Industrial Automation Market Report, By Product Type (PLCs, HMIs, SCADA Systems, Robotics, DCS, Process Automation, Others), By Technology (IIoT, AI, Cloud Computing, Big Data Analytics, Edge Computing, Cybersecurity), By Application (Process Control, Material Handling, Assembly & Packaging, Quality Control & Inspection, Others), and Regions 2024-2032

Market Overview: 

"The global industrial automation market size reached US$ 201.2 billion in 2023. Looking forward, Reports and Insights expects the market to reach US$ 429.8 billion in 2032, exhibiting a growth rate (CAGR) of 8.8% during 2024-2032."

Industrial automation entails the use of technology to control and operate machinery, processes, and systems in various industries. These solutions enhance efficiency, productivity, and safety by minimizing human intervention. Industrial automation products encompass a wide spectrum, including Programmable Logic Controllers (PLCs), robotics, SCADA (Supervisory Control and Data Acquisition) systems, and industrial IoT devices. PLCs enable precise control of manufacturing processes, while robotics automate tasks like assembly and material handling. SCADA systems monitor and manage large-scale operations, and IoT devices gather real-time data for analysis. Collectively, these offerings streamline operations, reduce errors, and elevate industrial processes across sectors like manufacturing, energy, and logistics.

The global industrial automation market is registering robust revenue growth, driven by increasing demand for operational efficiency and cost savings across industries. Rapid technological advancements have led to heightened consumption of automation solutions, encompassing robotics, AI, IoT, and data analytics. Services such as predictive maintenance and remote monitoring are becoming integral and initiatives promoting Industry 4.0 and smart manufacturing are further accelerating adoption. The advantages include enhanced productivity, reduced downtime, improved safety, and better resource allocation. Comprehensive analysis and insights into market trends indicate a shift towards collaborative robots, edge computing, and sustainable practices, and these are expected to continue to shape the future of industrial automation.

Industrial Automation Market Report Overview: 

The global industrial automation market research report provides comprehensive insights into driving factors, restraints, opportunities, and trends, with provision of in-depth supporting information, data, and statistics and actionable insights.  

Though covered and provided extensively across the report, the data and information format are simple, yet dynamic in order to ensure ease of reading and understanding, as well as presenting and maximizing leverage and use.

Revenues and market share are provided in detail for previous years in order to showcase the evidence upon which our estimations and forecasts are based.  

Revenue growth rates and differences, as well as comparisons and relatable data are provided to further support all findings. Data points are provided for each year – from historical to end of forecast period – and this format is followed for each segment region and respective countries, as well as sub-segments and others.  

Vital details of major companies in the market are provided in the company profile section of the report. Cover includes financials, recent developments, research & development, strategies, product launches, agreements, expansion, mergers & acquisitions, and others.   

The global industrial automation market research report is segmented on basis of product type, technology, end-user industry, application, and regions and countries. Regional segmentation includes North America (United States and Canada); Europe (Germany, United Kingdom, France, Italy, Spain, Russia, Poland, BENELUX, NORDIC, and Rest of Europe); Asia Pacific (China, India, Japan, South Korea, ASEAN, Australia & New Zealand, & Rest of Asia Pacific); Latin America (Brazil, Mexico, Argentina, & Rest of Latin America); Middle East & Africa (Saudi Arabia, South Africa, United Arab Emirates, Egypt, Israel, and Rest of MEA). 

Industrial Automation Market Trends and Drivers:

Technological Advancements: Continuous innovations in robotics, AI, and IoT are driving growth of the global industrial automation market. Advanced technologies enable more precise and efficient production processes and increasing awareness regarding the benefits and advantages are driving deployment and supporting steady market revenue growth.

Industry 4.0 Adoption: Integration of digital technologies with traditional manufacturing, known as Industry 4.0, enhances connectivity and data exchange. This trend optimizes production, reduces costs, and accelerates time-to-market, and is having a positive impact on revenue growth.

