MEA Industrial Automation Market Size
| Study Period | 2018 - 2028 |
| Base Year For Estimation | 2021 |
| Forecast Data Period | 2024 - 2028 |
| Historical Data Period | 2018 - 2020 |
| CAGR | 7.10 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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MEA Industrial Automation Market Analysis
The Middle East & Africa industrial automation market is expected to register a CAGR of 7.1% during the forecast period. The growing active collaboration between governments, regulators, and associations for economic expansion is one of the primary aspects driving growth in the region's automation and manufacturing sectors. In May 2022, RX Africa announced the Future Manufacturing Africa Trade Fair and Summit 2023, exchanging valuable industry expertise to increase investment prospects in the African continent's manufacturing sector.
- The UAE Government is focused on doubling the contribution of industrial manufacturing to the UAE's GDP to 25 percent, as highlighted in Vision 2021, Dubai Industrial Strategy 2030, and Abu Dhabi Economic Vision 2030. Operation 300bn is a government strategy launched in 2021 aimed at developing the industrial sector and enhancing its role in stimulating the economy of the UAE. It aims to increase the industrial sector's contribution to the GDP to AED 300 billion by 2031.
- Furthermore, the Emirates Development Bank (EDB) is a crucial enabler of Operation 300bn. Under the strategy, the bank has allocated AED 30 billion to support priority industrial sectors over five years. Such investments are expected to boost the industrial sector's demand for automated material handling.
- Moreover, rising technological advancements support market growth. In addition, the UAE Ministry of Industry and Advanced Technology and Abu Dhabi defense technology company Edge Group signed an agreement in August 2022 to develop the Emirates' first Industry 4.0 Enablement Centre. The center will help manufacturers beef up their operations by guiding them on using automation, and data-driven business expansion will further drive market growth.
- In February 2022, to fulfill the increased demand for conveying systems in the region, Dubai-based Acme Intralog, a provider of industrial and warehouse automation solutions, stated that it had enhanced the fabrication and manufacturing capabilities of conveyor belts used at its plant in the UAE. The company provides comprehensive conveyor belt solutions for various business sectors, including food and beverage, construction, packaging, textile, and material handling.
- Furthermore, the UAE intends to increase its power-generation capacity by approximately 21 GW, with solar power accounting for 26.1% of the total additional generation capacity. These infrastructure developments will likely provide solutions for industrial controls and factory automation.
- The COVID-19 pandemic and lockdown restrictions across the region have affected industrial activities, including supply chain disruption. However, the pandemic has forced manufacturing industries to re-evaluate their traditional production processes and adapt to innovative manufacturing practices across production lines.
MEA Industrial Automation Market Trends
This section covers the major market trends shaping the MEA Industrial Automation Market according to our research experts:
Oil and Gas to Hold Significant Share
- Countries in the Middle East furnish and export a significant amount of crude oil globally. The area commands considerable demand for industrial sensors used for various applications. For instance, as of October 2021, the number of oil and gas rigs in the Middle East stood at 275, including offshore and land, which is the second-highest in the world, according to Baker Hughes.
- The region constantly discovers new oil and gas wells while old and underutilized ones are revitalizing. For instance, the government-owned Abu Dhabi National Oil Co. recently announced a significant rig fleet expansion program expected to add dozens of rigs by 2025.
- Further, according to the EIA, the Organization of Petroleum Exporting Countries' net oil export revenue in 2021 reached 397 billion US dollars, slightly increasing from the previous year's figure of USD 323 billion.
- According to OPEC, Saudi Arabia holds approximately 17% of the world's proven petroleum reserves. The oil and gas industry contributed roughly 50% of the GDP and 70% of export earnings. The country's significant presence in the oil and gas industry has contributed to the region's market growth.
- Furthermore, according to a January 2022 report by Arab Petroleum Investments Corporation, energy investments in the Middle East and North Africa are anticipated to increase by 9% over the next five years to more than USD 879 billion as energy exporters increase spending amid higher oil revenue.
