The Brazil Factory Automation and Industrial Controls Market are expected to witness a CAGR of 6.7% over the forecast period (2021-2026). The recent novel coronavirus outbreak has been causing significant disruption to the global economy and has drastically changed how many industries operate day-to-day. With work-from-home protocols implemented and shelter-in-place orders continue to propagate, allied market players evaluated and revised their preparedness and response strategies for cyber-incidents. This is particularly evident for players that have implemented industrial control systems (ICS) (DCS, SCADA, or PLS) to monitor and control critical equipment and processes.
- Brazil is considered one of the largest manufacturing economies in Latin America and represents one of the largest exporters of electrical equipment (including medical equipment) and appliances after Mexico. This drives the need for factory automation in the country. Furthermore, AI-driven simulation is expected to improve the efficiency of the aerospace and metallurgy manufacturing sector as it still lags when compared to the developed countries.
- Brazil is demonstrating an ambitious investment in next-generation industrial technology to enable the next wave of economic growth. For instance, Nokia recently announced a partnership with SENAI-SP, which is Brazil’s National Service for Industrial Training, to implement its portfolio of technology and connectivity solutions at SENAI-SP’s lab in São Caetano do Sul, which is a public facility for mechatronics training that features an Industry 4.0 factory further augmenting the market growth.
- Moreover, Ericsson is also fast-tracking the launch of the next-generation smart manufacturing through a modular and flexible production setup in its existing factory in Brazil. Further expansion of other industrial sectors, like manufacturing, consumer electronics, pharmaceutical manufacturing, and metallurgy, is expected to boost Brazil factory automation.
- When looking at the implementation challenges, automation and ICS has been traditionally inflexible; that is the macro and microeconomic effects are evident in factory-level economics. Multiple studies have shown that the trend away from labor and toward capital in manufacturing production is a major culprit of Total Factory Productivity (TFP) slowdown.
Key Market Trends
Automotive is One of the Major Segment Driving the Market
- In Brazil, currently, there are over 8,500 hybrid and electric vehicles in circulation. According to the National Agency for Electric Energy (ANEEL), electric vehicles will rise to two million by 2030. Additionally, it is being supported by the initiative taken by the government. For instance, in 2020, Brazil’s constitution and justice commission CCJ approved a bill prohibiting the purchase of new diesel and petrol-powered cars in the country as of January 2030. Thus, only electric transports and those that run on bioenergy such as ethanol would be permitted in the country.
- In Brazil, the automotive sector is leading the digital transformation. Volkswagen Brazil, for instance, announced a digital transformation plan to transform client and staff experience, using data analytics and artificial intelligence as critical pillars. The company aims to increase efficiency by 15% to 20% with the new layouts of logistics and production.
- The Aerospace division represents USD 12 billion across Mexico and Brazil. The adoption of computer vision and AI can detect and reduce errors in the component manufacturing facilities of aerospace. Thus, indicating the increase in the need for industrial controls in these regions.
- Moreover, inculcation of industrial control systems in auto manufacturing plants gives companies the ability to keep real-time track of productivity & quality through the data generated through plant connectivity and may offer mitigating actions to the line supervisors and plant executives. Data analytics can offer a gateway to predicting various outcomes from the part s quality to the next machine breakdown.
- For the past 50 years, the automotive industry has been using robots in its assembly lines for various manufacturing processes. Currently, automakers are exploring the use of robotics in more processes. Robots are more efficient, flexible, accurate, and dependable for these production lines. This technology enables the automotive industry to remain one of the largest robot users and possess one of the most automated supply chains globally.
Sensors and Transmitter Expected to Observe a Significant Increase
- The sensors and transmitters section consists of proximity sensors, pressure sensors, image sensors, flow sensors, strain gauge, and others, which are used for both discrete automation and process automation industries.
- The use of digital pressure sensor systems has increased as it offers low power consumption, pressure and temperature signals, magnetic noise immunity, less electrical noise, remote monitoring, and other features that align with the growing automation trend in factory space.
- Also, there has been a rise in industrial IoT (IIoT) systems, and sensors are playing a vital part in such IIoT systems driving automation across all the industries. Vendors in the market are developing sensors that contribute to the automation process and are equipped with a digital interface, data collection, and condition monitoring feature sets.
- For instance, in July 2020, Yokogawa, one of the prominent vendors in the market, announced pressure and temperature sensors for its Sushi Sensor wireless industrial IoT (IIoT) solution in various markets. The sensor lineup allows for equipment condition monitoring which is based in a broader variety of data. This, in turn, helps in the deduction of equipment inspection man-hours and detecting signs of equipment abnormalities at an early stage.
- At the same time, ABB introduced the PxS 100 series of pressure transmitters, including an HMI that rotates for sight from any angle. The pressure sensors are designed to withstand such extreme conditions, with protection ratings of IP66, IP67, IP68, and IP69K for use in high humidity or dust settings.
The Brazil factory automation and industrial control market is moderately consolidated, with the presence of a few major companies. The companies are continuously investing in making strategic partnerships and product developments to gain more market share. Some of the recent developments in the market are:
- May 2021 - Schneider Electric partnered with Roca Group to accelerate decarbonization. Roca Group, a world leader in the design, production, and commercialization of products to define a new roadmap towards decarbonization, establishing a single, global strategy across the Group.
- October 2020 - Rockwell Automation Inc. acquired Oylo, a privately-held industrial cybersecurity services provider based in Barcelona, Spain. Oylo provides a broad range of industrial control system (ICS) cybersecurity services and solutions including assessments, turnkey implementations, managed services and incident response.
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter s Five
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Intensity of Competitive Rivalry
4.3.5 Threat of Substitutes
4.4 Assessment of Impact of Covid-19 on the Industry
4.5 Technology Snapshot
5 MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Focus Toward Cost-cutting and Business Process Improvement
5.1.2 Increasing Adoption of Internet of Things (IoT) and Machine- to-Machine Technologies
5.2 Market Challenges
5.2.1 Lack of Skilled Workforce Preventing Enterprises from Full-scale Adoption of Factory Automation
6 MARKET SEGMENTATION
6.1 By Product
6.1.1 Field Devices
184.108.40.206 Machine Vision
220.127.116.11 Mortor and Drivers
18.104.22.168 Relays and Switches
22.214.171.124 Other Field Devices
6.1.2 Industrial Control Systems
126.96.36.199 Other Industrial Control Systems
6.2 By End-user Industry
6.2.2 Chemical and Petrochemical
6.2.5 Food and Beverage
6.2.6 Oil and Gas
6.2.7 Other End-user Industries
7 COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Rockwell Automation Inc.
7.1.2 Honeywell International Inc.
7.1.3 General Electric Co.
7.1.4 ABB Limited
7.1.5 Dassault Systemes SE
7.1.6 Schneider Electric SE
7.1.7 Emerson Electric Company
7.1.8 Autodesk Inc.
7.1.9 Mitsubishi Electric Corporation
7.1.10 Siemens AG
7.1.11 Aspen Technology Inc.
7.1.12 Robert Bosch GmbH
7.1.13 Texas Instruments Inc.
7.1.14 Yokogawa Electric Corporation
7.1.15 NOVA SMAR SA
8 INVESTMENT ANALYSIS
9 FUTURE OUTLOOK