Industrial Automation Market Grows Steadily at a CAGR of 9.1%

Introduction

Industrial automation refers to the use of control systems, such as computers, robots, and information technologies, to handle different processes and machinery in an industry to replace human intervention. It involves the integration of various technologies, including robotics, artificial intelligence (AI), sensors, and IoT, to improve production efficiency, reduce errors, and enhance safety. 

Market Dynamics

Growing demand for productivity optimization drives the global market

Industries are increasingly turning to industrial automation to boost productivity, lower costs, and minimize human error, transforming production processes across sectors. In manufacturing, the integration of robotics, AI, and machine learning has revolutionized assembly lines, enabling faster production speeds, improved quality control, and predictive maintenance that reduces downtime.

• For example, GE Aviation has adopted AI-powered quality inspection systems, which have reduced defect rates by up to 20%, driving efficiency and enhancing customer satisfaction.

As competition intensifies worldwide, automation is becoming a key enabler for industries seeking scalable, cost-effective, and consistent production.

Growth in emerging markets creates tremendous opportunities

Emerging economies, particularly in the Asia-Pacific and Latin America regions, are becoming key growth drivers for industrial automation, fueled by rapid industrialization and modernization initiatives. These regions are making substantial investments in automation technologies to improve manufacturing efficiency, accuracy, and cost-effectiveness, which are crucial for competing in the global market.

• For instance, the World Bank highlights India’s rapid industrial expansion, where initiatives like "Make in India" have spurred significant investments in automation across sectors like automotive and electronics.

In Brazil, government-backed programs aimed at revitalizing manufacturing have driven the increased adoption of robotic systems and AI-powered automation solutions.

These developments illustrate the vast potential of automation technologies to drive economic growth and elevate manufacturing standards in emerging markets, creating significant opportunities for global players in the industrial automation sector.

Regional Analysis

North America leads the global market, driven by a highly advanced technological ecosystem, substantial investments in smart factories, and a strong emphasis on research and development. The region's mature and competitive market environment encourages industries to embrace automation as a means to sustain productivity, uphold quality, and enhance flexibility. Companies in North America are increasingly integrating artificial intelligence, IoT, and cloud computing into automated systems to address labor shortages and improve global competitiveness.

• For instance, the U.S. Bureau of Economic Analysis reported that automation in manufacturing contributed around $183 billion to the U.S. economy in 2022, highlighting the significant economic impact and pivotal role that automation plays in maintaining the nation's industrial leadership.

Key Highlights

• The global industrial automation market size was valued at USD 192.02 billion in 2024 and is expected to grow from USD 209.49 billion in 2025 to reach USD 420.49 billion by 2033, growing at a CAGR of 9.1% during the forecast period (2025-2033).
• Based on the Type of Component, the global market is divided into hardware, software, and services. The hardware segment dominated the market with the largest market revenue.
• Based on the Mode of Automation, the global market is divided into flexible, fixed, integrated, and programmable.
• Based on Deployment Mode, the global market is divided into cloud-based and on-premises.
• Based on End-User Industry, the global market is divided into food and beverage, healthcare, manufacturing, and others. The manufacturing segment dominated the market with the largest market revenue.
• North America is the highest shareholder in the global market.

Competitive Players

1. Siemens AG
2. ABB Ltd
3. Rockwell Automation, Inc.
4. Honeywell International Inc.
5. Emerson Electric Co.
6. Mitsubishi Electric Corporation
7. Schneider Electric SE
8. Omron Corporation
9. Yokogawa Electric Corporation
10. FANUC Corporation
11. Bosch Rexroth AG
12. General Electric Company
13. KUKA AG
14. Keyence Corporation
15. Beckhoff Automation GmbH & Co. KG

Recent Developments

• In April 2024- Schneider Electric partnered with Microsoft to expand its cloud-based automation offerings. This collaboration focuses on smart manufacturing and IoT-based solutions, enabling companies to optimize their production processes through real-time data analysis and connected systems.

Segmentation

1. By Type of Component
   1. Hardware
   2. Software
   3. Services
2. By Mode of Automation
   1. Flexible
   2. Fixed
   3. Integrated
   4. Programmable
3. By Deployment Mode
   1. Cloud-based
   2. On-Premises
4. By End-User Industry
   1. Food and Beverage
   2. Healthcare
   3. Manufacturing
   4. Others
5. By Regions
   1. North America
   2. Europe
   3. Asia-Pacific
   4. Latin America
   5. The Middle East and Africa