Industrial Automation Market By Component (Hardware, Software, and Services), By Automation Type (Fixed Automation, Programmable Automation, and Flexible Automation), By Technology (SCADA {Supervisory Control and Data Acquisition}, DCS {Distributed Control System}, Human Machine Interface {HMI}, Industrial Internet of Things {IIoT}, Machine Vision, Artificial Intelligence {AI} & Machine Learning {ML}, Cloud Computing, and Others), By Deployment Mode (On-Premise, Cloud-Based, and Hybrid), By Distribution Channel (Direct Sales, Distributors, and System Integrators), and By End-User (Automotive, Electrical & Electronics, Food & Beverage, Chemicals & Petrochemicals, Pharmaceuticals, Aerospace & Defense, Water & Wastewater Management, Packaging, Semiconductor & Foundry, and Others),  Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

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Industry Outlook

The Industrial Automation market accounted for USD 234.36 Billion in 2024 and is expected to reach USD 602.31 Billion by 2035, growing at a CAGR of around 8.96% between 2025 and 2035. The industrial automation market represents the employment of control systems that integrate computers and robots along with information technologies to operate various industrial processes in fields such as manufacturing, energy, and logistics, among others. The automation system automates regular operations to boost productivity and diminish human mistakes while delivering superior manufacturing standards. The market offers programs including programmable logic controllers (PLCs) alongside modern robotics, with sensors and artificial intelligence components. Because industries like automotive, pharmaceuticals, and food processing need to operate as efficiently as possible, they are implementing automation technology to revolutionize their processes. This industry is primarily driven by cost reduction, safety enhancements, and a quicker time to market.

Report Scope:

Market Dynamics

Increasing demand for industrial efficiency and production process optimization.

A growing need for increased productivity, lower operating costs, and improved production quality is one of the factors driving the industrial automation market. To boost production efficiency and reduce human error, manufacturers want to automate their processes. This will make their operations more sustainable. Further, there is a need for safety when operating in dangerous settings. Along with addressing labor shortages and increasing flexibility in fulfilling market demand, the market is driven by the adoption of smart technologies like robotics, artificial intelligence, and the Internet of Things (IoT).

The necessity for automation in manufacturing is a result of the growing need for customized and on-demand production models. The International Federation of Robotics (IFR) reports that global robot installations in manufacturing reached a new high in 2023, indicating the widespread adoption of automation solutions in industrial sectors for increased productivity. Government incentives and educational institutions' efforts to establish settings that support the use of cutting-edge technologies fueled the trend. Automation is likely to be a necessary component of future-proofing operations as industries strive for competitiveness.

Government initiatives supporting automation in manufacturing sectors worldwide.

A rising number of governments are rooting for and promoting the expansion of automation in the manufacturing sectors to achieve and promote industry competitiveness, efficiency, and sustainability. Increasing productivity, improving quality performance, lowering operating costs, and scaling production in response to demand fluctuations are some of the key reasons propelling the industrial automation market. Automation produces more consistent output quality and lowers human error. The use of smart technologies like artificial intelligence (AI), the Internet of Things (IoT), and robotics is another motivator. These technologies allow for improved capabilities, including real-time data analysis and predictive maintenance.

Governments are backing these innovations through subsidies, tax incentives, and policies that create smarter industries. The U.S. Department of Energy invested $70 million in 2021 on industrial decarbonization and automation technologies, and this agency aims to cut energy consumption and carbon emissions in manufacturing sectors. In the direction of smart manufacturing, this also encourages the establishment of new training and educational initiatives and the creation of a skilled workforce. This is creating a manufacturing environment that is resilient and ready for the future.

Concerns over job displacement due to increased robotic automation.

Job displacement represents a major restraint factor in the industrial automation market due to robots taking over human workers in various business sectors. Companies will adopt advanced automation solutions to work with fewer personnel because of workforce concerns that can extend especially to manufacturing environments. The combination of substantial startup expenditures to install automated systems, as well as a requirement for specialized staff preparation, proves unattractive to small businesses considering automation technology adoption.

