The global automation and control market is characterized by the presence of many global, regional, and local vendors. The market is competitive with all the players competing to gain market share. Strong competition, rapid advances in technology, and frequent changes in government policies are key factors that confront market growth. The vendors compete based on cost, product quality, reliability, and aftermarket services. It is crucial for the vendors to provide cost-efficient and high-quality technology to survive and succeed in an intensely competitive market.
Wantstats includes following key players for automation and control market research study: General Electric, Mitsubishi Electric Corporation, Emerson Electric Co, Siemens AG, Schneider Electric SE, ABB Ltd, Rockwell Automation Inc, Omron Corporation, KUKA AG, Ametek Inc, Honeywell International Inc, Yokogawa Electric Corporation, Endress+Hauser Management AG, Dwyer Instruments Inc, Stratasys Ltd, Bosch Rexroth AG, Schlumberger Limited and Fanuc Corporation.
The market share analysis is derived by considering various factors such as financial position, segmental R&D investment, product innovations, corporate strength, product portfolio, strategy analysis, and, key innovations in the market among other factors.
General Electric is a technology and financial services company which develops and manufactures products for the generation, transmission, distribution, control, and utilization of electricity. The company’s automation systems enable its customers to connect their machines for better, faster, safer and reliable performance. The company offers world-class industrial software, distributed control systems, and process safety systems to thousands of partners globally. The company plans to enhance its product portfolio and increase sales to its existing customers in energy, aviation, and oil-and-gas businesses and obtain new customers in various other sectors to maintain its current leading market position.
Mitsubishi Electric Corporation is a leading manufacturer and developer of electric and electronic equipment. The company provides its automation solutions to improvise safety, reliability, and profitability for remote oil and gas operations. The company offers innovative range of automation and processing technologies such as controllers, electrical discharge machines and industrial robots. Also, the company invests in research and development of automation and control systems and enhances its corporate network by expanding its business into untapped areas to maintain its market position.
Emerson Electric Co. is a leading manufacturer of process control systems, valves, and analytical instruments. Emerson’s biggest advantage is its wide range of automation solutions and skilled workforce with industry expertise. The company has a strong R&D department which constantly focuses on the development of innovative automation solutions to offer world-class automation to its global partners. The company has a strong customer base and is focused on developing its product portfolio to maintain its market position.
Siemens AG is headquartered in Germany and engages in the production and supply of systems for power generation, power transmission, and medical diagnosis. The company provides automation product called SIMATIC WinCC V7 SCADA system which is one of the most scalable SCADA system offering efficient production analysis, and efficient operational control. The company is partnered with the International Society of Automation (ISA) to develop secured automation systems. Moreover, Siemens offers global customer support according to highest quality standards which helps the company to maintain its current market position.
Schneider Electric is a global provider of energy management and automation solutions. The company offers wide range of automation and control products such as motion controllers, programmable relays and interface modules. The company has unique product portfolio in automation and devotes 5% of its sales every year for R&D with over 7,500 R&D engineers worldwide. The company provides technology and integrated solutions for optimizing the industrial processes in large oil and gas facilities. The company is investing in enhancing its skilled workforce to maintain its market position.
Other companies are also providing a wide range of solutions related to automation and control, thereby contributing in generating high market value for the automation and control market.
Michael Porter’s Five Forces model provides a framework to study the global automation and control market. Strategic business managers, trying to gain an edge over competing firms in the global automation and control market, can utilize this model to better understand the industry in which the firm operates. The components of each of the forces and the degree of impact of each component in the context of the global automation and control market have been broken down and analyzed.
Threat of New Entrants
Automation and control market has various leading players such as ABB, Siemens, GE, and others, playing a crucial role in generating the highest revenue for the market. These companies have wide geographical presence and possess high market share globally. Further, development of automation solutions required moderate capital investment but high technical expertise which can be overcome by conducting training sessions. Due to high growth of automation and connected devices market, new players are investing to enter into the market. Further, the moderate economy of scale is propelling the market growth of automation and control in the coming future, which is also developing new opportunity for new entrants which are usually small and medium-sized companies. Start-up cost would range from medium to high considering the cost of manufacturing facilities and establishing relationships with vendors to procure the tools required to develop the products. So, for the developers, the threat of new entrants is expected to be high.
Bargaining Power of Suppliers
There is a significant industry force which is driving the market, companies such as Rockwell, and Mitsubishi are well established and serving the automation and control market with their innovative product offerings from a decade. However, emerging advanced technologies such as IoT and AI is impacting the market growth on a large extent. Also, due to moderate switching cost and impact of government rules & regulation, the suppliers are expected to have low bargaining power.
Bargaining Power of Buyers
The bargaining power of buyers is expected to be high under certain conditions. If the buyer wants to purchase automation and control products, then the power of the buyer is high because there are several companies in the industry that are developing automation solutions. However, if the buyer needs a customized solution, chances are that the buyer will turn to a well-known company to get the desired solution. Hence, the buyers have many choices to switch the company due to the availability of substitutes of products in the market. So the bargaining power of the buyers is expected to be high.
Threat of Substitutes
Automation and cocntrol solutions are widely adopted by various end users such as automotive, aerospace & defense, and electronics among others. There are various vendors available in the market who provide automation software solutions to a large extent. Also, to develop and integrate automation solutions, moderate technical expertise is required. Also, the threat of substitutes in the future will depend upon the change in technology and research & development process. Hence, due to the technological aspect, the threat of substitutes is expected to be high.
Intensity of Rivalry
The market has witnessed advancement in the recent past mainly through product innovation and collaboration. Increasing connected device usage for routine tasks, increasing growth of IoT and robotics, and the changing demand trend of the product have helped the market players in retaining their share across regions. However, the players in this market range from regional players to global giants. Hence, the market for automation and control remain fragmented with many medium and a few large players. Acquisitions and mergers with these small or medium scale companies for regional access, are the key strategies of the large players. Thus, considering the growing quality requirements in industrial products, their production & demand trends, there would be a moderate to high rivalry.
