Northbrook, IL -- (SBWIRE) -- 01/07/2021 -- The process automation and instrumentation market is estimated to be worth USD 67.4 billion in 2020 and is projected to reach USD 76.8 billion by 2025, at a CAGR of 2.6%. The growth of this market is propelled by factors such as the growing importance of energy efficiency and cost reduction, emphasis on digitalized technologies such as IIoT, increasing adoption of industrial automation, and optimum utilization of resources.

Process Automation & Instrumentation Market

COVID-19 Impact on the Global Process Automation & Instrumentation Market
The outbreak of COVID-19 has declined the global market for process automation & instrumentation market. This is due to the disruptions in the supply chain across the globe. The economies around the globe have declined as there is major decline in the demand for products. The production across all industries have been limited due to the pandemic, the shortage of raw material, decline in exports and the disruptions in the supply chain are the major factors contributing to the decline in the production as well as the decline in process automation & instrumentation market.

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Market Dynamics

Driver: Fiscal policy steps taken by regional financial institutions to keep manufacturing facilities floating amidst COVID-19 crisis

It is projected that the world GDP growth rate would go down by 0.5% in 2020, thereby giving a negative trend for growth prospects in an already weak world economy. Many countries are already implementing remedial plans to tackle the economic crisis triggered by the COVID-19 outbreak. The US has passed a bill named Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, under which USD 2 trillion will be spent under five components, namely individuals/families, big businesses, small businesses, state and local governments, and public services. The demand for process automation & instrumentation products and solutions is directly dependent on manufacturing activities. Thus, the initiatives taken by different governments will help drive the growth of the companies involved in the development of process automation & instrumentation products and solutions.

Restraints: High investment for implementation and significant maintenance costs of process automation and instrumentation solutions

One of the most significant factors that limit the growth of the process automation and instrumentation market is a high initial investment for solutions and devices. High investments are required for solutions such as MES and devices such as process analyzers, transmitters, and control valves. For example, the installation of MES at a production site involves various stages, such as acquisition, adjustment, implementation, running, and consultation; this subsequently increases overall costs, thereby surging the operating expenses of the site.

Opportunities: Rising demand for safety automation systems

Industrial accidents result in heavy losses in terms of injuries or death and production loss. Oil and gas platforms are generally located in harsh conditions, which require an automated safety and security mechanism for protecting against any terrorist attack, theft, and accidents, as well as malfunctioning of equipment. Process automation and instrumentation can handle and control an emergency as well as control complex processes.

Challenges: Lockdown and social distancing will save lives but may restrict commercial trade growth for coming months

Social distancing is a precautionary and mandatory measure being followed to contain the outbreak. Social distancing implies that people should remain at home in isolation and avoid gathering in a group to prevent community spread. The workers at manufacturing plants are also following these measures. These measures restrict the presence of workers on the shop floor of the plant, thereby reducing the manufacturing operations. Some companies have completely stopped the manufacturing operations, which has disrupted the supply chain. Social distancing is also being observed in other parts of the manufacturing ecosystem, including transportation. Supplying essential manufacturing components and raw materials to regions where complete lockdown and sealing have been done has become difficult. This further brings the commercial activities to a standstill, thereby negatively affecting the growth of the market, especially in the manufacturing sector.