In this article, we will take a detailed look at the 12 Most Automated Industries in the US, with insights into the automation industry and trends.
Industrial robots were invented 50 years ago. The learning curve of human nature is complex. Hence, it took many years to understand and implement automation in industries at massive levels for lucrative output. The US automation industry is expected to grow at a CAGR of 16.4% from 2022 to 2027. Moreover, it’s projected that AI could increase US labor productivity by 0.5 to 0.9 percentage points by 2030.
Artificial intelligence (AI)-driven automation is swiftly revolutionizing businesses across various sectors. In 2021, the automation market size was valued at $177.75 billion and is expected to reach $441.7 billion by 2023. Unlike manual workers, robots are faster, more robust, and can work tirelessly 24/7. This reflects the time freed up by automation for humans. For example, implementing AI-powered automation can seamlessly handle repetitive tasks like customer service chatbots and data entry. This, in turn, allows employees to focus on more creative and strategic work.
AI can also create new opportunities for businesses to improve productivity, efficiency, and customer service. For instance, AI can improve decision-making through machine learning techniques that dissect data and discern patterns. This proves invaluable in aiding businesses to make well-informed pricing, marketing, and product innovation choices.
Congress is planning to increase the amount of money spent on AI research and development (R&D). They want to double the funding each year until it reaches $32 billion by 2026. The Biden Administration is also suggesting a bigger budget for R&D in 2023, with a total of more than $204 billion. This is a 28% increase from what was approved in 2021. Some of this money will go towards supporting new and existing research institutes focused on artificial intelligence and automation. These institutes bring together government agencies, private companies, nonprofits, and schools to work on AI projects.
Automation is the need of every lucrative industry. Its trans-mutative power is taking industries to unprecedented success and efficiency by saving time and revolutionizing operations. By utilizing cutting-edge technologies like ML, AI, IoT, and Digital Twins, automation controls machinery to increase performance by speeding up the processes in miscellaneous industries. This decreases the need for human labor, minimizes waste, and saves material costing and electricity. In this fast-paced business world, industries are adopting automation quickly to improve safety, quality, labor cost, and productivity.
However, this has also led to the narrative that AI will result in job loss for humans. But contrary to this popular opinion, industrial automation is expected to create more jobs in the future. Data shows that by 2030, the manufacturing industry will have 2.1 million unfilled jobs. The USA is forecasted to face a shortage of 400,000 welders by 2024. It shows that AI is not a threat to human jobs, rather it’s a data-driven approach to improving production and a technological way to fill the job and skills gap.
For humans, having problem-solving skills without motivation is not enough to cater to the challenges of the fast-paced digital world. This problem can be resolved using AI. For instance, robots don’t need any motivation to utilize their problem-solving skills for any challenge. They are programmed to solve the problem, regardless of its level of complexity.
A Look into the Automation Industry
Automation companies are gaining a lot of attention from investors in the automation companies’ stock market, thanks to the huge effects of automation on different industries. Companies like Rockwell Automation (NYSE:ROK) and ABB Group (SWX:ABBN) have stood out as top automation companies in the USA. Such companies provide various automation solutions for industrial and commercial customers, including control systems, software, and industrial automation products.
Rockwell Automation (NYS:ROK) demonstrated great performance over the past year, with its stock price increasing by approximately 25%. The company is also committed to sustainability and is working to develop automation solutions that reduce the environmental impact of manufacturing. The global automation market is expected to grow by 6% annually through 2025, and Rockwell Automation (NYSE:ROK) is well-positioned to capture a share of this growth.
Similarly, ABB Group (SWX:ABBN), a global leader in robotics, automation, and electrification, displayed a stock price growth of around 18% over the past year. This reflects the inherent potential within the automation sector and the growing investor confidence in companies spearheading technological advancements. Being a Swiss multinational corporation, ABB (SWX:ABBN) stock has risen by over 15% in the past year and is currently trading at $28 per share. As automation continues to reshape industries, monitoring these key players’ stock performance remains paramount to stakeholders seeking to capitalize on this evolving landscape.
Industries are embracing automation as a strategic tool to gain a competitive edge, fuel economic growth, and lead global innovation. From manufacturing to healthcare, logistics to finance, automation has reshaped industries, enabling them to stay competitive in the fast-paced digital era. These industries have embraced automation to propel themselves to the forefront of global innovation.
Photo by Arno Senoner on Unsplash
Methodology
We used four key metrics to rank the most automated industries in the US: Robot Density, Industrial Robot Installations, Automation Investment, and Process Cycle Time.
