How Are Automation Components and Industry 4.0 Tools Boosting the Growth of the Manufacturing Sector?

The growing penetration of Internet services and the advent of advanced digital technologies have led to a new Industrial Revolution, called IR 4.0. This period is characterized by rapid technological development, transforming how companies operate and make long-term business decisions. In the case of the manufacturing sector, Industry 4.0 refers to the integration of smart technologies into various production processes to enhance the overall efficiency and productivity of the firm. Naturally, the demand for automation components and systems has increased significantly in the last few years due to a rise in adoption of new manufacturing techniques.  

Increased Preference for Automation Systems Creating New Investment Opportunities 

Recently, Allied Market Research published a report on the automation components market, which highlights that the industry accounted for $116.7 billion in 2021. The sector is expected to gather a revenue of $296.8 billion by 2031, rising at a CAGR of 9.6% during 2022-2031. Rise in applications of different components and devices such as sensors, actuators, human-machine interfaces, controllers, and more, have played an important role in the growth of the sector.  

Sensors, for instance, are one of the most basic automation tools used in almost all modern manufacturing processes. They help operators monitor the real-time activity of a particular machine and capture data regarding various parameters impacting its performance. To collect information accurately, different types of devices such as temperature, pressure, and speed sensors have been developed. 

Similarly, programmable logic controllers (PLCs) have also become quite common in automation tools. These systems process all the information provided by the sensors and send the output to actuators and other similar components. These industrial computers can be programmed to perform certain set functions and specific tasks to streamline production lines and business cycles. Moreover, they are flexible and can be easily scaled, thus allowing companies to expand their operations easily. 

Launch of Novel Products by Industry Giants Helping the Sector Flourish 

The emergence of AI and machine learning has further broadened the scope of the automation components industry. To capitalize on the opportunities offered by these advanced technologies, several leading companies have launched innovative automation solutions, thus expanding their footprint in the industry.  

For instance, in April 2024, onsemi, a major semiconductor manufacturing company, unveiled CEM102, a high-tech electrochemical sensor for industrial, healthcare, and environmental applications. Rise in use of synthetic chemicals in various end-use sectors has led to increased need for a robust sensing device that helps provide feedback and insights on the safety, efficacy, and quality of the product. Embedded with an RSL15 Bluetooth® 5.2 enabled microcontroller, the automation component has become an important industrial tool to alert workers in case of accidents like gas leaks and such mishaps. The press release issued by the company highlighted that CEM 102’s low energy consumption capability makes it one of the most sought-after industrial automation solutions in recent times. 

On the other hand, Zebra Technologies Corporation, an innovative digital solutions developer, announced the expansion of its product portfolio with the launch of a new series of 3S Series 3D sensors and the FS42 fixed industrial scanner for AI-based applications. Equipped with Aurora Focus™ for fast deployment, the FS42 industrial scanner features a neural processing unit (NPU) for AI-powered deep-learning models. The company, in its press release, stated that these automation components were especially designed for detecting various defects and issues in finished products and monitoring the working of assembly lines in real-time. 

In conclusion, the growing integration of digital technologies in the manufacturing sector and the advent of various Industry 4.0 technologies have created favorable conditions for the growth of the automation component industry. Furthermore, the launch of advanced tools and systems by leading companies is anticipated to open new investment avenues in the sector. 

✍ **𝑨𝒓𝒕𝒊𝒄𝒍𝒆 𝒘𝒓𝒊𝒕𝒆𝒓: Akhilesh Prabhugaonkar