Discrete Automation Market Size, Share & Trends Analysis Report By Type (Programmable Logic Controllers (PLC), Manufacturing Execution System (MES), Distributed Control System (DCS), Product Lifecycle Management (PLM)), By Application (Automotive, Packaging, Textile, Aerospace & Defense) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2025-2033

Discrete Automation Market Insights

The global discrete automation market size was valued at USD 8.71 billion in 2024 and is expected to grow from USD 9.36 billion in 2025 to reach USD 16.7 billion by 2033, growing at a CAGR of 7.5% during the forecast period (2025-2033).

Discrete automation primarily focuses on assembling high-quality engineered components, also known as sub-assemblies, into a more efficient and vulnerable final product. Materials are often moved manually in discrete manufacturing environments such as ‘high touch’ labor environments. This technology helps administer several manufacturing processes and operations, resulting in high-quality industrial management.

Discrete automation plays a pivotal role in industrial processes, enabling greater precision, efficiency, and control. Its importance is amplified by trends like Industry 4.0, growing demand for high-quality manufacturing outputs, and increased reliance on industrial IoT (IIoT). Industries such as automotive, aerospace, and packaging are increasingly investing in mechanization to meet production goals, enhance flexibility, and address labor shortages.

Microsoft Revenue from the company annual report, which is a key market player in the Industry 4.0 market

Discrete Automation Market Latest Trends

Rising adoption of Industry 4.0 principles

The rapid integration of Industry 4.0 has spurred the widespread adoption of automation solutions. Industries are increasingly seeking smart, interconnected systems to enhance productivity and streamline operations, particularly in sectors like automotive and aerospace. The demand for automation is growing as companies strive to stay competitive and efficient.

• For example, the International Federation of Robotics reported that in 2022, robot installations worldwide surpassed 500,000 units, marking a 15% increase from the previous year, highlighting the accelerating trend toward automation.

Growing focus on digital twin technology

Digital twin technology, supported by automation systems like PLCs (Programmable Logic Controllers) and MES (Manufacturing Execution Systems), is gaining traction for its role in predictive maintenance, process control optimization, and cost reduction. This technology allows businesses to create virtual models of physical assets, enabling them to simulate and analyze performance in real time.

• For instance, Siemens AG stated that 85% of top manufacturers are investing in digital twins to streamline their operations, reduce product development cycles, and improve operational efficiency.

This growing investment showcases the critical role digital twin technology plays in the future of manufacturing automation.

Discrete Automation Market Growth Factors

Demand for efficient production systems

As industries strive to enhance operational efficiency and product quality, the adoption of discrete automation technologies is growing. Solutions like programmable logic controllers (PLCs), robotics, and industrial IoT are enabling companies to streamline production, reduce waste, and improve overall output. The rise of smart factory initiatives, powered by advancements in AI, machine learning, and sensor technologies, is accelerating this trend.

Moreover, the push for sustainable manufacturing practices and the pressure to stay competitive in an increasingly digital global market is fueling the demand for discrete automation.

• For example, the World Economic Forum estimates that automation-driven smart factories could contribute approximately $3.7 trillion annually to global manufacturing by 2030, illustrating the massive economic potential of these technologies.

Rising investment in sustainable manufacturing

Increasing environmental regulations are encouraging manufacturers to adopt energy-efficient automation systems to meet sustainability goals and reduce operational costs. Technologies like Distributed Control Systems (DCS) and Product Lifecycle Management (PLM) software are crucial for optimizing energy consumption and ensuring compliance with stringent environmental standards. The integration of energy-efficient solutions not only boosts operational efficiency but also serves as a competitive advantage.

• For instance, the European Union's "Green Deal" initiative, which emphasizes reducing emissions in industrial production, has driven the demand for sustainable mechanization systems, further fueling growth in the sector.

Restraining Factors

High initial investment costs

The global discrete automation market, encompassing technologies like robotics, sensors, and programmable logic controllers (PLCs), often demands significant upfront investments in specialized hardware, advanced software solutions, and workforce training to implement and maintain these systems. These high initial costs can create barriers for small and medium-sized enterprises (SMEs), limiting their ability to compete with larger corporations that possess greater financial and operational resources.

