Industrial automation is approaching a tipping point that will transform both factory floors and the fortunes of the industry’s major players.
The sector has evolved gradually over the past few decades, with sensors and robotic technology reducing the number of people required on production lines. But the pace is now picking up, and dramatic changes are expected to the way in which manufacturing plants will operate by the end of the decade, according to a report from consultancy McKinsey & Co.
This digitalisation drive is also transforming the fortunes of industrial automation giants such as Siemens (DE:SIE) and Honeywell International (US:HON), making them more profitable and less vulnerable to market cycles, according to ratings agency Moody’s.