Saudi Arabia to Experience Significant Market Growth
- The market in these countries is majorly driven by increasing investments in the oil and gas industry. The progress in the oil and gas sector is translating into other industries and, notably, energy solutions. For instance, according to the International Trade Administration, Aramco's average hydrocarbon exhibition in the first half of 2021 was 11.6 mmbpd, with crude oil production accounting for 8.6 mmbpd. Further, Saudi Arabia produced 10.3mmbpd of crude oil as of June 2022.
- Like most Middle Eastern countries, Saudi Arabia's economy is typically dependent on the oil and petrochemical industry. It is estimated that even a 5% reduction in oil production in the country may decelerate the pace of gross domestic product (GDP) by over 80%.
- Palletizers and AS/RS are witnessing increased adoption owing to immense applications in the food and beverage sector. Furthermore, with the strengthening of oil prices, the country is expected to invest more in the non-oil sector, facilitating the rapid growth of the manufacturing and e-commerce sectors. Hence, AMH solutions are expected to witness high demand over the forecast period.
- In recent years, owing to Saudi Vision 2030, the plan launched recently to reduce the country's dependence on oil, e-commerce, and logistics sectors witnessed a significant rise in demand. The project encompasses a nine-point strategy of process streamlining, market liberalization, privatization, infrastructure enhancement, the establishment of new free economic zones, and governance and regulatory reforms to maximize its strategic advantage to evolve into the logistics hub in the Middle Eastern region.
- Furthermore, according to the International Trade Administration, Saudi Arabia is increasing the capacity of its power sector to meet the growing need for electricity from residential and commercial consumers while supporting the diversification of its domestic energy mix. By 2030, Saudi Arabia hopes to replace the petroleum that currently powers 42 percent of the country's 110-gigatonne daily electricity needs with a blend of 50 percent natural gas and 50 percent renewable energy. Furthermore, Saudi Arabia's Energy Minister announced in December 2021 the country's plan to invest USD 38 billion in energy distribution by 2030.
MEA Industrial Automation Industry Overview
The Middle East & Africa industrial automation market is moderately fragmented. Players are involved in product development and strategic activities such as partnerships, mergers, and acquisitions.
- December 2021 - GWC, Qatar's logistics and supply chain solutions provider, and GAUSSIN, a significant company in clean and smart freight transport, formed a partnership to test Gaussin'szero-emission electric tractors and yard automation solutions in several GWC warehouses, including GWC Al WukairLogistic Park in Qatar.
- November 2021 - ABB formed a strategic alliance with Swiss start-up Sevensense Robotics to expand its autonomous mobile robotics (AMR) business. The ETH Zurich spin-off develops artificial intelligence (AI) and 3D visual mapping technology that will be integrated into ABB's AMR portfolio, allowing mobile robots to navigate in dynamic environments safely. Pilot customer projects are planned for 2022.
- January 2021 - Dematic announces the completion of a new automated distribution center for the Landmark Group in Dubai, UAE, allowing the multinational retailer to consolidate the logistics activities for part of its five existing manual distribution sites.
MEA Industrial Automation Market Leaders
ABB Limited
Siemens AG
Yokogawa Electric Corporation
Rockwell Automation Inc.
Mitsubishi Electric Corporation
*Disclaimer: Major Players sorted in no particular order
MEA Industrial Automation Market News
- January 2022 - DHL Express, a courier services company, opened the Middle East's largest robotic sorting center in central Israel. The company invested 250 million shekels (USD 80 million) in the facility near Ben Gurion Airport. A cargo plane can now be controlled in 50 minutes rather than four hours. Employees have been trained for other roles because the automated sorting system requires 70% fewer human resources.
- January 2022 - Honeywell, an international technology player, announced the opening of a new oil and gas exhibit facility in the Kingdom of Saudi Arabia. The facility was created as part of a Joint Venture (JV) partnership between Elster Instromet Saudi Arabia and Gas Arabian Services to provide a cutting-edge infrastructure for the manufacturing and assembly of natural gas and liquid fuel solutions.
- September 2021 - Spimaco, a leading pharmaceutical manufacturing and storage facility in Qassim, Saudi Arabia, collaborated with Lodige Industries, a manufacturer of material handling solutions based in Germany, to modernize the operation. The company decided to add an automated high-bay distribution and storage center to the existing facility.
