Legal Statement

LEGAL STATEMENT
The Information contained within the Service is either licensed from

third party information providers or is the intellectual property of EMIS.
This information –including the document to be made available to you- is
therefore protected by copyright laws, database rights, trademarks
and/or patents owned by the relevant party.
Except as otherwise permitted in the agreement (if any) between

the Subscriber and EMIS, or as otherwise expressly approved in writing
by EMIS, any reproduction, publishing, redistribution, sell, broadcast or
circulation of the Information to any third party is strictly prohibited. No
rights are granted to the Subscriber except the limited use rights. The
Subscriber may not store in electronic form any shared library or archive
of Information which could be used as a research application nor
remove, conceal or alter any copyright notices contained in the Service
or in this document.
REPORT
EUROPE INDUSTRIAL AUTOMATION

SOFTWARE MARKET(2021-2026)
The Study Offers:
• A detailed understanding of the current market dynamics and anticipated future trends across various countries
in Europe
• Impact of technological developments across various end-user industries
• Assessment of Impact of COVID-19 on the industrial automation industry in Europe
Domain: Automation Base Year: 2020 Forecast Period: 2021-2026
Industry Reports | Consulting | Intelligence Center

+1 617 765 2493 | info@mordorintelligence.com | www.mordorintelligence.com
1 REPORT – EUROPE INDUSTRIAL AUTOMATION SOFTWARE MARKET
EMISPDF bg-aubg from 83.143.248.20 on 2023-03-06 11:36:42 GMT. DownloadPDF.
Downloaded by bg-aubg from 83.143.248.20 at 2023-03-06 11:36:42 GMT. EMIS. Unauthorized Distribution Prohibited.
TABLE OF CONTENTS
1. INTRODUCTION 6. IMPACT OF COVID-19 ON THE INDUSTRIAL AUTOMATION
1.1 Market Definition and Scope INDUSTRY
1.2 Study Assumptions 7. MARKET SEGMENTATION
2. RESEARCH METHODOLOGY (Trends | Dynamics | Developments | Market Estimates & Projections from
3. EXECUTIVE SUMMARY 2019-2026 | KPI Analysis and Outlook)
4. MARKET INSIGHTS 7.1 By Type of Software
4.1 Market Overview 7.1.1 Manufacturing Execution Systems (MES)
4.2 Global Industrial Automation Software Market Analysis 7.1.2 Asset Performance Management (APM)
4.3 Industry Attractiveness - Porter's Five 7.1.3 Advanced Process Control (APC)
Forces Analysis 7.1.4 Product Lifecycle Management (PLM)
4.3.1 Bargaining Power of Suppliers
7.1.5 Operator Training Simulator (OTS)
4.3.2 Bargaining Power of Consumers
7.1.6 Industrial Control Systems Software (Operational and
4.3.3 Threat of New Entrants
Cybersecurity)
4.3.4 Threat of Substitutes
7.2 By End-user Industry
4.3.5 Intensity of Competitive Rivalry
7.2.1 Oil and Gas
5. MARKET DYNAMICS
7.2.2 Chemical and Petrochemical
5.1 Market Drivers
7.2.3 Power
5.1.1 Launch of Stringent Energy Conservation Standards and
7.2.4 Water and Wastewater
Drive for Local Processing Across Various Geographies
5.2 Market Challenges 7.2.5 Food and Beverage
5.2.1 Trade Tensions and Monetary Policy Tightening 7.2.6 Automotive and Transportation

TABLE OF CONTENTS
7.2.7 Other End-user Industries
7.3 By Country
7.3.1 Germany
7.3.2 France
7.3.3 United Kingdom
7.3.4 Italy
7.3.5 Eastern Europe (including Russia and Turkey)
7.3.6 Rest of Western Europe
8. LIST OF KEY VENDORS – INDUSTRIAL AUTOMATION SOFTWARE
9. INVESTMENT ANALYSIS
10. FUTURE OF THE MARKET

1. INTRODUCTION
1.1 STUDY ASSUMPTIONS AND MARKET DEFINITION

STUDY ASSUMPTIONS MARKET DEFINITION
▪ The base currency considered was the US Dollar (USD). Conversion of other ▪ The report studies the European industrial automation software market. The
currencies to USD was considered on the basis of the average exchange study covers only the software part required for industrial automation and
rate for the respective review-period years. The exchange rate conversion excludes the hardware part.
for forecast period was determined according to the base year’s conversion
rates. ◼ The study characterizes the market based on the type of operation
software, such as manufacturing execution systems (MES), asset
▪ The base year was identified based on the availability of annual reports and performance management (APM), advanced process control (APC), product
secondary information. The base year considered for this study is 2020 lifecycle management (PLM), operator training simulator (OTS), industrial
based on the key market metrics gathered till Q2 2021. control systems software (operational and cybersecurity), among others.
The end-user segmentation includes oil and gas, chemical and
▪ The review period considered for this study is from 2016-2020. The petrochemical, power, water and wastewater, food and beverage,
forecast period is, an the CAGR is for, 2021-2026. automotive and transportation, and other end-user industries.
▪ Inflation is not part of the pricing, and the average selling price (ASP) was ▪ The study considers the impact of COVID-19 pandemic on the market for
kept constant throughout the forecast period for each region. arriving at the market size and growth rates of various segments.
▪ Distribution of primary interviews conducted was based on the regional

share of the market and the participation rates differed per each region
▪ As a result of data triangulation through multiple methodologies and

approaches, the weighted averages of resulting estimates were considered
to be the final values.

1. INTRODUCTION
1.2 SCOPE OF THE STUDY
BY SOFTWARE BY END USER BY GEOGRAPHY

◼ Manufacturing Execution ◼ Oil and Gas ◼ Germany
Systems (MES)
◼ Chemical and Petrochemical ◼ France
◼ Asset Performance
Management (APM) ◼ Power ◼ United Kingdom
◼ Advanced Process Control ◼ Water and Wastewater ◼ Italy

(APC)
◼ Food and Beverage ◼ Eastern Europe (including
◼ Product Lifecycle Management Russia and Turkey)
(PLM) ◼ Automotive and Transportation
◼ Rest of Western Europe
◼ Operator Training Simulator ◼ Other End-user Industries
(OTS)
◼ Industrial Control Systems

Software (Operational and
Cybersecurity)

2. RESEARCH METHODOLOGY

2. RESEARCH METHODOLOGY
■ Mordor Intelligence (MI) advocates an appropriate mix of secondary and primary research to meet client objectives.
■ MI translates market insights (market dynamics, competition, varying consumer demands, and regulations) into actionable business insights.
■ The following phases are practiced at Mordor for efficient delivery of various syndicated and consulting assignments:
STEP 1 STEP 2 STEP 3

SCOPING/ PROJECT INITIATION MARKET ANALYSIS PROJECT DELIVERY
Decipher client requirements/ market to be

Extensive desk research to identify most relevant secondary information available
studied
Tailormade research approach for

Contact Mordor’s empaneled experts and identify industry experts across the market
customized reports
Effective use of Mordor’s knowledge

Conduct primaries and surveys to gather qualitative and quantitative insights
repository to gather relevant insights
Confirm the objectives of the assignment with

Triangulate and analyze data to finalize actionable business insights
the client
Finalize report contents and establish a Report delivery with high quality market insights, competitive landscape, etc.,
deliverable format as per the proposed content

2. RESEARCH PHASES EXPLAINED
2A SECONDARY RESEARCH 2B PRIMARY RESEARCH
This phase involves a thorough synthesis of existing publications across the web ◼ At Mordor, we pool in industry experts across the value chain, to gather first-hand
to gather meaningful insights on the current situation of the market, technology insights on the market studied. In addition to these knowledgeable industry veterans
or retired experts, consultants and freelancers are a call away to collaborate with
developments, and any other market related information. The sources include, but
Mordor on any assignment that requires real-time industry insights.
are not limited to:
◼ We are also equipped to conduct market surveys to gather qualitative insights and
◼ Industry and government websites for blogs, magazines, and other publications the opinion of individuals related to the industry.
◼ Conference proceedings and association publications ▪ Primary research is used both to validate the data points obtained from secondary
research and to fill the data gaps after secondary research. Data gathered during the
◼ Investor presentations, technical brochures, annual reports, press releases, primary research phase are useful to arrive at critical insights, both qualitative and
transcripts of key personnel interviews, and other strategic publications by quantitative; these insights can be used to ascertain the following:
several competitors in the market • Critical market dynamics (drivers, challenges, future, and regulations)
◼ Product/Service information including technical specifications, approvals etc. • Market distribution across various segments
• Key vendors and system integrators operating in the country
◼ Factory Automation and Industrial Control Vendors, End-user Industries and
Automation Associations
MODES OF PRIMARY RESEARCH
◼ Paid sources (Questel Orbit, Factiva, Bloomberg, Seeking Alpha, etc.)
◼ Other sources, including journals, articles, etc. (for usage patterns) •& Others
Telephonic Email Chat Virtual
Surveys
Interviews Interviews Interviews Council

2. RESEARCH PHASES EXPLAINED
2C DATA TRIANGULATION & INSIGHT GENERATION
◼ Based on the factors (both endogenous and exogenous in nature) identified and collected during the secondary and primary phases, our in-house subject matter experts
transform the quantitative data extracted and use them to infer critical insights.
◼ The market size estimations are carried out through ‘bottom-up’ and ‘top-down’ approaches.
◼ Our top-down and bottom-up approaches are integrated into our ‘In-house Model Sheets’, which are used to generate the market estimates and growth rates
(depending upon the historical trends of the respective markets, along with various factors, such as drivers, restraints, and recent developments in the market) of the
product segment in the respective country.
It is a process of combining outcomes from different sources to increase the

validity and reliability of the results. This process also helps strengthen
DATA
conclusions about findings and reduce the risk of false interpretations. The
TRIANGULATION insights obtained from both secondary and primary research are analyzed and
validated by the process of data triangulation to arrive at closer estimates.
An econometric model is a simplified representation of a real-world process.

ECONOMETRIC Here, the tools of econometric theory are used to analyze and forecast
MODELLING economic phenomenon and to solve unknown quantities, such as forecast
demand, supply, investment, production, consumption, etc.
After the data is curated, analysts populate the report. From data and
REPORT
forecasts, insights are drawn to visualize the entire ecosystem in a single
WRITING
report.

3. EXECUTIVE SUMMARY

3. EXECUTIVE SUMMARY
INDUSTRIAL AUTOMATION SOFTWARE MARKET The European industrial automation software market (henceforth,
Revenue in USD billion, Europe, 2019-2026
01 referred to as the market studied) was valued at USD 16.97 billion in
2020, and it is expected to reach USD 26.89 billion by 2026, registering
7.88% a CAGR of 7.88% during the period of 2021-2026 (henceforth, referred
CAGR to as the ‘forecast period’).
26.89
25.03
23.25 By software, the product lifecycle management (PLM) segment
21.55 02 accounted for the largest market share of 35.51% in 2020.
19.93
18.40
16.97
16.20
By end-user vertical, other end-user industries segment accounted for
03 the largest market share of 36.35% in 2020. The food and beverage
segment is expected to witness the highest CAGR of 8.90%, over the
forecast period.
By country, Germany accounted for the largest market share of 23.40%
04 in 2020, and Italy is expected to witness the highest CAGR of 9.14%,
2019 2020 2021 2022 2023 2024 2025 2026 over the forecast period.
SOURCE: Mordor Intelligence Analysis

4. MARKET INSIGHTS
4.1 Market Overview
4.2 Global Industrial Automation Software Market 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 Substitutes
4.3.5 Intensity of Competitive Rivalry

4. MARKET INSIGHTS
4.1 MARKET OVERVIEW

■ Industrial automation software is the support system in controlling the overall industrial
process. The increasing dynamic needs of the industry, demanding complex operations, and INDUSTRIAL ROBOT OPERATIONAL STOCK
In thousand units, 2019
processes are driving the demand for the industrial automation software.
■ Industrial automation helps in reducing the machine hours required for the respective 221
operations, which can be made possible only through robust software.
■ Recent developments in artificial intelligence (AI) and robotics aim to assist, or even completely
automate, many clerical and social interaction tasks. Along with industrial robots, the use of
service robots is increasing in the fast-developing market of the European region. Many
technical advances in robotics have applications in the service sector, including healthcare,
logistics, inspection, and cleaning – though the majority still involve industrial automation.
■ The robotics and automation industry is one of the most innovative in the German mechanical
engineering sectors. German OEMs number among the world’s leading R&A companies.
Human-robot collaboration (HRC) and machine vision (MV) technologies are considered as the
74
major strengths in a global hub that boasts robotics players from all market segments.
Technological developments in the field of artificial intelligence, including machine learning and
42
deep learning, will lead to further applications of conventional industrial robots and
collaborative robots. 21
■ The machine vision industry in Germany and Europe has been growing at a fast rate over the
past decade, with turnover in the domestic industry doubling during the period 2008-2017.
Beyond the automotive industry and the electrical and electronics industries (including Germany Italy France UK
semiconductors), other sectors – including the metal, food, and packaging as well as non-
Source: IFR
manufacturing industries (e.g. intelligent traffic technology, medical diagnostic equipment and
surgical technologies) – are increasingly making use of machine vision technology
4. MARKET INSIGHTS
4.1 MARKET OVERVIEW

■ In the industrial sector, along with raw material and power costs, the employee wages
accounted for one of the largest chunks of the variable costs for any industry. The rising wage AVERAGE ROBOT DENSITY IN THE MANUFACTURING
rates, globally, are making it more critical to manage. In a survey by ABB, carried out in January INDUSTRY
2021, it was found that 78% of UK businesses struggle to recruit and retain staff for repetitive Number of Installed Industrial Robots per 100,000 Employees,
and ergonomically challenging tasks. Overall, it is estimated that the use of robots has the 2019
potential to raise UK manufacturing GVA by 21% in less than a decade. The reduction in the
required number of employees for the process is minimizing the cost of wages by adopting
industrial automation. This is one of the driving factors for the industrial automation market in Netherlands 194
the region. Hence this affects the studied market positively.
■ According to the findings from the Lloyds Bank Business in Britain report, a survey of 200 large
Belgium 211
manufacturers show that three-quarters (74%) of manufacturers became more efficient by
altering their manufacturing processes, simplifying their supply chains and increasing
automation post the COVID-19 pandemic. Over 38% of British businesses plan to increase Italy 212
their use of automation and robotics in the next two years to boost productivity.
■ Moreover, the region is witnessing several government-funded projects that support smart
Denmark 243
manufacturing. For instance, the EU-funded 5G-SMART project aims to show the value of 5G
in smart manufacturing by validating, demonstrating, and assessing its potential in real
manufacturing environments. Advanced 5G integrated manufacturing applications, such as Sweden 277
machine-vision-based remote operations and industrial robotics, will be tested. The project will
evaluate channel measurements, electromagnetic compatibility, and public-private industrial
network coexistence in real manufacturing environments. Germany 346
■ Moreover, the European Commission initiated a new and innovative approach to assist the
Union and the Member States' recoveries in 2021. It introduced the Recovery and Resilience
Facility (RRF), which amounted to EUR 672.5 billion in grants and loans. To encourage Europe’s Source: IFR
digital recovery, the European Commission has proposed to the Member States to use a
minimum of 20% of the RRF funds for digital matters.
4. MARKET INSIGHTS
4.1 MARKET OVERVIEW

■ Moreover, data collected by IoT connected devices is a considerable factor in the adoption of
automation across various industries. The increasingly connected world of smart cities, factories,
homes, and vehicles now has devices and systems autonomously exchanging and storing data. This
data offers organizations the ability to make improvements, increase profits or reduce costs across
many business functions while delivering improved quality, increased efficiency, compliance, and
predictive maintenance benefits.
■ Many of EU's research & innovation (R&I) programs have constantly supported the development of
solutions and technologies that enable the European manufacturing sector to fully utilize the digital
opportunities. Many of the projects are financed by the Factories of the Future Public-Private
Partnership as they cover areas, such as digital automation, process optimization of manufacturing
assets, simulation, and analytics technologies and ICT innovation for manufacturing SMEs.
■ In 2021, in order to encourage the development of software solutions in Europe, UiPath has launched
the third edition of its annual UiPath Automation Awards, a competition designed to champion the
most promising startups and scale-ups in the field of enterprise software automation.
■ In Europe, driven by the need to increase operational awareness, enable real-time information
sharing, and utilize powerful analytics to improve future project planning and preparation, many
exploration and production companies have been developing their digital oilfield capabilities to
decrease time to first oil, reduce operating costs, and maximize production. The Netherlands is one of
the prime hubs for the oil and gas industry in Europe given its proximity to the sea and its center
point in the European gas-pipeline network. This allows it to be a key area for the development of
robust infrastructure.
■ Currently, many EU-funded projects are investing in developing new models and software that help
operators and drilling contractors overcome a long-standing challenge commonly encountered in
deep wells.

