Automation holds a key role in ensuring that industries are capable of meeting a certain production level in these times and also support the gradual recovery after the epidemic is controlled to a larger extent. Prior to coronavirus outbreak, industrial automation activity was slow due to a flat capital expenditure and a decline in industrial activity, globally. The COVID-19 situation has further burst open the bubble that factory automation was widespread and had substituted human workers at scale. Implementation of technologies such as blockchain in inventory management and logistics or AI equipped assembly line in factories, have either been insufficiently developed or the implementation scale has been partial.
- We, at Meticulous Research® estimate that the overall impact of this crisis on the automation industry will result in a 7-8% dip in the market in 2020. Discrete automation is the most affected sub-segment, as the global discrete industry (primarily automotive and electronics industries) had been facing adverse conditions before the outbreak started. The demand of automation from these industries would remain low even after the outbreak is controlled and the resumption of industrial production.