PUBLISHER: The Business Research Company | PRODUCT CODE: 1847284
PUBLISHER: The Business Research Company | PRODUCT CODE: 1847284
Automation and control refer to the use of technology and systems to monitor and manage the production and delivery of products and services with minimal or no human intervention. Automation involves the use of various equipment and control systems, on the other hand, control involves the use of technology to regulate and manage the operation of machines and systems to achieve desired outcomes.
The main product types of automation and controls are programmable logic controllers (PLC), supervisory control and data acquisition (SCADA), programmable automation controllers (PAC), distributed control systems (DCS), human-machine interfaces (HMI), and manufacturing execution systems (MES). Programmable logic controllers (PLCs) are smart computers that control machines in factories by following instructions to make things move and work correctly. They are used in various applications such as lighting, heating, ventilation, and air conditioning (HVAC), safety and security and others, and are used by several end users such as residential, commercial, industrial, oil and gas, mining and metals, automotive and transportation, manufacturing electrical and electronics, and others.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a significant impact on the information technology sector, especially in hardware manufacturing, data infrastructure, and software deployment. Increased duties on imported semiconductors, circuit boards, and networking equipment have driven up production and operating costs for tech companies, cloud service providers, and data centers. Firms that depend on globally sourced components for laptops, servers, and consumer electronics are grappling with extended lead times and mounting pricing pressures. At the same time, tariffs on specialized software and retaliatory actions by key international markets have disrupted global IT supply chains and dampened foreign demand for U.S.-made technologies. In response, the sector is ramping up investments in domestic chip production, broadening its supplier network, and leveraging AI-powered automation to improve resilience and manage costs more effectively.
The main product types of automation and controls are programmable logic controllers (PLC), supervisory control and data acquisition (SCADA), programmable automation controllers (PAC), distributed control systems (DCS), human-machine interfaces (HMI), and manufacturing execution systems (MES). Programmable logic controllers (PLCs) are smart computers that control machines in factories by following instructions to make things move and work correctly. They are used in various applications such as lighting, heating, ventilation, and air conditioning (HVAC), safety and security and others, and are used by several end users such as residential, commercial, industrial, oil and gas, mining and metals, automotive and transportation, manufacturing electrical and electronics, and others.
The automation and controls market size has grown strongly in recent years. It will grow from $139.8 billion in 2024 to $152.66 billion in 2025 at a compound annual growth rate (CAGR) of 9.2%. The growth in the historic period can be attributed to industrial revolution, computerization, electrification programmable logic controllers (PLCs), digital revolution, internet of things (IoT).
The automation and controls market size is expected to see strong growth in the next few years. It will grow to $218.74 billion in 2029 at a compound annual growth rate (CAGR) of 9.4%. The growth in the forecast period can be attributed to demand for smart manufacturing, rising labor costs and skills shortages, demand for remote monitoring and management, urbanization and infrastructure development, demand for smart manufacturing. Major trends in the forecast period include embrace of digital twins, technological advancements, augmented reality (AR) and virtual reality (VR), expansion of robotics and cobots, and integration of AI and machine learning.
The forecast of 9.4% growth over the next five years reflects a modest reduction of 0.2% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. Production efficiency could decline due to increased pricing and longer lead times for PLCs and SCADA components, heavily sourced from German and Chinese manufacturers. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.
The growing demand for industrial automation is expected to drive the expansion of the automation and control market. Industrial automation involves the use of robotics, machinery, and control systems to perform tasks traditionally carried out by human workers. This approach is favored for its ability to improve efficiency, productivity, safety, and reliability, while also reducing operational costs and human error. Automation and control systems play a key role in industrial automation by streamlining operations, enhancing precision, and ensuring consistent quality and safety in manufacturing processes. For example, in October 2023, the International Federation of Robotics, a Germany-based professional non-profit organization, reported that in 2022, the sale of service robots for professional use reached 158,000 units, a 48% increase. With companies increasingly adopting automation to address staffing shortages, the surge in demand for industrial automation is fueling the growth of the automation and control market.
Major companies operating in the automation and controls market are developing innovative products such as the MTConnect driver to secure their place in the market. This innovation aims to integrate CNC machines into the sophisticated IIoT automation ecosystem, enhancing thorough data analysis. For instance, in March 2022, Emerson Electric Co., a US-based engineering company, introduced the MTConnect driver for its Movicon. NExTTM 4.1.333 platform, enhances its industrial control offerings by enabling quick, simple integration and scalability. It enables the efficient collection and use of crucial data from manufacturing assets, such as machines, tools, and robots. Its integration aids in informed decision-making across both operational and enterprise levels. This read-only solution restricts the programming of axis-specific parameters but significantly broadens Movicon.NExT's capacity to assimilate production data within manufacturing environments.
In August 2022, Hitachi Ltd., a Japan-based company specializing in digital transformation, acquired Flexware Innovation Inc. for an undisclosed amount. Through this acquisition, Hitachi, Ltd. aims to strengthen and enhance Hitachi's business in the domains of MES, SCADA, and automation, reflecting their involvement in the automation and controls sector. Flexware Innovation Inc. is a US-based company that provides automation, supervisory, and MES solutions software.
Major companies operating in the automation and controls market are Hitachi Ltd., Siemens AG, General Electric Company, Mitsubishi Electric Corporation, Schneider Electric SE, Honeywell International Inc., ABB Group, Johnson Controls International PLC, Emerson Electric Co., Parker Hannifin Corporation, Kawasaki Heavy Industries Ltd., Delta Electronics Inc., Rockwell Automation Inc., Bosch Rexroth AG, OMRON Corporation, Keyence Corporation, Fanuc Corporation, Dassault Systemes SE, Fuji Electric Co. Ltd., Yaskawa Electric Corporation, KUKA AG, Yokogawa Electric Corporation, Phoenix Contact GmbH & Co. KG, Rittal GmbH & Co. KG, SICK AG, Advantech Co. Ltd., Beckhoff Automation GmbH & Co. KG, National Instruments Corporation, AVEVA Group PLC, B&R Industrial Automation GmbH, Universal Robots A/S
Asia-Pacific was the largest region in the automation and controls market in 2024. The regions covered in the automation and controls market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the automation and controls market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The automation and controls market consists of revenues earned by entities by providing services such as installation and integration, training, consulting and design, maintenance and support, and remote monitoring. The market value includes the value of related goods sold by the service provider or included within the service offering. The automation and control market also includes sales of industrial PCs (UPC), motion control systems, industrial networking equipment, building automation systems (BAS), and process analytical technology (PAT) systems. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Automation And Controls Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on automation and controls market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for automation and controls ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The automation and controls market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.