Automation Components Market Opportunities and Strategies to 2033

This report describes and explains the automation components market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global automation components market reached a value of nearly $145.95 billion in 2023, having grown at a compound annual growth rate (CAGR) of 8.40% since 2018. The market is expected to grow from $145.95 billion in 2023 to $245.93 billion in 2028 at a rate of 11.00%. The market is then expected to grow at a CAGR of 11.50% from 2028 and reach $423.83 billion in 2033.

Growth in the historic period resulted from growth of the automotive industry, increasing demand in the semiconductor industry, increasing demand for consumer electronics, increasing adoption of robotics, increasing demand for automation and rise in smart manufacturing initiatives. Factors that negatively affected growth in the historic period include high installation costs.

Going forward, the increasing adoption of IoT (Internet of Things), increasing industrialization, strong economic growth in emerging markets, growing food and beverage sector and increasing focus on energy efficiency will drive the market. Factors that could hinder the growth of the automation components market in the future include a shortage of skilled professionals.

The automation components market is segmented by component into rollers, stages, linear shafts, bushings, linear guides, locating pins, bearings, gears, couplings and other components. The motors market was the largest segment of the automation components market segmented by components, accounting for 21.94% or $32.03 billion of the total in 2023. Going forward, the stages segment is expected to be the fastest growing segment in the automation components market segmented by components, at a CAGR of 13.36% during 2023-2028.

The automation components market is segmented by solution into supervisory control and data acquisition (SCADA), programmable logic controller (PLC), distributed control system (DCS), plant asset management (PAM), functional safety, product lifecycle management (PLM) and manufacturing execution system (MES). The distributed control system (DCS) market was the largest segment of the automation components market segmented by solution, accounting for 27.64% or $40.35 billion of the total in 2023. Going forward, the supervisory control and data acquisition (SCADA) segment is expected to be the fastest growing segment in the automation components market segmented by solution, at a CAGR of 12.69% during 2023-2028.

The automation components market is segmented by end-user industry into automotive, consumer electronics, pharmaceuticals, food and beverages, packaging, 3D printing, semiconductors, chemicals and other industries. The automotive market was the largest segment of the automation components market segmented by end user industry, accounting for 24.92% or $36.37 billion of the total in 2023. Going forward, the 3D printing segment is expected to be the fastest growing segment in the automation components market segmented by industry, at a CAGR of 14.34% during 2023-2028.

Western Europe was the largest region in the automation components market, accounting for 30.07% or $43.89 billion of the total in 2023. It was followed by North America, Asia-Pacific and then the other regions. Going forward, the fastest-growing regions in the automation components market will be Asia-Pacific and Africa, where growth will be at CAGRs of 13.13% and 12.55% respectively. These will be followed by the Middle East and South America, where the markets are expected to grow at CAGRs of 12.07% and 11.47% respectively.

The global automation components market is fairly fragmented, with a large number of small players in the market. The top ten competitors in the market made up to 22.73% of the total market in 2023. The market fragmentation can be attributed to the presence of small players in different geographies. Rockwell Automation, Inc. was the largest competitor with a 5.65% share of the market, followed by Siemens AG with 5.31%, AB SKF with 2.94%, Schneider Electric SE with 2.23%, Bosch with 1.49%, Parker Hannifin Corporation with 1.29%, Emerson Electric Co. with 1.17%, Regal Rexnord Corporation with 0.94%, ABB Ltd. with 0.88% and Yaskawa Electric Corp. with 0.83%.

The top opportunities in the automation components market segmented by components will arise in the motors segment, which will gain $25.37 billion of global annual sales by 2028. The top opportunities in the automation components market segmented by solution will arise in the distributed control system segment, which will gain $30.39 billion of global annual sales by 2028. The top opportunities in the automation components market segmented by end user industry will arise in the automotive segment, which will gain $31.23 billion of global annual sales by 2028. The automation components market size will gain the most in the USA at $20.69 billion.

Market-trend-based strategies for the automation components market include focusing on establishing new manufacturing plants, integrating Generative AI capabilities, launching innovative automation products and forming strategic partnerships and collaborations to drive innovation, combining resources and expertise.

Player-adopted strategies in the automation components market include focus on expanding business through new product launches.

To take advantage of the opportunities, the analyst recommends the automation components companies to focus on expanding manufacturing capabilities, focus on integrating generative AI for enhanced ROI, focus on innovative product launches, focus on stages and motors segments for growth opportunities, expand in emerging markets, continue to focus on developed markets, focus on partnerships for expanding distribution channels for automation components, focus on competitive pricing strategies, participate in trade shows and events, continue to use B2B promotions and focus on targeting the growing 3D printing industry.