Middle East and Africa Factory Automation Market
Middle East and Africa Factory Automation Market is growing at a CAGR of 7.3% to reach US$ 21.40 Billion by 2031 from US$ 12.19 Billion in 2023 by Component, Industry Vertical, and Geography.

Published On: Aug 2024

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Middle East and Africa Factory Automation Market

Adoption of Industry 4.0 Boosts Middle East and Africa Factory Automation Market Growth

According to our latest study titled “Middle East and Africa Factory Automation Market Forecast to 2031 – Country Share, Trend, and Growth Opportunity Analysis – by Component and Industry Vertical,” the market is projected to grow from US$ 12.19 billion in 2023 to US$ 21.40 billion by 2031; it is estimated to register a CAGR of 7.3% from 2023 to 2031. The report includes growth prospects in light of current factory automation market trends and factors influencing the market growth.

The introduction of Industry 4.0 is poised to boost innovation in the Middle East & Africa (MEA). Industry 4.0 is playing a vital role in the automation and manufacturing sector growth in the MEA. This transformative paradigm integrates operational, information, and communication technologies with cyber-physical systems facilitated by advanced wireless communication and industrial Internet of Things (IoT) services. The forthcoming digital and wireless revolution will be underpinned by 5G networks, holding the potential to propel economic growth in the region. Notably, the security, high speeds, low latency, and extensive connectivity of 5G networks bolster the smart city and agriculture transformation across numerous countries in the region. This evolution is set to unlock new revenue streams from IoT and industrial applications while expediting the pace of digitalization, thereby creating a new era of economic and technological advancement. Furthermore, major companies such as Siemens, Crisco, Microsoft, Unilever, Schneider Electric, and SAP, among others, are engaging in collaborative efforts with various governments to automate and digitally revolutionize critical business operations, including finance, warehousing, procurement, customer relationship management (CRM), human capital management, and supply chain management.

In 2022, the Department of Economic Development (ADDED) in Abu Dhabi introduced a new index aimed at facilitating the integration of cutting-edge smart manufacturing technologies within private-sector industrial enterprises. This initiative is designed to enhance growth and bolster competitiveness within the industry. The index serves as a comprehensive resource, guiding private sector entities in the successful adoption of Industry 4.0 technologies and their associated applications. Thus, the adoption of Industrial 4.0 contributes to the growing Middle East and Africa factory automation market size. 

The Middle East and Africa factory automation market analysis has been carried out by considering the following segments: component and industry vertical. Based on component, the Middle East and Africa factory automation market is bifurcated into hardware and software. The hardware segment is further segmented into PLC, industrial PC, valves and valve system, cylinder and actuator, air preparation, vacuum technologies, and sensors. The software segment is subsegmented into SCADA, MES, and others. The hardware segment held a larger Middle East and Africa factory automation market share in 2023. On the basis of industry vertical, the Middle East and Africa factory automation market is segmented into automotive, food & beverages, packaging, manufacturing, mining, metals, pulp & paper, life science & pharma, cement, glass, transportation, infrastructure, power, and others. The others segment is further segmented into agriculture, water, and renewables. The manufacturing segment held the largest Middle East and Africa factory automation market share in 2023.  

The scope of the Middle East and Africa factory automation market report is primarily divided into Saudi Arabia, the UAE, South Africa, Algeria, Egypt, Nigeria, Morocco, and the Rest of Middle East & Africa. Rising urbanization and significant government initiatives and strategies are expected to boost the market growth in Saudi Arabia in the coming years. For instance, according to World Economic Forum data published in August 2023, Saudi Arabia's Advanced Manufacturing Hub Strategy has identified over 800 investment opportunities worth US$ 273 billion to diversify the industrial sector. Saudi Arabia is planning to increase the number of factories from ~10,000 to 36,000 by 2035. An increasing number of factories are creating demand for factory automation solutions, such as sensors, valves, and SCADA software, to automate the production process. Furthermore, many food manufacturing companies in Saudi Arabia have already implemented automation technology to reduce reliance on low-skilled labor. For instance, Gulf Union Foods Co. has already adopted automation technology to automate operations and encourage cost savings. This will also support the company to strengthen its presence and increase competitiveness in the global market.

Rockwell Automation Inc, Siemens AG, OMRON Corp, Mitsubishi Electric Corp, Schneider Electric SE, Delta Electronics Inc, Inductive Automation LLC, Honeywell International Inc, SMC Corp, CKD Corporation, Airtac International Group, IMI Plc, Parker Hannifin Corp, Festo SE & Co. KG, and AVEVA Group Plc are among the key players profiled in the Middle East and Africa factory automation market report. 

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