Analysis of Food Automation Market :Business Opportunities, Current Trends and Market Challenges 2025

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The food automation simplifies the food packaging process which includes food sorting, packing and managing processes. The food automation acts as an effective solution for enterprises requiring efficient solution for overcoming various challenges such as enhancing productivity, improving yield, optimizing resource management, mitigating security risks, and improving asset management.

The adoption of food industry automation is imperative owing to rising demand for productivity, quality and profitability. Paradigm shift in consumer preferences towards ready-to-eat and packaged food is expected to drive the food automation industry over the forecast period. The current trend of automation deployment focuses on the processes which reduces the waste and energy consumption, maintaining margins, reducing costs and ensuring product safety. Technological advancements in the automation industry and the stringent food safety regulations regarding the food hygiene while processing is expected to cater the food automation market from 2017 to 2025.

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However, high initial investments associated with automation of the equipment and its adoption is expected to restrain the food automation market growth. Many small and medium (SMEs) organizations often experience shortages of sufficient capital required for installing automated equipment in their workshops.

The food automation market can be segmented on the basis of products into motors & generators, discrete controllers & visualization, motor controls, linear products and rotary products. The discrete controllers and visualization segment is expected to be the major growing segment owing to its comprehensive nature of offering integrated and flexible production options to the manufacturers. By application, the industry can be segmented into bakery, dairy, confectionery; meat, poultry, and seafood; fruit & vegetable, and beverages. The food automation industry by function is classified into processing, packaging & repacking, palletizing, sorting & grading, and picking & placing.

Europe is expected to be most lucrative segment in the field of food automation owing to increasing demand for processed and beverage products, especially in Germany, France, UK and Italy. Moreover, stringent regulations proposed by the regulating bodies pertaining to the hygiene and quality of the processed items is anticipated to support the demand for food automation in the European industry.

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North America is forecasted to witness increasing demand for food automation attributed majorly by the U.S. The food automation machinery used in this region is expected to follow the stringent regulations carried out by the U.S. Department of Agriculture and Food and Drug Administration (FDA) owing to the product integrity and safety of the consumers.

Asia Pacific region is expected to grow with the quickest CAGR owing to the rapidly growing beverage and food demand in this region. This growth is attributed by the improvement in the living standards amongst the population categorized by the liberalization of FDI, rising disposable income and diversification of the diet. Moreover, increasing number of manufacturers operating in the F&B industry is expected to fuel the food automation market over the forecast timeframe. Government in emerging economies such as India and China are also focused towards supporting the industry growth. For instance, Indian government has invested US$ 1.2 Billion in the dairy processing industry according to the union budget 2017-2018. According to the Confederation of Indian Industry (CII), the food processing industry is expected to attract US$ 33 Billion in the following decade in India.

The food automation industry is characterized by the intense competition faced by the manufacturers. Joint ventures and partnerships, mergers and acquisitions and technological advancements in the automation equipment are the key strategies adopted by the competitors in order to retain the market share. Key industry participants in this industry are Rockwell Automation Inc., ABB Ltd., Siemens AG, Yokogawa Electric Corporation, Schneider Electric SE, Fortive Corporation, GEA Group, Rexnord Corporation, Yaskawa Electric Corporation, and Emerson Electric Co.

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