4. MARKET INSIGHTS
4.1 MARKET OVERVIEW

■ Moreover, in 2021, The SUEZ and Schneider Electric groups announced the
creation of a leader in digital water to develop and market a joint offering of
innovative digital solutions for the management of the water cycle. This joint
venture will support municipal water operators as well as industrial players in
the acceleration of their digital transformations, by providing them with a
unique range of software solutions for planning, operation, maintenance, and
optimization of water treatment infrastructure.
■ Offering such solutions specializing in software solutions designed specifically
for digital water, will provide plants and customers with access to an
application software database to optimize installations and networks, and
enhance their performance, resilience, and sustainability: reducing leaks,
optimizing network performance, generating energy savings, extending the
lifespans of installations, preserving natural environments, improving the
environmental footprint of water systems, etc.
■ In 2021, UK based AVEVA partnered with PlanetTogether, the leading
Advanced Planning & Scheduling (APS) platform provider. This would add
robust new capabilities to the AVEVA Manufacturing Execution System (MES)
in terms of visual planning and scheduling, multi-plant production planning and
production schedule optimization, further broadening AVEVA’s portfolio of
Industry 4.0 manufacturing solutions.
■ Thus, the market in Europe experience high investments in terms if new
developments, partnerships as well as acquisitions. Further investment my
various governments in the region shall increase the need of client-based
software solutions to meet the rising demands from SMEs as well as from
larger organizations.

4. MARKET INSIGHTS
4.2 GLOBAL INDUSTRIAL AUTOMATION

SOFTWARE MARKET ANALYSIS
■ The automation industry has been revolutionized by the combination of the digital and physical aspects
of manufacturing aimed at delivering optimum performance. Furthermore, the focus on achieving zero
waste production and shorter time to market has augmented the growth of the market.
■ Automation of various industries has offered various benefits, such as effortless monitoring, reduction
of waste, and speed of production. This technology offers customers an improved quality with
standardization and dependable products within time and at a much lower cost.
■ Connecting the industrial machinery and equipment and obtaining real-time data have played a key role
in the adoption of SCADA, HMI, PLC systems, and software, such as MES, APM, APC, PLM, and OTS,
and control system software that offer visualization; thus, enables reducing the faults in the product,
reducing downtime, scheduling maintenance, and switching from being in the reactive state to
predictive and prescriptive stages for decision-making.
■ The Industrial Internet of Things (IIoT) and the Industrial 4.0 are at the center of new technological
approaches for development, production, and management of the entire logistics chain, otherwise
known as smart factory automation, and are dominating trends in the industrial sector, with machinery
and devices being connected via the internet.
■ Due to the high rate of adoption of connected devices and sensors and the enabling of M2M
communication, there has been a surge in the data points that are generated in the all industries globally
including oil and gas, chemical, power, water treatment, automotive, etc.
■ According to a study by Industrial IoT (IIoT) company, Microsoft Corporation, established that 85% of
companies have at least one IIoT use case project. This number is likely to increase, as 94% of
respondents said that they would implement IIoT strategies by 2021.

4. MARKET INSIGHTS
4.2 GLOBAL INDUSTRIAL AUTOMATION SOFTWARE MARKET ANALYSIS
◼ The global IoT demand trend is expected to shift toward industrial space from consumer SMART FACTORY MARKET SIZE
demand over the near future, primarily driven by various Industry 4.0 applications. In USD million, by Key Segment, Global, 2020
Furthermore, process industries, such as chemical and petrochemical, paper and pulp,
water and wastewater treatment, energy and utilities, oil and gas, pharmaceutical, food
Logic and distributed control 4,700
and beverages, are expected to fuel the market’s growth.
◼ With the increasing number of connected devices and machine-to-machine connections
across industries, the need for control and supervision is expected to become more Telecommunications 5,700
prominent; this can be attributed to the increase of network connected and controlled
devices and systems.
◼ Furthermore, vendor activity taking place in the space is expected to drive the demand. Sensors, controller 6,100
New products are considered as the primary activity. In 2021, Industrial-automation
systems maker Emerson Electric announced plans to merge two of its software businesses Source: The Federation of Korean Information Industries (FKII)
with smaller rival Aspen Technology Inc in a deal worth about USD 11 billion.
◼ Moreover, the collaborations in the market are further ensuring
◼ Moreover, in May 2021, Bright Machines, a provider of intelligent, software-defined enhanced business processes.
manufacturing, and SCVX, a special purpose acquisition company, announced that they ◼ In October 2020, Microsoft extended its Industrial focus with
entered into a definitive merger agreement that will result in Bright Machines becoming a expanded Rockwell Automation partnership for five-years, This is in
publicly listed company. Such developments shall allow traditional manufacturing line with the development of integrated, market-ready solutions for
companies to quickly and easily deploy flexible automation solutions at scale. industrial customers to adopt cloud technology. This partnership
provides Rockwell Automation and Microsoft customers with solution
◼ In 2020, Andritz Automation won an award for its pilot project that involves training an AI
for IIoT development and operations and removes data silos that
controller to run an industrial plant. The company claims that the application is first of its
hinder industrial digital transformation initiatives.
kind in reinforcement learning, mainly to control continuous industrial processes.

4. MARKET INSIGHTS
4.2 GLOBAL INDUSTRIAL

AUTOMATION SOFTWARE MARKET
ANALYSIS
■ Virtualization of automation control systems is observed as a key trend
observed in the market, also known as the thin layer between the virtual
machine and host server. The virtual machine contains the operating system
and software. Different operating systems are operated on top of a primary
operating system using virtual machines. Virtualization can be applied on layers
in an industrial premise, such as server, storage, desktop, file, and network. It
provides benefits, such as optimum resource utilization and operation, as well
as power cost savings.
■ The integration of different industrial automation systems on a single physical
server, which can be easily accessed at a different locations on the plant floor
using virtual machines, has been adopted to reduce the overall cost for server,
as well as increase the flexibility in adopting industrial automation systems and
software in the process and discrete industries.
■ Industrial system architects, integrators, and machine builders have leveraged
connected computing advances to aid manufacturing facilities function more
efficiently. Rising need for real-time intelligence, better control of operations,
scheduling, and increasing market penetration of Big Data analytics in the
manufacturing industry are expected to further generate demand for the
technologies for advanced process automation in the near future.
Big Data analytics has been used to refine complicated processes and manage
supply chains. This increased the need of industrial automation software to
handle Big Data analytics as well.
■ Regions of Asia-Pacific and Europe are witnessing higher implementation of
industrial automation solutions due to increase in processing and
manufacturing capabilities. This trend is expected to be continued over the
forecast period.
4. MARKET INSIGHTS
4.2 PORTER’S FIVE FORCES ANALYSIS
THREAT OF NEW ENTRANTS THREAT OF SUBSTITUTES ■ Porter’s five forces model studies the five
identified competitive forces that shape every
industry and market, in order to determine the
intensity of the competition, and thus, the
profitability and attractiveness of the industry.
HIGH NA
■ The objective of the growth strategy should be
to adapt to these competitive forces in a
manner that may improve the position of the
organization.
COMPETITIVE
RIVALRY ■ This study includes an exhaustive Porter’s five
forces framework, incorporating the factors
HIGH influencing each force, to analyze the market
from a microeconomic perspective.
■ In the study, Porter’s five forces are analyzed

considering the factors influencing each force
MODERATELY HIGH MODERATE and quantifying the factors through primaries
and quantitative analysis.
■ The quantified factors are further mapped out

to derive the impact of each force on
BARGAINING POWER OF BUYERS BARGAINING POWER OF SUPPLIERS competitive dynamics.

4.2.1 BARGAINING POWER OF SUPPLIERS

DETAILED DESCRIPTION
MARKET FAVOURABILITY
■ The supplier segment in the market studied comprises
Unfavorable Favorable software solutions. The initial supporting software can
FACTORS 0 2 4 6 8 10 be procured from suppliers. Various automation
solution providers and service providers are also
engaged in the development of ICS.
Supplier Switching Costs
■ The evolving nature of automation requirements
makes it even harder for firms to offer plausible
responses. The impact of inputs on cost or
differentiation is high, whereas the degree of
Degree of Differentiation of Inputs
differentiation of inputs is expected to grow steadily
as innovations in different technologies are expected
to diversify the components being provided to the
Impact of Inputs on Cost or vendors.
Differentiation ■ The bargaining power of suppliers is considered to be
moderate for the market as the market studied is
completely dependent on technological advancements
and degree of innovation each supplier introduces to
Presence of Substitute Inputs the market. However, the increasing demand for
automation systems for different end users impact
their bargaining leverage.
■ The automation solution can be easily customized to
suite the needs of client by smaller players in the
market. However, the bigger players are expected to
provide greater integration with respect to other pre-
existing systems.
4.2.2 BARGAINING POWER OF BUYERS

MARKET FAVORABILITY DETAILED DESCRIPTION
Unfavorable Favorable ■ Customers in the industry refer to the end-user

industries that utilize these products in their
FACTORS 0 2 4 6 8 10
operations, such as automotive, pharmaceutical,
chemical and petrochemical, utilities, food and
Buyer Concentration to Firm beverage, oil and gas, etc.
Concentration Ratio
■ In support of this, the buyer to firm concentration is
high. Hence, buyers gain a bargaining leverage.
Availability of Existing Substitute ■ However, the switching costs are high for buyers,
Products considering that they enter a long-term contract with
the vendors for the solutions.
Buyer Switching Costs Relative to Firm ■ Moreover, the presence of a competitive

Switching Costs environment offering products at competitive prices
has given immense options to choose from, leading to
a higher bargaining power of buyers.
Buyer Price Sensitivity ■ Buyers have grown to become more price sensitive,
as they have multiple options to choose the most
profitable and effective solutions. Buyer information
availability has also increased, which has further
Buyer Information Availability helped the buyers gain leverage over the market.
■ Furthermore, COVID-19 impacted rise in the Industry
4.0 is expected to lead an automation expenditure.
Owing to the above-mentioned factors, the
bargaining power of buyers is assessed as moderately
high.

4.2.3 THREAT OF NEW ENTRANTS

MARKET FAVOURABILITY DETAILED DESCRIPTION
Unfavorable Favorable ■ The threat of new entrants in this industry is
governed primarily by capital requirements,
FACTORS 0 2 4 6 8 10
economics of scale, product differentiation, access
to distribution, and government policy.
Capital Requirements ■ The government policy in the market studied is
stringent for the industries to maintain safety and
security of industrial data. Adherence of
international as well as regional standards and
Product differentiation regulations, including EU’s GDPR, often becomes a
lengthy and costly process.
■ With mass adoption as a goal, the lowest price
Access to Distribution offerings with on-par features are expected to
fulfil the desired need. The existing price wars and
partnerships to include more functionality have,
Switching Costs or Sunk Costs however, been acting as hinderances to the new
entrants into the marketspace.
■ Moreover, the easy onboarding process by clients
also is a driving factor for market growth, along
Industry Profitability (Market with the absence of any market regulations or
CAGR) standardizations. However, new entrants must
compete for capital requirements, especially
toward R&D activities to try to differentiate or
establish themselves in the market.
■ This attracts many new players, thus, making the
threat of new entrants high.

4.2 INDUSTRY ATTRACTIVENESS - PORTER'S FIVE FORCES ANALYSIS
4.2.4 THREAT OF SUBSTITUTE PRODUCTS

MARKET FAVORABILITY DETAILED DESCRIPTION
Unfavorable Favorable
■ A substitute product/offering may be defined as
FACTORS 0 2 4 6 8 10 an alternate product, catering to the same
business needs using a different approach.
Buyer Propensity to Substitute
■ There are no direct substitutes in the market
studied. Improvements in the industry are also
expected to be built upon the existing software
Availability of Close Substitute infrastructure and is, hence, not considered as a
threat to the market over the forecast period.
■ Therefore, the threat of substitute products is not

Buyer Switching Costs
NOT APPLICABLE applicable in the market studied.
Perceived Level of Product

Differentiation
Number of Substitute Products

Available in the Market
Ease of Substitution

4.2.5 INTENSITY OF COMPETITIVE RIVALRY

MARKET FAVOURABILITY DETAILED DESCRIPTION
Unfavorable Favorable ■ The market studied comprises several global
0 2 4 6 8 10 players who are vying for attention in a fairly-
FACTORS contested market space. The presence of these
players and their constant innovative activities are
Sustainable Competitive Advantage
intensifying the competition in the market studied.
through Innovation
■ The intensity of competitive rivalry in the market
is very high. The companies are struggling to gain
Levels of Market Penetration competitive advantage by constantly trying to
develop their product portfolio and develop
expertise. The levels of market penetration
Barriers to Exit globally are relatively high, with a tight control on
distribution.
■ Many companies operating in the market eliminate
Firm Concentration Ratio the competition by either acquisitions and
strategic mergers or new smart initiatives.
■ Collaboration with internet giants is increasingly
visible on account of Industry 4.0. As of April
2021, Siemens partnered with Google Cloud with
intentions to integrate Google Cloud’s data cloud
and artificial intelligence/machine learning (AI/ML)
technologies with its factory automation solutions.
■ Overall, the intensity of competitive rivalry is
relatively high.

