Industrial Automation Market

Industrial Automation Market Size, Share and Growth Forecast by Component, by Solution, by End-Use Industry, and by Region for 2024-2031

Report ID: PMRREP34634

Report Type: Ongoing

Format: PPT*, PDF, EXCEL

Industry: Industrial Automation

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Industrial Automation Market Size and Share Analysis

The global market for industrial automation is estimated to value at US$345.73 Bn by the end of 2031 from US$184.34 Bn recorded in 2024. The market is expected to secure a CAGR of 9.4% in the forthcoming years from 2024 to 2031.

Key Highlights of the Market

  • The use of AI, and machine learning for predictive maintenance, the integration of IoT for real-time data analytics, the creation of smart factories under Industry 4.0, and the simulation and optimization of processes using digital twins are some of the major market trends.
  • Industry’s concentration on boosting production, slashing expenses, and increasing industrial efficiency intensifies as technological intervention deepens.
  • The rise of digital twin technology will prove to be a major booster for market growth.
  • Adoption of collaborative robots or Cobots that operate in tandem with humans to improve safety and productivity in manufacturing settings.
  • Sustainable manufacturing gains traction with an aim to cut waste, use less energy, and promote sustainable manufacturing techniques, concentrate on environmentally friendly and energy-efficient automation solutions.
  • Implementing edge computing is on the rise with an objective to reduce latency and boost real-time decision-making by processing data closer to the source.

Market Attributes

Key Insights

Market Size (2024E)

US$184.34 Bn

Projected Market Value (2031F)

US$345.73 Bn

Global Market Growth Rate (CAGR 2024 to 2031)


Historical Market Growth Rate (CAGR 2019 to 2023)


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Market Introduction and Trend Analysis

The industrial automation market is experiencing significant growth, driven by advancements in technology and increasing demand for efficiency and productivity across various industries.

Automation involves using control systems, such as computers and robots, to handle different processes and machinery, replacing human intervention.

The market encompasses a wide range of technologies, including robotics, artificial intelligence (AI), machine learning, and the Internet of Things (IoT), which work together to optimize manufacturing, reduce operational costs, and enhance product quality.

Industries such as automotive, electronics, pharmaceuticals, and food and beverages are increasingly adopting automation solutions to stay competitive and meet the growing demands of their customers.

With the rapid adoption of Industry 4.0 principles, the integration of smart technologies in manufacturing processes is becoming more prevalent.

Companies are investing heavily in research and development to innovate and create advanced automation solutions that provide real-time data, predictive maintenance, and improved decision-making capabilities.

The push towards sustainable manufacturing practices is also propelling the market forward, as automated systems can significantly reduce waste and energy consumption.

As industries continue to embrace digital transformation, the market is poised for robust growth, offering new opportunities for efficiency, scalability, and enhanced operational performance.

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Historical Growth and Course Ahead

The industrial automation market has seen substantial growth over the past few decades, driven by rapid technological advancements and the relentless pursuit of efficiency and productivity in manufacturing.

Initially, automation began with simple mechanization, evolving into sophisticated control systems integrating robotics, AI, and IoT. These technologies have revolutionized industries by minimizing human intervention, reducing errors, and significantly cutting down production times and costs.

The widespread adoption of Industry 4.0 principles has further accelerated this growth, with smart factories and connected systems becoming more common.

The market is set to continue its upward trajectory, spurred by ongoing innovations and the increasing need for sustainable and efficient production processes.

The integration of advanced technologies like machine learning, AI, and digital twins will drive further enhancements in predictive maintenance, real-time data analytics, and autonomous operations.

Additionally, as industries strive to reduce their environmental footprint, automated solutions that optimize resource use and minimize waste will be in high demand.

The convergence of these factors positions the market for sustained growth, promising significant advancements and opportunities in the years to come.

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Market Growth Drivers

Innovations in AI, Robotics, and IoT that Enhance Automation Capabilities

Technological advancements in AI, robotics, and IoT are significantly enhancing automation capabilities, driving growth in the industrial automation market.

