No matter which scenario we go to, we can be prepared, and the next period of time will be a good time for us to layout. So McKinsey has come up with some potential action plans for industrial automation companies beyond 2023:

A portfolio strategy for double automation: The objective is to assess the impact of potential automation scenarios on the business, including acquisition opportunities.
Create a new automation business: Companies can divide certain divisions into intrapreneurship-creating independent automation businesses similar to startups.
Advancing Business strategy: Redefine business strategy by changing channels or models.
Develop new revenue streams: Create new products, such as building around predictive maintenance, or shift existing products to a new model of X-as-a-service.
Roll out AI technologies: Companies should seriously consider introducing AI technologies, including generative AI, to develop new products based on technologies such as digital twins and low-code robotics.
For end users, McKinsey also offers specific recommendations worth adopting after 2023:

Start automated diagnostics: The factory can see those unknown automation opportunities through diagnostics.
Carry out end-to-end automation transformation: Start from the key links and gradually extend to the end-to-end transformation.
Start the work transformation: Many of today’s management theories and working methods were developed in the industrial age and are not suitable for the digital age, and recruitment, upskilling and training will be important for years to come.
Bold assumptions, careful verification, and “ensuring success” seem to be the premise for many people to make decisions, but there is no certainty in the world, and accepting uncertainty is our common cultivation. The harsh reality is that the more people pursue “absolute success,” the easier it is to fall into the trap of decision-making.

While no one can be sure how industrial automation will evolve in the future, we can all prepare for tomorrow. From the perspective of success or failure, the winner only needs to gain a comparative advantage in the local area to gain the lead.

Beyond efficiency and cost, the new dimension of industrial automation

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IS200STCIH6AED

In the report, McKinsey calculates the current development status of industrial automation, and by 2025, the overall size of the market will reach $115 billion, which is divided into three segments: classic automation – process industry, classic automation – discrete industry, Industrial Internet of Things and cloud services.

Classic Automation – Process Industries: The process industry has by far the most spending on traditional automation equipment, and the control systems are typically the largest in scale and the purchase duration is longer. According to McKinsey’s forecast, total spending on process industries will reach about $76 billion by 2025, representing a compound annual growth rate of 2.8%. Oil and gas is the largest buyer of automation in process industries, slightly ahead of the chemical industry, but is growing at the slowest rate.
Classic automation – Discrete industries: Discrete industries produce to order, workshops are usually distributed in different regions, and automation spending in this area is relatively low in scale, but it is growing faster, with a CAGR of about 3.9%. There are significant differences between industries in discrete manufacturing, with the semiconductor and electrical and electronics industries seeing the fastest growth in automation spending.
Industrial Internet of Things and Cloud Services: This segment includes Industrial Internet of Things and cloud services solutions for process and discrete industries, which is still in its infancy but is growing the fastest, with a CAGR of about 18% and a relative concentration of vendors.
Speaking of change and constant, one number that has grown eightfold since 2019 is the percentage of end users who now prefer external partners to deploy standardized industrial iot platforms.