Germany Factory Automation and Industrial Controls Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The German Factory Automation and Industrial Controls Market are expected to witness a CAGR of 10.66% over the forecast period (2021-2026). In the wake of COVID-19, operational and technological personnel working with understaffed teams left the critical ICS systems potentially (and uniquely) vulnerable. Such distractions in such times created opportunities for cyber-criminals or other bad actors to leverage multiple avenues to exploit these vulnerabilities, including Inadequate policies/procedures; Inappropriate remote access controls; Improper software maintenance; Improperly configured firewalls; and Failure to observe and/or respond to inappropriate activity in the system.

Key Highlights

• According to the Organisation for Economic Co-operation and Development(OECD), Germany invests 2.88 % of its GDP in manufacturing innovation, well above the OECD average of 2.4 %. Over the last few years, the German automotive industry has dramatically increased its global position in car production. Furthermore, the manufacturing sector's sustainability is projected to be a significant driver for the market under consideration.
• Cobots, or collaborative robots, are becoming more popular among automakers and suppliers. These technologies are typically smaller, have greater dexterity, and can be used safely alongside human operators. For instance, BMW relies on cobots to improve the safety of workers within its plat and for the quality of goods and components produced. Other companies following the same include Nissan, Ford - specifically in their Germany, plant.
• With increased investments for factory automation in the country, the end-users are also focusing on adopting high-resolution Vision sensors for multiple inspections with a single image to generate rich data for the process and quality. To address the market requirements, vendors in the region are introducing an updated version of the sensor, introducing innovative products that are built on 3D technological principles. For instance, in March 2021, Sensopart introduced a 5-megapixel sensor Visor V50 with an integrated lens and lighting for flexible detection of objects at fluctuating distances.
• Moreover, recent controller vulnerabilities that attackers have exploited to disrupt operations are on the rise. This challenges the implementation of ICS as in order to secure ICS networks, there is usage of different communication protocols. Also, operational technology vendors uses their own proprietary implementation of the IEC-61131 standard for programmable logic controllers.

Key Market Trends

Electric Motors Segment is Observing Significant Increase

• Rising industrialization and the growing proliferation of automation across various industries are propelling the demand for electric motors in the North American region. Therefore, large and energy-efficient motors are required to minimize the additional cost of production.
• The number of motors in process plants is increasing owing to the wide adoption in critical industrial operations. The management and monitoring of such assets are essential to preventing core process errors such as the proper mixing of ingredients. ​
• The integration of motor control, automation, and energy management help reduce costs while increasing production. Furthermore, intelligent motor control provides energy consumption data for each motor, and data from the devices can be captured by energy monitoring systems offered by companies such as Schneider Electric. ​
• Recently, in May 2021, Schneider Electric and Allied Electronics & Automation collaborated to create a limited-feature set of high-quality motor control and protection devices at a price point that is appropriate for smaller panel builders, OEMs, systems integrators, industrial contractors, and others. ​
• Based on Schneider's full-featured TeSys line, the TeSys product line provides an easy, simple solution with short-circuit ratings up to 35kA at 480V. It is conveniently accessible through Allied's e-commerce site. In the country, such distributor and vendor alliances generate market growth potential. During the projection period, such factors will contribute to the expansion of electric motors in the region.

Automotive and Transportation is Observing a Significant Increase

• The growing adoption of automation in manufacturing processes and digitization and AI involvement are primary factors driving industrial robots' demand in the automotive sector of the country.
• For instance, large industrial robots with a higher payload and extended arms capabilities handle spot welding on heavy body panels. Smaller robots weld lighter parts such as mounts and brackets. Robotic tungsten inert gas and metal inert gas welders can position the torch in exactly the same orientation for every cycle. Also, preserving high welding standards in every fabrication is now doable and feasible due to the repeatable arc and speed gap.
• BMW’s smart factory in Regensburg, Germany, announced that technology-enabled the reduction of its quality issues by 5% in 2020. It was also able to cut the time needed to deploy new applications by 80%. Automotive and aerospace manufacturers in Germany are seeking support from engineering services providers as they adopt emerging technologies like 5G, artificial intelligence, and the Internet of Things to improve both products and processes.
• Germany was a at the forefront in the shift to zero-emission automobiles and EV manufacturing plants. Henkel established a unique cloud-based system that connected more than 30 facilities and 10 distribution hubs as one of several manufacturers at the forefront of the transformation. Another industry player, Allis-Gleaner Corp. (AGCO), used similar technology to combine digital solutions with intelligent line design, producing nine different tractor series on a single assembly line.
• Germany is one of the world's largest vehicle manufacturers, with Audi, BMW, Porsche, Volkswagen, and Mercedes-Benz. It is also a major manufacturer of electric and self-driving vehicles. According to figures from European Automobile Manufacturers Association (ACEA), in the second quarter of 2020, electrically-chargeable vehicle market share increased to 7.2% of total European car sales, compared to 2.4% share during the same period in 2019.

Competitive Landscape

The German factory automation and industrial control market is moderately consolidated, with the presence of a few major companies. The companies are continuously investing in making strategic partnerships and product developments to gain more market share. Some of the recent developments in the market are:

• May 2021 - Emerson introduced the PACEdge industrial edge platform, which allows customers to easily construct and scale-up performance-improving applications to assist manufacturers in speed digital transformation projects. The PACEdge platform makes application creation easier by combining open-source technologies into a versatile, integrated, and secure platform for using machine data.
• April 2021- Google Cloud and Siemens collaborated to streamline production operations and boost shop floor efficiency. Siemens plans to integrate Google Cloud's top data cloud and artificial intelligence/machine learning (AI/ML) capabilities with its factory automation solutions to assist manufacturers in the manufacturing process.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support