AI improves decision-making and predictive maintenance, minimizing downtime and boosting efficiency. Robotics advancements enable more precise, flexible, and autonomous operations, increasing productivity and quality.

The integration of AI and robotics results in smarter, adaptive systems handling complex tasks. IoT facilitates real-time data exchange and monitoring, providing insights for proactive management and optimization.

Such innovations streamline workflows, reduce waste, and create a more efficient industrial environment, fostering substantial market growth.

Growing Demand for Consistency and Precision Across Industries

Consistent and precise automation is a key growth driver in the market, as it significantly improves product quality and reduces errors.

Automated systems ensure uniformity in production processes, eliminating variations that can occur with manual labor. This consistency leads to higher quality products, meeting stringent industry standards and customer expectations.

Precise automation also minimizes defects and rework, enhancing overall product reliability and satisfaction. Moreover, the reduction in human error through automation enhances operational efficiency and cost-effectiveness.

Automated systems can perform repetitive tasks with high accuracy, reducing the likelihood of mistakes. This not only lowers production costs by minimizing waste and downtime but also boosts productivity.

The improved quality and reduced errors provided by automation are crucial for companies aiming to remain competitive in a global market.

Critically Growing Need for Reduced Operational Costs

Automation reduces operational costs by significantly enhancing efficiency and productivity, a key driver for the market. Automated systems streamline workflows, speeding up production processes and increasing output. This efficiency reduces labor costs, as fewer human workers are needed for repetitive or hazardous tasks.

Additionally, automation minimizes errors and waste, lowering material costs and reducing the need for costly rework. Enhanced precision and consistency lead to fewer defects, further cutting down on expenses.

Overall, these improvements in operational efficiency and productivity translate into substantial cost savings for businesses, making automation an attractive investment for manufacturers.

Factors Impeding the Market

Difficulty in Integration of Newer Automation Systems with Legacy Equipment  

Difficulty in integrating new automation systems with existing infrastructure and legacy equipment poses a significant challenge in the industrial automation market. Many manufacturing facilities operate with diverse, often outdated machinery and systems that were not initially designed for digital integration.

Retrofitting or upgrading these systems to accommodate modern automation technologies can be complex and costly. Compatibility issues between new automation platforms and legacy equipment further complicate integration efforts, requiring customized solutions and sometimes extensive downtime for implementation.

Moreover, the integration process often requires specialized expertise and careful planning to ensure seamless operation and minimal disruption to ongoing production.

Addressing these integration challenges is crucial for manufacturers seeking to leverage automation for improved efficiency, productivity, and competitiveness in today's industrial landscape.

Potential Cybersecurity Risks

Risks associated with cybersecurity threats and data breaches pose significant obstacles to the growth of the market. As more systems become interconnected through the Internet of Things (IoT), and cloud computing, they become vulnerable to cyber-attacks.

Breaches can lead to disruptions in operations, theft of sensitive data, and compromise of intellectual property. The complexity of automation systems and the diverse range of interconnected devices increase the attack surface, requiring robust cybersecurity measures.

Manufacturers must invest in secure communication protocols, encryption methods, and access controls to protect against malicious activities. Continuous monitoring and updating of cybersecurity measures are essential to mitigate risks and ensure the integrity and reliability of automated operations.

Future Opportunities for Industrial Automation Companies

Penetration of Digital Twins

Adoption of digital twins presents a compelling future opportunity for industrial automation companies. Digital twins are virtual representations of physical assets, processes, or systems that enable real-time simulation and analysis.

Digital twins allow manufacturers to conduct virtual testing and optimization before physical implementation, reducing time-to-market and costs associated with trial and error.

By leveraging digital twins, companies can predict performance outcomes, identify potential issues, and optimize processes to enhance efficiency and productivity.

The technology also facilitates predictive maintenance, improving asset reliability and operational uptime, thereby driving significant operational and competitive advantages in the industrial automation market.

Eco-Friendly Technologies, Energy-Efficient Processes, and Sustainable Manufacturing Practices

Offering eco-friendly technologies and sustainable manufacturing practices presents a promising future opportunity for industrial automation companies.