5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Launch of Stringent Energy Conservation Standards and

Drive for Local Processing Across Various Geographies
5.2 Market Challenges
5.2.1 Trade Tensions and implementation cost

5. MARKET DYNAMICS
5.1 MARKET DRIVERS
5.1.1 LAUNCH OF STRINGENT ENERGY CONSERVATION STANDARDS AND RENEWABLE ENERGY CONSUMPTION IN SELECTED
DRIVE FOR LOCAL PROCESSING ACROSS VARIOUS GEOGRAPHIES EUROPEAN COUNTRIES
■ The growing regulations on energy consumption across the country, with the launch of strict By Country, in Exajoules, 2020
energy conservation standards and the drive for local processing in Europe, are driving the growth Finland 0.19
of Industrial Automation Software in the region. Also, the increasingly dynamic needs of the
industry, demanding complex operations and processes, and the need to reduce machine hours Denmark 0.21
required for a specific operation, are driving the demand for industrial automation software in
Belgium 0.23
Europe.
■ In 2016, the European Commission proposed a 2030 Energy Strategy, focusing on achieving the Poland 0.27
energy efficiency target of 30%, a 40% cut in GHGs emissions compared to the 1990 levels, with at
Netherlands 0.33
least a 27% share for renewable energy consumption and at least 27% energy savings. These
initiatives enhanced the global outlook for smart alternatives. Sweden 0.41
■ According to BP (British oil and gas company), in 2020, the renewable energy consumption in the
Turkey 0.45
European Union amounted to 6.97 exajoules. Germany amounted to the largest share of
consumption with around 2.2 exajoules, followed by the United Kingdom and Spain consumption Italy 0.67
of 1.2 exajoules and 0.77 exajoules, respectively.
France 0.68
■ Furthermore, the European Union proposed to revise its goal under the Energy Efficiency
Directive, from a target of 20% by 2020 to 30% by 2030. This includes the incentives to small- and Spain 0.77
medium-sized enterprises (SMEs) to monitor the efficiency levels in new energy generation
capacities and undergo energy audits. These growing regulations on energy consumption across United Kingdom 1.20
the region have further supported the growth of the market.
Germany 2.21
■ Automation software also helps end-user industries in Europe to control the overall manufacturing
Source: BP
operations and deliver superior quality products with high precision. The effective deployment of
automation software minimizes process failures and reduces product failure costs and waste.
5. MARKET DYNAMICS
5.1 MARKET DRIVERS
5.1.1 LAUNCH OF STRINGENT ENERGY CONSERVATION STANDARDS AND VALUE OF RENEWABLE ENERGY INVESTMENT IN EUROPE
DRIVE FOR LOCAL PROCESSING ACROSS VARIOUS GEOGRAPHIES In USD Billion, 2014-2019
■ These software solutions help enterprises to cut labor costs, thereby reducing product
manufacturing and maintenance expenses. The adoption of automation software and solution has 71.50
not only reduced the number of workers required per plant but also provided industrial operators 68.70
with flexibility in product pricing. This can enable firms to operate at their best, allowing them to
61.10 60.80
realize significant cost savings while also increasing income generation capabilities. 58.40
■ Increase in need for data analytics and the Integration of information and operational technologies
are also driving the growth of the market. After the raw material and power costs, the employee 49.10
wages account for one of the largest chunks of the variable costs for any industry, and the rising
wage rates in Europe are making it more critical to manage. According to Eurostat, the average
hourly labor cost in the European Union in 2020 was EUR 28.5.
■ Average hourly labor costs in European countries such as Norway, Iceland, Denmark, Belgium,
Sweden, Germany, and Switzerland were EUR 47.3, EUR 38.9, EUR 45.8, EUR 41.1, EUR 37.3,
EUR 36.6, and EUR 55.6, respectively, in 2020. The reduction in the required number of
employees for any process will minimize the cost of wages, as companies keep adopting industrial
automation software.
■ Many start-ups are also setting their footprint in the UK, which is driving the growth for local
processing in the region, hence contributing to the market demand. For instance, in June 2020,
ThingTrax, a London-based provider of smart technology solutions for the manufacturing industry,
closed a USD 1 million seed round led by SuperSeed, with support from industrial specialist
Sumaria. The UK startup aims to digitally transform factories into smart manufacturing hubs. The 2014 2015 2016 2017 2018 2019
end-to-end platform connects machines, robotics, and workers through a combination of cloud Source: United Nations Environment Programme (UNEP)
computing, IoT, AI, and computer vision. This can boost the demand for industrial automation
software in the region.
5. MARKET DYNAMICS
5.1 MARKET DRIVERS

5.1.1 LAUNCH OF STRINGENT ENERGY CONSERVATION STANDARDS AND DRIVE FOR
LOCAL PROCESSING ACROSS VARIOUS GEOGRAPHIES
■ According to the International Federation of Robotics (IFR), as of September 2020, there are 21,700
industrial robots in operation in the United Kingdom. Moreover, the number of industrial robots
operating in the United Kingdom factories grew by 5% last year, with Covid-19 and the UK’s departure
from the EU expected to further boost uptake in the long-term.
■ Furthermore, the market penetration of AI, along with machine learning capabilities, may enhance
speed, accuracy, and data analysis, significantly driving the market further. The advancement in the field
devices market, sensors, and robots may further expand the scope of the studied market.
■ Moreover, the increase in the adoption of IoT devices in the United Kingdom is further increasing the
transition towards automation. For instance, in 2020, according to the SAS Institute, the estimated
adoption rate of IoT in the manufacturing industry is expected to be 57% behind the telecommunication
industry, with 72%. The energy and utility sector adoption rate is expected to be 53% and for the
Transport and Logistics sector to be 43%, respectively.
■ The smart manufacturing and the Industrial Internet of Things (IIoT) are built upon the work that
automation has already forged over these years. By focusing on the possibilities that the automation
software solutions will enable, it will present the opportunity for multiple industries to push the
boundaries of technological innovation which is very crucial for the UK economy in a post-Brexit phase.
Therefor, Industrial automation software solutions are expected to revolutionize the entire process
industries in Europe.
■ Moreover, in the recent years, the establishment of intelligent automation had a great impact on the
productivity of multiple manufacturing industries in the region. The current experience of multiple
industries during the region’s lockdown primarily owing to the coronavirus pandemic has showed the
manufacturers that how important it is to be able to run operations remotely irrespective of the staff
location, and for uninterrupted communications with customers and suppliers. This understanding is
expected to drive the demand for automated solutions after the lockdown ends.

5. MARKET DYNAMICS
5.1 MARKET DRIVERS

5.1.1 LAUNCH OF STRINGENT ENERGY
CONSERVATION STANDARDS AND DRIVE FOR
LOCAL PROCESSING ACROSS VARIOUS
GEOGRAPHIES
■ With such stringent regulations, industries across the
regions are expected to adhere to conservation
efforts taken as part of EU27. This is expected to
drive the demand for smart solutions that enable
energy conservation.
■ Adoption of smart connected equipment with in-built

sensing capabilities is expected to see higher growth
in adoption; in addition to this, existing equipment
are being fitted with sensing solutions which tend to
be connected to systems that control and monitor
these equipment thus driving the demand for
software solutions as well.

5. MARKET DYNAMICS
5.2 MARKET CHALLENGES

5.2.1 TRADE TENSIONS AND IMPLEMENTATION COST
■ Amidst the disruptions caused due to COVID-19 pandemic scenario, businesses are facing operational
and financial challenges. Challenges such as these are expected to persist and could be augmented with
new challenges in the region like the UK-EU trading relationship and post-Brexit regulations.
■ For instance, Siemens AG witnessed a significantly weaker market environment in recent years, where
the company reported the fallout to have been from global-trade tensions on Germany’s highly export-
dependent economy, particularly from Italy. And, the current COVID led supply chain issues, has added
onto trade tensions.
■ With the uncertainty in regulation, standards, and trade barriers, there is an expectation that there will
be investments from European companies to move from the UK to mainland Europe. The higher costs
for imports and exports alike will make business more challenging for the UK. With the exit of market-
liberal UK from the EU, there have been various negative effects on regulations, red tape, and trade-
related decisions.
■ Also, with growing advancement, new vulnerabilities are being discovered more frequently than ever
before in industrial automation software solutions. The high cost of automated software systems are
associated with the effective and robust hardware and efficient software. These automation systems
require high capital expenditure which can cost millions of dollars to design, fabricate, and install. The
acquisition and installation expenditure for an industrial automation software solution can represent
almost half of the total cost during the system lifetime. Also, the frequent changes in technology and
networking can also result in significant costs, which can be more than that of the initial investment,
further slowing down the adoption.
■ Furthermore, presence of legacy systems have restricted the growth of the market. Most of the legacy
systems were developed before internet was introduced. These systems were designed and developed
to work without internet, which limits the current devices and programs to be implemented for
industrial automation. Whereas, introducing web software solutions to legacy systems is a challenge due
to presence of issues like security, new business requirements and compatibility.
6. IMPACT OF COVID-19 ON THE INDUSTRIAL AUTOMATION INDUSTRY
◼ Trends that existed in the pre-COVID manufacturing industry include growing adoption of Industry 4.0
throughout the world, increasing emphasis on industrial automation in manufacturing processes with
increasing government support, the growing emphasis on regulatory compliance, increasing complexity
and integration of supply chains, surging demand for software systems that reduce time and cost and
improve overall equipment effectiveness (OEE) and the collapse of the convergence of MES and ERP
layers and SCADA and MES layers
◼ While the COVID-19 pandemic has not triggered Industry 5.0, instead, it has brought significant
adoption of Industry 4.0 that utilizes several smart manufacturing technologies. Digital workflows and
automation are no longer goals; they are becoming necessary requirements. IoT devices have offered
manufacturers a path toward preserving revenue streams during this pandemic.
◼ The COVID-19 pandemic immediately brought about significant change and introduced a new set of
trends that are both accelerating and dampening smart manufacturing adoption and growth in the
European region. Some of the trends include acceleration of Industry 4.0 adoption, leading companies
across industries into a more mature state of IoT-based technology, processes, and workflow, faster
enterprise movement, and commitment to building smart factory portfolios, growth of manufacturing
systems to monitor real-time production and plant operations and reduce on-site plant-floor employees
in response to COVID-19 social distancing requirements.
◼ European region significantly witnessed manufacturing disruptions with the outbreak of COVID-19, and
to mitigate the fallout and maneuver into the new future, manufacturers will need to consider these
trends in designing their smart manufacturing adoption strategies and roadmaps. Rising demand for
smart manufacturing products and services in response to the public health crisis is expected to drive
further growth. This will likely spur the continued evolution of digital twin technology, digital replicas of
potential and actual physical assets, processes, people, places, systems, and devices, in maintaining
manufacturing operations across the ecosystem, and a rapidly expanding role for collaborative robots in
the manufacturing sectors.

6. IMPACT OF COVID-19 ON THE INDUSTRIAL AUTOMATION
INDUSTRY
◼ Following the global economic recession led by COVID-19, the UK factory automation and industrial
control system market has witnessed positive impact from the demand side and mixed impact from the
supply side in 1st half of 2020. Smart factory initiatives have helped manufacturers to overcome COVID-
19 challenges and address issues such as workforce reductions, drops in sales for some specific
products, social distancing, and extreme pressure to cut operational costs since most enterprises
operating in the end-user industries (majorly manufacturing, automotive) had shuttered down their
production sites due to lockdown restrictions.
◼ However, economic downturn is likely to affect the country’s adoption of automation and ICS. For
instance, amid the outbreak of COVID-19, Leesman survey spanning 700,000 employees, worldwide,
states that within 52,240 employed in the manufacturing and engineering space, 53% have no home
working experience.
◼ There has been significant growth in the deployment of robots as a part of automation across the
various manufacturing industries such as automotive, the electrical, and the electronics industries. This
has been a major growth contributor for smart manufacturing technologies, such as PLCs in the discrete-
manufacturing sectors. The requirement for automation equipment in the industry is significantly driven
by the increasing need to enhance productivity and improve workers' safety.
◼ The supply of raw materials and ingredients to the manufacturing facilities has been badly affected,
which has hampered production, forcing manufacturers to shut operations. Along with this, manpower
availability during the pandemic became scarce, resulting in losses. The outbreak of COVID-19 has
driven the demand for automation and is expected to increase over the long run, primarily to cope with
the shortage of labor and high labor costs in Europe compared to other regions.
◼ Although the COVID-19 pandemic has significantly impacted the European economy and with it the
growth and adoption rate of smart manufacturing products and services, the sector is poised to recover
significantly in 2021. While the strong pre-COVID-19 trends will persist and accelerate growth for smart
manufacturing in the years to come, post-COVID trends will also materialize.

6. IMPACT OF COVID-19 ON THE
INDUSTRIAL AUTOMATION
INDUSTRY
◼ Manufacturers in the region are positioning
themselves to take advantage of both pre-and post-
COVID trends to seize opportunities as they unfold
between 2021 through 2025. The right adoption
strategies of smart manufacturing technologies will
make the difference for manufacturers as they
mitigate the turbulence and prepare to maximize
value and ROI in the future.
◼ By 2021, the demand for automation in the
manufacturing sector is expected to surge in Europe
owing to the benefits and low contact points.
According to a study by Pod Group, nearly 73% of
UK business leaders expected the pandemic to spark
a new wave of automation in workplaces.