Operational Efficiency: Industrial automation streamlines workflows, reduces human error, and enhances overall efficiency. Improved productivity and reduced downtime translates to increased revenue as production output rises.

Global Supply Chain Optimization: Automation aids supply chain management by enabling real-time tracking, demand forecasting, and inventory management. Optimized supply chains lead to cost savings and other cost-related benefits.

Safety and Compliance: Automation improves workplace safety by replacing humans in hazardous tasks. Compliance with safety regulations minimizes the risk of accidents, potential litigation, and downtime, all of which can impact revenue.

Data-Driven Insights: Vast volumes of data are generated from automation and such similar processes, and these offer insights into production trends, customer preferences, and equipment performance, among others. Derived insights enable more informed decision-making, and deployment of appropriate strategies can support revenue growth.

What Factors Are Restraining Growth of the Global Industrial Automation Market? 

Despite the various positive factors and growth prospects in the global market, some restraints and factors are having negative impacts on revenue growth. Some key factors include:  

High Initial Investment: The substantial upfront costs associated with implementing industrial automation solutions, including equipment, software, and training, is relatively high and this can deter companies from adopting these technologies.

Integration Challenges: Integrating new automation systems with existing infrastructure can be complex and time-consuming. Compatibility issues and disruptions during the transition phase can lead to temporary decreases in productivity and revenue.

Skilled Workforce Shortage: The shortage of skilled personnel to operate and maintain advanced automation systems is a major factor restraining adoption. This gap in expertise can limit the effective implementation of automation, thereby also having negative impact on market revenue growth.

Cybersecurity Concerns: As automation systems become more interconnected and reliant on data exchange, the risk of cyberattacks increases. Security breaches can result in downtime, data loss, and reputational damage, and this is a factor that is creating a sense of reluctance to shift entirely to automation across some industries that deal in sensitive materials and products etc.

Resistance to Change: Employees and management may resist automation due to fear of job displacement or reluctance to adapt to new technologies. This resistance can delay adoption and impede revenue growth potential.

Maintenance and Downtime: While automation can minimize downtime through predictive maintenance, any unforeseen system failures can lead to extended periods of inactivity. Downtime directly affects production capacity and revenue generation.

What are Some Opportunities for Leading Industrial Automation Manufacturers? 

Companies operating in the global industrial automation market can leverage various opportunities and revenue streams to drive growth and profitability. Below are some avenues and insights:  

Solution Customization: Offering tailored automation solutions for specific industries and processes presents a significant opportunity. Companies can provide specialized systems that cater to unique needs, generating higher revenues from customization fees.

Maintenance and Support Services: Providing ongoing maintenance, troubleshooting, and support services for automated systems ensures reliable operation. Subscription-based models or service contracts can create a consistent revenue stream while building long-term relationships with clients.

Data Analytics and Insights: Developing data analysis tools that help clients make informed decisions based on the data generated by automated systems opens opportunities. Selling analytics software or offering data-driven consulting services can be a valuable revenue source.

Training and Skill Development: Addressing the skills gap by offering training programs in automation technology can generate revenue. Certified training courses for employees to operate, maintain, and troubleshoot automated systems can become a lucrative venture.

IoT and Connectivity Solutions: Creating IoT-enabled devices and connectivity solutions to integrate legacy equipment into the automation ecosystem is a growing opportunity. Revenue can be generated from hardware sales, software licensing, and ongoing connectivity services.

Consulting and Implementation Services: Companies can offer consulting services to guide businesses through their automation journey. Revenue can be earned from consulting fees, system design, project management, and successful implementation.

Region-wise Analysis of Global Industrial Automation Market

Results of analysis of the global industrial automation market on regional level highlights key growth areas, with North America, leading in terms of market share among other regional markets in the global market. Major revenue contribution from the US is attributed to robust manufacturing and technology sectors and high product sales.

