Representative End User Clients
Representative Automation Clients
Representative Software Clients
Introduction
Q1
Financial results during calendar period from January 1 to March 31.
After a sharp decline in 2020, the automation market rose by high double-digit percent in Q1 2021.
Almost all automation companies recovered or saw a good growth in the range of mid to higher single digits in Q1 2021.
Most industrial companies started experiencing a recovery but at different levels, for example the automotive sector is still growing at a slow pace, but the pharmaceutical sector is performing well.
Economic activities have recovered from the effects of the pandemic, and some discrete suppliers saw a high demand for automation products. Most suppliers witnessed an increase in orders and revenues in Q1 2021.
Q2
Financial results during calendar period from April 1 to June 31.
Constant demand for automation products has helped the market to grow at a much faster pace compared with Q1 2021; the market grew by high double-digit percent in Q2 2021.
Almost 50 percent of world’s population is vaccinated, and this will further improve market growth prospects in Q3 2021.
Demand from the food and beverage, pharmaceuticals & biotech, mining, buildings, semiconductor, and water & wastewater industries has improved. Most of the companies are back on track toward Industry 4.0. The transition to Industry 4.0 will depend on the adoption of automation technologies and this has led toward a faster growth in Q2 2021.
Q3
Financial results during calendar period from July 1 to September 31.
Demand for automation products has helped the market to grow by low single-digit percentage in Q3 2021.
Q3 growth was lower than Q2; but in Q4 2021, market growth is expected to improve.
Demand from the food and beverage, pharmaceuticals & biotech, buildings, semiconductor, and water & wastewater industries has improved in this quarter.
COVID-19 has accelerated the adoption of Industry 4.0 and smart devices across industries. Adoption of Industry 4.0 leads toward smart manufacturing and remote monitoring of plant operations.
Overview
Executive Summary
Q1
Most automation markets are back to pre-pandemic levels.
Production numbers in most industries are back to 2019 levels.
Machine builders are experiencing strong demand.
Supply chain disruptions on account of the COVID-19 pandemic have created electronics component and semiconductor shortages.
The top supplier such as Thermo Fisher Scientific, FANUC, Delta Electronics, and Danaher witnessed highest revenue growth in Q1 2021 compared to previous year.
Q2
Most automation markets are showing accelerated growth, a clear sign of exit from pandemic.
Production numbers are higher than 2019 levels, majorly to cope with the business lost in 2020.
The automotive industry is on the verge of recovery with major demand for electric vehicles from both developed and developing nations.
Increased investment in 5G networks has also helped China, Taiwan, and other nations that produce electronics, and semiconductor.
The top supplier such as Thermo Fisher Scientific, FANUC, KUKA, and TE Connectivity witnessed highest revenue growth in Q2 2021 compared to previous year.
Q3
After a slump in 2020, automation markets are on a growth trajectory. If the pandemic wanes, the future could be upbeat.
Green energy and sustainability will drive the automotive industry with a major demand for electric vehicles from both developed and developing nations.
Some of the top suppliers, such as Thermo Fisher Scientific, TE Connectivity, Schneider Electric, Siemens, Honeywell, Johnson Controls, Parker Hannifin, FANUC, and Yaskawa witnessed double-digit revenue growth in Q3 2021 compared to previous year.
Quarterly Market Trends
Q1
Manufacturers are installing robots to make production and distribution more effective and seamless.
Automation has played a crucial role in curbing the COVID-19 pandemic in many industries. For example, a Japanese company uses robots to perform the COVID-19 test. The system is capable of screening up to 2,500 tests a day and produce results within 80 minutes.
Q2
Government initiatives and protocols have influenced the adoption of industrial automation. Before the outbreak of COVID-19, most large enterprises were keen on automating their processes, however, now, even smaller companies are showing interest toward automating their processes, understanding that even they could benefit from it.
Adoption of Robotics are on the rise and is managed by both humans and Artificial Intelligence.
Manufacturers have started building intelligent factories with help of cloud technology. With this they can track and evaluate production quotas and create model of predictive maintenance.
In Q2 2021 there has been significant progress in automated deliveries, due to rise in e-commerce and logistics.
Q3
The pandemic has fast-tracked the deployment of digital technologies, especially when it comes to new business models and remote maintenance & monitoring.
Automation and robotics are witnessing increased penetration in food processing, packaging, retail, and semi-automated restaurants.
The automation market is growing and is supported by megatrends, such as urbanization, rising middle class, and an aging society. The benefits of digitalization, such as speed, flexibility, and sharpened focus on quality are boosting market growth.
Supplier Analysis
ARC Advisory Group clients can view the complete report at ARC Client Portal
If you would like to buy this report or obtain information about how to become a client, please Contact Us