35.04%
7.1 SEGMENTATION - BY TYPE
Manufacturing Execution
OF SOFTWARE Systems (MES)
Asset Performance
7.1.1 Manufacturing Execution Systems (MES) Management (APM)
7.1.2 Asset Performance Management (APM) 2026 Advanced Process Control
(APC)
7.1.3 Advanced Process Control (APC)
Product Lifecycle Management
7.1.4 Product Lifecycle Management (PLM)
(PLM)
7.1.5 Operator Training Simulator (OTS)
Operator Training Simulator
7.1.6 Industrial Control Systems Software (Operational and (OTS)
Cybersecurity) Industrial Control Systems
Software

7. MARKET SEGMENTATION
7.1 SEGMENTATION - BY TYPE OF SOFTWARE
EUROPE INDUSTRIAL AUTOMATION SOFTWARE EUROPE INDUSTRIAL AUTOMATION SOFTWARE MARKET

MARKET Revenue in USD billion, by Safety Systems, 2019-2026
Revenue Share (%), by Safety Systems, 2020
Automation Software 2019 2020 2021 2022 2023 2024 2025 2026 CAGR (%)
17.75%
Manufacturing Execution
34.97% 2.88 3.01 3.26 3.52 3.79 4.08 4.39 4.72 7.69%
4.09% System (MES)
5.15% Asset Performance
0.64 0.69 0.78 0.86 0.96 1.07 1.18 1.31 11.00%
Management (APM)
Advance Process Control

2.53% 0.82 0.87 0.95 1.03 1.12 1.22 1.32 1.44 8.59%
(APC)
35.51%
Product Lifecycle Control
5.85 6.03 6.52 7.04 7.59 8.16 8.72 9.29 7.36%
Manufacturing Execution Systems (MES)
(PLM)
Asset Performance Management (APM) 0.40 0.43 0.47 0.51 0.56 0.61 0.66 0.71 8.72%
Advanced Process Control (APC) (OTS)
Product Lifecycle Management (PLM)
Industrial Control Systems
5.59 5.93 6.43 6.96 7.52 8.12 8.75 9.42 7.94%
Operator Training Simulator (OTS) Software
Industrial Control Systems Software Total 16.20 16.97 18.40 19.93 21.55 23.25 25.03 26.89 7.88%
SOURCE: Mordor Intelligence SOURCE: Mordor Intelligence

7.1 MARKET SEGMENTATION - BY TYPE OF SOFTWARE
7.1.1 MANUFACTURING EXECUTION SYSTEMS (MES)

◼ Manufacturers utilize manufacturing execution system (MES) software to keep track of the
production process. Manufacturing organizations profit from MES because it allows them to track EUROPE INDUSTRIAL AUTOMATION SOFTWARE MARKET
real-time production data, which they can utilize to improve output. Production managers, shop Revenue in USD billion, MES, 2019-2026
floor supervisors, and individuals participating in the manufacturing process are the primary users
of manufacturing execution systems. 4.72
◼ MES software is used by managers and supervisors to implement production plans and monitor 4.39
efficiency, as well as to detect possible difficulties and take corrective action. Employees on the 4.08
shop floor utilize this software to keep track of their schedules, allocate resources to the 3.79
appropriate workstation for each stage of production, and notify supervisors and managers when 3.52
something goes wrong. 3.26
3.01
2.88
◼ Data from supervisory control and data acquisition systems (SCADA) is required by MES
software, which is used to manage and operate production equipment. Manufacturers must also
link this type of software with their ERP solutions in order to transfer information about
production performance, material usage, and other factors.
◼ Integration of MES with systems such as product lifecycle management (PLM), supply chain
management, and enterprise asset management is critical for big and complicated production
processes (EAM).
◼ During the projected period, the European manufacturing execution system market is expected to
increase significantly. Growing automation in various sectors, as well as increased manufacturing
activity in the country, are the primary factors driving market growth. Furthermore, the increasing
use of manufacturing execution systems in various industries such as automobiles, food and
2019 2020 2021 2022 2023 2024 2025 2026
drinks, retail and e-commerce, aviation, and others is boosting market growth.
◼ Government initiatives that focus on the deployment of industrial automation are also a crucial SOURCE: Mordor Intelligence
component that gives the market a lot of room to grow.

7.1.1 MANUFACTURING EXECUTION

SYSTEMS (MES)
◼ The European Union presented an industrial policy in March 2020 that would
promote the twin green and digital transformations, improve EU industry's
worldwide competitiveness, and strengthen Europe's open strategic autonomy.
This will project a rising demand for Automation and digitalization in the region
and thus will posses a demand for Manufacturing Execution Systems.
◼ The European manufacturing industry, according to the European Commission,
is a valuable asset for the European economy and a key source of employment
and prosperity. It is also a major player in research and development,
accounting for 64% of private sector research and development spending and
49% of innovation spending in Europe. The sector employs 2 million people
and contributed USD 2.302 trillion to the economy in 2020 according to the
World Bank Data. The strong manufacturing ability of the region supports the
deployment and demand of MES in the plants and industries.
◼ In 2020, the European vehicle market will have shrunk by 22%. Nonetheless,
new electric vehicle registrations more than doubled to 1.4 million,
representing a 10% market share. Germany registered 395 000 new electric
cars in the major market, whereas France registered 185 000. Registrations in
the United Kingdom more than doubled, reaching 176 000. In Norway, electric
automobiles have a record high sales share of 75%, up almost a third from
2019. Electric vehicle sales exceeded 50% in Iceland, 30% in Sweden, and 25%
in the Netherlands. The growing EV market presents a huge opportunity for
Electrical & Electronics, Mechanical and IT industries. The MES can be used by
the EV manufacturers and by their vendors as well.

7.1.2 ASSET PERFORMANCE MANAGEMENT (APM)
◼ Asset Performance Management (APM) is a method of asset management that prioritizes business
EUROPE INDUSTRIAL AUTOMATION SOFTWARE MARKET
goals over traditional asset reliability and availability objectives. In the industrial sector, APM has
Revenue in USD billion, APM, 2019-2026
become a key enabler of digital asset management revolution. Traditional asset management
approaches are combined with new digital technology in modern asset management to provide 1.31
transformational improvements in reliability, maintenance execution, and business performance.
1.18
◼ APM entails the use of people, processes, and technology to increase uptime, increase revenue,
1.07
and extend the life of physical assets in order to save money while lowering operational expenses
and risk. APM ensures that assets have the necessary capabilities for optimal operating 0.96
performance in order to fulfil today's dynamic business and production goals, while also ensuring 0.86
high customer satisfaction in terms of on-time delivery and product quality. This APM strategy 0.78
allows the user to enhance important metrics including uptime, mean time to repair (MTTR), asset 0.69
longevity, on-time shipments, quality/yield, and safety in a systematic way. Executive indicators 0.64
such as revenue, profit, customer happiness, work-in-process (WIP) inventory, and return on
assets all improve when these criteria are reached (ROA).
◼ By integrating asset lifecycle management services such as reliability, maintenance, inspections,
and information management, APM increases the reliability and availability of physical assets. APM
improves the performance of physical assets in their operating ecosystem by using a digital thread
throughout the asset lifetime, supporting digital twins for assets and asset groups, linked workers,
and the network of components and service suppliers.
◼ The Industrial Internet of Things (IIoT) combined with advanced analytics opens up new avenues
for improving the reliability of industrial assets, allowing owners and operators to move closer to 2019 2020 2021 2022 2023 2024 2025 2026
zero unplanned downtime, which many regard to be the ultimate goal for maintenance and
operations. SOURCE: Mordor Intelligence

7.1.2 ASSET PERFORMANCE MANAGEMENT (APM)

◼ Industry 4.0 trends, modern technologies such as Industrial IoT (IIoT) and artificial
intelligence (AI), as well as the emergence of the energy-saving society and an
ageing population, have a significant impact on manufacturing. In this context, the
manufacturers are examining ways to increase productivity and safety while both
training and retaining experienced operators and lowering operating expenses.
Therefore, more and more manufactures are using APM software’s for effective
plant and asset management.
◼ Managing asset performance may help firms get the most out of their operating
assets, such as plants, facilities, and infrastructure. Heavy equipment, heavy
machinery, turbine engines, and power transformers are just a few of the assets
that firms with dedicated systems are continually tracking.
◼ Because of the complexity of infrastructure, it is vital to ensure that it operates
reliably without jeopardizing health and safety regulations. It's also crucial to
follow industrial and environmental regulations. Asset Performance Management
allows businesses to track and analyze historical and real-time operational and
asset data in order to improve asset performance, lower costs, and facilitate
mission-critical decision-making in important business processes.
◼ Low-cost wireless monitoring technologies are affecting portable condition
monitoring (CM) and more traditional preventive maintenance activities like walk-
around inspections in the asset management arena. Online diagnostics CM is fast
transitioning to become predictive, where data is turned into actionable insights
with guaranteed consequences through digitization, in order to track asset health
and performance.
◼ Asset Performance Management (APM) is a cutting-edge solution for making
asset performance monitorable, analyzable, and integrated across the entire plant
– all of which are preconditions for DX to create a profitable and sustainable
plant.

7.1.3 ADVANCED PROCESS CONTROL (APC)

◼ Advanced process control (APC) is a wide term that refers to a collection of sophisticated
technologies and tools that are used to improve plant performance in a variety of applications. EUROPE INDUSTRIAL AUTOMATION SOFTWARE MARKET
APC software and accompanying services make up the advanced process control market. Revenue in USD billion, APC, 2019-2026
Process industries, which use APC technologies to optimize plant performance, account for the
majority of the overall application market.
1.44
◼ For decades, process manufacturers have used advanced process control (APC) and online
1.32
optimization technology. On the business front, advances are being made, and manufacturers'
needs for simplified systems on open computing platforms, as well as robust representations of 1.22
the plant or plants, are growing. As a result, one of their most important concerns is deploying 1.12
and maintaining assets efficiently with little human resources so that facilities may successfully 1.03
respond to new opportunities without sacrificing quality or profitability. 0.95
0.87
◼ In recent years, increased global competition has put significant pressure on businesses to 0.82
change their focus away from pure expansion and toward more nimble operations and long-term
profitability. Manufacturers frequently employ APC and online optimization tools to cut expenses
and improve efficiency. In fact, APC and online optimization tools are used in almost every
process industry category, while some use them more than others.
◼ Multivariable predictive control (MPC) or model predictive control are terms used to describe
advanced process control, which comprises model-based software that is used to direct the
process operation. The process model designed for these applications must appropriately capture
the process dynamics. Improved operation economics or production gains are common driving
motivations for use in a variety of industrial applications.
◼ Advanced Process Control (APC) products use a unique tiered approach to cover all areas of
advanced process management and optimization, from increasing regulatory loop control to 2019 2020 2021 2022 2023 2024 2025 2026
globally optimizing the entire process. This paradigm enables new technologies to be easily
Source: Mordor Intelligence Analysis
added to a shared platform at any moment in order to satisfy optimization goals while preserving
future potential to increase business performance.
7.1.3 ADVANCED PROCESS

CONTROL (APC)
◼ The enhanced control process enables firms to operate
at their best, allowing them to realize significant cost
savings while also increasing income generation
capabilities.
◼ The improvement in the economic situation in the
region is likely to encourage organizations in the region
to install advanced process control technologies.
Furthermore, the consistent development in corporate
earnings by corporations is increasing their capacity to
spend on their operational activities, which is
supporting market expansion.
◼ The EU economies are resuming their growth as the
health situation improves and virus containment
measures are eased. In the short term, the European
economy appears to be doing better than projected in
the spring. Effective containment strategies and
advancements in vaccination have permitted EU
Member States to reopen their economies, benefiting
enterprises in the service sector in particular.
Consumer and business survey findings, as well as
statistics tracking mobility, show that a consumption
rebound is already starting and will increase in the
coming months. Overall, GDP is now forecast to grow
by 4.8% in 2021 and 4.5% in 2022 in both the EU and
the euro area according to European Commission.

7.1.4 PRODUCT LIFECYCLE MANAGEMENT (PLM)

◼ Product lifecycle management software enables geographically distributed, multi-disciplinary INDUSTRIAL AUTOMATION SOFTWARE MARKET
teams to work strategically with partners and customers utilizing reliable, up-to-date product Revenue in USD billion, PLM, Europe, 2019-2026
information.
◼ PLM software allows a company to maintain information more efficiently and effectively 9.29
throughout a product's lifecycle. This software allows the user to control every step of the 8.72
product development process, from concept to design, manufacturing, and finally disposal. 8.16
◼ The digital thread's core is product lifecycle management, which ensures supply chain agility and 7.59
7.04
business continuity. Product lifecycle management enables firms to reduce costs, expedite time
6.52
to market, and achieve the highest levels of quality and compliance by providing data governance
5.85 6.03
and traceability.
◼ PLM software is a solution that handles all the data and processes at every stage of a product's
or service's lifecycle across worldwide supply chains. Items, parts, goods, papers, specifications,
engineering change orders, and quality workflows all contribute to this. Supply chains have
become increasingly global in recent years, and enterprises are changing their business strategies.
To market new products or services, several organizations use embedded software services such
as product-as-a-service (PaaS). As a result, many businesses are realizing that they require cloud-
based PLM software that can assist them in being more adaptive and responsive.
◼ As it provides the digital basis and enterprise product record for a holistic product development
and supply chain strategy, modern PLM software is increasingly becoming the lynchpin of
corporate transformation. When business processes are aligned with today's PLM software on a
single platform, users can unify their product value chain with integrated business planning and 2019 2020 2021 2022 2023 2024 2025 2026
supply chain execution, allowing them to drive faster innovation and improve how products are
designed, manufactured, maintained, and serviced.

7.1.4 PRODUCT LIFECYCLE MANAGEMENT (PLM)

◼ The Polish government is concentrating on developing indigenous industry technologies in order to
bring them up to the level of ‘Industry 4.0' and create innovative products. However, firms may
encounter significant hurdles as a result of the industry's digital transition. Poland established a ministry
of digital affairs in 2016 to promote the development of broadband infrastructure, create web content,
and encourage residents to digitize. Across addition, various programs in the rest of Europe have been
launched to improve research and testing prospects through innovative policies and programs related to
digitization. This digital transformation will attract PLM, along with other software in transforming and
digitalizing the manufacturing in the region, therefore, boosting the demand of the PLM software in the
region.
◼ European countries' military spending is likewise increasing year after year, including R&D and
manufacturing of defense-related equipment and systems. Belgium, Denmark, France, Iceland, Italy,
Luxembourg, the Netherlands, Norway, Portugal, the United Kingdom, Germany, and other European
countries are members of NATO and contribute significantly to its military spending. Nearly all members
of the North Atlantic Treaty Organization (NATO) saw their military burden climb in 2020, according to
the Stockholm International Peace Research Institute (SIPRI). Germany increased its spending by 5.2%
to USD 52.8 billion, the United Kingdom spent approximately GBP 44.6 billion in 2020/21 on defense,
an increase of two billion pounds from 2019, according to Her Majesty's Treasury. The total budget of
the French Ministry for the Armed Forces is EUR 48.3 billion (including pensions) in 2020, according to
the Ministry of Armed Forces, France.
◼ The government and military sector are confronted with unprecedented levels of complexity and
competition. For more complicated products, successful organizations must satisfy rigorous cost and
schedule requirements. When you add in the requirement for successful coordination between project
partners and their clients, the task becomes even more difficult. Aerospace companies must come up
with new ways to lower costs and shorten time to market while improving product performance. To
share risks and maximize product development and manufacturing skills, aerospace OEMs are
increasingly depending on worldwide partners.

