Latin America Factory Automation And Industrial Controls Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 16.13 Billion |
| Market Size (2029) | USD 24.71 Billion |
| CAGR (2024 - 2029) | 7.54 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Latin America Factory Automation And Industrial Controls Market Analysis
The Latin America Factory Automation And Industrial Controls Market size is estimated at USD 16.13 billion in 2024, and is expected to reach USD 24.71 billion by 2029, growing at a CAGR of 7.54% during the forecast period (2024-2029).
- 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
The Latin American factory automation and industrial controls market exhibits significant fragmentation, featuring prominent players like Rockwell Automation Inc., Honeywell International Inc., General Electric Company, ABB Limited, and Dassault Systemes SE. These key participants employ strategic approaches, including partnerships and acquisitions, to bolster their product portfolios and establish a sustainable competitive edge.
- 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.
Latin America Factory Automation And Industrial Controls Market Leaders
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Rockwell Automation Inc.
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Honeywell International Inc.
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General Electric Company
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ABB Limited
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Dassault Systemes SE
*Disclaimer: Major Players sorted in no particular order
Latin America Factory Automation And Industrial Controls Market News
- May 2024: Hero MotoCorp announced plans to start a new bike manufacturing plant in Brazil, which would address the increasing demand for bikes in the Latin American market and the emerging trend for local manufacturing facilities in Latin American countries. The plant is also expected to support industrial sector growth in Latin America and boost the adoption of factory automation and industrial control solutions.
- November 2023: General Electric Company announced the investment of USD 500 million to expand its operations in Brazil and to accelerate technology partnerships with leading Brazilian companies spanning multiple industries through research and development, technology, training, new product development, new plant, and equipment. This is expected to support the market presence of the company in Latin America.
Latin America Factory Automation And Industrial Controls Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
- 4.2 Industry Value Chain Analysis
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4.3 Industry Attractiveness - Porter's Five Forces Analysis
- 4.3.1 Bargaining Power of Suppliers
- 4.3.2 Bargaining Power of Buyers
- 4.3.3 Threat of New Entrants
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
- 4.4 Assessment of the Impact of Macro Economic Factors and COVID-19 on the Market
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Focus Toward Cost-cutting and Business Process Improvement
- 5.1.2 Increasing Adoption of Internet of Things (IoT) and Machine- to-Machine Technologies
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5.2 Market Restraints
- 5.2.1 Lack of Skilled Workforce Preventing Enterprises from Full-scale Adoption of Factory Automation
6. MARKET SEGMENTATION
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6.1 By Product Type
- 6.1.1 Industrial Control Systems
- 6.1.1.1 Distributed Control System (DCS)
- 6.1.1.2 Programmable Logic Controller (PLC )
- 6.1.1.3 Supervisory Control and Data Acquisition (SCADA)
- 6.1.1.4 Product Lifecycle Management (PLM)
- 6.1.1.5 Human Machine Interface (HMI)
- 6.1.1.6 Manufacturing Execution System (MES)
- 6.1.1.7 Enterprise Resource Planning (ERP)
- 6.1.1.8 Other Industrial Control Systems
- 6.1.2 Field Devices
- 6.1.2.1 Machine Vision
- 6.1.2.2 Robotics (Industrial)
- 6.1.2.3 Sensors and Transmitters
- 6.1.2.4 Motors and Drives
- 6.1.2.5 Relays and Switches
- 6.1.2.6 Other Field Devices
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6.2 By End-user Industry
- 6.2.1 Oil and Gas
- 6.2.2 Chemical and Petrochemical
- 6.2.3 Power and Utilities
- 6.2.4 Food and Beverages
- 6.2.5 Automotive
- 6.2.6 Pharmaceutical
- 6.2.7 Other End-user Industries
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6.3 By Country
- 6.3.1 Brazil
- 6.3.2 Argentina
- 6.3.3 Mexico
- 6.3.4 Rest of Latin America
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles*
- 7.1.1 Rockwell Automation Inc.
- 7.1.2 Honeywell International Inc.