Europe market share incline is driven significantly by revenue contribution from Germany and Scandinavia owing to high adoption of automation in industries such as automotive and precision manufacturing. Rapid market share incline in Asia-Pacific is driven by significantly large revenue share contribution from China and Japan as a result of industries in these countries capitalizing majorly on automation and mass production due to increased manufacturing demands and technological advancements. Emerging markets in Latin America and Africa exhibit growth potential due to expanding industrial sectors. Preferences lean towards collaborative robotics, AI, and IoT integration, reflecting evolving consumer needs and environmental considerations, shaping the future of industrial automation demand and development.

Why is US the Largest Market for Industrial Automation? 

The United States stands as the largest market for industrial automation due to diverse and advanced manufacturing sector spanning various industries such as automotive, aerospace, and electronics. This factor is driving demand for enhanced efficiency and productivity and deployment of automation solutions. The country's longstanding tradition of technological innovation and research creates an environment conducive to developing and integrating cutting-edge automation technologies. Supported by a robust economy, businesses in the US possess the financial capacity to invest in automation systems that optimize their operations. Also, automation helps alleviate high labor costs by streamlining processes and reducing dependency on manual labor. The stable regulatory environment fosters a conducive atmosphere for implementing automation solutions, while consumer demands for high-quality products delivered promptly align well with the benefits of automation. This trend of automation is also driven by rising focus among companies in the US focusing on innovation, global competitiveness, and sustainability, and this also reinforces the country’s role as a leader in the industrial automation landscape.

Which Key Trends Will Drive Industrial Automation Deployment in Europe? 

In Europe, a dynamic landscape of key trends is set to significantly drive industrial automation sales. The steady adoption of Industry 4.0, which integrates cutting-edge digital technologies into manufacturing processes, is driving robust demand for automation solutions. This is further augmented by commitment to sustainable practices across countries in Europe, where automation plays a pivotal role in achieving energy-efficient processes and minimizing waste. The ascendancy of collaborative robots (cobots) designed to collaborate harmoniously with human workers addresses the diverse manufacturing needs, and offers flexible and secure automation solutions. High focus on precision in sectors such as automotive and aerospace further supports adoption of automation across industries, as this ensures stringent manufacturing standards are consistently met. In addition, aging workforce and skill shortages are major concerns driving shift towards automation. Furthermore, the trend towards customization is gaining traction as more consumers seek tailored products, and automation emerges as the enabling force for cost-effective customization. Amid Europe's surging e-commerce and logistics sectors, automation can serve to optimize warehousing and distribution processes, thereby meeting demands in today’s digital age. Moreover, the COVID-19 pandemic served to expose vulnerabilities and weaknesses across industries and supply chains, among others. It also brought to the fore the importance of resilient supply chains, leading to adoption of automation for enhanced flexibility and risk management.

Why Investment in China and India is Key to Growth of the Global Industrial Automation Market? 

Investing in China and India is a crucial driver for growth of the global industrial automation market owing to both countries being bases for expansive manufacturing sectors that span a multitude of industries and substantially high demand for automation solutions that enhance productivity, streamline operations, and fortify competitive standing on the global stage. Escalating labor costs in these regions has prompted manufacturers to shift towards automation, as it offers a means to mitigate dependency on labor and ensure cost-effectiveness. The robust economic growth being registered by China and India positions these countries as veritable hotspots for industrialization, thereby catalyzing the imperative for automation to meet heightened production requisites. Also, proactive government initiatives aimed at encouraging advanced manufacturing solutions and technologies and deploying Industry 4.0 is supporting the investment landscape for automation.

In addition, rapid urbanization and ambitious infrastructure development initiatives in these countries is supporting need for streamlined production processes that automation can seamlessly provide. Furthermore, rapidly expanding consumer markets in both countries necessitate efficient and agile production methods, aligning perfectly with the capabilities of automation technologies. The transformation of major cities such as Shanghai, Beijing, Mumbai, and Bangalore into technology and innovation hubs establishes an environment that nurtures the development and integration of state-of-the-art automation solutions, further underscoring the significance of investment.

