Modular Automation Market by Type (Modular Type Packages, Modular DCS), Mobility (Semi-automatic, Fully Automatic), Component (Robot Controllers, I/O Modules, Drives & Motors, Sensors & Actuators, Safety), End-user Industry - Global Forecast to 2029
[262 Pages Report] The Modular Automation Market is expected to be valued at USD 4.8 billion in 2024 and is projected to reach USD 7.0 billion by 2029 and grow at a CAGR of 7.9% from 2024 to 2029. The market is experiencing growth driven by flexibility and scalability, allowing quick adjustments to production needs. It offers cost efficiency through incremental investments and reduced upfront expenses. Technological advancements like IoT and AI enhance system functionality and enable predictive maintenance. Industries benefit from precise control for regulatory compliance and quality assurance. Aligning with Industry 4.0 and smart manufacturing trends, Modular Automation supports interconnected, data-driven manufacturing environments. However, challenges arise, such as high initial costs, integration complexity, and skilled workforce shortage.
Modular Automation Market Forecast to 2029
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Modular Automation Market dynamics
Driver: Technological advancements driving innovation
Advancements in technology, including robotics, artificial intelligence, and the Internet of Things (IoT), are driving the Modular Automation systems market forward. These innovations create more intelligent, efficient systems that adapt precisely to various manufacturing needs. AI-equipped robots can optimize their actions autonomously, enhancing flexibility and responsiveness, while IoT connectivity allows for real-time monitoring and control, reducing downtime. As ongoing research pushes technological boundaries, Modular Automation systems become increasingly powerful tools for businesses to streamline operations and maintain a competitive edge.
Restraint: Initial implementation challenges in integration
Adopting Modular Automation systems presents integration challenges, as aligning new systems with existing workflows and machinery can be time-consuming and costly. This process may require reconfiguring or replacing equipment and training employees, resulting in potential delays and increased expenses. Additionally, effective coordination and communication across departments and external suppliers or consultants are essential, adding complexity. While Modular Automation offers flexibility and efficiency benefits, these initial integration challenges can restrain adoption.
Opportunity: Integration opportunities within Industry 4.0
Industry 4.0 integration offers significant opportunities for Modular Automation system providers. Characterized by combining digital technologies with traditional manufacturing, Industry 4.0 emphasizes data analytics, connectivity, and automation. Modular Automation systems, with their adaptable components, align well with these principles and can serve as core elements in smart manufacturing environments. This facilitates seamless communication and real-time data exchange, enhancing decision-making. The integration also enables process optimization and predictive maintenance, allowing manufacturers to gain insights, address inefficiencies, and anticipate equipment failures. As industries adopt Industry 4.0 to improve efficiency and productivity, the demand for Modular Automation systems is expected to increase, driving innovation and sustainable growth.
Challenge: Addressing sustainability concerns in product development.
As businesses prioritize environmental responsibility, manufacturers face increasing pressure to develop eco-friendly Modular Automation systems. This involves reducing the carbon footprint of manufacturing processes and ensuring sustainable, ethically sourced materials. Achieving sustainability requires investment in R&D to find alternative materials and methods that minimize environmental impact while maintaining performance. Additionally, companies must consider the entire product lifecycle, implementing measures to reduce waste and promote recycling. Sustainability challenges also encompass the operational aspects of modular systems, necessitating energy-efficient designs and optimized resource consumption, with guidance provided to customers on reducing energy usage.
Modular Automation Market Ecosystem
The Modular Automation ecosystem comprises equipment manufacturers, control providers, system integrators, and distributors. Modular Automation end-use industries include Pharmaceutical, Chemical, Food and Beverage, Logistics and Warehousing, and Others.
Based on the component, Hardware holds the highest market growth during the forecast period.
Hardware is a crucial segment in modular automation, encompassing essential components such as robotics, I/O modules, drives and motors, sensors and actuators, and safety components. These physical devices form the backbone of automated systems, enabling precise control, feedback mechanisms, and operational safety. By integrating advanced hardware solutions, organizations enhance efficiency, flexibility, and scalability in their automation processes. This strategic adoption optimizes production workflows and supports the seamless integration of diverse manufacturing tasks, driving significant growth in the hardware components throughout the forecast period.
Based on Mobility, Fully Automatic holds the highest market share during the forecast period.
