Global Industrial Automation Market Size, Share, Growth & Trend Analysis Report, 2032

Summary
Market Landscape
Methodology
Table of Content

Global Industrial Automation Market Size, Share, Growth & Trend Analysis Report, By Component (Hardware, Software), By Deployment (On-premises, Cloud-based), By Control System, By End-use, By Region (Asia Pacific, Europe, North America, Latin America and Middle East & Africa) and Forecasts 2024-2032

The Global Industrial Automation Market was valued at USD XX billion in 2024 and is anticipated to reach USD XX billion by 2032, reflecting a compound annual growth rate (CAGR) of around 8% during the forecast period from 2025 to 2032.

Industry Trends

The global industrial automation market is driven by factors such as the increasing demand for efficient and cost-effective manufacturing processes, advancements in technologies like AI, IoT, and robotics, and the need for improved productivity, safety, and quality control.

Additionally, the push for digitalization in industries such as automotive, food and beverage, and chemicals contributes to growth.

However, challenges such as high initial investment costs, lack of skilled workforce, and cybersecurity risks may hinder market expansion.

Restraints include concerns over the complexity of integrating automation systems with existing infrastructure and potential job displacement.

Despite these challenges, the market is expected to expand with the rise of smart factories and Industry 4.0 initiatives, offering opportunities for growth.

Industry Expert’s Opinion

Barbara Frei, Executive Vice President, Industrial Automation at Schneider Electric

“With industry contributing around 45% of global greenhouse gas emissions, it is clear we must act to reduce this and support industrial decarbonization as quickly as possible. The question is how we achieve this while boosting productivity. Automation, which is at the heart of industrial operational technology optimizes production processes and is a key enabler for successful digital transformation. It drives productivity and efficiency and helps make the most of energy and raw materials”

Ashish Gaikwad, VP – General Manager, Industrial Automation, Honeywell India

“It is believed that the global industrial automation market is growing at a CAGR of 8.2%. The market. Increased usage of Industrial Digitalization, Artificial Intelligence-Machine Learning based Manufacturing Excellence is already transforming the factory automation industry, with machine learning algorithms that can analyses vast amounts of data, provide superlative decision support, and predict equipment failures, avoiding downtime. Manufacturing Excellence Platform and Integrated Remote operations help optimize the manufacturing process and workflow, thereby orchestrating the best outcomes.”

TT Consultants’ Perspective

The future outlook of industrial automation is marked by significant advancements driven by emerging technologies, increasing efficiency, and the evolution of manufacturing practices.

As industries continue to embrace digital transformation, the integration of technologies such as artificial intelligence (AI), machine learning, Internet of Things (IoT), and edge computing will redefine automation systems.

These technologies will enable real-time decision-making, predictive maintenance, and autonomous operations, significantly improving productivity and reducing downtime.

In the coming years, industrial automation will play a crucial role in sustainability efforts, helping industries reduce waste, optimize energy consumption, and contribute to carbon footprint reduction.

The continued focus on data-driven insights and the integration of digital twins will improve supply chain management, quality control, and asset management, enabling smarter manufacturing processes.

Market Segmentation

1. By Component (Hardware, Software)

The industrial automation market is segmented into hardware and software components, with software expected to dominate the market share throughout the forecast period.

This includes automation software solutions such as human-machine interface (HMI) and supervisory control and data acquisition (SCADA) systems, which are pivotal in optimizing manufacturing processes.

On the other hand, the hardware segment is anticipated to experience significant growth during the forecast period, driven by the rising demand for advanced automation technologies powered by the Internet of Things (IoT) across various industries.

2. By Deployment (On-premises, Cloud-based)

Cloud-based deployment is projected to see substantial growth, driven by its flexibility, scalability, and cost-effectiveness, as businesses increasingly adopt cloud technologies to enhance operational efficiency and data accessibility.

On the other hand, on-premises deployment remains a key segment, particularly for industries with stringent data security and compliance requirements, as it offers greater control over systems and data management.

The growing preference for cloud-based solutions is expected to be a significant driver in the market's evolution.

3. By Control System (Distributed Control System, Programmable Logic Controller, Supervisory Control and Data Acquisition, Human Machine Interface, Others)

The industrial automation market is categorized by various control systems, including Distributed Control System (DCS), Programmable Logic Controller (PLC), Supervisory Control and Data Acquisition (SCADA), Human Machine Interface (HMI), and others.

