Tim has over 20 years’ experience in technology market intelligence with expertise across a broad range of industrial automation technologies and industries. Tim is now Senior Research Director and Principal Analyst for the Interact Analysis Industrial Technology team, using his considerable experience to develop best-in-class research for the manufacturing sector.
Alongside the SPS IPC Drives Italia tradeshow (being held in Parma, Italy, 28th to 30th May), we decided to showcase our ability to provide detailed country-level insight for manufacturing, machinery and automation component markets using Italy as an example. Unfortunately, despite the country having experienced reasonable growth over the last 5 years, the outlook for 2019 is less positive.
The value of Italy’s manufacturing output accounted for nearly 12% of total European production in 2018, making it a highly important manufacturing economy within the region. However, its importance is even greater when considering its machinery production output, which represented nearly 17% of European production in 2018, second only to Germany.
Italy’s machinery production output has grown more than twice as fast Germany’s since 2014 – experiencing a CAGR of 4.7% from 2014 to 2018, compared to Germany’s 2.2%. However, this may be somewhat of a rebound (or correction) in the market following significant declines in 2012 (-12.7%), and to a lesser extent in 2013 (-6.6%). For 2019, our forecast model for Italy’s machinery production projects a small decline of -2.6%, this time comparable in magnitude to that projected for Germany in 2019 of -2.0%. For the period 2019 to 2023, we project Italian machinery production output will grow with a CAGR of 1.6% to reach a value of $102 billion in 2023. Germany’s value is forecast to be worth roughly double at $204 billion in 2023.
Demand for Automation Equipment from Italy’s Machinery Markets
Machinery markets account for the largest share of automation equipment demand – and in Italy we estimate they represented nearly 80% of the PLC market and over 70% of the low voltage AC drive market, both of which are higher than average ratios compared to Europe in general.
The figure below shows the machinery portion of the Italian PLC and low voltage AC motor drive markets broken out into its main machinery segments.
Packaging machinery, food & beverage machinery and material handling equipment were three of the largest machinery sectors in 2018 for both PLCs and LV AC drives. All were forecast small negative declines in Italy in 2019 as a result of the broader slowdown forecast for the manufacturing economy (see more details here); however, all were also forecast a reasonable recovery in 2020, more than compensating for any revenues lost in the previous year – see details in Figure 3.
We will have a number of our analysts attending SPS IPC Drives Italia who are looking forward to learning how the 2019 outlook for machinery and key automation markets in Italy will affect the mood of the show. If you’d like to schedule a meeting to learn more about this topic, or our market intelligence capabilities more broadly, please contact us here.
“Manufacturing Industry Output (MIO) Tracker” – a service designed to keep our clients abreast of important developments in the manufacturing sector globally. Click here for more information.
“Industrial Controls & Remote I/O” – a report considering the PLC, DCS and remote I/O markets, representing a milestone for market intelligence in this space. Click here for more information.
“Low Voltage AC Motor Drives” – a report providing a unique approach to segmenting the market, considering the physical form factor of the drive. Click here for more information.