7.1.4 PRODUCT LIFECYCLE

MANAGEMENT (PLM)
◼ Defense equipment manufacturers and suppliers
benefit from PLM software solutions in every step of
the process, from the initial concept to development
and testing processes, as well as efficient
manufacturing. As a result, defense equipment
makers are increasing their demand for Product
Lifecycle Management (PLM) software solutions, and
the industry is likely to boost PLM software market
growth.
◼ The energy industry is vast and varied. It could entail
working with chemicals, oil, or gas. Each of these
elements has its own set of characteristics, concerns,
and challenges, thus, there is not a single model that
can be applied to all of them. The PLM business
began with a focus on larger energy suppliers;
nevertheless, a shortage of staff is a typical issue for
many smaller electric power plants. Without the
requisite number of experts to cope with
maintenance, business flow would be disrupted and
delayed. PLM has relevance in the smaller electric
power industry because the platform makes all
information readily available, allowing them to solve
problems promptly and efficiently.
◼ The European countries constantly face challenges in
their energy expenditure and are bound towards
reducing it. Moreover, Europe is one of the most
expensive regions for energy charges.
7.1.5 OPERATOR TRAINING SIMULATOR (OTS)

◼ Simulators for operator training have proven to be the most effective method of operator training. INDUSTRIAL AUTOMATION SOFTWARE MARKET
Operator training for abnormal situations in high-consequence processes can improve operating
Revenue in USD billion, OTS, Europe, 2019-2026
efficiency, speed up startup or rate changes, and give operators the experience they need to deal
with extremely dangerous situations, like nuclear plant core meltdowns, complex chemical
reactions, or safe operation of process equipment, like pumps, compressors, or fired heaters. 0.71
◼ Almost all control system vendors offer run-time versions of their systems that can be installed in 0.66
a virtual machine (VM) and run on a Windows operating system. Because the trend is to transfer 0.61
actual control hardware to the field without full staging, the main reason for this is to provide a 0.56
virtual platform for control system project engineering and FAT testing. Control system providers 0.51
are progressively delivering complex simulation features for control system simulations, such as 0.47
startup, freeze, playback, and real-time speed adjustments, to match equivalent features in 0.43
0.40
process simulators.
◼ Advanced technologies, such as virtual reality and cloud hosting, are enabling the development of
more effective Operator Training Simulator solutions. The growing demand for Operator Training
Simulator solutions is being fueled by a growing focus on providing virtual simulation training in
an environment that is similar to that of a real plant or an operator's cabin. In addition, the
growing desire for cost-effective, time-saving training systems is projected to boost demand for
Operator Training Simulator solutions with better effectiveness.
◼ The increasing demand for qualified process operators, combined with corporate initiatives for
workplace safety for employees in hazardous industries and vocations like as construction,
agriculture, and mining, is propelling the Operator Training Simulator market forward. 2019 2020 2021 2022 2023 2024 2025 2026
Furthermore, a considerable number of already employed workers are approaching retirement
and will need to be replaced by suitable, trained resources. The increasing demand for new Source: Mordor Intelligence Analysis
workers to be trained in specific abilities is projected to drive uptake of operator training
simulator solutions in the near future.
7.1.5 OPERATOR TRAINING

SIMULATOR (OTS)
◼ For example, Europe is dealing with a long-term
demographic problem that will result in enormous
labor shortages. According to ToTalent, a talent
acquisition platform, Germany appears to be facing
the greatest labor deficit on the continent, with the
Center for Global Development estimating a 7 million
job gap by 2050. According to a comprehensive
research undertaken by the United Nations, Europe
will have 95 million fewer working-age individuals
(between the ages of 20 and 64) in 2050 than it did
in 2015. Recruiting new employees for vital and
complicated tasks necessitates significant training,
creating a viable market and application for OTS.
◼ In the power generation business, power plant
training simulator is a very useful tool. It can be used
to train and qualify current field operators as well as
new trainees who want to work in the control center.
Simulator also benefits existing control room
operators by reducing the loss of skills over time
owing to a lack of experience with specific unit
operating conditions. Unusual operating conditions
and upset operating conditions are examples of these
types of situations. Furthermore, power plant
simulators are an excellent training tool for I&C
workers and can be utilized to undertake engineering
reviews of the plant to increase plant control
47
efficiency.
REPORT – EUROPE INDUSTRIAL AUTOMATION SOFTWARE MARKET
7.1.6 INDUSTRIAL CONTROL SYSTEMS SOFTWARE (OPERATIONAL AND CYBERSECURITY)
 Critical infrastructures, such as power plants, transportation systems, oil refineries, chemical INDUSTRIAL AUTOMATION SOFTWARE MARKET
plants, and manufacturing units, are massive, dispersed complexes. To maintain the plant's Revenue in USD billion, Industrial Control Systems Software
correct operation, plant operators must constantly monitor and operate numerous distinct (Operational and Cybersecurity), Europe, 2019-2026
sections. Due to advancements in networking technology and the introduction of Industrial 9.42
Control Systems in recent decades, this remote command and control has become possible (ICS).
8.75
Industrial control systems (ICS) are command and control networks and systems that support
8.12
industrial processes. SCADA (Supervisory Control and Data Acquisition) systems are the main
subgroup of ICS. 7.52
6.96
 ICS have evolved from proprietary, isolated systems to open designs and standard technologies
6.43
that are deeply integrated with other corporate networks and the internet. Today's ICS products
5.93
are largely built on conventional embedded systems platforms, and they are used in a variety of 5.59
devices, including routers and cable modems. They also frequently use commercial off-the-shelf
software. All of this has resulted in cost savings, convenience of use, and remote control and
monitoring from a variety of places. However, connecting to intranets and communication
networks has the disadvantage of increasing vulnerability to computer network-based attacks.
 Unfortunately, cyber security incidents have already caused problems for ICS and CIs, whether
they are intentional targeted attacks or collateral harm from bad practices, computer viruses, and
so on. The harmful malware Stuxnet is linked to one of the most recent events involving ICS.
Stuxnet is a highly sophisticated piece of software that was most likely designed as a sabotage
cyber weapon.
 Cyberattacks have a huge influence on vital infrastructures and services, as evidenced by recent
deliberate interruptions of critical automation systems. Disruption of these ICT capabilities could
2019 2020 2021 2022 2023 2024 2025 2026
have devastating effects for the governments and social well-being of EU Member States. As a
result, ensuring ICT resilience against cyberattacks is a major concern at both the national and Source: Mordor Intelligence Analysis
pan-European levels.

7.1.6 INDUSTRIAL CONTROL SYSTEMS SOFTWARE

(OPERATIONAL AND CYBERSECURITY)
 Industrial Control Systems (ICS), including SCADA (Supervisory Control and
Data Acquisition) systems, control and monitor critical infrastructures, such as
power plants, transportation systems, and manufacturing facilities. Most
today's ICS solutions are built on conventional embedded systems platforms,
and they frequently incorporate commercial off-the-shelf software. This
reduces expenses and improves simplicity of use, but it also increases the risk
of computer network-based attacks.
 Computer-controlled Smart Grid apps and software are widely employed in
Smart Grids. To the advantage of consumers, power suppliers, and grid
operators, smart grids will significantly increase control over electricity usage
and delivery. Improved operations and services will, however, come at the
expense of exposing the entire power network to new problems, particularly in
the area of communication network and information system security.
Vulnerabilities in communication networks and information systems could be
used for financial or political advantage, such as shutting down major portions
of the country or directing cyberattacks against power facilities.
 For European society, the maritime sector is crucial. This ever-increasing
reliance on sea transport emphasizes its critical importance to European
society and economy. Maritime activity, like other economic sectors, is
becoming increasingly reliant on ICT to optimize its operations. From
navigation to propulsion, from freight management to traffic control
communications, ICT is increasingly being used to enable critical maritime
operations.
 Many ICS software providers are uninformed about programming best
practices and techniques. In controlled laboratories, penetration tests and
white box audits have revealed that there are basic security issues in devices
and applications that could be correctly identified if security development best
practices were included in the development cycle.

36.59%
7.2 SEGMENTATION BY END Oil and Gas
USER INDUSTRY Chemical and
Petrochemical
7.2.1 Oil and Gas Power
7.2.2 Chemical and Petrochemical 2026 Water and

7.2.3 Power Wastewater
Food and Beverage
7.2.4 Water and Wastewater
7.2.5 Food and Beverage Automotive and
Transportation
7.2.6 Automotive and Transportation
Other End-user
7.2.7 Other End-user Industries Industries

7.2 SEGMENTATION - BY END USER INDUSTRY
INDUSTRIAL AUTOMATION SOFTWARE INDUSTRIAL AUTOMATION SOFTWARE MARKET

MARKET Revenue in USD billion, by End-user Industry, 2019-2026
Revenue Share (%), by End-user Industry, 2020
END USER INDUSTRY 2019 2020 2021 2022 2023 2024 2025 2026 CAGR (%)
12.21% Oil and Gas 2.00 2.07 2.23 2.39 2.55 2.73 2.91 3.09 6.80
Chemical and Petrochemical 3.31 3.45 3.74 4.03 4.35 4.68 5.02 5.38 7.56
36.35%
20.36%
Power and Utilities 1.30 1.37 1.50 1.64 1.79 1.94 2.11 2.29 8.78
Water and Wastewater 0.99 1.04 1.12 1.21 1.30 1.40 1.50 1.60 7.45
8.09% Food and Beverage 1.36 1.44 1.57 1.72 1.88 2.04 2.22 2.41 8.90
8.42%
6.10%
8.46%
Automotive and Transportation 1.36 1.43 1.55 1.68 1.82 1.97 2.12 2.29 8.05
Oil and Gas
Chemical and Petrochemical
Other End-User Industries 5.88 6.17 6.70 7.26 7.86 8.49 9.15 9.84 8.00
Power
Water and Wastewater
Food and Beverage
Automotive and Transportation Total 16.20 16.97 18.40 19.93 21.55 23.25 25.03 26.89 7.88
Other End-user Industries

7.2 SEGMENTATION BY END-USER INDUSTRY
7.2.1 OIL AND GAS

◼ Automation is a significant determinant in the European oil and gas industry. Moreover,
Digitization, automation, and new technologies provide operators and technicians instant INDUSTRIAL AUTOMATION SOFTWARE MARKET
access to critical performance, condition, and technical information. Additionally, The oil and Revenue in USD billion, Oil and Gas, Europe, 2019-2026
gas industry is home to government regulations for safety, reliability in the plant, and
efficiency, owing to which the industrial automation software finds applications in Remote
Terminal Units (RTU) and pumping and compression stations for ensuring safety. 3.09
2.91
◼ The region's oil and gas companies are increasingly adopting AI and digital cloud solutions to
2.73
enhance decision-making speeds, troubleshooting, and performance efficiency. For instance, in
2.55
October 2021, AVEVA, a UK-based company, and Schlumberger announced an agreement to 2.39
integrate edge, AI, and digital cloud solutions to assist operators in optimizing oil and gas 2.23
production. The companies will collaborate to improve site efficiency and performance by 2.07
2.00
streamlining how energy operators acquire, process, and act on field data. This collaboration
combines edge and cloud solutions with the AVEVA PI System to effortlessly liberate data
access, speeding up insights and action.
◼ Furthermore, the region is witnessing various contracts for operator training in both
operational phase and abnormal situations. For instance, in October 2020, Gassco and ABB
gave contracts to Billington Process Technology (BPT) to deliver an Operator Training
Simulator (OTS) for the Gassco-operated Zeepipe gas receiving terminal in Zeebrugge,
Belgium. The Zeepipe system transports Norwegian natural gas into Europe.
◼ Moreover, according to BPT, the Zeepipe terminal removes potential residual liquids and solids
while regulating gas flow and temperature. The facility measures gas volume and quality
before continuing it to the transport operator downstream of the terminal.
2019 2020 2021 2022 2023 2024 2025
◼ In addition, with the reviving crude oil prices in the region, investments into multiple oil and
gas infrastructure projects are rising in Europe. These projects are expected to increase the Source: Mordor Intelligence Analysis
demand for Industrial automation software across Europe.
7.2.1 OIL AND GAS

◼ The oil and gas market is witnessing significant initiatives catering to asset
management performance developments. For instance, in October 2020,
Siemens Energy and Bentley Systems Inc. announced a joint solution that
provides intelligent analytics inferred from domain experience to decrease
operating expenditures associated with oil and gas assets. The offering, known
as Asset Performance Management for Oil & Gas, or APM4O&G, combines
key complementary offerings from both companies to assist operators in
improving asset performance, eliminating downtime, and lowering
maintenance costs.
◼ Additionally, in October 2020, AVEVA and SCG announced a strategic
partnership to develop a Digital Reliability Platform (DRP), an asset
performance management (APM) solution to anticipate equipment health,
monitor performance, and facilitate advanced maintenance across operational
processes to eliminate unplanned downtime.
◼ Furthermore, the DRP solution integrates online and offline equipment data to
visualize plant performance, improve workforce efficiency, and use artificial
intelligence (AI) for predictive maintenance and resolution to track critical
assets and predict failure to achieve the goal of zero unplanned shutdowns.
◼ However, according to the UK Department for Business, Energy, and Industrial
Strategy and Oil and Gas Authority, natural gas production and demand in the
United Kingdom are forecast to witness a significant fall. The demand is
expected to decrease by 13.8 million metric tons by 2026, while gas
production is expected to reduce by 12.2 million metric tons from 2020 to
2026, restraining the market growth.

