After sputtering for the last two years, the global market for industrial automation equipment (IAE) is poised for stronger growth in 2014, aided by strengthening economies as well as technological innovations that will boost demand, according to a new report from IHS Technology.

Worldwide revenue in 2014 for the IAE market will reach a projected $185.3 billion, up 7 percent from $173.0 billion in 2013. This year marks the return of more vigorous activity after the industry managed only middling revenue increases of 1.2 and 3.4 percent in 2012 and 2013, respectively. Prior to those two years, expansion had been in the double digits in a heartening show of force after the recession.

The healthy expansion is set to continue after this year, with industry takings forecast to hit $225.0 billion by 2017, as shown in the attached figure.

“Following two years of weak development in the IAE trade, 2014 will see stronger market conditions that will help generate business opportunities,” said Jenalea Howell, associate director for rotating machines & controls at IHS. “In particular, the stabilizing economies of China and Europe will be beneficial to spurring growth this year in overall industrial automation, allowing the market to outstrip last year’s performance.”

Motors and motor controls will be the largest segment in 2014, accounting for 40 percent of total IAE market revenue. Automation equipment is next with 31 percent, followed by power-transmission equipment with 29 percent.

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Among the global regions, Asia-Pacific will lead in growth, followed by the Americas, Japan and then the collective Europe-Middle East-Africa (EMEA) region. EMEA, however, is projected to claim the largest share of revenue at $61.5 billion, followed by Asia-Pacific, the Americas and Japan.

These findings are in the report, “Industrial Automation Equipment Market Tracker – Q1 2014,” from the Industrial, Security & Medical Technology service of IHS.