The Distributed Control System (DCS) is used for managing complex, large-scale processes, providing decentralized control and increasing system reliability. Programmable Logic Controllers (PLC) are essential for automating simple and repetitive tasks, offering flexibility and reliability in controlling machinery.

Supervisory Control and Data Acquisition (SCADA) systems are utilized for real-time monitoring and control of industrial processes, allowing operators to gather and analyse data for optimal decision-making.

Human Machine Interfaces (HMI) serve as the bridge between operators and machines, enabling intuitive interaction with automated systems.

Other control systems may include advanced control solutions tailored to specific industries or applications. Each of these control systems contributes to improving automation efficiency, enhancing process management, and optimizing operational performance across various sectors.

4. By End-use (Automotive, Chemicals, Electronics, Food & Beverage, Mining & Metals, Oil & Gas, Pharmaceuticals, Power Generation, and Others)

In the automotive sector, automation plays a key role in streamlining production lines, improving precision, and reducing costs.

The chemicals industry relies on automation for process control, safety, and efficient production management. Electronics manufacturing benefits from automation in assembly lines, improving speed and accuracy.

In food and beverage, automation is critical for maintaining quality, increasing throughput, and ensuring food safety.

The mining and metals industry uses automation for operations in harsh environments, enhancing efficiency and safety.

Oil and gas companies adopt automation to optimize exploration, drilling, and refining processes while reducing operational risks.

The pharmaceutical industry benefits from automation in drug production and packaging, ensuring compliance with regulatory standards.

In power generation, automation systems help optimize plant operations and improve energy efficiency.

Other industries, such as textiles and pulp and paper, also utilize industrial automation to enhance production capabilities and reduce costs. Each of these sectors leverages automation to improve efficiency, safety, and overall performance.

5. By Region (North America, Europe, Asia Pacific, Latin America, Middle East Africa)

North America holds a significant share in the market, driven by technological advancements, the adoption of Industry 4.0, and the presence of key automation solution providers.

Europe follows closely, with a strong focus on industrial digitalization, energy efficiency, and the growing demand for automation in manufacturing processes.

The Asia Pacific region is expected to experience notable growth, supported by the rapid industrialization of countries like China, India, and Japan, as well as increasing investments in automation technologies.

Latin America is gradually adopting industrial automation, with rising demand in sectors such as manufacturing and energy.

The Middle East & Africa region is experiencing gradual growth, fueled by the oil and gas industry’s push for automation to improve operational efficiency and reduce costs.

Each region presents unique opportunities, driven by varying levels of industrialization and technological adoption.

Competitive Scenario

Key players in the industrial automation market include Emerson Electric Co. (U.S.), Siemens AG (Germany), Honeywell International Inc. (U.S.), Mitsubishi Electric Corporation (Japan), Yokogawa Electric Corporation (Japan), Schneider Electric SE (France), Rockwell Automation Inc. (U.S.), Omron Corporation (Japan), ABB Ltd. (Switzerland), and General Electric Company (U.S.).

These companies are prominent for their technological innovations, extensive product offerings, and strategic contributions to the development of automation solutions across various industries worldwide.

Recent Developments and Strategic Activities:

In December 2024, SiLC Technologies has introduced the Eyeonic Trace Class 1 Laser Line Scanner, designed for industrial automation systems, offering sub-millimeter accuracy at distances up to 10 meters. This FMCW LiDAR-based scanner provides precise measurement for objects on conveyor belts, assembly lines, or robotic arms, making it ideal for applications requiring high precision and quick response times. With a wide field of view and Class 1 eye-safe laser, the Eyeonic Trace enhances operational efficiency in industrial environments, from warehousing to manufacturing.
In October 2024, Siemens has introduced the SIRIUS 3RC7 intelligent link module to enhance data transparency down to the field level in industrial automation. This plug-and-play module seamlessly integrates load feeders into the existing automation system, enabling efficient data utilization, fault detection, and predictive maintenance. It is part of the Totally Integrated Automation (TIA) concept and offers real-time status updates, improving system availability and reducing downtime.
In 2024, Schneider Electric highlighted the role of software, automation, and electrification in enhancing industrial competitiveness. The company showcased its innovations, including industrial software, Artificial Intelligence, and Digital Twin technology, emphasizing their impact on industrial productivity, resilience, and efficiency. With a focus on decarbonization, Schneider emphasized how software-defined automation optimizes production processes, reduces costs, and supports agile, sustainable operations. By simplifying legacy automation systems, Schneider’s open, software-defined approach enables industries to upgrade their systems, improving efficiency and adaptability while reducing the total cost of ownership.