India aims to become a preferred manufacturing hub and be globally competitive. However, it is critical for the industries to be digitally transformed and be future-ready to manage the fast changing business and technology landscape. The Industrial Automation Industry in India projected to grow at a CAGR of 10-12% during 2015-2020, is expected to touch $3.49 billion by 2020.
The Make in India initiative plans to make India equally attractive for domestic and foreign players and give global recognition to the Indian economy. By the end of 2020, it is expected that the Indian manufacturing sector touch $1 trillion and generate 90 million jobs. One of the major factors driving the growth of the Industrial Automation Industry is factory automation on account of the rising efforts to make manufacturing processes more efficient and reduce defect rates. The factory automation market in India has been the fastest emerging segment in the Industrial Automation Industry in India with a CAGR of 12% during 2015 and 2020. Automation systems with innovative features are being set up in all the major industries like automotive, chemicals and mining. Some of the major players in the factory automation market in India are foreign manufacturers namely Siemens, Rockwell Automation, Schneider Electric and ABB Ltd.
Industry 4.0 is the next step in bringing together conventional and modern technologies in manufacturing. It is foreseen as the process of creating smart factories which consist of machines that are digitally connected, can learn from the large amount of data generated and make autonomous decisions. The adoption of Industry 4.0 technologies and Industrial Internet of Things (IIoT) becomes imperative to increase competitiveness and build efficient value chains. This is essential to achieve the ambitious target of making India a global hub for manufacturing, design and innovation, and augmenting the share of manufacturing in the GDP from the currently 17% to 25% by 2022.
The Asia-Pacific region held the largest share of the 3D machine vision market in 2016, and is expected to grow fast at a CAGR of 11.07% between 2017 and 2022 to reach $2.13 billion by 2022. The growth of this market is mainly driven by factors such as increasing demand for 3D object analysis in manufacturing applications and rising demand for non-industrial 3D machine vision systems. The increasing adoption of automation across all industries is the major reason for the growth of the 3D machine vision market in India.
India’s leading private sector lenders have started to use software robotics and artificial intelligence (Al) to improve their performance level and stand out as technology and services offered to customers is becoming more standardized. HDFC Bank is using artificial intelligence to improve aspects like customer service and process automation. It is also looking at using these systems to drive growth in rural areas, for which it is open to collaborate with technology companies working in these fields. ICICI Bank has been using AI to perform banking operations such as generating customer IDs, updating addresses and mobile numbers, and resolving automated teller machine-related queries. Currently, more than 500 back-end processes of the ICICI Bank use robotic software, relieving a number of employees for duties requiring human intervention. The bank expects about 1,000 such processes to be shifted to robotic software over the next 12 months, leading to about 40% of its current processes becoming fully automated. Axis Bank and YES Bank have also started using innovative technologies for process automation.
The German technology major, Bosch Rexroth, has funded India’s first Centre of Excellence in Industry 4.0 Automation Technology opened at the Gujarat Technology University (GTU) in Ahmedabad. The Centre of Excellence will be open for engineering students in the state and industry for R&D in automation and hydraulics. The primary goal is to develop the technical competence, employability and entrepreneurships of the participating students. With the financial support from Bosch Rexroth, GTU set up laboratories at the Centre – Pneumatic Lab, Hydraulic Lab, PLC Lab, Robotic & Mechatronics Lab and Sensor Lab.
Automation is becoming an important part of all Indian industrial sectors on account of the rising efforts to make manufacturing processes more efficient, achieve zero defects and meet global quality standards. Factory Automation has already been a huge success and will further boost the Indian market. Factors like innovation in Information technology, rise in demand of goods and an increasing disposable income will drive the Industrial Automation growth.
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