,000 units in Mexico by 2025, leveraging the new factory for potential exportation to the Rest of Latin America in subsequent phases.

Brazil is Expected to Hold a Significant Market Share

• The country has positioned itself as a highly developing manufacturing sector-based economy in the region and is registering significant growth in start-up investments. This is expected to support the adoption of industrial control and automation systems in the country's large SMEs in the future. The market is expected to experience growth due to the prevalent use of automated processes and systems in manufacturing factories and industries. This would boost the adoption of factory automation and industrial control systems in the country's manufacturing sector.
• In January 2024, Brazil launched a new industrial policy with development goals and measures up to 2033, including new financing instruments, such as the development credit line in the industrial sector, to develop a sustainable industrial ecosystem. This would support the growth of smart industries in the country and fuel market growth during the forecast period.
• Implementing robots to transform industrial automation has been increasing in Brazil, creating a country with significant potential for market growth. The transformations in manufacturing due to Industry 4.0 and the adoption of agile, smarter, and innovative ways to advance production by enterprises, along with technologies that complement and augment human labor with automation and reduce industrial accidents caused by process failures, are supporting the market’s growth in the country in line with the industrial development.
• Brazil can be considered a major contributor to Latin America's oil production. According to the International Trade Association, the country owns the largest recoverable ultra-deep oil reserves in the world, with 97.6% of Brazil's oil production produced offshore, showing the importance of the oil and gas industries in the country. Factory automation and industrial control solutions can be used to manage the plants' efficiencies for better productivity and safety; this can boost market growth.
• Adopting software-based solutions in the factories to make the country's industrial ecosystem more streamlined and productive is fueling the market’s growth. For instance, in October 2023, Oracle NetSuite announced innovations to help manufacturers in Brazil adapt and grow with the latest NetSuite innovations. These innovations enable organizations with manufacturing operations in Brazil to take advantage of the cloud to increase productivity quickly, support compliance with Brazilian legislation, plan and control their manufacturing process, and streamline invoicing, accounting, and payment requirements. This underscores the high demand for ERP-based industrial control systems in the country's manufacturing sector.

Latin America Factory Automation And Industrial Controls Industry Overview

• March 2024: Rockwell Automation Inc., a global industrial automation and digital transformation technology provider, entered a multi-year collaboration with Prometeon Tyre Group. This collaboration would enhance Prometeon’s digitalization strategy by implementing its manufacturing execution system (MES) to enable digital integration across all of Prometeon’s facilities.
• March 2024: In response to rising demand, ABB expanded its electrification service presence in Latin America by opening a unit in Colombia. This complemented ABB’s established Electrification businesses in Colombia. It helps customers improve the performance, lifetime, and operational efficiency of electrical assets. It is also expected to create a cross-selling and up-selling market opportunity for the company.

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