USD 191.9 billion
Industrial Automation Market Size, Share, Growth Analysis, By Component (Hardware, Software), By Type (Fixed Automation, Flexible Automation), By Industry (Automotive, Food & Beverage), By Application, By Region - Industry Forecast 2025-2032
Report ID:
SQMIG45D2047 |
Region:
Global |
Published Date: December, 2024
Pages:
157
|Tables:
61
|Figures:
75
Industrial Automation Market Insights
Industrial Automation Market size was valued at USD 209.55 Billion in 2023 and is poised to grow from USD 228.83 Billion in 2024 to USD 462.7 Billion by 2032, growing at a CAGR of 9.2% during the forecast period (2025-2032).
The industrial automation market share is experiencing robust growth driven by the increasing adoption of advanced technologies such as robotics, artificial intelligence (AI), and the Internet of Things (IoT) in various industries. As manufacturers seek to increase productivity, reduce operating costs, and improve product quality, the integration of automation systems has become an option need Demand for manufacturing equipment is particularly strong in North America, Europe, and Asia Pacific, where industrial clusters are well established and continue to grow Focused products intelligent manufacturing and the presence of leading engineers is driving the adoption of automated solutions. Europe is investing heavily in automation to maintain its competitive edge in its complex automotive, aerospace and space industries. Meanwhile, led by countries such as China and Japan, Asia Pacific is witnessing rapid technological development and increasing emphasis on Industry 4.0, which has contributed significantly to the market expansion
Two major factors are driving the growth of the industrial automation market. First, the growing need for efficiency in operations is a key driver. Companies are under pressure to optimize production, reduce waste and improve energy efficiency, all of which can be done through automation. Second, the increasing adoption of smart products is driving the market. Integrating IoT devices and AI into manufacturing processes enables real-time monitoring, predictive maintenance and data-driven decision-making, which is critical for increasing productivity and reducing downtime.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Discrete Automation
Fastest Growth
Discrete Automation
Growth Rate
9.2% CAGR
Global Industrial Automation Market By Region ($ Bn)
Country Share for North America Region (%)
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Industrial Automation Market Segmental Analysis
Global Industrial Automation Market is segmented by component, End-Use Industry, and region. Based on component, the market is segmented into Hardware (Industrial Control Systems, Field Devices), Software (Product Lifecycle Management (PLM), Manufacturing Execution Systems (MES), Enterprise Resource Planning (ERP), Supervisory Control and Data Acquisition (SCADA), Others), Services (Installation Services, Maintenance & Support Services, Consulting & Training Services, Managed Services). Based on End-Use industry, the market is segmented into Transportation Infrastructure, Energy & Power, Nuclear, Oil & Gas, Manufacturing, Life Sciences, Logistics & Supply Chain, Consumer Packaged Goods, Chemical & Material, Infrastructure & Construction, Aerospace & Defense, Technology & Communications, Environmental Services, Mining & Metals, Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa. (For detailed segmentation, kindly refer the Table of Content Section of the webpage).
Analysis by Component
The Hardware segment dominated the market and accounted for the largest revenue share at a CAGR of 12% during the forecast period from 2024 to 2031. This growth is driven by increasing usage of industrial robots and machines in the manufacturing industry in order to optimise the tasks that require speed, efficiency and accuracy. Industrial automation by robots reduces the waste of materials, labor requirements and energy consumption and improves efficiency.
The sensor component type segment registers the largest revenue share of over 22% in 2023 owing to its applications and importance in automation control systems. Sensors are small and provide fast data and readings and it is equally important in automation processes. Different types of sensors include temperature sensors, humidity sensors, torque sensors and more. These sensors are contributing to the intelligent and efficient automation and operation of industrial robots, which are expected to drive market growth significantly.
Analysis by End Use Industry
The Manufacturing vertical segment records a huge market share of over 17% in 2023 due to prevalence of autonomous processes in factories and industries using automated processes and systems. The manufacturing vertical segment is expected to grow more than 10% between the forecast period 2024 to 2031. Systems are driven by software or technology with little or no human intervention. This is expected to boost the growth of the segment over the forecast period.
The life science & healthcare segment is expected to be dominate the market and accounted for the largest revenue share of around 11% during the forecast period due to consultation and services offered to treat patient healthcare issues. Automation has also enabled doctors to operate remotely or with minimal human intervention, bringing additional accuracy and safety, and is expected to the sector grown up.
Global Industrial Automation Market By component
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Industrial Automation Market Regional Insights
The Asia Pacific region dominated the market and accounted for the largest revenue share of over 37% in 2023 and is expected to continue its dominance from 2024 to 2031. This dynamic growth is driven by major market players and growing sectors in the region driving the growth of the market. The use of smart raw materials from traditional manufacturing processes is unique and is helping to increase the adoption of market for automation technologies.
North America is expected to grow at a CAGR of over 9% between 2024 and 2031 effectively by increasing end-user needs. For example, in September 2022, ABB Ltd. expanded its manufacturing in the US with the help of investments in additional EV charging stations in the region. These investments are expected to help ABB Ltd. build more EV charging stations in the region. Industrial automation is also being adopted in many local sectors in the region such as automotive, healthcare, construction, etc.
