Industrial Automation Spares Market by Type (Electrical Components, Electronic Components, Mechanical Components), End User (Oil & Gas, Automotive, F&B, Semiconductor & Electronics, Power), and Geography - Global Forecast to 2029

The Industrial Automation Spares Market is expected to reach a value of $16.54 billion by 2029, at a CAGR of 5.7% during the forecast period 2022–2029. The growth of the industrial automation spare part components markets is attributed to the rising investments and transformations in conventional manufacturing facilities and the transition to digitized systems. This transition has created the demand for the deployment of automation systems and thus the need for industrial automation spare part components. The rising number of SMEs and the need to improve the safety of the production process are expected to create an ample number of opportunities for the players in the market.

Impact of COVID-19 on the Global Industrial Automation Spare Parts Market

Automation providers witnessed a decline in revenues in 2020 and 2021 due to the rapid spread of COVID-19 and limited operations of industries in the first two quarters. The application sectors in the industrial automation spare part components market experienced low to high impacts of the COVID-19 pandemic and are expected to recover in the coming years.

Industries severely impacted include oil & gas, construction machinery, rubber & plastic machinery, and power generation. These industries are expected to recover slowly and face high impacts due to changing consumer patterns, low production, and dependency on end markets. Some industries that experienced medium impacts include mining, robotics, building technology, electronics, paper & pulp, and process industry equipment. These industries are expected to recover quickly due to their broad range of application markets.

The least impacted industries include agriculture machinery, food & beverage processing & packaging, and medical & scientific manufacturers as they offer essential goods globally. Additionally, local manufacturing facilities that were temporarily shut down resumed operations in the third quarter due to the removal of lockdowns and the need for economic growth.

The industrial sector was severely impacted by the COVID-19 pandemic due to a decline in the sales of high-cost products and consumer need for purchasing essential goods & services. During the nationwide lockdowns, consumers restricted their purchases of consumer goods, high-cost electronics, textiles, automobiles, and machinery, which impacted the major application sectors in the industrial automation spare part components market. With the steady reopening of countries and stability in consumer lifestyles, the spending on these commodities is expected to increase, resulting in the demand for automation solutions over the coming years. The industry is expected to gain pace in 2022. The increasing need to limit manual contact to curb the spread of COVID-19 infections is expected to result in the increased demand for industrial automation spare part components across various end-user facilities globally.

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Major Initiatives to Promote Automation in Industrial Production

World leaders in industrial production, including Japan, South Korea, China, and the U.S., have been utilizing automation technologies to increase production capacities and manufacturing efficiency, boosting economies by supporting supply chain levels ranging from raw material processing and supply of components & spare parts to the integration, delivery, and maintenance of automation systems. The spare part components market comprises both OEMs and aftermarket products manufacturers, with variations in pricing and specifications. OEM spare parts are more expensive; however, they are compliant with certain manufacturers’ product specifications and offer high quality. Aftermarket spares are cheaper and can be used with various systems; however, they lack quality. These OEMs and aftermarket products manufacturers include local players as well as global manufacturers. Governments of various countries provide incentives and undertake initiatives to boost the development of the healthcare, agriculture, and infrastructure sectors.

The growing adoption of automation technologies is expected to boost the demand for spare parts. According to the International Federation of Robotics, South Korea’s robotics-related budget for 2020 was USD 126 million. As per the Intelligent Robot Development and Supply Promotion Act, South Korea recognizes its robotics industry as a core industry. Nearly 20% of the robotics development budget is allocated to spare part components by a long-term agreement with suppliers.

In June 2020, Germany funded the ‘PaiCE’ program with a budget of USD 55 million to develop digital industry platforms. Several other programs and projects have been initiated to accelerate the development of digital technologies. In 2020, the supply of spare parts was limited due to restrictions on manufacturing operations during the initial stage of the COVID-19 pandemic. Although there were sufficient components in stock to last the integrators through the COVID-19 pandemic, spare parts production reduced significantly during the period.

Poland is one of the top manufacturing countries in Europe with a high demand for new and innovative manufacturing technologies. To help the industries in Poland, the government launched its Industry 4.0 Platform in 2019 to spread knowledge related to Industry 4.0 processes and develop competence in automation. The Polish government offers incentives for advanced manufacturing and industrial transformation. It also provides grants to support industry research and promotes the adoption of automation through training programs for out-of-work employees in areas such as machine learning and artificial intelligence to enhance their skills. Thus, the growing use of automation in industrial production is expected to increase the demand for spare parts, driving the growth of this market.

