Australia’s electric automation market projected to grow significantly by 2031

According to an analysis by Verified Market Research, the Australia Electric Automation Market is currently valued at USD 522.64 million as of 2023 and is projected to expand significantly to USD 1,140.61 million by 2031. This growth represents a compound annual growth rate (CAGR) of 10.35% from 2024 to 2031, underscored by the increasing adoption of automation solutions across key industries such as manufacturing, energy, mining, and infrastructure.

The driving force behind this market expansion is the advancing shift towards Industry 4.0, which aligns with the urgent need for operational efficiencies, improved safety protocols, and cost reductions. The integration of electric automation systems, including robotics and control systems, is becoming commonplace as industries strive to enhance productivity. The energy sector is particularly notable for its interest in automation technologies, focusing on smart grids and renewable energy management, which are essential for improving energy efficiency and reducing environmental impact. The Australian government is also backing innovation and sustainability initiatives, further accelerating the adoption of electric automation technologies.

Key trends have emerged, primarily the growing demand for smart technologies that include artificial intelligence (AI) and the Internet of Things (IoT). These innovations are facilitating real-time monitoring and predictive maintenance, essential components for data-driven decision-making processes. With industries such as manufacturing and mining increasingly employing robotic automation, significant savings and enhanced safety measures are being observed.

The Australia Electric Automation Market sees major players such as Emerson Electric Co., Honeywell International Inc., Siemens, and ABB, to name a few. These companies are leveraging their market position to explore opportunities in emerging markets while delivering advanced automation solutions that align with the growing needs for energy efficiency and sustainability.

Investment opportunities abound as demand for smart automation solutions rises, especially in the mining and manufacturing sectors. However, challenges such as high initial implementation costs can deter smaller businesses from adopting such technologies. The complexities of integrating new automation systems with existing infrastructure and managing cybersecurity in automated settings are added concerns. Notwithstanding these challenges, the long-term outlook remains optimistic, driven by ongoing digitization efforts across Australian industries.

Simultaneously, the global Manufacturing Execution Systems (MES) market is also witnessing substantial growth, valued at USD 19.67 billion in 2023 and projected to reach USD 78.83 billion by 2032, growing at a CAGR of 15.53% over the forecast period from 2025 to 2032. Key drivers of this growth are the principles of Industry 4.0 and the push towards smart manufacturing practices. MES systems are essential for integrating various technologies associated with IoT, AI, and cloud computing, thus enabling a fully connected and efficient production process.

AI is revolutionising the MES landscape, significantly enhancing operational efficiency through predictive maintenance, autonomous quality control, and streamlined production planning. The ability of AI-driven MES to foresee equipment faults and detect flaws instantaneously has made them crucial in minimising downtime and ensuring product quality across industries, particularly in consumer goods, electronics, and automotive sectors.

The MES market is segmented by solutions into software and services, with software constituting the largest share. As manufacturers increasingly seek integration with digital technologies like sensors and IoT devices, the demand for software solutions continues to expand. The services segment, meanwhile, is expected to witness the most rapid growth, reflecting a trend in outsourcing management and maintenance duties to managed service providers.

Regionally, North America leads the MES market, accounting for 38.6% of the share, attributed to its advanced manufacturing capabilities. Europe follows closely, driven by modernisation initiatives across its various industries, which demand the benefits offered by MES systems—namely, improved operational efficiency and reduced waste.

Amidst the abundant opportunities, challenges persist, including the high costs associated with MES implementation and the difficulties in integrating these systems with outdated legacy infrastructures. As demand for affordable, cloud-based MES solutions rises, alongside greater adoption of AI technology, the market is poised for significant transformation in the coming years.

The developments in both the Australia Electric Automation and global Manufacturing Execution Systems markets illustrate a broader trend towards automated and smart manufacturing processes that businesses are increasingly adopting to remain competitive in an evolving industrial landscape.

Source: Noah Wire Services