On Wednesday, U.S. engineering and industrial software firm Emerson raised its fiscal 2023 forecast as companies increase spending on automation in response to a tight labor market. Emerson’s shares rose 3.9% in premarket trading.
The company’s new growth forecast is based on a more robust outlook for North American sales and earnings and increased demand for its industrial automation systems. The maker of sensors and controls said it expects revenue to rise 8.1% to $14.2 billion in 2023, up from a previous forecast of $14.06 billion.
Amid a shortage of workers following the pandemic, companies across North America are working towards automating their factories to enhance efficiency and streamline operations. This is mainly because automation allows for better production monitoring and reduces the chances of human error and loss of assets. In order to facilitate this, companies have been investing heavily in automation technologies, such as intelligent manufacturing and industrial IoT.
These technologies help to improve operational efficiency, productivity, quality, supply chain management, workplace safety, and environmental sustainability. They also help improve design and development processes, enabling companies to reduce costs. Moreover, these technologies are widely used in the process industries such as automotive, chemical, and energy utilities.
In order to cater to the growing need for industrial automation solutions, key players have been undertaking strategic activities such as new product launches, contractual agreements, mergers and acquisitions, and higher investments. For instance, in July 2021, Siemens AG extended its partnership with SAP SE to connect plant floor operations and product development via a digital twin platform and remote condition monitoring with OEMs to enable collaboration throughout the asset lifecycle.
Another factor boosting the industrial automation market is the rising demand for intelligent factory technologies that can help reduce the carbon footprint. This is mainly because, due to stricter regulations regarding greenhouse gas emissions, it becomes necessary for plants to track and reduce their releases into the atmosphere. This can be accomplished by integrating the industrial automation system with secure OT edge technologies.
Many companies are implementing advanced systems such as machine learning, predictive analytics, and artificial intelligence to make this possible. These intelligent tools can identify problems, predict issues, and provide solutions before the problem arises. This, in turn, helps companies reduce their production costs and achieve a competitive advantage.
In addition, several manufacturers are upgrading their industrial automation systems by replacing older components with modern technologies such as IIoT, edge computing, and cloud computing. Moreover, the increasing adoption of Industry 4.0 principles in various industrial sectors is also propelling the market for industrial automation. This trend is expected to continue over the forecast period, leading to significant growth in the global market for industrial automation. The major players in the market for industrial automation include Adisra, ABB Ltd., Dwyer Instruments LLC, Emerson Electric Co., Fanuc Corporation, Honeywell International, Inc., Kawasaki Heavy Industries Ltd, Mitsubishi Electric Corporation, Omron Corporation, Rockwell Automation Inc, Schneider Electric SA, Yokogawa Electric Corporation.