MEA Industrial Automation Market Report - Table of Contents
1. INTRODUCTION
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 Attractiveness - Porters Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Assessment of Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Need For Better Inventory Management And Control
5.1.2 Rising Incidences of Cyberattacks
5.2 Market Challenges
5.2.1 Lack of Awareness Regarding Automation
6. MARKET SEGMENTATION
6.1 By Solution Type
6.1.1 Automated Material Handling Solutions
6.1.1.1 Conveyor/Sortation Systems
6.1.1.2 Automated Storage and Retrieval System (AS/RS)
6.1.1.3 Mobile Robots (Automated Guided Vehicles and Autonomous Mobile Robots)
6.1.1.4 Automatic Identification and Data Capture (AIDC)
6.1.1.5 Warehouse Management Systems (WMS)/Warehouse Control System (WCS)
6.1.2 Factory Automation Solutions
6.1.2.1 Industrial Control Systems (DCS, PLC, SCADA, HMI, etc.)
6.1.2.2 Field Devices
6.1.2.3 Industrial Robotics
6.1.2.4 Sensors and Transmitters
6.1.2.5 Motors and Drives
6.1.2.6 Others
6.2 By End Users
6.2.1 Automated Material Handling Market
6.2.1.1 Manufacturing
6.2.1.2 Non-Manufacturing (Warehouses/Distribution Centers/ Logistics Centers)
6.2.1.3 General Merchandise
6.2.1.4 Healthcare
6.2.1.5 FMCG/Non-durable Goods
6.2.1.6 Other End Users (Fashion, Durable Goods, and Post and Parcel)
6.2.2 Factory Automation Market
6.2.2.1 Food and Beverage
6.2.2.2 Pharmaceuticals
6.2.2.3 Durable Manufacturing
6.2.2.4 Textiles
6.2.2.5 Other End Users (Pulp and Paper, Water and Wastewater, Chemicals, and Oil and Gas)
6.3 By Country
6.3.1 United Arab Emirates
6.3.2 Saudi Arabia
6.3.3 South Africa
6.3.4 Rest of the Middle East
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 ABB Limited
7.1.2 Siemens AG
7.1.3 Yokogawa Electric Corporation
7.1.4 Rockwell Automation Inc.
7.1.5 Mitsubishi Electric Corporation
7.1.6 Honeywell International Inc
7.1.7 FLIR Systems Inc.
7.1.8 Omron Corporation
7.1.9 Tectra Automation
7.1.10 Dematic Corporation
7.1.11 ACE-Hellas S.A.
7.1.12 Saudi Controls Ltd
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
MEA Industrial Automation Industry Segmentation
Industrial automation refers to utilizing control systems, including computers or robots, and information technologies to handle different industrial processes and machinery replacing human beings. Industrial automation marks the second step after mechanization in the direction of industrialization.
The Middle East and Africa industrial automation market is segmented by solution type (automated material handling solutions (conveyor/sortation systems, automated storage and retrieval systems (AS/RS), mobile robots (automated guided vehicles and autonomous mobile robots), automatic identification and data capture (AIDC), warehouse management systems (WMS)/warehouse control systems (WCS)), factory automation solutions (Industrial Control Systems (DCS, PLC, SCADA, HMI, etc.), field devices, industrial robotics, sensors and transmitters, motors and drives) and end user (automated material handling market (manufacturing, non-manufacturing (warehouses/distribution centers/logistics centers), general merchandise, healthcare, FMCG/non-durable goods), factory automation, food and beverage, pharmaceuticals, durable manufacturing, textiles). The impact of COVID-19 on the market and affected segments are also covered under the scope of the study.
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MEA Industrial Automation Market Research FAQs
What is the current MEA Industrial Automation Market size?
The MEA Industrial Automation Market is projected to register a CAGR of 7.1% during the forecast period (2023-2028).
Who are the key players in MEA Industrial Automation Market?
ABB Limited, Siemens AG, Yokogawa Electric Corporation, Rockwell Automation Inc. and Mitsubishi Electric Corporation are the major companies operating in the MEA Industrial Automation Market.
MEA Industrial Automation Industry Report
Statistics for the 2023 MEA Industrial Automation market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. MEA Industrial Automation analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