What is the Outlook on Industrial Automation Deployment in Middle East & Africa? 

The outlook for industrial automation sales in the Middle East & Africa (MEA) represents significant revenue opportunities as well as challenges. Ongoing ambitious infrastructure development initiatives, spanning energy, transportation, and urban projects, present opportunity for application of automation solutions to streamline and manage these vast undertakings more efficiently. Also, countries with significant hold in the oil & gas sector can expect to witness deployment of automation solutions to improve production efficiency, for safety enhancement and to streamline maintenance processes, with key focus on driving revenue and economic growth. Automation emerges as an ideal option to enhance productivity, improve product quality, and attract foreign investments as governments in a number of countries in MEA are focusing on diversifying their economies through manufacturing growth.

Renewable energy pursuits in the region also requires deployment of automation for optimizing operations and maintenance in the steadily expanding renewable energy sector. Addressing the rising concern of water scarcity and optimizing utilities can be done through automation in smart water management and distribution systems. Also, rise of smart city trend and related initiatives opens further scope for deployment of automation and related applications in urban transportation, waste management, and energy optimization. However, challenges such as a skill gap in automation and technology, budget constraints due to economic disparities, and navigating varying regulatory landscapes across countries in the region are expected to restrain adoption to some extent.

Which Latin American Countries will be at the Forefront of Growth for Industrial Automation Manufacturers? 

Countries presenting lucrative growth opportunities for industrial automation manufacturers in Latin America are those with improving economies, evolving industries, and adopting technological advancements. Mexico, is a manufacturing powerhouse and has robust automotive, aerospace, and electronics sectors, which present significant potential for companies offering automation solutions. Brazil's diverse economic landscape encompasses industries such as agriculture, mining, and energy, all of which can benefit vastly through deployment of automation to increase productivity and enhance global competitiveness. In Chile, the rich mining industry can also benefit from automation, and enhance  safety, efficiency, and sustainability of mines in the country.

Argentina is also a potential market for industries seeking to modernize infrastructure and integrate automation, and these include automotive, food and beverage, and pharmaceuticals. This approach will also aid in refining production processes and enhancing product quality. Colombia's dynamic manufacturing sector, coupled with investments in logistics and infrastructure, are driving demand for automation solutions to optimize operations and cater to expanding consumer demands. In Peru, the mining and energy sectors are exploring automation to enhance efficiency and sustainability and this is in line with initiatives to modernize infrastructure and speed up overall developmental progress.

Leading Industrial Automation Manufacturers & Competitive Landscape: 

The global industrial automation market features a dynamic and competitive landscape, shaped by a diverse array of companies vying to innovate and provide cutting-edge solutions. This sector has witnessed consistent growth due to high demand for increased efficiency, productivity, and connectivity across industries. Leading industrial automation solutions providers are currently contributing significantly to evolution of the market.

A frontrunner in the industry, Siemens AG is known for its comprehensive range of automation products and solutions, spanning PLCs, SCADA systems, robotics, and industrial software. Its global presence and innovative offerings solidify its standing as a market leader.

ABB Ltd. is a major in industrial automation, offering robotics, control systems, and digital solutions. The company's commitment to sustainable practices and focus on smart manufacturing technologies keep it at the forefront of the competitive landscape.

With keen focus on industrial control systems, Rockwell Automation is recognized for its PLCs, HMIs, and software solutions. It maintains a strong position through its emphasis on digital transformation and connectivity.

Mitsubishi Electric Corporation is a significant player with a wide portfolio of automation products, including PLCs, HMIs, and servo systems. The company's commitment to technological advancements and global expansion enables it to maintain its competitive edge.