We have collected the latest Robot Density and Automation Investment data from IFR to ensure that our rankings are current and valid. The data for industrial robot installations has been taken from the RIA and Robotics Business Review. To ensure that our rankings are latest and up to the minute, the data is collected for 2021 and 2022. We collected data for the automated industries globally and then ranked them specifically for the USA, acknowledging its eminent stature as a global frontrunner.
We started by scoring industries on each index from 1 to 12 (12 being highly automated and 1 being the least automated in our study). We then calculated the weighted averages for defined metrics to bring clarity and accuracy to our ranking. The metrics have been assigned weights as below:
- Robot Density: 0.3
- Industrial Robot Installations: 0.3
- Automation Investment: 0.3
- Process Cycle Time: 0.1
After calculating weighted averages, a scoring system was used to rank the most automated industries in the US on a scale of 12 (least automated on our list) to 1 (most automated on our list).
Let’s take a look at the 12 most automated industries in the US.
Most Automated Industries in the US
12. Oil and Gas Refining Industry
The global oil and gas refining automation market is expected to reach $4.74 billion by 2025. Automation in the Oil and Gas Refining Industry plays a crucial role at various stages of production and delivery. The safety of human labor is of paramount concern during the operations, controlling, and cleaning processes. Routine risks can be minimized by automating tasks like cleaning tanks, handling toxic chemicals, checking and balancing over-pressure, flow, and maintenance.
By leveraging automation in the refining industry, benefits like optimizing operations, more productivity, and safer and more sustainable working environments can be enjoyed.
11. Waste Management and Recycling Industry
Automation is significant in streamlining the waste collection and sorting phases. Automated machinery with sensors and robotic arms can quickly collect waste material. The programmed optical scanners and machine learning (ML) algorithms enhance efficiency by quickly sorting the material from mixed waste streams and reducing the process cycle time.
Automated technologies can also detect the level of waste in bins and dumpsters. This will decrease manual exertions, hence minimizing the risk of injuries. IoT devices are used to monitor the waste material volume and other parameters. This helps waste management companies collect and analyze the data, identify patterns and trends, and optimize recycling efforts.
10. Food and Beverages Industry
By ensuring the minimum possible error in packaging and labeling, automation plays a significant role in the food and beverages industry. It helps with accurate and proportionate sealing, portioning, and labeling. Real-time inspections can be done using sensors and cameras to detect foreign objects, defects, and inconsistencies within the packed material.
The industry-specific tasks like weighing and mixing ingredients, frying, baking, and cooking can be performed uniformly using robotic arms and conveyor belts. In the inventory management phase, automated systems can help track orders, stock levels, and expiration date monitoring. Automation also plays a vital role in picking, packing, shipping, and delivering orders. This improves efficiency, reduces processing time, and increases customer satisfaction.
9. Aerospace Industry
In the aerospace industry, tasks like material placement, aircraft component fabrication, and assembly line operations can be performed using automated systems. This reduces errors, ensures consistency, and reduces the processing time. The advanced sensors and NDT (Non-Destructive Testing) technologies can efficiently and thoroughly inspect engines, aircraft components, and structures.
A significant contribution of automation systems in the aerospace industry is performing inspections in difficult-to-reach areas using robotic crawlers and drones. Automation’s significant advantages are autopilots and flight management systems with precise navigation and control. Advanced ML algorithms and analytics can reduce the processing time and errors in data collection from aircraft sensors, flight operations, and record maintenance.
8. Warehousing Industry
The global warehouse automation market is expected to reach $41 billion by 2027. In the warehouse industry, the tasks like order picking, sorting, and delivering can be performed speedily with accuracy using the automation technologies like AGVs (Automated Guided Vehicles), robot pickers, and conveyor belts. This results in reduced process time, decreasing the need for manual labor and removing the maximum errors, ultimately leading to enhanced operational efficiency.
Automation technologies can handle other significant tasks in this industry, including tracking inventory, monitoring stock movements, and providing accurate list data. This offers benefits like efficient demand planning, reducing carrying time and cost, and avoiding overstocking or stock-outs. Automated machinery and robots can carry heavy loads and hazardous substances and lower workplace injuries and risks associated with manual labor.
7. Food Processing Industry
The global food automation market is expected to hit $15.1 billion by 2030. The tasks like sorting, cutting, mixing, slicing, and packaging can be done quickly and precisely using automation technologies. This will reduce the need for manual labor, minimize errors, and increase the overall efficiency of the industry.