Moreover, the complexity of integrating discrete automation into existing workflows further adds to implementation challenges. Despite these hurdles, advancements in modular mechanization solutions and government incentives are gradually lowering adoption barriers, fostering more inclusive growth in the global market.

Opportunity Factors

Expansion of IoT ecosystems

Discrete automation providers are increasingly incorporating IIoT technologies to offer predictive analytics, which helps in proactive maintenance and minimizing downtime. Real-time monitoring solutions provide greater visibility into operational performance, enabling businesses to make data-driven decisions that improve resource management, operational agility, and responsiveness to market changes.

This shift aligns with the growing emphasis on smart manufacturing, where industries seek to optimize their processes and adapt quickly to demand fluctuations.

• For example, Siemens’ MindSphere platform is a leading example of IIoT integration in discrete automation. The platform connects industrial equipment to a cloud-based system, allowing real-time data analysis and predictive maintenance, which has helped companies reduce downtime by up to 25%.

This is a key factor driving competitiveness and accelerating growth in sectors like automotive, electronics, and industrial machinery, where continuous improvement and operational excellence are paramount.

Regional Insights

North America: Dominant region with a significant market share

North America is a dominant force in the global discrete automation market, driven by its robust manufacturing infrastructure and early adoption of Industry 4.0 technologies, such as IoT, AI, and advanced robotics. The region’s proactive investments in automation are bolstered by a strong focus on enhancing productivity and operational efficiency across the automotive, aerospace, and electronics industries.

Additionally, North American manufacturers are at the forefront of integrating sustainable practices, aiming to reduce energy consumption and carbon emissions through innovative mechanization solutions. This commitment to sustainability aligns with global trends, positioning North America as a leader in shaping the future of this market while setting benchmarks for other regions to follow.

• For instance, according to the Association for Advancing Automation, industrial robot installations in the U.S. increased by 28% in 2023, reflecting the region’s focus on automation.

Asia-Pacific: Rapidly growing region

The Asia-Pacific region is emerging as a powerhouse in the global discrete automation market, driven by rapid industrialization and the transformative adoption of Industry 4.0 principles. The integration of Industrial Internet of Things (IIoT) technologies is enabling manufacturers to enhance operational efficiency, optimize resource utilization, and improve product quality, making mechanization solutions indispensable.

Moreover, key industries such as automotive and electronics, particularly in countries like China and India, are spearheading this growth through substantial investments in advanced robotics, precision machinery, and smart manufacturing systems.

• For instance, the China Association of Automation reports that the country’s automation market grew by 12.5% in 2023, driven by advancements in smart manufacturing.

Countries Insights

• United States: The U.S. leads the adoption of automation across key industries like automotive and aerospace, where the focus is on increasing efficiency and sustainability. The country’s emphasis on advanced technologies such as AI and robotics enables businesses to remain competitive. Significant investment in smart factories and mechanization solutions further strengthens its position as a leader in the global automation market.
• Germany: Germany is a global leader in advanced manufacturing and discrete automation, particularly in the automotive sector. With a focus on precision engineering and innovation, Germany is embracing automation to improve production quality, reduce costs, and support its strong industrial base. The country's "Industrie 4.0" initiative accelerates the integration of digital technologies into manufacturing processes, maintaining its manufacturing prowess.
• China: China is rapidly transforming its industrial landscape, leading the way in Industrial Internet of Things (IIoT) integration and automation adoption. The country's large-scale manufacturing sector, backed by government initiatives and significant investment in smart factories, is accelerating mechanization adoption. China’s focus on smart manufacturing enhances productivity and positions it as a global hub for automation technology, especially in electronics and automotive.
• India: India’s “Make in India” initiative has driven widespread automation adoption across its manufacturing sector. With a strong focus on modernization, the country is integrating robotics, AI, and other advanced technologies to boost production capacity and improve efficiency. As India’s manufacturing base expands, mechanization plays a crucial role in meeting the demand for high-quality, cost-effective production solutions in diverse industries.
• Japan: Japan remains at the forefront of robotics and automation technologies, particularly in the automotive and electronics manufacturing sectors. The country’s advanced robotics applications, such as in assembly lines and precision tasks, contribute to its reputation for high-quality manufacturing. Japan’s strong emphasis on innovation, combined with automation, helps maintain its competitive edge in global markets.
• South Korea: South Korea’s semiconductor and electronics industries are major drivers of automation demand, where cutting-edge technology and efficiency are paramount. Automation solutions, including robotics and AI, are integrated into manufacturing to maintain South Korea’s position as a leader in high-tech sectors. The country’s focus on mechanization is key to enhancing production capacity and competitiveness in the global market.
• United Kingdom: The UK’s emphasis on electrification and high-tech manufacturing is fueling automation growth. With a focus on green technologies, such as electric vehicle (EV) production, and innovations in AI and automation, the UK is strengthening its manufacturing capabilities. Automation supports the transition to sustainable, energy-efficient production processes and helps the country stay competitive in the global market.
• Brazil: Brazil’s growing automotive sector is driving the demand for automation solutions, particularly in production lines for vehicle assembly. As the industry seeks to improve productivity, reduce costs, and enhance manufacturing flexibility, automation technologies such as robotics and AI are becoming integral. Brazil’s expanding industrial sector sees mechanization as key to meeting market demands and improving manufacturing efficiency.