As environmental regulations tighten and sustainability becomes a priority, automation solutions that reduce energy consumption, minimize waste, and lower carbon footprints are increasingly sought-after.

Industrial automation can optimize processes to use resources more efficiently, implement renewable energy solutions, and integrate technologies that monitor and reduce environmental impact.

By embracing sustainability, automation companies can appeal to environmentally conscious industries, reduce operating costs through energy savings, and enhance their reputation as responsible corporate citizens, driving growth in the industrial automation market.

Category-wise Analysis


Projected CAGR through 2031

Component - Industrial Sensors


Solution – DCS


End-use Industry - Oil & Gas, Chemicals


Industrial Sensors Maintain a Dominant Position in Components Category

The industrial sensors segment is experiencing robust growth, fueled by the widespread adoption of Industry 4.0 and the Industrial Internet of Things (IIoT), alongside the expanding wireless sensors market.

Predictive maintenance emerges as a particularly lucrative opportunity within the industrial sensors market. This approach involves capturing sensor data, facilitating seamless data communication, and leveraging advanced analytics to make predictive insights.

Industrial sensors play a pivotal role in predictive maintenance solutions by providing real-time data on equipment performance and condition. As industries prioritize operational efficiency and cost-effectiveness, the demand for reliable and high-performance sensors is set to rise sharply.

This market trend underscores the increasing importance of sensors in enabling proactive maintenance strategies that minimize downtime, optimize asset utilization, and enhance overall productivity in industrial settings.

DCS Accounts for the Largest Market Share

During the forecast period, the DCS segment is anticipated to hold the largest share of the industrial automation market. This growth is primarily driven by the rapid industrialization observed in emerging economies.

These countries are actively pursuing expansion and capacity addition plans, particularly within their power sectors, which is set to significantly boost the demand for Distributed Control Systems (DCS).

DCS enables enhanced control and monitoring capabilities across diverse industrial processes, catering to the increasing need for operational efficiency and scalability.

By facilitating seamless coordination and management of complex operations, DCS plays a crucial role in advancing industrial modernization efforts in these dynamic economic environments.

As developing nations continue their trajectory of industrial development, the DCS market is poised to capitalize on these opportunities, driving substantial growth in the industrial automation sector.

Adoption Maximum in Oil & Gas Industry

Industrial control and factory automation technologies empower operators in the oil & gas industry to remotely monitor facilities and gather real-time information on inventory levels and equipment status.

Remote monitoring facilitates seamless data collection from equipment, enhancing operational visibility and decision-making capabilities.

By enabling remote monitoring, these technologies mitigate risks and enhance safety for onsite personnel. Operators can proactively identify potential issues and anomalies, allowing for timely interventions and preventive maintenance. Moreover, the efficiency gains from remote monitoring optimize operational workflows, reducing downtime and improving overall productivity. This integrated approach not only enhances operational efficiency but also ensures a safer working environment, aligning with the stringent safety standards of the oil & gas industry.

Region-wise Analysis


CAGR through 2031

Asia Pacific


Primacy of Asia Pacific to be Intact in Long Run

In 2024, the Asia Pacific region dominated the industrial automation market with a substantial share of 38.9%. This growth was driven primarily by the widespread adoption of industrial automation technologies, particularly in China, and India.

In China, the market expansion can be attributed to rising labor costs, prompting manufacturers to invest in automation to enhance efficiency and reduce dependency on manual labor. The country's automotive sector, hosting numerous manufacturing facilities, further fueled demand for automation solutions.

India also contributed significantly to the region's market share, leveraging automation to streamline operations across various industries amid rapid industrialization and infrastructure development.

Both countries witnessed increased deployment of advanced technologies such as robotics, AI, and IoT to optimize manufacturing processes and improve overall productivity.

Asia Pacific's dominance underscores its pivotal role in the global industrial automation landscape, driven by economic growth, technological advancements, and a strategic focus on enhancing industrial competitiveness.

Competitive Landscape Analysis

Prominent companies dominate with extensive product portfolios and global market presence. Innovation in technologies like AI, IoT, and robotics drives competitive advantage.

