The European human machine interface market is expected to register a CAGR of 8.5 % during the forecast period from 2020 to 2025. The transformation of HMI across Europe is due to the growth in the cognitive era, as well as the increasing AI penetration, which is expected to create opportunities for the growth of the market. The European Commission unveiled a plan to invest EUR 20 billion, to boost its investment in artificial intelligence by about 70%, by 2020. The commission intends to keep pace with Asia-Pacific and the United States, which are investing at least three times more than Europe.
- Along with these investments in AI, the cognitive era is expanding its reach across the region. Thus, with the increasing demand for AI and cognitive computing, companies are increasingly investing in cognitive technologies. For instance, IBM announced plans to expand its new global headquarters and build a research laboratory that is likely to develop Watson-based applications for web-connected devices in Munich. This facility and eight other global centers are a part of a USD 3 billion investment earmarked by IBM.
- The most prominent trend in Europe, driving the HMI application, is due to the surging demand for automation and control systems, which compels the growth of the regional process automation industries. This is attributed to the crucial role of digitization in modernizing the European process industry, as reported by the European Commission.
- Furthermore, the European industries have also been increasingly embracing robot technologies for automating their existing processes. This emergence has paved the way for the development of robotic process automation (RPA). As HMI aids RPA in the automation of business workflows through operational processes, thereby emulating the human interaction within a graphical user interface (GUI), the rising adoption of RPA is expected to expand the growth of the market during the forecast period.
- Besides, industrial process automation plays a pivotal role in the region, as several European companies are global leaders in terms of the development, supply, and usage of systems and applications. For instance, ABB is the world leader in this sector, followed by Siemens and Schneider Electric. Moreover, with a robot density level of 301 industrial robots per 10,000 employees, Germany has the highest robot density level in Europe and ranks fourth across the world.
- The outbreak of COVID-19 is expected to influence the global industrial spending significantly over the coming years, as the non-operational status of various industries deemed non-essential by governments across the world are facing huge losses which are expected to influence their tech spending till the end of 2021 (assumptions are based on the current pandemic scenario). The energy sector in the region is also impacted by the adverse effects of the COVID-19 situation. With the shut down of industries across the region, energy consumption is expected to fall significantly. With the region s share of renewable energy generation, the facilities are expected to see logistical delays, and delays in project development.
Key Market Trends
Automotive is Expected to Hold Significant Share
- The automotive sector finds significant HMI applications among various end-user industries, as automation is already prominent in the region. The presence of some leading manufacturers, along with the increase in consumption, is driving the market value in the region. For instance, registrations of alternatively-powered cars in the European Union incurred a steady growth of about 46.2%. By July 2019, 110,630 electrically-chargeable vehicles (ECV) were registered, which is 51.8% more than that in 2018.
- Emerging trends, such as the boost in site relocations, merger and acquisition activities, and integration operations, are increasingly being witnessed in the region. Furthermore, the shifting consumer preferences, advancement in technology, and climate-related policies are expected to drive the demand for smart vehicles.
- For instance, adaptive integrated driver-vehicle interface (AIDE) is an integrated project funded by the European Commission, under the Sixth Framework Programme, that involves 31 partners from the European automotive industry and academia, to deal across the behavioral and technical concerns related to automotive human-machine interface design, with a specific focus in integration and adaptation. The project includes tightly integrated empirical research, driver-behavior modeling, and methodological and technological development.
- The German automotive industry has significantly extended its global position in automotive production over the last few years. Moreover, sustainability in the sector is expected to be a significant driver for market growth. Thus, further investments in the automotive industry are expected to drive market penetration for automation, which is, in turn, driving the demand for HMI systems.
- The automotive industry, which was already facing a slump in sales during 2019, is expected to observe the continued drop in sales until the end of 2020. This is expected to significantly influence the production facilities spending on technological upgrades to enhance the production capacities. According to ACEA, as of 20th April 2020, the EU comprehensive production losses caused by factory shutdowns lead to an interrupted production of at least 2,068,832 motor vehicles, including passenger cars, vans, trucks, and trucks buses, and coaches.
