PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1808939
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1808939
Factory Automation Sensor Market size was valued at US$ 17,962.91 Million in 2024, expanding at a CAGR of 5.30% from 2025 to 2032.
Factory automation is the application of advanced technologies and systems to streamline and optimize manufacturing processes within a factory or industrial facility. It uses a variety of technologies, including robotics, sensors, and data analytics, to perform tasks such as production, assembly, and quality control in industrial settings.
Factory Automation Sensor Market- Market Dynamics
Impact Of Artificial Intelligence on the Growth of the Factory Automation Sensor Market
The adoption of artificial intelligence is expected to accelerate the growth of the Factory Automation Sensor Market. Artificial intelligence is the simulation of human intelligence processes by machines, typically via computer systems, allowing them to perform tasks that would normally require human intelligence, such as learning, reasoning, and problem solving. Artificial intelligence adoption is increasing due to technological advancements, increased data availability, industry demand for automation and efficiency, and increased investment and research. Integrating artificial intelligence into factory automation systems allows manufacturers to increase efficiency, productivity, quality, flexibility, and safety, resulting in competitive advantages and improved business outcomes. For instance, according to the Department for Digital, Culture, Media, and Sport, a UK-based government department, with 267,000 more UK enterprises using AI in their operations in January 2022, the AI adoption rate increased from 15.1% in 2020 to 22.7% in 2025. The central scenario predicts that by 2040, the overall adoption rate will be 34.8%, with 1.3 million businesses using AI. As a result, the adoption of artificial intelligence is fueling the growth of the rtificial Intelligence's Impact on the Growth of the Factory Automation Sensor Market.
Factory Automation Sensor Market- Key Insights
According to our research analyst's analysis, the global market is expected to grow at a compound annual growth rate (CAGR) of approximately 5.30% during the 2025-2032 forecast period.
Hardware was projected to have the largest market share in 2025 based on component segmentation.
DCS was the top technology in 2025, according to technology segmentation.
In 2025, North America was the top revenue-generating region by region.
The global market for factory automation sensors is divided into segments based on region, end use, technology, and component.
Based on component, the market is separated into three sectors: software, services, and hardware. In 2025, the hardware segment will dominate the market, accounting for the majority of revenue, owing to the increasing use of robotics, sensors, PLCs, HMIs, and industrial PCs to automate tasks and streamline production processes. As manufacturers strive to reduce labor dependency, improve accuracy, and boost productivity, the demand for high-performance, long-lasting, and intelligent hardware components is increasing. This shift toward smart factories and real-time process control is encouraging investment in advanced hardware that can handle complex operations with little human intervention, which is expected to drive segmental growth in the coming years.
The market is divided into four categories based on Technology: DCS, SCADA, PLC, and Others. The DCS segment will account for the largest market share in 2025, driven by the growing demand for centralized and precise control of complex, continuous processes, particularly in industries such as oil and gas, chemicals, power generation, and pharmaceuticals. DCS provides high reliability, scalability, and safety, making it ideal for managing large-scale industrial operations with little downtime. The growing emphasis on energy efficiency, regulatory compliance, and real-time data integration is driving up adoption. Furthermore, the integration of DCS with Industrial IoT (IIoT) and advanced analytics allows for predictive control, remote monitoring, and increased operational efficiency.
Factory Automation Sensor Market- Geographical Insights
North America's factory automation market will account for a sizable share in 2025, owing to a strong emphasis on smart manufacturing, AI integration, and digital transformation. The region is rapidly adopting IIoT platforms, edge computing, and real-time analytics to improve operational efficiency and product quality. Automation investments are primarily concentrated in the automotive, electronics, pharmaceutical, and aerospace sectors. Government incentives for green technologies, combined with rising demand for mass customization, are further shaping automation strategies in North American factories.
The factory automation market in Asia Pacific is expected to grow at the fastest CAGR between 2025 and 2032, owing to rapid industrialization, government initiatives, and rising demand for smart manufacturing. Countries in the region are making significant investments in automation technologies in order to increase productivity and lower labor costs. The adoption of Industry 4.0 technologies such as robotics, artificial intelligence, and the Internet of Things is growing in tandem with the push for sustainable manufacturing practices. Furthermore, the region's market growth is being driven by the strong presence of major automation solution providers as well as a growing manufacturing base in automotive, electronics, and textiles.
The factory automation sensor market is fiercely competitive and rapidly evolving, driven by rising demand for smart manufacturing and Industry 4.0 integration. ABB Ltd., Omron Corporation, Fuji Electric Co., Ltd., and Honeywell International Inc. dominate the market with comprehensive automation portfolios that include advanced temperature, pressure, proximity, and vision sensors. The market is shaped by ongoing innovation in IIoT-enabled, AI-powered, and miniaturized sensor technologies, as well as strategic partnerships and acquisitions aimed at improving product capabilities.
In March 2025, Siemens AG has completed the acquisition of Altair Engineering Inc. for approximately USD 10 billion, significantly expanding its industrial software capabilities. This strategic move strengthens Siemens AG's position in simulation and industrial artificial intelligence (AI) by combining Altair's expertise in mechanical and electromagnetic simulation, high-performance computing (HPC), data science, and AI.