In mobility within automation, fully automatic systems refer to solutions where machines operate autonomously without human intervention. These systems utilize advanced technologies such as AI, machine learning, and robotics to perform tasks with minimal human oversight. Fully automatic mobility solutions are poised to dominate the market share during the forecast period due to their ability to enhance operational efficiency, reduce labor costs, and ensure consistent performance in diverse industrial environments. By leveraging these advancements, industries can achieve higher throughput, improved safety standards, and streamlined workflows, thereby driving substantial adoption and growth in the fully automatic mobility segment.
Modular Automation Market in Asia Pacific to hold the highest market share during the forecast period
The Modular Automation market has been segmented into four regions: North America, Europe, Asia Pacific, and the Rest of the World (RoW). The Asia Pacific region is expected to lead the Modular Automation market, expanding at the highest CAGR during the forecast period. This dominance is driven by rapid industrialization, strong economic growth, and increasing investments in automation technologies across various industries such as pharmaceutical, chemical, food and beverages, logistics and warehousing, automotive, electronics, and manufacturing. Countries such as China, Japan, and India are propelling the development of the Modular Automation market in the Asia Pacific. China held the largest size of the Modular Automation market in Asia Pacific in 2023. Rapid industrialization and urbanization have created the need for modular automation.
Modular Automation Market by Region
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Key Market Players
The Modular Automation companies is dominated by players such as ABB (Switzerland), Festo Inc. (Germany), Yokogawa Electric Corporation (Japan), Siemens (Germany), HIMA (Germany) and others.
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- Latest News, Updates & Trend analysis
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Report Metric |
Details |
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Market size available for years |
2020-2029 |
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Base year considered |
2023 |
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Forecast period |
2024-2029 |
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Forecast units |
Value (USD Million) |
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Segments Covered |
Type, Mobility, Component, End-user Industry, and region. |
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Geographies covered |
North America, Europe, Asia Pacific, and RoW |
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Companies covered |
ABB (Switzerland), Festo Inc. (Germany), Yokogawa Electric Corporation (Japan), Siemens (Germany), HIMA (Germany), Bosch Rexroth AG (Germany), Modular Automation (Ireland), Ascential Technologies (US), Ginolis OY (Finland), Inniti (Denmark) are the major players in the market. (Total 25 players are profiled) |
Modular Automation Market Highlights
The study categorizes the Modular Automation Market based on the following segments:
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Segment |
Subsegment |
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By Type |
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By Mobility |
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By Component |
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By End-user Industry |
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By Region |
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Recent Developments
- In May 2024, ABB launched System 800xA 6.2, featuring improved connectivity through OPC UA, native Ethernet APL device integration, and increased support for PROFINET devices. This update addresses the growing demand for network-centric I/O and field devices.
- In April 2024, Yokogawa Electric Corporation released CENTUM VP R6.11.10, introducing functional enhancements to UACS and CCC Inside components, enhancing the Yokogawa CENTUM VP compressor control solution.
- In March 2024, Festo launched the ELGD mechanical axis series, which includes the ELGD-BS spindle drive (up to 2.5m strokes) and ELGD-TB toothed belt drive (up to 8.5m strokes), with a 30% height reduction. These axes are designed for diverse electromechanical handling tasks like pick-and-place, top loaders, and automation in 3D printing and additive manufacturing.
- In March 2024, Yokogawa Electric Corporation introduced OpreX Robot Management Core, a software application designed to improve safety and efficiency in plant maintenance by optimizing robot usage.
- In November 2023, HIMA launched SILworX version 14.00, focusing on improvements in engineering efficiency, diagnostics, and testing of safety applications. This update introduces plugins for enhanced infrastructure flexibility and supports collaborative engineering with a streamlined approach for multi-file work.
- In October 2023, Bosch Rexroth AG introduced the 24/28 V Servo module, featuring high power density, minimized wiring needs, passive cooling, and quick commissioning. It integrates smoothly into a ctrlX I/O station, notable for its low protective voltage of 50 VDC.
Frequently Asked Questions (FAQs)
What are the Modular Automation Market's major driving factors and opportunities?
Major driving factors in the modular automation market include the growing need for agile manufacturing solutions that adapt swiftly to changing market demands. This demand is further fueled by the imperative for operational efficiencies across industries, pushing companies towards modular systems that offer quick deployment and scalable solutions tailored to specific production needs.
Which region is expected to hold the highest market share?