- 7.1.3 General Electric Company
- 7.1.4 ABB Limited
- 7.1.5 Dassault Systemes SE
- 7.1.6 Schneider Electric SE
- 7.1.7 Emerson Electric Company
- 7.1.8 Autodesk Inc.
- 7.1.9 Mitsubishi Electric Corporation
- 7.1.10 Siemens AG
- 7.1.11 Aspen Technology Inc.
- 7.1.12 Bosch Rexroth AG (Robert Bosch Gmbh)
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
** Subject To AvailablityLatin America Factory Automation And Industrial Controls Industry Segmentation
Factory automation refers to the use of control systems, machinery, and computer systems to automate industrial processes and tasks, reducing the need for human intervention. This includes processes like manufacturing, material handling, and quality control. Industrial controls encompass the products and systems used to monitor and control various industrial processes. This includes components like programmable logic controllers (PLCs), human-machine interfaces (HMIs), sensors, and software that manage and optimize the operation of machinery and equipment in industrial settings. These technologies and solutions are essential for improving efficiency, safety, and productivity in industrial operations.
The Latin American factory automation and industrial controls market is segmented by product type (industrial control systems (distributed control system (DCS), programmable logic controller (PLC), supervisory control and data acquisition (SCADA), product lifecycle management (PLM), human-machine interface (HMI), manufacturing execution system (MES), and enterprise resource planning (ERP)), field devices (machine vision, robotics (industrial), sensors and transmitters, motors and drives, and relays and switches)), end-user industry (oil and gas, chemical and petrochemical, power and utilities, food and beverages, automotive, and pharmaceutical), and country (Brazil, Argentina, Mexico, and Rest of Latin America). The market sizes and forecasts are provided in value terms (USD) for all the above segments.
| By Product Type | Industrial Control Systems | Distributed Control System (DCS) |
| Programmable Logic Controller (PLC ) | ||
| Supervisory Control and Data Acquisition (SCADA) | ||
| Product Lifecycle Management (PLM) | ||
| Human Machine Interface (HMI) | ||
| Manufacturing Execution System (MES) | ||
| Enterprise Resource Planning (ERP) | ||
| Other Industrial Control Systems | ||
| By Product Type | Field Devices | Machine Vision |
| Robotics (Industrial) | ||
| Sensors and Transmitters | ||
| Motors and Drives | ||
| Relays and Switches | ||
| Other Field Devices | ||
| By End-user Industry | Oil and Gas | |
| Chemical and Petrochemical | ||
| Power and Utilities | ||
| Food and Beverages | ||
| Automotive | ||
| Pharmaceutical | ||
| Other End-user Industries | ||
| By Country | Brazil | |
| Argentina | ||
| Mexico | ||
| Rest of Latin America |
Latin America Factory Automation And Industrial Controls Market Research FAQs
How big is the Latin America Factory Automation And Industrial Controls Market?
The Latin America Factory Automation And Industrial Controls Market size is expected to reach USD 16.13 billion in 2024 and grow at a CAGR of 7.54% to reach USD 24.71 billion by 2029.
What is the current Latin America Factory Automation And Industrial Controls Market size?
In 2024, the Latin America Factory Automation And Industrial Controls Market size is expected to reach USD 16.13 billion.
Who are the key players in Latin America Factory Automation And Industrial Controls Market?
Rockwell Automation Inc., Honeywell International Inc., General Electric Company, ABB Limited and Dassault Systemes SE are the major companies operating in the Latin America Factory Automation And Industrial Controls Market.
What years does this Latin America Factory Automation And Industrial Controls Market cover, and what was the market size in 2023?
In 2023, the Latin America Factory Automation And Industrial Controls Market size was estimated at USD 14.91 billion. The report covers the Latin America Factory Automation And Industrial Controls Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Latin America Factory Automation And Industrial Controls Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Latin America Factory Automation And Industrial Controls Industry Report
Statistics for the 2024 Latin America Factory Automation And Industrial Controls market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Latin America Factory Automation And Industrial Controls analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