Global Industrial Automation Market By Region
- Largest
- Fastest
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Industrial Automation Market Dynamics
Industrial Automation Market Drivers
Increasing Demand for Business Efficiency
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Companies around the world are under constant pressure to improve their performance. Automation helps reduce human error, improve resource efficiency, and simplify manufacturing processes. The ability of automation systems to run continuously without the need for breaks dramatically increases productivity and productivity. Furthermore, automation reduces waste and energy consumption, leading to cost savings and production efficiency. This desire for greater efficiency is a key factor in the growth of the industrial automation market.
Rise in the Advancement of Smart Manufacturing and Industry 4.0
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The integration of advanced technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), and Big Data Analytics into manufacturing processes is transforming the industry. Smart manufacturing enables real-time monitoring, predictive maintenance and data-driven decision-making to improve product quality and reduce downtime 4.0, which emphasizes the digital transformation of manufacturing processes.
Industrial Automation Market Restraints
High Cost of Automation Systems
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The key mandate in the industrial automation market is the initial capital investment required to implement automation systems. This includes the cost of purchasing automation tools, software and associated services, and the associated infrastructure.
Challenges in Integrating Automation into Legacy Systems
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Many businesses still rely on outdated or legacy systems that are not compatible with older automation technologies. Integrating new automation solutions into these existing systems can be complex and expensive, requiring substantial or complete overhaul. This challenge is particularly evident in businesses with heavy investments in infrastructure assets, where the transition to automated systems can disrupt productivity.
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Industrial Automation Market Competitive Landscape
The industrial automation market growth is competitive, characterized by a landscape dominated by several key players. These companies present a broad spectrum of products like the programmable logic controller (PLC), human interface devices, supervisory control and data acquisition devices and systems, and various industrial robots amongst others. However, there are many other industry players and new entrants from the region, as well as increasingly innovative solutions and technologies such as machine vision systems, and predictive maintenance systems for the industrial environment. The role of strategic partnerships and affiliations, mergers and acquisitions are critical in determining key features of the market growth, allowing companies to proliferate its market share, as well as advance its technology portfolio and sustain its competitive advantages. It creates a continual development and guarantees the market relevant to the dynamics of industries and what is expected on the international level.
Top Player’s Company Profiles
- ABB (Switzerland)
- Emerson (US)
- Siemens (Germany)
- Schneider Electric (France)
- Mitsubishi Electric (Japan)
- Bosch Rexroth
- Endress+Hauser (Switzerland)
- Honeywell (US)
- Rockwell Automation (US)
- General Electric (US)
- FANUC CORPORATION (Japan)
- OMRON Corporation (Japan)
- Advantech Co., Ltd. (Taiwan)
- Hitachi Ltd. (Japan)
- Keyence Corporation (Japan)
- Parker Hannifin Corporation (US)
- Yaskawa Electric Corporation (Japan)
- Beckhoff Automation GmbH & Co. (Germany)
- Danaher Corporation (US)
- Fuji Electric (Japan)
Recent Developments
- In October 2024, Rockwell Automation, Inc, a major player in industrial automation and digital transformation, has announced a new collaboration with Circulor, a supply chain traceability solution provider. This effort aims to help customers trace the origin of raw materials from source to final product, ensuring transparency across the entire supply chain while promoting more sustainable practices.
- In October 2024, Advantech one of a global player in AIoT, announced today that it has finalized its acquisition on block shares of AURES Technologies SA, a French company renowned for its POS and Kiosk brands. On October 1st, 2024, Advantech has closed block trade of 1,430,381 shares from the major AURES shareholder and subscribed the first tranche of convertible bonds of EUR 2,500,000 of principal amount.
- In October 2024, Keyence, an emerging player in the development and manufacturing of industrial automation equipment, and Extensiv, one of a leading provider of warehouse, order, and inventory management software to the third-party logistics (3PL) industry, announced their strategic partnership to offer increased access to mobile scanning technology for the 3PL industry to automate their inventory and order operations.
Industrial Automation Key Market Trends
- Rise in the Adoption of Collaborative Robots (Cobots): A major trend in the industrial automation market is the increasing adoption of collaborative robots, also known as cobots. Unlike traditional industrial robots, cobots are designed to work with human workers, increasing collaboration and improving workplace safety. Cobots are more flexible, easier to program, and generally less expensive than their traditional counterparts, making them attractive for a variety of industries. This trend is particularly strong in automotive, electronics and food and in the beverage industry, where accuracy and scalability are essential. As more companies recognize the benefits of cobots, their adoption is expected to continue to grow, contributing to the overall market for industrial automation development. This integration not only serves to improve operational flexibility, but also provides the base upon which to build intelligent factories, able to determine working procedures individually and continuously self-adapt if necessary.
Industrial Automation Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Component types of teams that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to SkyQuest analysis, the market for industrial automation is proving to be rapidly growing, with North America pushing competitors out of the race. The executive summary of the regional leadership is informed by factors such as the well-developed manufacturing industry, the high penetration levels of automation technologies, and massive investment in the digitization of industries. An influential force behind this drive is the rising need for cutting costs and increasing productivity across manufacturing organizations, which automation solutions help to meet. Also, because of proliferation of IoT and AI technologies, another trend is the increased rate of integration of IoT and AI into automation systems which makes manufacturing smarter and more adaptive. Such developments do not only improve production efficiency but can also spearhead the provision of predictive maintenance and raw data processing in real time, which serves to reinforce North America’s status as the epicenter of industrial automation.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 204.0 billion |
| Market size value in 2031 | USD 429.51 billion |
| Growth Rate | 8.8% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Industrial Automation Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Industrial Automation Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Industrial Automation Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Industrial Automation Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Industrial Automation Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Industrial Automation Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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