Asia Pacific is expected to hold the highest market share in the modular automation sector due to its robust adoption of cutting-edge manufacturing technologies. Initiatives to bolster industrial automation capabilities and a proactive approach towards integrating advanced robotics and IoT-driven solutions position the region as a leader in advancing modular automation applications.
Who are the leading players in the Modular Automation Market?
Companies such as ABB (Switzerland), Festo Inc. (Germany), Yokogawa Electric Corporation (Japan), Siemens (Germany), HIMA (Germany), and others are the leading players in the market.
What are some of the technological advancements in the market?
Technological advancements in the modular automation market are prominently driven by innovations in IoT and artificial intelligence (AI). These advancements are revolutionizing real-time monitoring and predictive maintenance capabilities, enabling manufacturers to optimize production uptime and reduce downtime costs significantly. Additionally, the evolution of robotics and automation solutions enhances flexibility and operational efficiency across diverse manufacturing environments.
What is the impact of the global recession on the market?
The global recession's impact on the modular automation market has catalyzed the shift towards cost-effective and scalable manufacturing solutions. Companies increasingly leverage modular automation to streamline operations and enhance agility in responding to market fluctuations. This strategic adoption mitigates financial uncertainties and fosters improved production efficiencies and reduced operational costs, positioning modular automation as a resilient solution amidst economic challenges. On the other hand, economic downturns have led to reduced capital expenditures and delays in investment decisions, impacting the pace of market growth and innovation within the modular automation sector.
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This research study extensively used secondary sources, directories, and databases, such as Hoovers, Bloomberg, Businessweek, Factiva, and OneSource. It was used to identify and collect information useful for a technical, market-oriented, and commercial study of the Modular Automation Market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Primary sources included experts from core and related industries, preferred suppliers, manufacturers, distributors, service providers, technology developers, and organizations related to all segments of the value chain of the Modular Automation ecosystem. Both top-down and bottom-up approaches were employed to estimate the complete market size. After that, market breakdown and data triangulation were used to estimate the market size of segments and subsegments.
Secondary Research
Secondary sources for this research study included corporate filings (such as annual reports, investor presentations, and financial statements); trade, business, and professional associations; white papers; certified publications; articles by recognized authors; directories; and databases. The secondary data was collected and analyzed to determine the overall market size, further validated through primary research.
List of major secondary sources
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SOURCE |
WEB LINK |
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International Society of Automation (ISA) |
https://www.isa.org/ |
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NAMUR |
https://www.namur.net/en/focus-topics/automation-modular-plants.html |
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Organization for Machine Automation and Control (OMAC) |
https://www.omac.org/about-omac |
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OPC Foundation |
https://opcconnect.opcfoundation.org/2020/03/enabling-modular-procedural-automation-at-air-liquide/ |
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VDI |
https://www.vdi.de/en/home/vdi-standards/ |
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PROFIBUS |
https://www.profibus.com/technologies/mtp |
Primary Research
Extensive primary research was conducted after gaining knowledge about the current scenario of the Modular Automation Market through secondary research. Several primary interviews were conducted with experts from both demand and supply sides across four major regions—North America, Europe, Asia Pacific, and RoW. This primary data was collected through questionnaires, emails, and telephonic interviews.
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Market Size Estimation
To estimate and validate the size of the Modular Automation Market and its various submarkets, both top-down and bottom-up methods were employed. Leading market players were identified through secondary research, with their market share in specific regions determined through a combination of primary and secondary research. This comprehensive process included reviewing annual and financial reports from key industry players and conducting in-depth interviews with senior industry executives, including CEOs, VPs, directors, and marketing executives. Percentage distributions and breakdowns were initially derived from secondary data and subsequently validated through primary sources. Every relevant parameter influencing the markets in this study was meticulously considered, verified through primary research, and examined to derive final quantitative and qualitative data. The resulting data was aggregated and enhanced with detailed insights and analysis from MarketsandMarkets, ultimately forming the basis of this report.
Bottom-Up Approach
The bottom-up approach was used to determine the overall size of the revenues of key players and their shares in the market. The overall market size was calculated based on the revenues of key players identified in the market.
- The first step involved identifying companies that offer modular automation systems, followed by mapping their products according to various parameters, such as type, mobility, and components.
- The size of the Modular Automation Market was calculated based on the demand from various application areas and the revenue generated by companies within the modular automation ecosystem.
- Primary interviews were conducted with a few major players in the Modular Automation Industry to confirm the global market size.
