Industrial Automation Market Forecasts to 2032 - Global Analysis By Solution (Control Systems, Field Equipment and Automation Software), Component (Hardware, Software and Services), Automation Type, Deployment Mode, End User and By Geography

According to Stratistics MRC, the Global Industrial Automation Market is accounted for $272.50 billion in 2025 and is expected to reach $524.31 billion by 2032 growing at a CAGR of 9.8% during the forecast period. Industrial automation involves employing control technologies like computers, robotics, and software systems to oversee and execute manufacturing operations with limited human involvement. It improves productivity, maintains uniform product quality, and lowers production expenses by mechanizing repetitive, time-consuming, or risky processes. Sectors such as automotive, electronics, food processing, and pharmaceuticals utilize automation extensively to optimize processes, boost output, and uphold safety regulations. Modern advancements, including artificial intelligence, IoT, and machine learning, are increasingly incorporated into these systems to facilitate real-time process tracking, predictive maintenance, and informed decision-making.

According to multiple sources referencing VDMA data, Germany's machine vision sector was expected to grow by approximately 8% in 2022, reaching a market volume of €3.3 billion. This growth was indeed driven by strong demand in automation, quality assurance, and digital factory applications.

Market Dynamics:

Driver:

Increasing demand for operational efficiency

The rising emphasis on operational efficiency is a key factor fueling the industrial automation market. Businesses face mounting pressure to cut costs, limit mistakes, and maximize resource use. Advanced automation technologies, such as robotics, control systems, and AI-driven solutions, help organizations optimize workflows, ensure uniform product quality, and speed up production. By automating repetitive or dangerous tasks, companies gain increased productivity and flexibility in operations. Additionally, automated systems allow enhanced process oversight and predictive maintenance, preventing unplanned downtime, improving reliability, and enabling manufacturers to stay competitive in the global market's evolving landscape.

Restraint:

High initial investment costs

The substantial upfront costs associated with industrial automation systems serve as a major market constraint. Investing in robotics, advanced control systems, and AI-powered technologies requires significant capital, posing challenges for small and medium enterprises. Additional expenses, such as software integration, system customization, and staff training, further increase the financial load. Companies often hesitate to adopt automation without assured short-term gains, especially in areas with limited financing options or high borrowing costs. As a result, adoption is slower and concentrated mainly among large manufacturers capable of handling high initial investments while expecting long-term efficiency gains, cost savings, and competitive advantages.

Opportunity:

Adoption of industry 4.0 and smart manufacturing

Embracing Industry 4.0 principles and smart manufacturing presents a major opportunity for the industrial automation market. Incorporating IoT, AI, and machine learning into production processes enables real-time performance monitoring, predictive maintenance, and higher operational efficiency. Smart factories help companies optimize resource use, lower costs, and maintain consistent product quality. Organizations focusing on digital transformation gain a competitive advantage by using automation to respond rapidly to evolving market needs. The global rise of connected devices and data-centric decision-making in manufacturing is fueling demand for advanced automation technologies, offering substantial potential for market growth, innovation, and the adoption of cutting-edge solutions across industries.

Threat:

Economic uncertainty and market volatility

Market volatility and economic uncertainty represent significant threats to industrial automation growth. Factors such as inflation, currency fluctuations, and changing commodity prices can influence capital investments in automation technologies. Companies may postpone or scale back automation spending during financially uncertain periods, slowing market expansion. Global trade disputes, regulatory shifts, and political instability can disrupt supply chains, limit access to raw materials, and raise operational costs. Small and medium-sized businesses are particularly at risk. Economic instability can impede long-term investment planning and slow adoption of automation solutions, thereby restricting market growth and affecting profitability across the industrial automation sector.

Covid-19 Impact:

The COVID-19 outbreak had a profound effect on the industrial automation market, creating both challenges and opportunities. Lockdowns, disrupted supply chains, and workforce limitations caused temporary production stoppages, project delays, and reduced investments in automation technologies across sectors. At the same time, the pandemic underscored the value of automation in sustaining operations with limited human involvement. Organizations increasingly deployed robotics, remote monitoring systems, and digital technologies to maintain continuity, improve safety, and address labour shortages. The crisis accelerated the adoption of Industry 4.0 solutions, highlighting the need for operational flexibility and resilience. Consequently, COVID-19 initially slowed market growth but ultimately strengthened demand for advanced automation and smart manufacturing solutions.

