Industrial Automation Market

Global Industrial Automation Market Size (2024 to 2032)

The global industrial automation market is predicted to witness a steady CAGR of 8.89% from 2024 to 2032 and the global market size is anticipated to be worth USD 333.16 billion by 2032 from USD 168.56 billion in 2024.

Current Scenario of the Global Industrial Automation Market

Automation is the use of data technology and control systems (computers and sets of devices) to exchange human operators to regulate industrial machinery, processes, and the building environment. Computer-controlled robots that have the power to finish an equivalent process at a compatible top quality and controllable speeds are utilized in many points of commercial production. The growing need for automated systems has increasingly shifted focus to optimization within the areas of security measures, efficiency, and low power consumption.

MARKET DRIVERS

The growing demand for operational efficiency is one of the major factors propelling the growth of the industrial automation market.

The usage of automation in industrial settings can be seen for a long time now. Companies have realized the need for automation to streamline operations, enhance precision, and boost productivity and have been aggressively investing to automate operations at working locations. The growing labor wages across industries and increasing demand for practical solutions that will manage failure at the component level are further propelling the global industrial automation market growth. With an increasing requirement for industrial-grade products occurring in almost every sector, a high need for automation which will help mass-produce commodities is being felt everywhere in the world. This has caused a spike in the number of players entering the industrial automation market, which is undoubtedly expected to extend the competitive intensity during the forecast period. Automation can also speed up the implementation of several innovative solutions, compared to manual processes.

The growing need to increase the production capacities by companies in various industry verticals is resulting in the rapid adoption of industrial automation and contributing to global market growth. The demand for industrial automation is growing exponentially and the majority of the demand is coming from automotive assemblies, telecom networks, aircraft, heat-treating boilers and ovens, factory machinery, steering, and ship stabilization, and other mechanical systems. Several companies worldwide are pouring significant investments to facilitate research and developmental processes regarding industrial automation.

Furthermore, the rising need for cost reduction, advancements in robotics technology, rapid adoption of industrial Internet of things (IIoT), increasing adoption of smart manufacturing practices, and growing demand for real-time data analysis are promoting the growth of the industrial automation market. The rapid integration of artificial intelligence, rising focus on energy efficiency in manufacturing, increasing number of Industry 4.0 initiatives, growing complexity in manufacturing processes, and regulatory support for automation in industries are favoring the growth rate of the global market.

MARKET RESTRAINTS

High costs associated with the implementation of industrial automation solutions are showing a significant impact on its adoption by companies and hampering the global market growth. Factors such as resistance from companies to technology adoption, concerns about job displacement, lack of skilled workforce, and complexity in integrating legacy systems are impeding the global industrial automation market growth. Cybersecurity risks and vulnerabilities and regulatory compliance issues are further hindering the growth rate of the global market.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Industrial Automation Market By Automation Type

Based on automation type, the SCADA and DCS segments together accounted for the largest share of the global industrial automation market in 2023, and the same trend is expected to continue throughout the forecast period owing to the high adoption of commercial control and factory automation to optimize the assembly process. Increasing demand for real-time visibility and sophisticated operations in power, oil and gas, food and beverages, and mining industries is anticipated to fuel the need for industrial control and factory automation and contribute to the growth of these segments. Implementation of an automated process is more complex in process industries than in the discrete sector. Thus, the deployment of control technologies, like a distributed system (DCS), is high within the process industry.

Global Industrial Automation Market By Industry

The growing adoption of automation in automotive and transportation industries for manufacturing processes, quality control, and supply chain management is primarily driving the growth of the segment in the worldwide market.

Based on industry, the automotive and transportation segment led the market, accounting for 24.5% of the worldwide market in 2023, and is likely to expand with a noteworthy growth rate in the global industrial automation market during the forecast period. The growing emphasis on predictive maintenance and quality control by the companies that operate in the automotive and transportation sectors is further resulting in the increased usage of industrial automation and this particular factor is contributing to the global market growth considerably.

On the other hand, segments such as metals and mining, oil and gas, and chemical, material, and food accounted for a substantial share of the worldwide market in 2023 and are expected to register healthy growth in the coming years.

REGIONAL ANALYSIS

North America was the biggest regional segment in 2023 and had 36.8% of the global market share in 2023.