- Secondary sources, including the International Society of Automation (ISA), NAMUR, Organization for Machine Automation and Control (OMAC), OPC Foundation, VDI, and PROFIBUS, were also used to cross-check market size. Other secondary sources comprised company websites, press releases, and research journals.
- To determine the Compound Annual Growth Rate (CAGR) of the Modular Automation Market, both historical and projected market trends were analyzed by examining the industry's penetration rate and supply and demand in various application areas.
- All estimates at each stage were confirmed through discussions with key opinion leaders, including corporate executives (CXOs), directors, sales heads, and industry experts from MarketsandMarkets.
- Several paid and unpaid information sources, such as annual reports, press releases, white papers, and databases, were also reviewed during the research process.
Top-Down Approach
In the top-down approach, the total size of the Modular Automation Market, derived from percentage splits obtained through both secondary and primary research, was used to estimate the sizes of individual markets, as detailed in the market segmentation.
The top-down approach used the overall market size as a reference point to estimate the size of specific market segments. This approach was also applied to secondary research data to confirm the estimated market sizes for different segments.
Each company's market share was calculated to validate the revenue distribution used earlier in the top-down approach. Using data triangulation and validation through primary research, the study established and confirmed the sizes of both the entire parent market and the individual segments. The data triangulation process employed for this study is detailed in the following section.
- Revenue information from leading manufacturers and providers of Modular Automation systems and solutions was gathered and analyzed to estimate the global size of the Modular Automation Market.
- The Modular Automation Market is projected to exhibit a steady growth trend during the forecast period, reflecting its maturity and the presence of numerous well-established players across various sectors.
- The revenues, geographic footprint, key market sectors, and product offerings of all identified players in the Modular Automation Market were studied to estimate the percentage distribution of different market segments.
- Secondary research identified major players in each category (by component type and end-user industry) within the Modular Automation Market, and information was confirmed through brief discussions with industry experts.
- Several discussions with key opinion leaders from leading companies involved in developing Modular Automation systems were conducted to validate the market segmentation based on type, mobility, component, end-use industry, and geography.
- Geographic splits were estimated using secondary sources, considering various factors, such as the number of companies offering Modular Automation systems in a specific country or region and the types of Modular Automation components provided by these players.
Data Triangulation
After arriving at the overall size of the Modular Automation Market from the market size estimation process explained above, the total market was split into several segments and subsegments. The market breakdown and data triangulation procedures were employed wherever applicable to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments. The data was triangulated by studying various factors and trends from both the demand and supply sides. In addition to this, the market size was validated using top-down and bottom-up approaches.
Market Definition
Modular automation is a versatile and scalable strategy in industrial automation where production systems consist of interchangeable modules. Each module can function independently or in synergy with others, facilitating effortless customization, swift reconfiguration, and incremental upgrades. This approach allows manufacturers to optimize production processes, minimize downtime, and quickly respond to evolving market demands, thereby improving operational efficiency and cost-effectiveness. Moreover, modular automation promotes innovation by allowing for seamless integration of new technologies
Key Stakeholders
- Component Manufacturers
- Government and Research Organizations
- Modular Automation System Providers
- Modular Automation Software Providers
- Original Equipment Manufacturers (OEMs)
- Professional Services/Solution Providers
- Research Institutions and Organizations
- System Integrators
Report Objectives
- To estimate and forecast the size of the Modular Automation Market in terms of value based on type, mobility, component, end-use industry, and region.
- To describe and forecast the market size, in terms of volume, based on hardware type.
- To describe and forecast the market size, in terms of value, for four major regions-North America, Europe, Asia Pacific, and RoW
- To provide detailed information regarding major factors such as drivers, restraints, opportunities, and challenges influencing the market growth
- To provide a detailed overview of the value chain of the Modular Automation Market
- To strategically analyze micromarkets regarding individual market trends, growth prospects, and contributions to the total market
- To strategically profile key players and comprehensively analyze their market position regarding ranking and core competencies, along with a detailed competitive landscape for the market leaders.
- To analyze major growth strategies such as product launches, expansions, joint ventures, agreements, and acquisitions adopted by the key market players to enhance their position in the market.
- To analyze the impact of the recession on the Modular Automation Market
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
- Detailed analysis and profiling of additional market players (up to 5)
- Additional country-level analysis of the Modular Automation Market Product Analysis
- Product matrix, which provides a detailed comparison of the product portfolio of each company in the Modular Automation Market.
Growth opportunities and latent adjacency in Modular Automation Market