7.2 SEGMENTATION BY END USER INDUSTRY
7.2.2 CHEMICAL AND PETROCHEMICAL

◼ The petrochemical industry has been witnessing new challenges due to increased pressure
on product cost reduction, personalized customer needs, increasingly strict requirements on INDUSTRIAL AUTOMATION SOFTWARE MARKET
environmental protection and energy conservation, and the growing need to optimize the Revenue in USD billion, Chemical and Petrochemical, Europe,
supply chain. 2019-2026
◼ Furthermore, many new processes have been introduced in refineries, resulting in increased 5.38
5.02
process automation and analysis. Besides that, most refineries are currently not equipped to 4.68
4.35
3.74 4.03
deal with the high sulfur load equipment-integrity-wise as needed, resulting in advanced 3.45
3.31
corrosion. This translates into frequent maintenance-related pauses, and it does not fit
within the refinery's desire to extend the intervals between plant shutdowns. Such issues are
further creating industrial automation software demand.
◼ Parameters, such as pH, are very significant when it comes to fighting corrosion, and
measuring pH under the challenging and harsh process conditions that usually occur in
refineries is something that becomes easy with automation software, as it gathers data at 2019 2020 2021 2022 2023 2024 2025 2026
every stage in line through a network of sensors, flowmeters, meters, etc. Source: Mordor Intelligence Analysis
◼ Furthermore, the market is witnessing initiatives catering to chemical recycling process. For  Furthermore, government initiatives are likely to boost the market
growth in the region. For instance, in November 2020, UK Prime
instance, in December 2020, Recycling Technologies, a prominent provider of plastic
Minister Boris Johnson announced EUR 12 billion in funding for a ten-
recycling technology, completed the first phase of a project funded by the Small Business point plan for the green industrial revolution, which is expected to help
Research Initiative (SBRI) to improve the efficiency of the chemical recycling process by the country with various industrial automation software initiatives. The
hydrogenating Plaxx. The project incorporated digitalization to improve the automation and project is supported by revenue mechanisms to encourage increased
industrial controls that improved process efficiency and enabled chemical recycling to move private sector involvement and investment, which is expected to boost
toward digital control of distributed units. chemical and petrochemical sector.
 Moreover, automation in many chemical processes is surging in
◼ Chemical processes are highly complex systems with increasing risk frequencies, demand using PLC, SCADA, or DCS systems. Many trends are
interactions, maintenance planning, owing to this, asset performance management offering is emerging in the automation space and the European chemical
developing in the region, owing to Corrective maintenance, time-based maintenance, risk- processing industry. However, most of the industry thought leadership
based maintenance, condition-based maintenance, and opportunistic maintenance. around plant modernizations is focused on advancing automation
software.
7.2.3 POWER
◼ Digital data and analytics are driving industrial automation in the region for reducing power
system costs by different means, such as lowering operations and maintenance costs by INDUSTRIAL AUTOMATION SOFTWARE MARKET
improving power plant and network efficiency, reducing unplanned outages and downtime,
and extending the operational lifetime of assets. Over the forecast period, automation Revenue in USD billion, Power, Europe, 2019-2026
software is expected to make energy systems more efficient, connected, sustainable, and
2.29
reliable. The power and energy sector has been an early adopter of software developments, 2.11
which has resulted in improved industrial automation. 1.94
1.79
1.64
◼ The pace of digitalization in energy is increasing the investment in digital technologies by 1.50
1.30 1.37
energy companies. Automation systems are fast becoming commodities. The typical power
plant automation system is populated with rugged input and output modules that meet
strict isolation, surge-withstand capability, and environmental specifications.
◼ Smart factories are expected to gain traction in this segment due to reducing risks,
enhancing productivity, and lowering the overall costs involved. Owing to this, vendors
across the sector are increasingly upgrading their control systems. For instance, in 2019 2020 2021 2022 2023 2024 2025 2026
September 2020, Valmet and Viridor signed a three-year service agreement for six waste- Source: Mordor Intelligence Analysis
to-energy plants in the United Kingdom. This agreement covers maintenance and technical
support, cybersecurity services, lifecycle services, and upgrades for the plants’ automation ◼ Moreover, the wind energy market is witnessing robust growth, with many
systems, ensuring the availability and security of the systems also in the future. countries taking initiatives to reduce their dependency on hydroelectric
power plants, owing to its disadvantages during droughts. This could result
◼ The market vendors are actively innovating software catering to the operational efficiency in a new generation of wind energy plants, paving the way for higher
with asset performance management solutions. For instance, in February 2020, ABB's adoption of industrial automation software owing to their advantages in
Power Grids division launched an APM Edge solution for transformers to address the this sector.
growing complexity of grid operations and ensure energy reliability and resilience while
decreasing capital investment and operational expense. Further, The ABB software solution ◼ For instance, in July 2021, UK based Renewable Energy Systems acquired
for asset owners improves power transformer operational performance while lowering the a portion of DNV's asset management activities for 412MW of operational
total cost of ownership. The solution is a component of ABB's Digital Enterprise and assets in the United Kingdom and Ireland. Moreover, Staff and contracts
transformer service offering. It was developed by combining its long-standing domain for 27 projects will be transferred to RES as part of the deal, including the
expertise in power transformer design and service with advanced asset performance acquisition of site management and control center services. CGN Europe
management (APM). and Cubico Sustainable Investments are two of DNV's clients who own the
specific assets.
7.2.4 WATER AND WASTEWATER

◼ Supplying potable water and treating wastewater have become two significant challenges in
recent years. Growing population and increase in water use across the industries are
INDUSTRIAL AUTOMATION SOFTWARE MARKET
expected to promote the establishment of new water treatment plants, which is expected to
increase industrial automation software usage. Revenue in USD billion, Water and Wastewater, Europe, 2019-2026
◼ Owing to various parameters, including safe working environments, many companies have
started deploying automation solutions into their plants. This is mainly to avoid manual 1.60
intervention and limit scalability, enhancing the system’s accuracy and functionality while 1.50
1.30 1.40
optimizing energy usage and waste reduction. 1.12 1.21
0.99 1.04
◼ However, the significant challenges in water distribution remain as the supply of water and
its conservation, the regulatory requirements, the operational and energy efficiency,
integration of the new updated infrastructure, and remote access control. Increasingly, all
these challenges are being actively addressed through water automation and integrated
control systems by providing vital information about the activities.
◼ Furthermore, in October 2020, The Thames Water, the UK's largest water utility, granted 2019 2020 2021 2022 2023 2024 2025 2026
Black & Veatch three new frameworks. The positions cover the entire lifecycle of Thames' Source: Mordor Intelligence Analysis
water and wastewater treatment and below-ground infrastructure systems, from asset and ◼ Moreover, automated wastewater treatment systems help manufacturers
system modelling, and brief project development to design and infrastructure engineering comply with EPA and local standards while significantly reducing the cost of
service delivery. The mechanisms will run for the duration of AMP7, the regulatory review treatment, labor, and disposal. Additionally, Technology advancements such
period, from 2020 to 2025, and expected to extend through AMP8, from 2025 to 2030. as the Industrial Internet of Things (IIoT) and big data analytics providing
◼ Moreover, Black & Veatch was appointed as a Delivery Partner on both the Asset tools that are needed to address the water and wastewater sector's issues.
Management Framework, Project Management, and Assurance Framework and a strategic ◼ For instance, the AVEVA Unified Operations Center offers real-time
engineering partner to Galliford Try on the Lot 1 and Lot 2 area-wide Design and Build operational performance management for water and wastewater
Frameworks. organizations, providing closed-loop enterprise visibility to optimize assets
◼ Additionally, ABB's automation and control system offered the operators complete visibility and operations. Moreover, the System approach integrates reports,
over the plant operation. The real-time enabling led to accurate decision-making. In doing so, dashboards, and operational processes KPIs into a single platform. With the
ABB showed critical changes such as the number of interfaces operators reduced, minimized addition of predictive analytics, Big Data, and augmented reality tools,
risk, and condensed troubleshooting time during the startup and commissioning process. The traditional HMI and SCADA applications are transformed into the ideal
work is expected to complete on the two projects by 2023. convergence of operational and informational technology.
7.2.5 FOOD AND BEVERAGES

 Food and beverage is the largest manufacturing sector of the UK economy, contributing over
EUR 43.7 billion GVA and employing 450,000 people. The food and beverage industry in the INDUSTRIAL AUTOMATION SOFTWARE MARKET
region faces a challenge in the market to meet the present-day consumers' changing Revenue in USD billion, Food and Beverages, Europe, 2019-2026
demands. The rising commodity prices are expected to influence the food producers to
optimize their operations.
2.41
◼ Further, in March 2021, Infor, the prominent cloud company, announced Cory, a resource 2.22
2.04
management company, deployed Infor EAM to improve asset performance management. 1.88
1.57 1.72
The platform is already deployed in Belvedere, London, with transfer stations and other 1.36 1.44
business sections to follow. It is designed to optimize the organization, coordination, and
intelligence surrounding maintenance planning and associated inventory. The company
selected Infor EAM as part of a modernization project to support future expansion plans,
including an anaerobic digestion facility for food.
◼ Also, the market is witnessing acquisitions, For instance, in August 2020, Schneider Electric,
2019 2020 2021 2022 2023 2024 2025 2026
the prominent provider in the digital transformation of energy management and automation, Source: Mordor Intelligence Analysis
expanded its portfolio and strengthened software-supported automation with the acquisition
of ProLeiT AG. Moreover, ProLeiT AG offers Process Control Systems (PCS) with integrated  Further, various companies in the market are showing advancement in
Manufacturing Execution System (MES) optimized for the Consumer Packed Goods market, their technological requirements. All the manufacturers require a broad
including the Food and Beverage sector. and international perspective to maintain growth and are increasingly
adopting automation in smart factory facilities. For instance, AVEVA, a UK
◼ Further, in January 2020, SIG introduced the first integrated APM (asset performance leader in smart manufacturing, works with 23 of the top 25 food and
management) and FSM (field service management) digital solution for the food and beverage beverage manufacturers to use Industry 4.0 technologies to transform
industry. The Plant 360 Asset Management, developed in collaboration with GE Digital, their businesses, enable operational improvements, maximize return on
includes a variety of on-demand digital services designed to assist manufacturers in reaching capital investments, and increase profitability.
new levels of efficiency, productivity, and connectivity in their operations.  Apart from the increasing costs, the food and beverage companies face
◼ Moreover, with GE Digital's APM and ServiceMax's FSM software SIG strives to encourage pressing challenges, such as regulatory compliance, management of the
digital tools to help customers boost production, reduce downtime, and focus on ensuring global supply chain, product quality, and continuous process improvement.
better quality to meet consumer needs with advanced and integrated solutions. Successful integration of different automation stages in the food and
beverage industry leads to value creation in the supply chain, ensuring a
long-term competitive edge.
7.2.6 AUTOMOTIVE AND TRANSPORTATION

 Smart factory offers the automotive industry opportunities to react faster to the market
requirements, reduce manufacturing downtimes, enhance the efficiency of supply chains, and
expand productivity. The automotive industry is among the prominent sectors that hold a
significant share of the world's automated manufacturing facilities. The production facilities of Revenue in USD billion, Automotive and Transportation, Europe,
various automakers are automated to maintain efficiency. The growing trend of replacing 2019-2026
2.29
conventional vehicles with EVs is expected to further augment the automotive industry's demand. 1.82 1.97 2.12
1.55 1.68
 The primary concern of the automotive industry is the length of a project. Hence, quick return-on- 1.36 1.43
investment projects, combined with low-cost automation and cost innovation, are helping the
manufacturers improve competitiveness through productivity improvement. It has been identified
that the auto assembly increased significantly, using automation, showing a growth pattern in the
number of cars being produced while simultaneously cutting costs, paving the way for the growth
of smart factory's implementation in this sector. 2019 2020 2021 2022 2023 2024 2025 2026
 According to Ev-volumes, the battery-electric and plug-in hybrid electric vehicle sales in the united Source: Mordor Intelligence Analysis
kingdom witnessed increased demand in Q1 of 2020. Moreover, the auto assembly witnessed
significant demand using automation, showing a growth pattern in the number of cars being
produced while simultaneously cutting costs. Further, the smart factory implementation in this QUARTERLY SALES VOLUME OF BATTERY ELECTRIC (BEV)
sector has grown considerably, creating significant demand for industrial automation software. AND PLUG-IN HYBRID ELECTRIC VEHICLES (PHEV)
In Units Sold, United Kingdom, Q2 2019- Q2 2020
 Moreover, the inculcation of industrial control systems software in auto manufacturing plants
gives companies the ability to keep real-time track of productivity and quality through the data
generated through plant connectivity and offering mitigating actions to the line supervisors and 33957
plant executives. Further, Data analytics provides a gateway for predicting various outcomes from 24401 23840
18835
the part's quality to the subsequent machine breakdown. 13809
 Further, the region is witnessing the efficiency of transportation networks through real-
time monitoring and control systems software is driven by significant demand to the functioning of
economies, particularly those with import and export-oriented industries that cover large areas of Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020
land. For instance, Avena is a prominent industrial software vendor offering AVEVA unified Source: EV-Volumes.com
engineering for capital project engineering, design, and simulation. It unifies all process simulation
and engineering data in a single data-centric hub on AVEVA's secure cloud environment.
7.2.7 OTHER END USER INDUSTRIES

◼ Other end-user industries, such as Metal, Mining, paper and pulp, have scope for gaining
considerable share in the studied market, over the forecast period.
◼ The metal and mining industry is witnessing significant demand in the region. For instance, in
January 2020, ABB today introduced the ABB Ability Advanced Process Control solution to the Revenue in USD billion, Other End User Industries 2019-2026
metals industry and accurate process behaviors to achieve greater process stability, resulting in
improved product quality, output, and cost savings. The solution employs simple design and 9.84
9.15
deployment of predictive model control (MPC) and analytics to enable a high level of 8.49
7.26 7.86
automation and optimization. 6.17 6.70
5.88
◼ Several Industry 4.0 initiatives are witnessing in the region. For instance, in May 2021,
Hexagon and Plex Systems partnered to provide smart manufacturing solutions. The
collaboration will provide manufacturers with a path to automation and Industry 4.0 adoption.
◼ Additionally, Hexagon customers will be able to enhance their workflows by streaming quality
measurements, engineering data, and other manufacturing information into Plex's MES, making
2019 2020 2021 2022 2023 2024 2025 2026
a new record system in real-time by using Plex's extensive Manufacturing Execution System
(MES) with integrated quality control.
◼ Moreover, in June 2020, ABB launched the Advanced Process Control (APC) to provide ◼ Further, in June 2021, Alstom has chosen Accenture and Dassault
complete digital control over wet end operations, maximizing productivity and profit for paper Systemes to create a new cloud platform for product lifecycle
mills. The Wet End Control, an ABB Ability APC solution for paper mills, stabilizes and reduces management (PLM) that will boost the company's competitiveness and
variability in the wet end process by controlling, monitoring, and optimizing retention growth.
performance. It predicts future wet end process behavior using a multivariable model ◼ Additionally, Alstom's new cloud PLM platform will improve
predictive control approach, making automatic adjustments to stabilize ash levels, reduce white collaboration among its design offices while better integrating and
water consistency variability, and minimize chemical and filler dosages. standardizing its engineering, manufacturing, and maintenance
processes. Accenture will develop the new cloud platform using its
◼ Further, in February 2021, Liebherr Mining Expanded the Use of its Operator Training
deep expertise in large PLM and cloud solution deployments and
Simulator. The company has signed a non-exclusive cooperation agreement with ThoroughTec Dassault Systemes' 3D experience platform. Alstom plans to roll out
Simulation. The collaboration agreement gives Liebherr's customers the freedom to select the the new platform to select sites in 2021.
solution that best meets their needs and preferences.

