GCC Automation Market to Reach $10.7 billion in 2023
The Gulf region’s automation industry is on track for double digit growth over the next five years, as recovering oil prices and government economic diversification plans boost demand for industrial and building automation technologies, according to new research.
July 2018 knowledge report by consulting firm TechSci Research said the GCC market for industrial and building automation will be worth $10.3 billion in 2023, growing at a compound annual growth rate (CAGR) of 10.7 per cent from an estimated $5.6 billion in 2017.
Global events including the Dubai Expo 2020, and mega projects such as Saudi’s NEOM city are also driving forces behind advanced control systems and processes in infrastructure development, while a sharp focus on the manufacturing sector led by Industry 4.0 means companies are searching for technologies to boost production output at a higher quality.
The whitepaper stated that the GCC’s industrial automation market growth is further aided by a predominantly young and educated population that’s more aware of automation and its applications across various sectors including manufacturing and services.
Challenges hindering development include high initial investments in new technologies, while a lack of common standards among connected devices and communication protocols also needs to be addressed.
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These challenges and potential solutions are among the many topics and issues that will be up for discussion at the inaugural SPS Automation Middle East conference and exhibition, which takes place from 18-19 September 2018 at Dubai’s Festival Arena.
TechSci’s knowledge report was issued ahead of the two-day summit, which is the region’s only dedicated automation industry event.
With digitisation driving business trends in the Middle East, organisations are increasingly adopting automation solutions in their processes. Martin Palmer, General Manager of SICK Middle East, said the UAE in particular was an early adopter of automation technologies relative to the region.
“From large logistics projects for roads, ports and airports through to the establishment of regional distribution hubs for multinational consumer goods companies, the UAE has established itself firmly on the regional industrial automation map,” said Palmer.
Palmer said SICK’s involvement at SPS Automation Middle East 2018 coincides with its wider objective to create further awareness around automation in a Middle East market that’s still evolving: “There’s a genuine interest in the region for automation to reach the same levels as in Europe, USA and Asia.
“This goes in line with quality control, and the latter is a huge driver for automation to ensure customer satisfaction and ultimate performance.”
Meanwhile, Rami Al Ashqar, Business Development Manager at Bosch Rexroth, said SPS Automation Middle East will be important to gauge the involvement of end users in regards to automation: “We want to contribute but also to learn about the market since there has not been a focused automation event in the region yet,” said Al Ashqar.
The SPS Automation Middle East Conference will feature a high-powered panel of speakers providing insights into how the policies and regulations governing automation affect the future of industries. It will also provide a detailed look at how companies are adapting new technologies to enhance production efficiency and explore areas of opportunity in the sector.
The exhibition meanwhile will provide a broad cross-section of the nuts and bolts of automated manufacturing and building infrastructure, from Drive Systems and Components, Software, IT, and Mechanical Infrastructure, to Interface Technology, Power Supplies, and Human-Machine Interface Devices.
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