Digi-Key Expects Strong Growth Will Continue in Automation and Control Market

Summary

The electronic component market may be headed toward a correction as demand begins to wane, but the automation and control market still appears to be bullet-proof. Throughout 2022, Digi-Key Electronics has experienced accelerated growth in the automation and control market as bookings and shipments of automation and control products reached new heights.

While supply chain challenges continue to make meeting customer demands difficult, especially for advanced products, there does appear to be light at the end of the tunnel as lead times are stabilizing and, in some cases, beginning to ease. Shipments of robotic solutions continue to rise, particularly in COBOTs and AMRs in both the Americas and Europe, as does the demand for SCADA. Despite the possible onset of a global recession, Digi-Key expects to see increased acceleration in the growth of automation during the next year and a half as advanced products become easier to get.

According to the December 2021 Global Automation and Controls Market report from Allied Market Research, the automation and control market was valued at almost $330 billion in 2020. Factors such as Covid restrictions, IP theft and a general disinterest in manufacturing employment have continued to fuel demand, and manufacturers looking to reshore their operations to Eastern Europe and the Americas will need to further their automation integrations to compete with low-cost labor markets. The 2023 total available automation and control market is expected to be $381.75 billion and is projected to grow to $845 billion in 2030, creating an overall compound annual growth rate of 10.7% across all aspects of automation and control.

The rise of e-commerce distribution has also affected the growth of the automation and control market. Just as we have seen generational changes in other industries in the way customers consume content and procure products, we are seeing a similar shift in the buying habits of automation customers. While printed catalogs and magazines are still of particular interest to older engineers, one must consider that the current generation of busy engineers may not want to be interrupted by a field rep bringing donuts into their shop every Tuesday looking for an order. More and more customers are looking to utilize e-commerce options to buy products vs. buying through traditional brick and mortar distribution. When an e-commerce distributor can provide customers with straightforward access to accurate information and ease of buying from a wide breadth of products delivered in a timely manner, you have the makings of a great B2C relationship.

The automation and control market is booming and continues to break down barriers once thought impossible. Artificial intelligence, predictive maintenance, machine-to-machine communication and edge computing were once the stuff of science fiction, but today they are reality. The automation and control market will continue to grow and move in very exciting directions, and Digi-Key is ready to help drive technology innovation into 2023 and beyond with detailed technical resources and robust search functionality to help customers find the exact products they need to take their designs to the next level.