By minimizing the chances of error, automation systems can also control and monitor the critical parameters of food processing, like pressure, temperature, time, and consistency of the final product, while adhering to food safety regulations. A large number of orders can be processed in less time. Automation can handle large volumes of ingredients for grand finished products to meet the increasing demand in the market. At first, the cost of incorporating automation systems in the food processing industry seems high, but in the long term, it is a cost-saving technique for the long term.
6. Steel and Metal Industry
Automated technologies like CNC machinery, robotic arms, and other automated equipment perform the task quickly, consistently, and precisely. These technologies can carry heavy loads, do processing in high temperatures, and function with hazardous material without any risks. Advanced automated technologies can operate the phases of all processes with advanced safety features, like emergency stops, sensors, and interlocking systems. This leads to a safer working environment for the workers.
The critical factors of the steel and metal industry, like pressure, temperature, material dimensions, material installations, and cutting, can be efficiently operated using automated technologies. Moreover, changeovers at a fast speed and reduced downtime are significant advantages of using automation in the steel and metal industry. Automation technologies can be programmed to follow strict safety standards, leading to long-term safety goals and cost savings.
5. Health Care Industry
Care for patients is simplified with medical automation. Doctors may use automated devices to help with patient monitoring, medicine administration, and data collection. This contributes to better patient outcomes, faster completion of activities, and higher quality healthcare overall. Healthcare practitioners can also simplify administrative chores, paperwork, and data exchange with the help of electronic medical record (EMR) systems. As a result, we may expect less paperwork, fewer manual errors, and more productivity. It frees doctors’ and nurses’ attention to provide it to their patients.
Moreover, medication mistakes may be reduced via barcode scanning and automated dispensing devices. Automated warnings and reminders significantly improve healthcare providers’ ability to detect and respond to potentially dangerous events like allergies and medication interactions. Hence, proceeding towards the best healthcare system all over the world.
4. Packaging Industry
Automated packaging systems can help fill, seal, label, and even palletize products. Automation in the packaging industry can lessen the workload, reduce errors, and boost productivity. It also aids the packaging industry in streamlining procedures, cutting down on labor time, and increasing efficiency.
Adjusting automated packaging systems to meet changing production demands saves both time and materials. Improved productivity results in more production in less time, boosting customer satisfaction. With this increased use of automation in the packaging industry, the global packaging automation market is expected to reach $145.93 billion by 2032.
3. Automotive Industry
The global manufacturing automation market is expected to reach $179.3 billion by 2025. The use of automation is crucial to improving safety in the automotive industry. Dangerous substances, massive machinery, and high-temperature procedures are all within the capabilities of automated systems. This enhances the security of manual labor.
Automated assembly lines and robots can also do tasks quickly, which reduces the need for manual labor, minimizes errors, and boosts output speed. Force, pressure, and the measurements’ precision are critical aspects that automated systems may monitor and control to guarantee quality. This improves product quality, reduces customer complaints, and decreases the need for rework. Automation also facilitates precise quality checks and inspections, decreasing the likelihood of defective components or vehicles.
2. Electronics Industry
The global electronics automation market is expected to reach $26.2 billion by 2028. Soldering, component placement, and circuit board assembly are just some of the operations that automated systems may perform accurately and consistently. This aids in lowering variation and improving the product’s quality and reliability.
Automated devices may finish work far more rapidly than human labor, increasing output. This paves the way for the electronics industry to meet demanding production schedules, reduce job completion times, and respond quickly to customer demands. Electronic components and systems may be thoroughly tested using automated testing equipment, including automated optical inspection (AOI) systems and automated functional testers. This helps discover defects, ensuring the product’s reliability and decreasing the likelihood of selling faulty goods.
1. Manufacturing Industry
The global manufacturing automation market is expected to reach $395.09 billion by 2029. The reliability of high-quality production depends on automation technology, which plays a critical role in the manufacturing industrial sector. Temperature, pressure, and dimensional correctness are just a few variables that automated systems may monitor and control. This aids in maintaining high-quality requirements. Improved product quality and customer satisfaction are the outcomes of this procedure, helping reduce variations, defects, and extra effort.
Quality checks and tests may be more precise with automation, reducing the likelihood that faulty items will make it to market. Because automated systems can be easily programmed and adjusted to meet varying demands in production, they facilitate smoother transitions and shorter lulls in action. Nimble manufacturing firms are better equipped to respond quickly to changes in the market, roll out new product iterations, and handle customer requests for customization.
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Disclosure. None. The 12 Most Automated Industries in the US is originally published on Insider Monkey.