7.3 SEGMENTATION- BY 23.77%
COUNTRY Germany
France
7.3.1 Germany
2026 United Kingdom
7.3.2 France
Italy
7.3.3 United Kingdom
Eastern Europe
7.3.4 Italy
Rest of Western Europe
7.3.5 Eastern Europe (incl Russia, and Turkey)
7.3.6 Rest of Western Europe

7.3 SEGMENTATION- BY COUNTRY
INDUSTRIAL AUTOMATION SOFTWARE MARKET INDUSTRIAL AUTOMATION SOFTWARE MARKET

Revenue in USD billion, by Country, 2019-2026
Revenue Share (%), by Country, 2020
Countries 2019 2020 2021 2022 2023 2024 2025 2026 CAGR
13.84%
Germany 3.78 3.97 4.32 4.69 5.08 5.50 5.93 6.39 8.17%
23.40%
15.25%
France 3.22 3.36 3.62 3.90 4.20 4.51 4.83 5.16 7.32%
United Kingdom 2.78 2.93 3.18 3.45 3.75 4.05 4.38 4.71 8.19%
10.47% 19.80%
Italy 1.68 1.78 1.95 2.14 2.34 2.55 2.78 3.02 9.14%
17.24%
Eastern Europe 2.45 2.59 2.83 3.09 3.37 3.66 3.98 4.31 8.76%
Germany France
Rest of Western
2.28 2.35 2.50 2.65 2.81 2.97 3.13 3.30 5.71%
Europe
United Kingdom Italy
Total 16.20 16.97 18.40 19.93 21.55 23.25 25.03 26.89 7.88%
Eastern Europe Rest of Western Europe

7.3.1 GERMANY
■ The Internet of Things (IoT), artificial intelligence (AI), advanced analytics, cloud computing are
some of the technologies that enable to create new opportunities for industrial automation in INDUSTRIAL AUTOMATION SOFTWARE MARKET
Germany. Siemens factory at Amberg, Germany, is one of Germany’s examples that include Revenue in USD billion, Germany, 2019-2026
advanced automation in a manufacturing facility environment. Due to the inter-working of many
advanced technologies that come together to create an efficient and error-free IT ecosystem, the
capability of this factory far exceeds that of the other Siemens’ facilities because of the sheer
6.39
variables and complexities it can handle.
5.93
■ However, German manufacturing companies, particularly SMEs, have expressed a reluctance to 5.50
invest in the face of uncertain ROI and long implementation times. Because Germany’s export 5.08
model is almost entirely based on traditional manufacturing, the industry’s complacency and 4.69
reluctance to adapt to newer technologies have a significant economic impact. To overcome the 4.32
same, the government has pledged to invest EUR 3 billion in AI by 2025 in order to capitalize on 3.97
3.78
the wealth of industrial data available to make Germany a prominent player in the AI and smart
manufacturing sector.
■ The electricity grid in the country is struggling to cope with the extent of renewable and
distributed energy in the country, and many major power projects are on hold while the
government attempts to adapt the grid to the new demands being placed upon it. The measures
by the four national grid operators to boost power transmission capacity sufficiently add up to a
cost of EUR 50 billion. This is likely to escalate the usage of PLC to accumulate data and further
take successive measures, thereby fueling the market studied.
■ The country is also increasing the adoption of Industrial Robots owing to the growth of various
enterprises in the industry and increased adoption of automation, primarily due to the increasing 2019 2020 2021 2022 2023 2024 2025 2026
safety measures and labor costs. For instance, according to IFR, Germany remained the main user
in Europe with an operational stock of about 221,500 units which is about three times the stock
of Italy (74,400 units), five times the stock of France (42,000 units), and about ten times the stock
of the UK (21,700 units).
7.3.1 GERMANY
■ KUKA is one of the prominent companies that offers
tailor-made automation solutions for multiple
industries in the country.
■ In April 2021, Belden Inc. a global supplier of
specialty networking solutions, opened the
company’s first of the five planned Customer
Innovation Centers (CIC) in Stuttgart, Germany. This
center focuses on providing an ecosystem to the
customers to co-innovate with sales and product
engineers in order to test, develop, document, and
deploy proven solutions that drive efficiency,
innovation and security. The CIC model was
developed in order to address key business goals and
outcomes that encompass various areas of
customers’ operations. These include safety,
automation, quality, and productivity, all tested to
simulate challenges and stressors a network may
face.
■ Overall, the country is expected to witness steady
growth in the market owing to innovations,
partnerships across various end-users, and high
adoption of industry 4.0.

7.3.2 FRANCE
■ The French government in an attempt to help modernize the productive apparatus of SMEs across
the country, launched “Usine du future”. This is expected to enabled the modernization of INDUSTRIAL AUTOMATION SOFTWARE MARKET
production, increase in competitiveness, positioning in the face of the challenges of globalization, Revenue in USD billion, France, 2019-2026
etc.
■ Schneider Electric’s Le Vaudreuil facility in France uses a wide range of digital tools to enhance
and control operations. Their EcoStruxure technology provides a versatile yet flexible IoT-enabled
architecture and platform to connect operating technologies with the latest information 5.16
technologies. Since September 2020, Schneider Electric and Orange announced the first 4.83
deployment of indoor 5G in the industrial sector on experimental frequencies as part of a trial. 4.51
Operating since March 2020, the first co-innovation project in the Le Vaudreuil factory is focused 4.20
on using 5G in a modern industrial environment to build reliable, scalable, and sustainable 3.90
3.62
connectivity solutions for smart industrial operations. 3.36
3.22
■ The European region is also involved in the transformation of industrial processes. For example,
the cooperation between the Alliance of Industry of the Future AIF in France and in the Platform
Industry 4.0 in Germany and the Piano Nazionale Industria 4.0 in Italy is suggestive of the same.
■ The cooperation normalizes the digital transformation in the production sites. Notably, in the first
half of 2020, the Industry of France Alliance highlighted 75 companies that have distinguished
themselves for their innovative project for proper organization of their production. However, the
country is still in the initial stages of adoption of smart manufacturing technologies and should
experience high growth as the manufacturing sector experiences growth.
■ Moreover, France is home to many reputable manufacturing companies that include Airbus,
Daher, Groupe Renault, naval Group, and many others. Furthermore, the presence of innovation
cluster and innovation platforms include ID 4 Car, EMC2, and other, Clarte, Proxinnov, and others. 2019 2020 2021 2022 2023 2024 2025 2026
Thus, there is a huge potential for the growth of the country’s industrial sector which increases
the need for industrial automation and software solutions to help to automate such manufacturing Source: Mordor Intelligence Analysis
factories.

7.3.3 UNITED KINGDOM

■ Even though the country is one among the world's top manufacturing economies, the
manufacturing sector is steadily increasing and developing. Rapid advances in digital and INDUSTRIAL AUTOMATION SOFTWARE MARKET
disruptive manufacturing technologies allow the country to utilize the manufacturing capabilities Revenue in USD billion, United Kingdom, 2019-2026
and reinforce the sector's importance concerning economic growth.
■ The United Kingdom ranks in the top 5 global innovation index. To build the strengths in 4.71
developing and deploying ideas to become the most innovative economy, the region expects to 4.38
raise total investments in R&D to 2.4% of the GDP by 2027. Moreover, the Fourth Industrial
4.05
Revolution is expected to disrupt nearly every industry in every country, creating new
3.75
opportunities for people, places, and businesses as it is mainly characterized by a fusion of
3.45
technologies such as artificial intelligence and advanced robotics. 3.18
■ The rapidly increasing applications of the Internet of Things and an increasing need to reduce 2.93
2.78
manufacturing costs have prompted a focus on machine-to-machine (M2M) technologies to
increase the demand for HMI solutions across the country. Further, 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.
■ Driven by the global Covid-19 pandemic, and with Brexit having an impact, there’s been a real
surge of interest in automation, and the technology is playing a decisive role in helping companies
to return to producing the same level of output as they did in the pre-Covid era.
■ In August 2020, Schneider Electric, launched a joint initiative with RS Components (RS), which is
an industrial and electronic products and solutions provider. The partnership extension witnessed
introduction of the latest Schneider Electric automation and IIoT (Industrial Internet of Things)
2019 2020 2021 2022 2023 2024 2025 2026
innovations and technical knowledge to RS, including the Modicon M262. The M262 brings
together factory control, monitoring and cloud computing, without peripheral equipment and
complex programming, securely and cost-effectively. This will lead to RS adding more than 3,000 Source: Mordor Intelligence Analysis
Schneider Electric solutions to its platform.
7.3.3 UNITED KINGDOM

■ The UK-based AVEVA, in 2021 completed its USD 5
billion acquisition of operational data platform
developer OSIsoft in a move that gives AVEVA and its
partners the capabilities to help industrial customers
accelerate their digital transformation efforts.
■ Moreover, in May 2021, industrial automation
specialist Novotek UK and Ireland, in partnership with
GE Digital, called food, beverage and consumer
packaged goods (CPG) manufacturers to bolster their
operational efficiency with modern automation
software. Novotek is offering UK companies a free trial
of the latest version of GE Digital’s iFIX HMI/SCADA
software, which gives operators real-time visibility into
equipment and processes on the plant floor with a
streamlined interface. Establishing real-time visibility
into equipment and processes with iFIX can empower
operators to quickly identify problems and decrease
unplanned downtime.
■ Such efforts to widen the scope of industrial
automation in the region along with increasing
investments is expected to help develop the marker in
United Kingdom over the forecast period.

7.3.4 ITALY
■ The government of Italy introduced Industria 4.0 (I4.0) introduced in 2020 and aims to include
strategic guidelines to be implemented in a year. The initiative is focused on transforming INDUSTRIAL AUTOMATION SOFTWARE MARKET
traditional manufacturing methods with a focus on skills and advanced technology, as well as Revenue in USD billion, Italy, 2019-2026
support the digitization of the Italian economy. It also emphasizes a future based on collaboration
with other countries—this driving factory automation in the country.
■ The Industrial Internet of Things (IIoT) has high use scope for Italian manufacturers. Using a
3.02
gateway device to collect energy consumption data and Supervisor Control and Data Acquisition
(SCADA) data, manufacturers can carry out management efficiencies to improve energy 2.78
generation and reduce energy consumption costs. Advantech provides a highly integrated solution 2.55
for factory energy monitoring management. 2.34
2.14
■ An Overall Equipment Effectiveness (OEE) Solution provided by Advantech allowed an Italian 1.95
Wine Factory to Reduce Equipment Downtime and Achieve Paperless Management in June 2020. 1.78
1.68
The OEE solution was a combination of remote monitoring software WebAccess/SCADA and
intelligent gateways.
■ In 2020, Rockwell Automation announced an agreement to acquire Italy-based ASEM, S.p.A., a
provider of digital automation technologies. ASEM provides a range of Industrial PCs (IPCs),
Human-Machine Interface (HMI) hardware and software, remote access capabilities, and secure
Industrial IoT gateway solutions. ASEM’s automation solutions enable The Connected Enterprise
with technology and a secure environment by integrating smart devices, the control platform, and
design and operational software all on a single network.
■ Around the same time, Emerson too bought the Italian industrial software developer, the Progea
2019 2020 2021 2022 2023 2024 2025 2026
Group. Progea supplies IIoT (industrial internet of things), HMI (human machine interface), plant
analytics and Scada (supervisory control and data acquisition) software.
■ Such efforts are constantly increasing the scope of diversification of solutions and expansion of
global players in Italian market.
7.3.5 EASTERN EUROPE

■ The primary countries studied under Eastern European region are Russia and Turkey.
■ In Russia, industrial manufacturing is one of the most important sector. Many Russian companies Revenue in USD billion, Eastern Europe, 2019-2026
are just starting to explore the benefits of industrial automation and learning to work with
automation technologies. However, the lack of integrators to assist in implementation is hindering
its adoption.
4.31
■ The majority of the current automation integrators in the country do not have experience with 3.98
large projects. Apart from automotive industry, metallurgy and machine building are the other key 3.66
applications for industrial automation in the nation. . 3.37
3.09
■ In Russia, GeoMineSoft and Database Systems LLP provide a range of software solutions designed 2.83
for the mining industry. In April 2021, Mining software solutions major Datamine acquired 2.59
2.45
GeoMineSoft and Database Systems LLP, which were leading firms in geology and mine
consulting serving clients in Kazakhstan and Russia.
■ Further enhancement of automation techniques in automobile, manufacturing and other industrial

sectors shall increase the investments in software development.
■ In Turkey, companies across various industries are , encouraged to define their transformation
roadmaps and start the execution as quickly as possible, as well as foster their collaboration and
engagement with world-class institutes and technology companies on their transformation
journeys. Following the same, Rockwell Automation Turkey became the fastest growing branch 2019 2020 2021 2022 2023 2024 2025 2026
among the company’s Europe, Middle East, Africa (EMEA) operations in 2020. The firm grew by
double-digit figures in EUR after completing the first nine months of the fiscal year as of June. Source: Mordor Intelligence Analysis

7.3.6 REST OF WESTERN EUROPE

■ The primary countries studied under rest of Western Europe include Spain, Sweden, Netherlands
and Ireland among others. In many Western European countries, industrial markets are leveraging INDUSTRIAL AUTOMATION SOFTWARE MARKET
5G for automation and other smart industrial applications. The use of cellular technology is rapidly Revenue in USD billion, Rest of Western Europe, 2019-2026
reshaping the industry.
■ Through research and development, these countries are advancing operations in nearly every 3.30
sector. By embracing Industry 4.0, also known as Smart Industry, manufacturing companies are 3.13
able to optimize production processes and create more efficient business models for a sustainable 2.97
2.81
future. 2.65
■ Though the Swedish industrial companies are starting to adopt and transform their operations 2.50
2.28 2.35
using digital-based systems that harness the power of data, it will create big opportunities in
connected production, automation, and sustainability.
■ Stimulus by various governments in the region also helps in enhancing the need of industrial
automation solutions. In 2020, the Spanish government announced the funding of EUR 3.7 billion
(USD 4.1 billion) aid package to shore up its automobile manufacturing industry in the wake of the
coronavirus outbreak. Such aid packages are expected to help multiple industries innovate their
manufacturing processes with the help of smarter technology solutions. This boosts the sales of
industrial robots, field control devices, and industrial control systems.
■ Other efforts to improve the usage of automation solutions include education and awareness
programs, For instance, in 2021, UiPath, an enterprise automation software company, announced
the launch of the first automation school in Ireland to educate the next generation of the
country’s workforce on automation. Limerick and Clare Education and Training Board has
2019 2020 2021 2022 2023 2024 2025 2026
partnered with the ABP School of Automation on the delivery of this training through the funding
of a pilot traineeship.
■ Such efforts boost the industrial automation software market in the European region over the
forecast period.
8. LIST OF KEY VENDORS
8. KEY VENDORS OFFERING INDUSTRIAL AUTOMATION SOFTWARE

Vendors Founded Headquarters Revenue (latest) Products
Siemens AG SIMATIC software, SCADA software,
EUR 57.13 billion (for year ended
1847 Munich, Germany software for shared tasks, SIMATIC
September 30, 2020)
Mindsphere apps, APMS
Rockwell Automation Inc. Connected enterprise,

Design Suite,
USD 6.329 billion (for year ended
1903 Milwaukee, Wisconsin, U.S. Operation suite,
September 30, 2020)
Maintenance Suite,
Innovation Suite
ABB Ltd.
USD 26.1 billion (year ended ABB Ability Software Suite,
1988 Zürich, Switzerland
December 31, 2020) Automation Builder software
Emerson
Plant web, Asset Performance Management
USD 16.8 billion(for
1890 Missouri, United States Software, Industrial Software Technology,
year ended September 30, 2020)
Field Device Software, SCADA Software
Schneider EcoStruxure Automation Expert,