The North American region is estimated to witness a healthy CAGR during the forecast period owing to the rapid adoption of technological advancements, increasing number of industry 4.0 initiatives and growing focus on smart manufacturing by the companies in North America. The U.S. accounted for the leading share of the North American market in 2023 and is expected to grow rapidly during the forecast period owing to the rapid adoption of advanced robotics in U.S. automotive plants to enhance production efficiency. The rise of collaborative robots (cobots) in various industries in the U.S. is anticipated to fuel the growth rate of the North American market.

Asia-Pacific was another notable regional segment in the global market in 29023 and accounted for 31.4% of the worldwide market share. The Asia-Pacific regional market is anticipated to grow at the highest CAGR during the forecast period. The happening of growing industrialization throughout the Asia-Pacific region is majorly driving the regional market growth. The governments of APAC countries have been encouraging automation and brought several supportive initiatives in favor of industrial automation and this trend is likely to continue during the forecast period and boost the regional market. The presence of emerging economies, increasing investments in smart cities and a solid focus on technological innovation are further propelling the APAC market. China dominated the industrial automation market in the Asia-Pacific region in 2023 and is projected to grow at a steady CAGR during the forecast period. “Made in China 2025” is an initiative by the Chinese government, which is promoting advanced manufacturing technologies and contributing to the increased usage of industrial automation.

KEY MARKET PLAYERS

Some of the major players in the global industrial automation market include ABB LTD (Switzerland), Emerson Electric Co (U.S.), General Electric (U.S.), Honeywell International (U.S.), Seimens AG (Germany), Texas Instruments Inc. (U.S.), Schneider Electric (France) and Yokogawa Electric CO. (Japan).

RECENT HAPPENINGS IN THE MARKET

• ABB acquires SVIA automation solutions. The acquisition combines SVIA's leading robotized machine tending solutions with ABB's globally leading position in industrial automation.
• B&R, a unit of ABB's Robotics and Discrete Automation business, announced the mixing of ABB robots into its automation portfolio. With the power to supply unprecedented levels of machine flexibility and precision, merging robotics with machine control into one unified architecture will enable manufacturers to embrace the trend of mass customization and optimize their lot size one processes.
• Emerson launched the most advanced Industrial Wireless Network Solution that joins the company's existing expertise in industrial automation and applications with Cisco's networking, cybersecurity, and IT infrastructure innovations. The new Emerson Wireless 1410S Gateway with the Cisco Catalyst® IW6300 Heavy Duty Series Access Point includes the latest wireless technology with advanced WirelessHART® sensor technology, delivering reliable and highly secure data, even within the harshest industrial environments.

DETAILED SEGMENTATION OF THE GLOBAL INDUSTRIAL AUTOMATION MARKET INCLUDED IN THIS REPORT

This research report on the global industrial automation market has been segmented and sub-segmented based on the automation type, industry, and region.

By Automation Type

• Distributed Control System (DCS)
• Programmable Logic Control System (PLC)
• Machine Vision System
• Manufacturing Execution System (MES)
• Human Machine Interface (HMI)
• Supervisory Control and Data Acquisition (SCADA) 
• Product Lifecycle Management (PLM) 
• Plant Asset Management 
• Computer Numerical Control (CNC) routers 
• Electronic Control Units (ECU)
• Others 

By Industry

• Automotive and Transportation
• Metals and Mining
• Oil and Gas
• Pulp and Paper
• Hydro Power 
• Energy and Power System 
• Chemical, Material, and Food 
• Measurement and Instrumentation

By Region

• North America
  • The United States
  • Canada
  • Rest of North America
• Europe
  • UK
  • France
  • Spain
  • Germany
  • Italy
  • Russia
  • Sweden
  • Denmark
  • Switzerland
  • Netherlands
  • Turkey
  • Czech Republic
  • Rest of Europe
• The Asia Pacific
  • India
  • Japan
  • China
  • Australia
  • Singapore
  • Malaysia
  • South Korea
  • New Zealand
  • Southeast Asia
• Latin America
  • Brazil
  • Argentina
  • Mexico
  • Rest of LATAM
• The Middle East and Africa
  • Saudi Arabia
  • UAE
  • Lebanon
  • Jordan
  • Cyprus