Regional players and startups focus on niche markets and specialized solutions, contributing to market diversity. Strategic partnerships and mergers enhance market competitiveness, emphasizing continuous innovation and service expansion to meet diverse industrial automation needs.

Recent Industry Developments

  • In 2023, An important contract was won by ABB India for the automation and electrification of ArcelorMittal Nippon Steel India's state-of-the-art cold rolling facility in Hazira. In line with AM/NS India's sustainability objectives, ABB's technology sought to improve energy efficiency, zinc use optimization, and corrosion resistance. This partnership demonstrated the transformational potential of industrial automation.
  • In 2023, Emerson Electric made a calculated effort to strengthen its position in industrial automation when it acquired National Instruments for US$ 8.2 billion. The agreement supported Emerson's expansion into testing and measurement by utilizing National Instruments' software-driven automated solutions to increase profitability and diversify the sector. The increased need for sophisticated automation solutions was reflected in this move.
  • In 2023, In order to strengthen its position as a leader in robotic systems integration in the Japanese and Asean markets, Hitachi strategically merged Hitachi Automation and Kyoto Robotics. This action made it easier to implement complete manufacturing and logistics automation solutions by utilizing the digital solutions from Hitachi and the intelligent vision systems from Kyoto Robotics. This merger highlights how advanced automation is becoming more and more important in industry.
  • In 2023, Industrial automation advanced significantly with Mitsubishi Electric's major investment in Clearpath Robotics. By using autonomous mobile robots (AMR) to improve overall plant optimization, the investment hopes to promote growth in manufacturing automation and demonstrate a dedication to open innovation.

Industrial Automation Market Report Scope



Forecast Period

2024 to 2031

Historical Data Available for

2018 to 2023

Market Analysis

US$ Million for Value

Key Regions Covered

  • North America
  • Europe
  • East Asia
  • South Asia & Pacific
  • Middle East and Africa
  • Latin America

Key Market Segments Covered

  • Component
  • Solution
  • End-use Industry
  • Region

Key Companies Profiled in the Report

  • ABB Ltd
  • Rockwell Automation Inc.
  • Siemens AG
  • Yaskawa Electric Corporation
  • Schneider Electric SE 
  • Yokogawa Electric Corporation
  • Emerson Electric Co.
  • Honeywell International Inc.
  • Mitsubishi Electric Corporation
  • OMRON Corporation
  • Advantech Co., Ltd.
  • Hitachi Ltd.
  • General Electric Company

Report Coverage

  • Market Forecast and Trends
  • Company Share Analysis
  • Competitive Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives  

Customization & Pricing

Available upon request

Industrial Automation Market Segmentation

By Component

  • Industrial Robots
  • Machine Vision
  • Process Analyzer
  • Field Instruments
  • Human Machine Interface
  • Industrial PC
  • Industrial Sensors
  • Industrial 3D Printing
  • Vibration Monitoring

By Solution

  • PLC
  • DCS
  • MES
  • Industrial Safety
  • PAM

By End-Use Industry

  • Oil & Gas, Chemicals
  • Pharmaceuticals & Medical Devices
  • Food & Beverages
  • Energy & Power
  • Automotive
  • Machine Manufacturing
  • Water & Wastewater Treatment
  • Electronics & Semiconductors
  • Metals & Mining
  • Others

By Region

  • North America
  • Europe
  • Asia-Pacific
  • The Middle East and Africa
  • Latin America

For report customisation and delivery information contact our sales representative.

Companies Covered in This Report

Frequently Asked Questions

Surging demand for industrial automation is driven by the need for increased efficiency, cost reduction, improved quality, labor shortages, and advancements in AI and robotics technology.

Some of the key players operating in the market are ABB Ltd., Rockwell Automation Inc., Siemens AG, Yaskawa Electric Corporation, and Schneider Electric SE.

Industrial sensors segment recorded the significant market share.

A compelling opportunity in the industrial automation market is the integration of artificial intelligence and machine learning for predictive maintenance, enhancing efficiency and reducing downtime.

Asia Pacific is likely to account for the significant share in the market.

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