EcoStruxure machine Expert,
EUR 25.2 billion (year EcoStruxure control Expert, Zelio soft,
1836 Rueil-Malmaison, France
ended December 31, 2020) SoMove, vijeo designer, EcoStruxure power
Design - Ecodial, and EcoStruxure power
build- Rapsody
Honey well
Charlotte, North Carolina, USD 32.64 billion (year
1906 Connected plant
U.S. ended December 31, 2020)

Omron Corporation
JPY 708.8 million (for year ended Ace,
1933 Kyoto, Japan
March 31, 2021) CX-One
Yokogawa Electric Corporation
1915 Tokyo, Japan JPY 374.2 billion ( for fiscal 2020) Asset Management Software, OpreX Software
Mitsubishi Electric Corporation

Chiyoda-ku, JPY 4,191.43 billion (for year MAPS (Mitsubishi Adroit Process Suite) - Life-Cycle
1921
Tokyo ended March 31, 2021) Engineering, SCADA Software
GE Digital
Asset Performance Management (APM) SoftwareData
Historian SoftwareDigital Worker softwareGeospatial
San Ramon, EUR 3.3 billion (for year Asset ManagementGrid Analytics SoftwareHMI and
2015
California, U.S. ended December 31, 2020) SCADA Software Manufacturing Execution Systems
(MES)Operations Performance Management (OPM)
Software Remote Operations Software
General Electric Asset Performance Management,

Massachusetts, USD 79.6 billion (for year ended
1892 Operations Performance Management,
United States December 31, 2020)
Manufacturing Execution Systems (MES)
MKS Instruments Massachusetts, USD 2.3 billion (for year ended

1961 United States December 31, 2020) MKS Controls Workbench Software

Andritz AG Asset Performance and
Maintenance Management,
1852 Graz, Austria EUR 6.67 billion (for fiscal 2020)
System, A-SCADA
IBM Corporation
Asset Performance Management
Armonk, New York USD 73,620 million (for the year Software, SiView, IBM Maximo
1911
ended December 31, 2020) asset Performance Management
Suite
Eaton
Dublin, Ireland
USD 17.85 billion (for Code Sys, Easy soft, Galileo,
1911 Beachwood, Ohio, U.S.
year ended December 31, 2020) Visual Designer
Advantech DAQNavi, Web Access software,

NTD 51.119
Taipei City, Taipei, CNC, SCADA ,Edge
1983 billion (for year ended December
Taiwan SRP, DeviceOn/BI,OPC sever,
31, 2020)
HMI, WISE- Edge link
Katana Manufacturing ERP
Katana Manufacturing ERP
2017 Harju, Estonia N/A
software
Dassault Systèmes
Vélizy-Villacoublay,
1981 EUR 4.5 billion DELMIAWorks MES Software
France


PTC Inc. Product Lifecycle Management
Software (Windchill PLM
1985 Boston, Massachusetts
Software, Arena PLM and QMS
solutions)
SAP SAP Manufacturing Execution,
Product Lifecycle Management
1972 Walldorf, Germany EUR 27.3 billion
(PLM) software,
Enterprise Asset Management
Aspen Technology
Asset performance management
Bedford, USD 598.7 million(for Year Ended Software (Aspen Mtell, Aspen
1981
Massachusetts, U.S June 30,2020) Fidelis, Aspen proMV and Aspen
event analytics.)
IPS Intelligent Process Solutions Pullach, Bayern, German Asset Performance Management
y with Advanced Analytics,
2004 N/A
Enterprise Asset Management
Solution
Oracle
Texas, United States USD 9.7 billion (for year ended Product Lifecycle Management
1977
August 31, 2021) (PLM)
TechnipFMC London, United Automated Well testing(AWT),

Kingdom (legal domicile) USD 13.057 billion (for year Asphalt terminal, FUEL-FACS +
2017
/Houston, United ended December 31, 2020) system, User configurable open
States, system software

Linde PLC
USD 27.2 billion (for year ended Virtual plant training
1879 Dublin, Ireland
December 31, 2020) Simulator for operator training
Hitachi
Marunouchi, Chiyoda-ku, Inveter configurator, PLC programming
JPY 813.3 billion (for year ended
1908 Tokyo , Japan Software, HMI Configurator Fieldbus
March 31, 2021)
Configurator and configuration files.
Inprocess Technology & Consulting Group,

S.L.
2006 Barcelona, Spain N/A Operator Training Simulators
Stamicarbon (Maire Tecnimont)

Stami Digital Training Simulator – High-
EUR 2.6 billion (for year ended
1947 Sittard, Netherlands Fidelity Operator Training Simulator
December 2020)
(OTS)
Lighthouse Systems Crawley, West Sussex, Shopfloor-Online Manufacturing

1990 United Kingdom N/A Execution Systems (MES) Software
Critical Manufacturing
Maia, Portugal
2009 N/A Critical Manufacturing MES


Phoenix Contact Diagnostics, configuration and

management software, engineering
Software,
1923 Blomberg, Germany EUR 2.48 billion (2019)
Planning and making software,
PLC programming software,
Visualization Software
Infor Product Lifecycle management

2002 New York, United States N/A Software - PLM for Process and PLM
Discrete, PLM for fashion
ETAP - Operation Technology, Inc.

Operator Training Simulator – eOTS,
1986 California, United States N/A Enterprise Protection & Asset
Management Software
AutoDesk USD 3.79 billion (for year ended UPchain Cloud PDM and PLM
1982
California, U.S. January 31, 2021)
Aras Corporation
Andover, Massachusetts, Aras Product Lifecycle Management
2000 N/A
United States software
Nexus Global Business Solutions, Inc. Asset Performance Management

Wake Forest, North Optimizer Suite (business, data,
1998 N/A
Carolina strategy, planning and investigation
optimizer)
DNV Gl Utility asset management and

condition-based maintenance -
1864 Greater Oslo, Norway NOK 20.9 billion 2020
Cascade
OSIsoft
San Leandro, California,
1980 N/A PI core, PI edge, PI cloud
United States
ATS Global
ATS ADOS manufacturing
1986 Harleem, Netherlands N/A
execution software
Bentley Systems USD 801.5 Million (For year Asset Management systems,
1984
Exton, Pennsylvania ended December 31,2020) AssetWise ALIM


■ Industry 4.0 revolution and digitization have significantly spurred the growth of automation solutions
among various industries by compelling the use of more intelligent and automated software solutions,
such as robotics and control systems, to improve production processes. Industrial automation solutions
and ICS (Industrial control systems) facilitate cost efficiency, quality of production, standardize
manufacturing, reliability, and flexibility in manufacturing.
■ With the increase in competition and evolving end-user requirements, manufacturing units in Europe
have been adopting newer technological innovations and digital transformation solutions to make their
business process as efficient as possible. As the demand for these automation solutions increases
significantly in the market, it has led some of the key players to focus primarily on innovating and
developing new products with innovations and technologies.
■ For instance, in December 2020, Emerson has released its ASCO 141 Series Advanced Redundant Control
System (ARCS) designed for use as a component in safety instrumented systems. It allows for the
maintenance of the solenoid valves without having to shut down the process valve. Whereas back in
October 2020, the company announced the acquisition of the Progea Group.
■ In February 2021, Advantech has set up a USD 50 million to invest in startups to accelerate the adoption
of technology for the Internet of Things (IoT), Industrial automation and Smart Cities in Europe.
Advantech has developed Solution Ready Platform (SRP) and cloud services to allow industrial automation
and factory operators to evaluate the technology quickly and easily.
■ The market has also witnessed some partnerships and collaborations by a few of its players as part of
their strategy to strengthen their presence and meet customer's requirements for various applications. For
instance, in October 2020, Schneider collaborated with Aramco on assessing emerging technologies
based on the Open-Process Automation Standard (O-PAS). The partnership will allow Aramco to enhance
its local capacity, technical knowledge, and digital readiness for Industry 4.0 operational models.
■ More recently, in October 2020, Microsoft extended its Industrial focus with an expanded Rockwell
Automation partnership for five years. This is in line with developing integrated, market-ready solutions
for industrial customers to adopt cloud technology.


■ The future of industrial automation software in Europe is expected to be categorized by networked
nanotechnologies, entirely based on wireless, cloud solutions for the management of big data and the
use of IT resources, the evolution of collaborative and mobile robotics, edge computing that moves data
processing capacity close to sources, and increasingly sophisticated analytical software. Artificial
Intelligence is expected to be a part of manufacturing and industrial automation solutions where AI
algorithms will be used to detect production anomalies, monitor plant conditions, and implement
predictive maintenance capabilities.
■ As the 5G era unfolds, digital transformation in the manufacturing industry in the region is being
accelerated, and local 5G deployment will gain further momentum. These will generate new demand for
capabilities such as remote control of robotics, high-resolution image processing and analytics, real-time
and timestamp network, and failure prediction and detection through AI. To materialize 5G technology
into industrial automation applications in Europe, technologies such as time-sensitive networking,
embedded AI, functional safety will be essential to achieve successful IIoT innovation in the era of 5G.
■ Further, the overall ecosystem in the region has improved at a rapid pace and has also become
affordable for the manufacturers to implement smart solutions and is expected to drive demand and
adoption among the supply chain partners of big manufacturers. As more and more industries look to
streamline their business model, the adoption of automation software solutions and industrial control
systems, which is technically advancing daily, is set to grow owing to the multiple benefits it offers.
■ Various companies have also started working towards creating a secure industrial control environment
with industrial automation as a core competency that enables a higher pace of growth. For example,
Rockwell Automation, Inc. acquired Oylo in October 2020 which provides a broad range of industrial
control system (ICS) cybersecurity services and solutions including assessments, turnkey
implementations, managed services and incident response.
■ In the adaptive control area, current research is being devoted to the development of more efﬁcient
approaches that also apply to multivariable systems with time delays, and networked control system, so
as to make them more useful in current industrial applications.

10. FUTURE OF THE

MARKET
■ Post Brexit, businesses in the United Kingdom were
forced to utilize workforces effectively and find
alternate methods to perform tasks, This is boosting
the rate of adoption of factory automation in the
region.
■ The UK manufacturing industry is both broad and
diverse and the UK government is investing billions
of pounds into research and design to support those
manufacturers who are advancing new technologies.
The strategy shows a commitment to connected and
autonomous research and seeks to attract the right
investment in the right areas.

FEEDBACK & AUDIT
Our research team puts in sincere efforts in making sure that the data and insights you
receive as part of this report are accurate and robust. We would really appreciate it if
you could take some time to fill out a quick feedback around this. Your inputs go a long
way in ensuring a product quality, we are proud of. Filling out this form will not take
you more than 2-3 minutes.
Link: FEEDBACK
Thank You!

FOR MORE INFORMATION,
PLEASE CONTACT
5th Floor, Rajapushpa Summit, Financial
+1 617-765-2493
District, Gachibowli, Hyderabad – 500032,
India
info@mordorintelligence.com www.mordorintelligence.com
Industry Reports | Consulting | Intelligence Centre
+1 617 765 2493 | info@mordorintelligence.com | www.mordorintelligence.com


Legal Statement

Uploaded by

Copyright:

Available Formats

You might also like

Legal Statement

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Legal Statement

Uploaded by

Copyright:

Available Formats

LEGAL STATEMENT

The Information contained within the Service is either licensed from

Except as otherwise permitted in the agreement (if any) between

EUROPE INDUSTRIAL AUTOMATION

• Impact of technological developments across various end-user industries

• Assessment of Impact of COVID-19 on the industrial automation industry in Europe

Domain: Automation Base Year: 2020 Forecast Period: 2021-2026

Industry Reports | Consulting | Intelligence Center

1.2 Study Assumptions 7. MARKET SEGMENTATION

3. EXECUTIVE SUMMARY 2019-2026 | KPI Analysis and Outlook)

4. MARKET INSIGHTS 7.1 By Type of Software

4.1 Market Overview 7.1.1 Manufacturing Execution Systems (MES)

2 REPORT – EUROPE INDUSTRIAL AUTOMATION SOFTWARE MARKET

7.3.3 United Kingdom

7.3.5 Eastern Europe (including Russia and Turkey)

7.3.6 Rest of Western Europe

8. LIST OF KEY VENDORS – INDUSTRIAL AUTOMATION SOFTWARE

10. FUTURE OF THE MARKET

3 REPORT – EUROPE INDUSTRIAL AUTOMATION SOFTWARE MARKET

1.1 STUDY ASSUMPTIONS AND MARKET DEFINITION

▪ Distribution of primary interviews conducted was based on the regional

▪ As a result of data triangulation through multiple methodologies and

4 REPORT – EUROPE INDUSTRIAL AUTOMATION SOFTWARE MARKET

1.2 SCOPE OF THE STUDY

BY SOFTWARE BY END USER BY GEOGRAPHY

◼ Advanced Process Control ◼ Water and Wastewater ◼ Italy

◼ Industrial Control Systems

5 REPORT – EUROPE INDUSTRIAL AUTOMATION SOFTWARE MARKET

6 REPORT – EUROPE INDUSTRIAL AUTOMATION SOFTWARE MARKET

STEP 1 STEP 2 STEP 3

Decipher client requirements/ market to be

Tailormade research approach for

Effective use of Mordor’s knowledge

Confirm the objectives of the assignment with

7 REPORT – EUROPE INDUSTRIAL AUTOMATION SOFTWARE MARKET

2A SECONDARY RESEARCH 2B PRIMARY RESEARCH

8 REPORT – EUROPE INDUSTRIAL AUTOMATION SOFTWARE MARKET

It is a process of combining outcomes from different sources to increase the

An econometric model is a simplified representation of a real-world process.

9 REPORT – EUROPE INDUSTRIAL AUTOMATION SOFTWARE MARKET

10 REPORT – EUROPE INDUSTRIAL AUTOMATION SOFTWARE MARKET

SOURCE: Mordor Intelligence Analysis

11 REPORT – EUROPE INDUSTRIAL AUTOMATION SOFTWARE MARKET

12 REPORT – EUROPE INDUSTRIAL AUTOMATION SOFTWARE MARKET

4.1 MARKET OVERVIEW

4.1 MARKET OVERVIEW

4.1 MARKET OVERVIEW

15 REPORT – EUROPE INDUSTRIAL AUTOMATION SOFTWARE MARKET

4.1 MARKET OVERVIEW

16 REPORT – EUROPE INDUSTRIAL AUTOMATION SOFTWARE MARKET

4.2 GLOBAL INDUSTRIAL AUTOMATION

17 REPORT – EUROPE INDUSTRIAL AUTOMATION SOFTWARE MARKET

4.2 GLOBAL INDUSTRIAL AUTOMATION SOFTWARE MARKET ANALYSIS

18 REPORT – EUROPE INDUSTRIAL AUTOMATION SOFTWARE MARKET

4.2 GLOBAL INDUSTRIAL

4.2 PORTER’S FIVE FORCES ANALYSIS

■ In the study, Porter’s five forces are analyzed

■ The quantified factors are further mapped out