Segmentation Analysis

The global discrete automation market is segmented into type and application.

By Type

Programmable Logic Controllers (PLC) Segment Dominated the Market with the Largest Market Revenue.

PLCs dominate the market due to their widespread application in industrial automation processes, offering robust, flexible, and efficient control solutions. Their ability to adapt to various manufacturing environments makes them a preferred choice across industries.

• For instance, the International Society of Automation notes that PLC adoption in manufacturing increased by 20% between 2020 and 2023, driven by the need for real-time control and monitoring.

By Application

Automotive Segment Dominated the Market with the Largest Market Revenue.

The automotive segment leads the discrete automation market, driven by the growing demand for precision manufacturing, high production volumes, and the shift toward electric vehicles. Automation technologies are integral to streamlining production lines, ensuring quality, and reducing downtime.

• For instance, as per the International Energy Agency (IEA), global electric vehicle production grew by 80% in 2022, necessitating the integration of advanced mechanization solutions to meet demand.

Company Market Share

Key market players are investing in advanced discrete automation technologies and pursuing strategies such as collaborations, acquisitions, and partnerships to enhance their products and expand their market presence.

Honeywell International Inc.: An Emerging Player in the Global Discrete Automation Market

Honeywell International Inc., a global leader in automation technologies, focuses on enhancing industrial efficiency with its discrete automation solutions. Its portfolio includes advanced robotics, software, and IoT-enabled systems designed to optimize manufacturing processes.

Recent Developments:

• In December 2024, Honeywell announced a strategic partnership to integrate AI-driven predictive maintenance into its automation systems, enhancing reliability and efficiency for manufacturing clients.

Recent Developments

• March 2024 - Siemens AG launched its latest Simatic S7-1500 Advanced Controller, offering enhanced processing power and connectivity for Industry 4.0 applications. The new controller is designed to optimize production processes, enable faster data processing, and support seamless integration with digital factory solutions, marking a significant leap in automation capabilities for various industries.
• May 2024 - Schneider Electric partnered with the World Economic Forum to promote smart factory initiatives, leveraging advanced automation solutions to achieve carbon neutrality. This collaboration focuses on integrating energy-efficient technologies, IoT systems, and real-time data analytics to optimize energy consumption, reduce emissions, and enhance sustainability in global manufacturing.

Analyst Opinion

As per our analyst, the global market is set for significant growth, driven by technological innovations, sustainability initiatives, and the widespread adoption of Industry 4.0. Key growth drivers include the rising demand for efficient production systems, with automation technologies like PLCs, MES, and IIoT transforming industries such as automotive, aerospace, and packaging.

These technologies enable precision, scalability, and enhanced operational resilience, particularly through smart factory initiatives and predictive maintenance, as demonstrated by recent innovations from Honeywell and Siemens. Sustainability trends, particularly regulations like the EU’s Green Deal, are fueling the adoption of energy-efficient automation solutions such as DCS and PLM software.

However, challenges like high initial investment costs and integration issues with legacy systems pose barriers, especially for SMEs. Despite this, the rise of modular, scalable solutions presents a promising way to overcome these obstacles, allowing businesses to implement automation gradually without compromising functionality or budget.