United Kingdom is Expected to Hold Significant Share
- The rapidly increasing need to reduce the manufacturing costs, along with the increasing applications of the Internet of Things, has prompted the machine-to-machine (M2M) technologies to fuel the demand for HMI solutions across the United Kingdom. The need for increased production efficiency is one of the significant causes of concern for industry 4.0 priorities and is expected to affect the evolution of HMIs.
- The UK government commissioned the Made Smarter initiative, to make the fourth industrial revolution a country-wide phenomenon by 2030. A significant action of this scheme is the deployment of the high-value manufacturing (HVM) Catapult, which consists of seven technology and innovation centers, offering vendors with access to technological expertise and equipment, which may otherwise be unavailable or financially out-of-reach.
- According to the British Automation & Robot Association, there has been a surging demand for automation solutions across the country. Facilities, such as banana ripening, timber preservation, dairy maintenance, and packaging in milk dairies, have been deploying automation solutions that emphasize the use of HMI systems for smooth usage.
- Furthermore, a significant demand for HMI is witnessed in the end-of-line checking and packaging equipment, along with the food and beverage industry. There have also been significant investments toward robotics across the region. According to the International Federation of Robotics (IFR), about 1.4 million robots are expected to be deployed across the world by 2019. This factor is expected to revolutionize the type of HMI systems that are needed for functioning.
- HMIs primarily use sensors, robots, software, wireless systems, enterprise software, and machine-to-machine learning technologies, to gather useful information and analyze data. This functionality of these devices is expected to drive their demand in the market. Vendors in the market are involved in the R&D activities, as HMIs in the future are going to be more sophisticated for enhanced efficiency across the mining and metal sector, thereby enabling remote service operations, especially when the workers are interacting with them in dusty, humid, or extreme environments.
The Europe Human Machine Interface Market is quite fragmented due to the presence of large-scale companies, such as ABB Ltd, Siemens AG, Emerson Electric Co., Rockwell Automation Inc., Honeywell International Inc., and Schneider Electric SE. Changing operational and business needs have actuated supported advancements with regards to HMI innovation. Evolved forms of HMI, such as high-performance HMIs, touch screens, and mobile devices, along with more traditional models, are available in the market.
- February 2020 - Rockwell Automation, Inc. signed an agreement to acquire Italy-based ASEM, S.p.A., which engages in the development of digital automation technologies. ASEM provides a wide range of Human-Machine Interface (HMI) hardware and software, remote access capabilities, and secure Industrial IoT gateway solutions.
- November 2019 - B&R, a unit of ABB’s Robotics and Discrete Automation business, announced the integration of ABB robots into its automation portfolio. B&R combines the technology with advanced engineering to provide customers in virtually every industry with complete solutions for machine and factory automation, motion control, HMI, and integrated safety technology.
- 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 INSIGHT
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter s Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Technology Snapshot
5 MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growth in Manufacturing Activities
5.2 Market Restraints
5.2.1 Lack of Awareness
6 INDUSTRY POLICIES
7 MARKET SEGMENTATION
7.1 Type of Offering
7.2 End-user Industry
7.2.2 Food and Beverage
7.2.5 Oil and Gas
7.2.6 Metal and Mining
7.2.7 Other End-user Industries
7.3.1 United Kingdom
7.3.4 Rest of Europe
8 COMPETITIVE LANDSCAPE
8.1 Company Profiles
8.1.1 ABB Ltd
8.1.2 Honeywell International Inc.
8.1.3 Rockwell Automation Inc.
8.1.4 Mitsubishi Electric Corporation
8.1.5 Schneider Electric SE
8.1.6 Emerson Electric Co.
8.1.7 General Electric Co.
8.1.8 Texas Instruments Inc.
8.1.9 Yokogawa Electric Corporation
8.1.10 Siemens AG
8.1.11 Robert Bosch GmbH
8.1.12 Eaton Corporation
8.1.13 Beijer Electronics Group AB
8.1.14 Microchip Technology Inc.
8.1.15 Advantech Co. Ltd
9 INVESTMENT ANALYSIS
10 FUTURE OF THE MARKET