Select regions as well as particular industries, face regulatory barriers alongside employment loss fears that act as substantial impediments. The extensive use of automation raises long-term economic issues because it could generate more socioeconomic disparities. Some organizations, along with governmental bodies, adopt a restrained attitude when implementing automation due to multiple factors that cause hesitation.

Remote monitoring and predictive maintenance with cloud-based platforms.

The industrial automation market has a lot of potential, owing to cloud-based technologies that allow for predictive maintenance and remote equipment monitoring. Manufacturers can use real-time data analytics, machine learning, and Internet of Things devices to remotely monitor the performance of their equipment. This helps identify potential equipment issues that may potentially lead to costly malfunctions or downtime.

Businesses can use remote monitoring to scale their solutions so they can store large amounts on a platform and retrieve them as needed. This allows them to use preventative maintenance methods. It contributes to operational efficiency by reducing unplanned maintenance costs, increasing asset life, and enhancing safety. Set-up also allows businesses to run trend analyses against historical data to get better forecasts on the maintenance journey, enhance resource allocation, and maximize productivity. Being able to minimize waste and optimize energy utilization is another feature of AI and machine learning that fosters greater competitiveness in the inner realm of profitability.

Many sectors, including manufacturing, oil and gas, and automotive, will find this trend particularly beneficial, as they need continuous operations and uptime. This gives a new edge to making decisions and fortifying competitive advantage that translates into earning profits. Moreover, since decision-making that follows is usually an almost real-time process through cloud platforms, it also leads to much shorter response times, extremely low delays, and thereby minimum downtime.

Adoption of AI and machine learning in industrial automation.

AI-based and machine learning applications in industrial automation have enormous opportunities to change the way manufacturing and production occur. They will provide predictive maintenance, operational improvement, and real-time data analysis. All these features will lead to increased productivity and reduced downtime. AI systems will adapt to continuously changing conditions, giving rise to increased flexibility of adaptation for production lines and enhanced provision for more personalized products. It will allow companies to do upward of routine monotonous tasks while reducing labor costs and errors, thus creating a safer working environment.

AI is faster at detecting anomalies as compared to conventional methods, leading to quick remediation of potential problems with less waste. These applications also realize massive industrial sustained objectives by reducing waste and energy consumption, which in turn helps boost innovation and profitability. It facilitates even more compatibility, result-driven decision-making, and faster innovation cycles through AI. AI will keep growing, developing new applications in industrial automation, and always bringing new opportunities for advancement and breakthroughs in technology.

Industry Experts Opinion

"Comau is a leading-edge industrial automation company with first-rate robotics technology that has tremendous growth potential."

• Ante Kusurin, Partner at One Equity Partners.

Segment Analysis

Based on the Component, the Industrial Automation market has been classified into Hardware, Software, and Services. The hardware segment stands as the largest section of the industrial automation market based on component analysis. The crucial nature of physical automation devices drives their dominance in the market, including programmable logic controllers (PLCs), sensors, robotic arms, and human-machine interfaces (HMIs).

The components function as factory automation fundamentals because they deliver real-time operational oversight with control functions and execution capabilities. The rising commitment of industries to smart manufacturing and Industry 4.0 has led to growing demands for stable and scalable hardware solutions. Operational efficiency depends heavily on hardware, while automation infrastructure needs hardware to function independently of software and services development.

Based on the Automation Type, the Industrial Automation market has been classified into Fixed Automation, Programmable Automation, and Flexible Automation. The industrial automation market segment, led by programmable automation, represents its most dominant segment. This technology enables machine reprogramming for multiple tasks, which works best for batch production combined with businesses requiring regular changes to product designs. The ability to program automation renders systems flexible enough for various operations yet provides superior performance similar to static systems.

Programmable automation serves as a widespread technology solution for automotive production, alongside manufacturing sectors and electronics manufacturers, because it creates both economic and adaptable production benefits. The dominant selection for contemporary industrial applications stems from its capacity to work through different production runs with brief maintenance periods.