Key Findings in the Global Industrial Automation Spares Market Study:

Electronic Components Segment Expected to Grow at Highest CAGR During Forecast Period

Based on type, the electronic components segment is expected to account for the largest share of the global industrial automation spare parts market in 2022. This segment is also expected to grow at the highest CAGR during the forecast period. Electronic components are the backbone in enabling the communications between the system used in automation setup. The failure of any electronic component results in heavy expenses on production and assembly lines. Thus, manufacturers keep electronics components under high replacement priority as a precautionary measure.

Automotive Segment Expected to Showcase Highest Growth During Forecast Period

Based on end user, the automotive segment is expected to register the highest growth rate during the forecast period due to the increasing investments in the production of electric vehicles. Electric vehicles are less complex to manufacture, which results in numerous new entrants starting production and streamlining operations. The automotive industry is advancing as automakers and suppliers are moving toward using automation solutions to perform manufacturing and assembly operations.

Asia-Pacific to be the fastest-growing regional market

In 2022, Asia-Pacific is expected to account for the largest share of the industrial automation spare part components market and is also expected to grow at the highest CAGR during the forecast period. The factors attributed to the high growth are mainly driven by the rapid population growth & urbanization, economic development, increasing wages, and reduced production costs offered by automation.

The Asia-Pacific region presents diverse opportunities for adopting automation solutions due to its large manufacturing sector. The traditional industrial production areas are generally characterized by manual or semi-automatically controlling processes. Adopting advanced automation solutions helps attain the flexibility required for the high-volume production lines, thereby enhancing the operational processes. These factors are expected to propel the demand for automation systems in the region in the coming years.

Key Players

The report includes a competitive landscape based on an extensive assessment of the key strategies adopted by the leading market participants in the industrial automation spares market over the last four years. The key players profiled in the industrial automation spare part components market are ABB Limited (Switzerland), Siemens AG (Germany), Honeywell International, Inc. (U.S.), Rockwell Automation (U.S.), Baumer Ltd (Switzerland), Encoder Products Company, Inc (U.S.), Fuji Electric Co. Ltd. (Japan), Delta Electronics, Inc (Taiwan), Emerson Electric (U.S.), Omron Corporation (Japan), Panasonic Corporation (Japan), Baumuller Holding GmbH & Co. KG (Germany), Balluff GmbH (Germany), Sensata Technologies, Inc (U.S.), Festo Corporation (Germany), Parker-Hannifin Corporation (U.S.), SMC Corporation (Japan), DESTACO (U.S.), SWISS Automation, Inc (U.S.), and Mitsubishi Electric Corporation (Japan).

Scope of the Report

Industrial Automation Spares Market, by Type

• Electrical Component
  • Motors & Drives
  • Variable Frequency Drives (VFD)
  • Power Supply Unit (PSU)
  • Circuit Breakers
  • Actuators
  • Line Reactors
  • Other Electrical Components
• Electronic Component
  • Switches & Relays
  • Sensors
  • Printed Circuit Boards
  • PLC Systems
  • Encoders/Potentiometers
  • Other Electronic Components
• Pneumatic and Hydraulic Component
  • Hydraulic Pumps
  • Hydraulic Valves
  • Hydraulic Cylinders
  • Air Preparation Components
  • Air Valves
  • Air Cylinders
  • Other Components
• Mechanical Components
  • Gears/Gear System
  • Bearings
  • Couplers
  • Other Mechanical Components
• Connectors
• Structural Machine Parts
  • Fasteners
  • Machine Frames
  • Other Parts
• Cable and Harnesses
• Industrial Safety Components

Industrial Automation Spares Market, by End User

• Oil & Gas
• Automotive
• Food & Beverage
• Semiconductor & Electronics
• Chemical & Materials
• Consumer Goods
• Mining & Metals
• Power
• Pharmaceutical & Biotech
• Machine & Tools
• Paper & Pulp
• Aerospace & Defense
• Other End Users

Industrial Automation Spares Market, by Geography

• Asia-Pacific (APAC)
  • China
  • Japan
  • South Korea
  • India
  • South East Asia
  • Rest of Asia-Pacific
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Rest of Europe (RoE)
• North America
  • U.S.
  • Canada
• Latin America
• Middle East & Africa

Key Questions Answered in the Report: