Market Size and Overview:

The Modular Automation Systems Market recorded a valuation of USD 3.7 billion in 2023 and is anticipated to achieve a market size of USD 5.80 billion by 2030. It is forecasted to exhibit a Compound Annual Growth Rate (CAGR) of 6.64% during the projection period spanning from 2024 to 2030. Modular Automation stands as a fundamental component in the realms of industrial IoT and Industry 4.0. The transition from monolithic automation setups encompassing entire production facilities towards modular-enabled solutions underscores a move towards enhanced flexibility and service-oriented plug-and-produce automation. This transition is poised to expedite process implementation, bolster scalability by facilitating adjustments in production volume, and augment the agility and efficiency in managing product alterations. Particularly, Modular Automation emerges as an apt solution for process industries grappling with evolving market dynamics, such as heightened demand for personalized products, compressed delivery timelines, and diminishing batch sizes, often down to batch size 1.

Key Market Insights:

• Automation within laboratory settings has revolutionized the landscape of medical laboratories by progressively supplanting semi-automated and manual methodologies with fully automated systems. These automated systems prove invaluable in maintaining sterile environments, substantially mitigating human error, and optimizing time utilization. Conventional laboratory procedures like testing and screening are seamlessly automated, thereby enhancing productivity and throughput via real-time processing of concurrent requests.

• In recent times, molecular diagnostic assays have increasingly relied on real-time PCR technology, which involves the concurrent amplification of DNA while monitoring progress through fluorescent signals. A significant proportion, exceeding 75%, of clinical molecular diagnostic tests are reliant on real-time PCR methodologies. This technological innovation has catalyzed a burgeoning market in molecular biology, delivering rapid assays for improved disease diagnosis and personalized treatment protocols for complex ailments.

• According to data from the Robotic Industries Association, the life sciences sector has emerged as the third-highest adopter of industrial robots, particularly in deploying automated liquid handlers, plate handlers, robotic arms, among other automated solutions, to meet evolving demands.

Global Modular Automation Systems Market Drivers:

• Escalating demand for automation across diverse industries serves as a catalyst propelling

The Modular Automation Market, fueled by the quest for operational efficiency, flexibility, and adaptability across sectors like manufacturing, logistics, healthcare, and agriculture. Modular automation systems present a scalable solution, enabling swift reconfiguration of robotic modules to accommodate evolving production exigencies as organizations pivot towards more agile and responsive automation solutions. The ongoing transition towards Industry 4.0, characterized by the integration of smart and networked technologies, significantly influences market growth. Modular robotic systems seamlessly align with the ethos of Industry 4.0, offering intelligent, data-driven automation seamlessly integrable with existing operations. The ability of modular automation solutions to execute multiple tasks on a singular robotic platform renders them particularly appealing to enterprises seeking versatile and cost-effective automation alternatives. Additionally, as technological advancements continue, modular automation systems evolve to encompass enhanced sensing capabilities, mobility, and AI integration, further solidifying their position as indispensable enablers for companies striving to maintain competitiveness in an increasingly automated and digitized landscape. The modular automation market is poised for steady growth as businesses worldwide recognize the imperative of adaptive and intelligent automation in optimizing their operations.

Global Modular Automation Systems Market Restraints and Challenges:

• The sluggish adoption of automation by diagnostic laboratories and other entities stems primarily from budget constraints encountered, particularly by small and medium-sized laboratories. These entities may perceive the integration of lab automation as advantageous, yet are impeded by factors such as high maintenance costs and service charges associated with laboratory informatics solutions, inhibiting widespread adoption. Budgetary limitations, coupled with risk aversion and a paucity of evidence showcasing the cost-effectiveness of automation solutions for small and medium-sized laboratories, impede market growth.

• The proliferation of refurbished lab automation equipment poses a significant challenge to market growth. Companies such as DRE Medical, Inc. and Future Health Concepts offer refurbished lab automation solutions, catering to end-users gravitating towards cost-effective alternatives amid dwindling healthcare expenditures in major markets worldwide. In price-sensitive markets like developing nations, refurbished systems gain traction owing to their cost efficiency. Consequently, the demand for refurbished lab automation equipment is anticipated to surge in the foreseeable future, impacting the revenue streams of companies offering branded lab automation solutions.

Global Modular Automation Systems Market Opportunities:

• The modular robotics market presents substantial opportunities, particularly in the manufacturing and logistics sectors, amid the growing imperative for enhanced adaptability. Modular robotic systems offer unparalleled agility, enabling rapid adaptation to fluctuating production demands, thus minimizing downtime and elevating overall efficiency. This adaptability proves particularly beneficial for companies navigating short product life cycles and frequent alterations in manufacturing setups to align with market demands. Moreover, the burgeoning e-commerce landscape and the concomitant need for efficient and scalable warehouse operations underscore the significance of automation solutions in the logistics sector. Modular robots offer a versatile solution, adaptable to various tasks such as sorting, packing, and transportation, thereby enhancing order fulfillment speed and accuracy while streamlining operations. Furthermore, the integration of modular robots into smart production and logistics systems, congruent with the tenets of Industry 4.0, presents an appealing proposition, fostering a more interconnected and responsive operational milieu through synergies with technologies like the Internet of Things (IoT) and data analytics.

Global Modular Automation Systems Market Segmentation:

By Type:

• Distributed Control System (DCS)
• Module Type Packages

The Distributed Control System (DCS) consists of control elements distributed throughout a plant or factory, including computers, sensors, and controllers. Each element serves a specific purpose, such as data collection, storage, or process control. Unlike centralized control systems, which operate on all devices, a DCS allows each segment of a machine to have its dedicated controller. This facilitates efficient operation, with various local controllers throughout the factory connected via a high-speed communication network. While each controller operates independently, there is central supervisory control managed by an operator. Modular process plants utilize pre-automated modular units that can be easily added, arranged, and adjusted according to production requirements. This is made possible through Module Type Packages (MTP), a standardized technique that enables interoperability between modules and the orchestration system within the MTP framework.

By Application:

• Medical
• Cosmetics
• FMCG
• Energy
• Others

The Medical segment is the leading application segment in the Modular Automation Systems market during the forecast period. Automation in the medical field facilitates the transport and tracking of patient samples, resulting in accurate results in a shorter time frame. This contributes to preventive care through rapid disease identification, increased productivity, improved patient safety, and reduced healthcare costs. Automation software enables hospitals to efficiently track patient data and maintain a patient registry system for quick and easy data recall.

By Region:

• North America
• Asia-Pacific
• Europe
• South America
• Middle East and Africa

North America, including the US and Canada, holds the largest share of the global market. The healthcare industry in North America is well-established in automation, driven by the demand for speed, consistency, and accuracy. Biotechnology and pharmaceutical companies have adopted laboratory automation to reduce manual labor and save time. The North American market is further propelled by the integration of laboratory systems, government funding for research, and development in biobanks, the need for early drug discovery, and stringent regulatory requirements.

COVID-19 Impact Analysis on the Global Modular Automation Systems Market:

The COVID-19 pandemic has exerted significant pressure on all industries, necessitating increased capacity and testing while managing staff shortages and ensuring safe working environments. Industries that have embraced process automation have been more successful in mitigating disruption and even thriving amidst challenging conditions. The flexibility offered by automated systems has allowed forward-thinking industries to quickly regain near-full productivity while adhering to social distancing regulations. As restrictions ease and operations return to normal, these industries are well-positioned to leverage their automated processes to further enhance their capabilities. The pandemic has compelled diagnostic laboratories to enhance testing capabilities, placing strain on both physical infrastructure and data management systems. However, the rapid adoption of high-throughput testing capabilities without scaling digital procedures may limit the efficiencies of automation and impact result integrity, potentially affecting disease spread control and public confidence in testing measures.

Latest Trends:

• Improvement of healthcare infrastructure in emerging economies: Increased R&D activities and investments, both public and private, are driving improvements in healthcare infrastructure in emerging markets. This presents growth opportunities for manufacturers of modular automation products during the forecast period.

Key Players:

1. ABB
2. Festo
3. Ginolis
4. HIMA
5. Sojka Automation
6. Modular Automation GmbH
7. Yokogawa
8. Inniti
9. Inovatech Automation

Recent Developments:

• In January 2023, Agilent Technologies acquired Avida Biomed, a startup specializing in high-performance target-enrichment techniques for clinical researchers using next-generation sequencing methods for cancer research.

• In November 2022, F. Hoffmann-La Roche Ltd. partnered with PathAI to develop artificial intelligence-based digital pathology applications aimed at enhancing patient care.
• In November 2022, PerkinElmer launched ready-to-use adeno-associated virus vector (AAV) detection kits to support researchers in studying gene therapies.