Schneider Electric SE offers a range of automation solutions, including PLCs, SCADA systems, and building automation. The company’s dedication to energy efficiency and sustainability aligns with current market trends.

Yokogawa Electric Corporation specializes in process automation and control systems, and is renowned for solutions in industries such as oil & gas, chemicals, and power. Its domain expertise and tailored solutions contribute to its competitive positioning.

Honeywell International Inc. offers a diverse range of automation and control solutions, leveraging AI and IoT technologies. Its innovations in industrial cybersecurity and process optimization bolster its competitiveness.

Leading players continue to maintain an edge through innovations in robotics, AI, IoT integration, and digital transformation. Their global reach, strong R&D capabilities, and commitment to addressing industry-specific challenges cement their positions in the competitive landscape. As the industrial automation market evolves, these players remain pivotal in shaping the industry's trajectory and meeting the demands of a rapidly changing technological landscape.

Company List:

• Siemens AG
• ABB Ltd
• Rockwell Automation
• Mitsubishi Electric Corporation
• Schneider Electric SE
• Yokogawa Electric Corporation
• Honeywell International Inc.
• Emerson Electric Co.
• General Electric Company
• Omron Corporation
• Fanuc Corporation
• KUKA AG
• Keyence Corporation
• Beckhoff Automation GmbH
• Bosch Rexroth AG

Research Scope

Report Metric	Report Details
Market size available for the years	2021-2032
Base Year	2023
Forecast Period	2024-2032
Compound Annual Growth Rate (CAGR)	8.8%
Segment covered	By Product Type, Technology, End-user Industry, Application
Regions Covered	North America:  The U.S. & Canada Latin America: Brazil, Mexico, Argentina, & Rest of Latin America Asia Pacific: China, India, Japan, Australia & New Zealand, ASEAN, & Rest of Asia Pacific Europe: Germany, The U.K., France, Spain, Italy, Russia, Poland, BENELUX, NORDIC, & Rest of Europe The Middle East & Africa:  Saudi Arabia, United Arab Emirates, South Africa, Egypt, Israel, and Rest of MEA
Fastest Growing Market in Europe	Germany
Largest Market	North America
Key Players	Siemens AG, ABB Ltd, Rockwell Automation, Mitsubishi Electric Corporation, Schneider Electric SE, Yokogawa Electric Corporation, Honeywell International Inc., Emerson Electric Co., General Electric Company, Omron Corporation, Fanuc Corporation, KUKA AG, Keyence Corporation, Beckhoff Automation GmbH, Bosch Rexroth AG

Market Segmentation:

By Product Type:

• Programmable Logic Controllers (PLCs)
• Human Machine Interface (HMI)
• Supervisory Control and Data Acquisition (SCADA) Systems
• Robotics
• Distributed Control Systems (DCS)
• Process Automation
• Others

Technology:

• Industrial IoT (IIoT)
• Artificial Intelligence (AI) and Machine Learning
• Cloud Computing
• Big Data Analytics
• Edge Computing
• Cybersecurity Solutions

End-user Industry:

• Manufacturing
• Energy and Utilities
• Oil and Gas
• Automotive
• Pharmaceuticals
• Food and Beverage
• Aerospace and Defense
• Chemicals
• Mining and Metals
• Others

Application:

• Process Control
• Material Handling
• Assembly and Packaging
• Quality Control and Inspection
• Maintenance and Predictive Analytics
• Supply Chain Management
• Others

Segmentation By Region:

North America:

• United States
• Canada

Europe:

• Germany
• The U.K.
• France
• Spain
• Italy
• Russia
• Poland
• BENELUX
• NORDIC
• Rest of Europe

Asia Pacific:

• China
• Japan
• India
• South Korea
• ASEAN
• Australia & New Zealand
• Rest of Asia Pacific

Latin America:

• Brazil
• Mexico
• Argentina

Middle East & Africa:

• Saudi Arabia
• South Africa
• United Arab Emirates
• Israel