Regional Analysis

The North American industrial automation market is leading due to the faster pace of technology growth and adoption of automation across the various manufacturing, automotive, and pharmaceutical industries. Industrial automation has the highest market potential in the United States and Canada. Primary factors driving adoption by manufacturers include the benefit of improved operating efficiency, reduced costs, and the introduction of robotics, artificial intelligence, and IoT in production processes. Therefore, smart factories and digital transformation projects are mushrooming across the region because of the expanding need for automation technologies. In these justifications for automation, workplace safety and sustainability features strengthen the arguments.

North America will continue to take the biggest share of the worldwide industrial automation market, as leading players invest in R&D and technology. Initiatives from the government are also being cited as an avenue in the promotion of funding towards market growth, innovation in manufacturing, and modernization. The region also has better predictive maintenance and advanced technology as the major pillars of growth.

Rapid technical advancements, an increasing demand for operational efficiencies, and increased interest in digital transformation are driving the Asia Pacific industrial automation market's rapid growth. The main participants in this revolution are China, Japan, India, and Korea; China's dominant manufacturing sector gives it the upper hand. Growing adoption of automation, particularly in the automotive, electronics, chemicals, and food processing industries, is now gaining momentum towards smart manufacturing, robotics, and the IoT in facilitating productivity.

Rapid development in these countries is mainly due to initiatives like Industry 4.0 and government support for manufacturing improvements. Market drivers include cloud-based solutions, AI, and predictive maintenance. Reducing costs in labor and increasing quality have propelled innovations in the industrial automation field across several areas of the region. Transitioning labor dynamics in the region are due to increasing demand for skilled individuals to operate and maintain advanced automation equipment. Continuous sustainability initiatives have made companies progressively install energy-efficient automation systems.

Competitive Landscape

With Siemens AG, Rockwell Automation, Schneider Electric, ABB, and Mitsubishi Electric as major competitors, the industrial automation market is reportedly one of the most competitive. These businesses innovate quickly and keep growing their product and service offerings to meet the growing need for automation solutions in a variety of sectors, including manufacturing, energy, and the automotive industry. ABB's recent acquisition of B&R Industrial Automation will further bolster its portfolio of automation technologies.

Rockwell Automation and PTC have formed a development partnership to enhance Rockwell's digital transformation capacity. Siemens has also been substantially investing in Industry 4.0 technologies, particularly in IoT and artificial intelligence, to enhance productivity and operational efficiency. The increase in demand for smart factories is a cause for significant expansion opportunities, especially in the Asia-Pacific region, where local automation solutions from companies like Inovance Technology and Turck are gaining popularity.

Industrial Automation Market, Company Shares Analysis, 2024

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Recent Developments:

• In February 2025, Honeywell announced its decision to split into three independent companies. The separation involved its automation, aerospace, and advanced materials businesses. The company aimed to boost agility and increase shareholder value through this move. Honeywell planned to complete the automation and aerospace separations by the second half of 2026.

Report Coverage:

By Component

• Hardware
• Software
• Services

By Automation Type

• Fixed Automation
• Programmable Automation
• Flexible Automation

By Technology

• SCADA (Supervisory Control and Data Acquisition)
• DCS (Distributed Control System)
• Human Machine Interface (HMI)
• Industrial Internet of Things (IIoT)
• Machine Vision
• Artificial Intelligence (AI) & Machine Learning (ML)
• Cloud Computing
• Others

By Deployment Mode

• On-Premise
• Cloud-Based
• Hybrid

By Distribution Channel

• Direct Sales
• Distributors
• System Integrators

By End-User

• Automotive
• Electrical & Electronics
• Food & Beverage
• Chemicals & Petrochemicals
• Pharmaceuticals
• Aerospace & Defense
• Water & Wastewater Management
• Packaging
• Semiconductor & Foundry
• Others

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of the Middle East & Africa

List of Companies:

• FANUC Corporation
• Siemens AG
• Rockwell Automation, Inc.
• Schneider Electric SE
• Emerson Electric Co.
• Yokogawa Electric Corporation
• ABB Group
• Turck
• ifm group
• Inovance Technology
• Mitsubishi Electric Corporation
• Honeywell International Inc.
• Omron Corporation
• Beckhoff Automation GmbH & Co. KG
• WAGO Kontakttechnik GmbH & Co. KG

Frequently Asked Questions (FAQs)