The hardware segment is expected to be the largest during the forecast period

The hardware segment is expected to account for the largest market share during the forecast period due to its essential role in supporting manufacturing and process automation. Key hardware components, including sensors, controllers, actuators, and robotic systems, serve as the foundation for automation, enabling accurate monitoring, control, and execution of industrial processes. Industries depend heavily on these elements to maintain productivity, consistency, and operational reliability. Increasing demand for advanced machinery, robotics, and optimized production processes across automotive, electronics, and pharmaceutical sectors reinforces the prominence of the hardware segment. Its fundamental significance ensures that investments and adoption rates in hardware continue to surpass those in software and services, making it the largest market segment.

The cloud-based segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the cloud-based segment is predicted to witness the highest growth rate, due to their scalability, flexibility, and efficiency. These platforms provide centralized control, real-time data access, and remote monitoring capabilities, enabling manufacturers to enhance operational efficiency and informed decision-making. Companies increasingly prefer cloud deployments to lower on-site infrastructure costs, improve collaboration across multiple locations, and accelerate Industry 4.0 adoption. The demand for predictive maintenance, process optimization, and data-driven strategies further fuels the uptake of cloud-based automation models. As a result, cloud computing is growing more rapidly than on-premise and edge solutions, making it the fastest-growing segment in industrial automation.

Region with largest share:

During the forecast period, the North America region is expected to hold the largest market share, largely due to its sophisticated manufacturing infrastructure, technological advancements, and widespread adoption of automation across various sectors. The region benefits from the presence of major automation firms, active research and development, and supportive government policies promoting robotics, smart systems, and digital manufacturing. Key industries, including automotive, aerospace, electronics, and pharmaceuticals, leverage automation to boost productivity, reduce operational costs, and ensure high-quality output. Furthermore, the region's emphasis on Industry 4.0, AI-driven solutions, and IoT integration strengthens its leadership in the market.

Region with highest CAGR:

Over the forecast period, the Asia Pacific region is anticipated to exhibit the highest CAGR, due to fast-paced industrial growth, rising investments in manufacturing, and increasing demand for automated solutions. Key countries, including China, India, and Japan, are expanding industries such as automotive, electronics, pharmaceuticals, and food processing, boosting the implementation of robotics, AI, and IoT-based automation technologies. Supportive government initiatives, including smart factory programs, Industry 4.0 promotion, and infrastructure upgrades, further drive growth. The availability of a large skilled workforce and growing focus on productivity, efficiency, and cost reduction contribute to the region's rapid expansion in industrial automation adoption.

Key players in the market

Some of the key players in Industrial Automation Market include Siemens, ABB, Rockwell Automation, Schneider Electric, Honeywell Process Solutions, Omron Automation, Danaher Industrial Ltd, FANUC, KUKA, Yokogawa Electric, Mitsubishi Electric, Emerson Automation Solutions, PHOENIX CONTACT, Beckhoff Automation and Bosch Rexroth.

Key Developments:

In September 2025, Schneider Electric signed a long-term framework agreement with E.ON, one of Europe's largest energy companies. This strategic partnership marks a significant step forward in the deployment of sustainable and digital-ready energy infrastructure across Europe. Schneider Electric will support E.ON's ambitious goals with its latest SF6-free medium-voltage (MV) switchgear and a suite of digital technologies.

In August 2025, ABB has finalized a long-term supply agreement with Noveon Magnetics, a Texas-based manufacturer of sintered rare earth magnets. Under the agreement, Noveon will provide neodymium iron boron (NdFeB) magnets for use in ABB's industrial motors. The multi-million-dollar contract supports ABB's manufacturing operations across North America, with initial shipments.

In October 2024, Rockwell Automation, Inc. announced it has signed an agreement with Taurob (Dietsmann Group) to provide a holistic robotic solution that would enable industrial organizations to move towards autonomous operations in their facilities. Taurob designs and manufactures ground robots for inspection, maintenance and data collection to optimize and enhance efficiency on a variety of industrial sites.

Solutions Covered:

• Control Systems
• Field Equipment
• Automation Software

Components Covered:

• Hardware
• Software
• Services

Automation Types Covered:

• Fixed Automation
• Programmable Automation
• Flexible Automation

Deployment Modes Covered:

• On-Premise
• Cloud-Based
• Edge Computing Models

End Users Covered:

• Automotive & Transportation
• Oil & Gas
• Pharmaceuticals
• Food & Beverage
• Energy & Utilities
• Electronics & Semiconductors
• Metals & Mining

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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