Representative End User Clients
Representative Automation Clients
Representative Software Clients
Introduction
Annual
In this Insight, ARC Advisory Group includes the most recent quarterly results for major automation suppliers that publicly report their results. To convert the revenues of non-US suppliers to US dollars, we average exchange rates for foreign currencies used for the entire quarter.
With this latest automation supply side market update, ARC has increased the number and breadth of automation suppliers covered, based on a combination of publicly reported data and ARC’s own extensive research database. We have also added selected business intelligence visualizations. Readers should contact their ARC client managers if they would like to gain additional access to this market intelligence as it applies to both regional and sector-specific supply side automation market trends.
Q1
Financial results during calendar period from January 1 to March 31.
Overall, the automation business of the companies ARC is tracking experienced a single digit decline in Q1 2024 as compared to Q1 2023.
Although the results from the overall company group posted a decline, several of the companies in ARC’s index reported strong growth, including some companies reporting double digit growth.
Demand from customers in the automotive sector remains sluggish, with car makers concentrating on short-term earnings due to a decline in consumer interest for electric vehicles.
The semiconductor industry is also experiencing sluggish growth, with manufacturers dealing with various obstacles such as surplus memory capacity and limited workforce availability.
Despite the headwinds facing the global automation market, many of the fundamentals for both process automation and factory automation remain strong.
Technological advancements in automation technologies, such as artificial intelligence, machine learning, robotics, and the Internet of Things (IoT), will be driving innovation and increased automation in various sectors.
The evolution of manufacturing is increasingly digital, with the integration of AI being a key factor in enhancing productivity.
Increasing focus on Industry 4.0 initiatives is driving investment in smart manufacturing and remote monitoring of plant operations.
Overview
Suppliers Analyzed in Report
Executive Summary
Q1
The key distinguishing factor between the companies that reported strong growth as opposed to a decline in revenues was each company’s vertical industry focus and sales channel strategy.
Companies with a strong focus on providing factory automation equipment to customers in discrete industries through a network of distributors were more likely to experience a decline in Q1.
Companies with a strong focus on providing process automation equipment to customers in the heavy process industries through a direct sales approach were more likely to experience strong growth during Q1.
Companies with a broad focus covering both process and factory automation were more likely to report relatively flat revenue growth.
High inventory levels of factory automation equipment among machine builders and distributors was a leading factor in the decline reported for many companies.
During the supply chain disruptions seen last year, many customers were actively building up their factory automation equipment inventories to help ensure they had products available if needed.
With the supply chain disruptions largely resolved, coupled with weaker customer demand across many verticals, end users, machine builders, and distributors alike worked on downsizing their excess inventories.
This market correction was expected and will be temporary.
On a positive note, several leading suppliers in the automation industry have reported significant order backlogs which they aim to address in the year 2024.
Key tech trends: AI, ML, RPA, 3D Printing, Edge Computing, Autonomous Vehicles, Drones, Supply Chain Automation.
Robotics and automation improve safety, quality, and profitability in food processing, packaging, and retail.
Autonomous vehicles and drones enhance route optimization, cost reduction, and accuracy across sectors.
Digital technologies increasingly automate plants and processes.
Industrial IoT and digitalization are key drivers of automation market growth.
Sustainability and eco-friendly practices are expected to lead the market growth.
The hydrogen industry boosts the process control instrumentation market.
Rising focus on cybersecurity as automation tech spreads.
ABB
YoY Quarterly Trends
ARC Advisory Group clients can view the complete report at the ARC Client Portal.
Please Contact Us if you would like to speak with the author.
Obtain more ARC In-depth Research at Market Analysis