Factory Automation Global Market Report 2026

Factory automation refers to the implementation of advanced technologies and systems to streamline and optimize manufacturing processes within industrial facilities. It incorporates various technologies such as robotics, sensors, and data analytics to facilitate tasks such as production, assembly, and quality control in industrial settings.

The primary types of factory automation components include sensors, controllers, switches and relays, industrial robots, drives, and others. Sensors are devices that detect changes in the environment or machinery, converting physical signals into electrical signals for monitoring and control purposes. Various factory automation technologies include supervisory control and data acquisition (SCADA), programmable automation controller (PAC), programmable logic controller (PLC), distributed control system (DCS), and human-machine interface (HMI), which find applications across diverse industries including manufacturing, automotive, packaging and processing, energy and power, semiconductors and electronics, printing and converting, among 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.

Tariffs are affecting the factory automation market by raising costs for imported industrial robots, sensors, controllers, drives, and automation software hardware used across manufacturing plants. Automotive, semiconductor, and packaging industries in North America and Europe are most impacted due to dependence on imported high-precision automation components, while Asia-Pacific faces pricing pressure on exported systems. These tariffs are increasing system integration costs and slowing automation upgrades in cost-sensitive facilities. However, tariffs are also accelerating regional production of automation components, strengthening local system integrators, and driving innovation in scalable and modular automation solutions.

The factory automation market research report is one of a series of new reports from The Business Research Company that provides factory automation market statistics, including the factory automation industry global market size, regional shares, competitors with a factory automation market share, detailed factory automation market segments, market trends and opportunities, and any further data you may need to thrive in the factory automation industry. This factory automation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The factory automation market size has grown rapidly in recent years. It will grow from $310.46 billion in 2025 to $347.41 billion in 2026 at a compound annual growth rate (CAGR) of 11.9%. The growth in the historic period can be attributed to expansion of mass manufacturing industries, rising labor cost pressures, increasing demand for consistent product quality, growth of electronics and automotive manufacturing, availability of programmable automation technologies.

The factory automation market size is expected to see rapid growth in the next few years. It will grow to $544.59 billion in 2030 at a compound annual growth rate (CAGR) of 11.9%. The growth in the forecast period can be attributed to increasing adoption of ai-enabled automation systems, expansion of smart factories, rising demand for customized production runs, growing focus on operational efficiency, increasing investments in industrial digitalization. Major trends in the forecast period include increasing deployment of industrial robots in production lines, rising adoption of smart sensors and controllers, expansion of data-driven predictive maintenance systems, growing integration of plc and scada platforms, enhanced focus on flexible manufacturing systems.

The adoption of artificial intelligence is anticipated to drive the growth of the factory automation market. Artificial intelligence involves the simulation of human intelligence by machines, usually via computer systems, allowing them to execute tasks that typically require human intellect, such as learning, reasoning, and problem-solving. The increasing uptake of AI is fueled by technological advancements, greater data availability, industry demand for automation and efficiency, and rising investment and research. Incorporating artificial intelligence into factory automation systems allows manufacturers to enhance efficiency, productivity, quality, flexibility, and safety, resulting in competitive advantages and better business outcomes. For example, according to Eurostat, a Belgium-based government agency, in 2024, 13% of EU businesses utilized artificial intelligence (AI) technologies. Consequently, the adoption of artificial intelligence is propelling the growth of the factory automation market.

Key players in the factory automation market are focusing on developing innovative products to maintain their market positions. One such innovation is the development of ballbar devices, precision measurement tools used in metrology and precision engineering. In factory automation, ballbar devices are utilized to ensure the quality and precision of machined parts by detecting errors and deviations in the machine's motion and positioning. For instance, un May 2023, Renishaw plc, a UK-based engineering company, introduced the RCS product line comprising the RCS L-90, RCS T-90, and RCS P-series, supported by a dedicated software suite. The RCS L-90 is a ball-bar device that simplifies processes through its companion software suite to monitor robot health, reduce deployment times, and enhance robot system accuracy. The RCS T-90 system assists users in identifying underlying reasons for subpar robot performance through comprehensive testing and data gathering, while the RCS P-series integrates permanent Renishaw probing solutions within robot cells, applying in-process metrology and automatic recovery to automation processes.

In July 2024, Lear Corporation, a US-based manufacturer, acquired WIP Industrial Automation for an undisclosed amount. This acquisition allows Lear to optimize its operations, leading to improved efficiency. As a result, the company is better equipped to address ongoing macroeconomic challenges, such as high wage inflation. WIP Industrial Automation, based in Spain, specializes in delivering automation solutions and technologies for a range of industries.

Major companies operating in the factory automation market are Siemens AG, Mitsubishi Electric Corporation, Schneider Electric SE, Honeywell International Inc., ABB Ltd., Toshiba Corporation, Eaton Corporation, Parker Hannifin Corporation, Emerson Electric Co., Danfoss, Rockwell Automation Inc., Bosch Rexroth AG, Omron Corporation, Keyence Corporation, Fanuc Corporation, SMC Corporation, Yaskawa Electric Corporation, Festo, KUKA Robotics, Phoenix Contact, Endress+Hauser Group, Beckhoff Automation, Yokogawa Electric Corporation, Advantech Co. Ltd., WAGO GmbH & Co. KG, Pepperl+Fuchs GmbH, Pilz GmbH & Co. KG, HIMA Paul Hildebrandt GmbH

North America was the largest region in the factory automation market in 2025. The regions covered in the factory automation market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the factory automation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The factory automation market consists of revenues earned by entities by providing services, such as consultation and assessment services, customized solution design, installation and integration services, training and support services, remote monitoring and management, and data analytics and optimization. The market value includes the value of related goods sold by the service provider or included within the service offering. The factory automation market also includes sales of sensors and vision systems, motion control systems, human-machine interface (HMI) devices, industrial Internet of Things (IIoT) devices, and automated storage and retrieval systems (AS/RS). 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.

Factory Automation Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses factory automation 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.

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Where is the largest and fastest growing market for factory automation ? 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 factory automation 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, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• 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.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Component: Sensors; Controllers; Switches And Relays; Industrial Robots; Drives
• 2) By Factory Automation Technology: Supervisory Control And Data Acquisition (SCADA); Programmable Automation Controller (PAC); Programmable Logic Controller (PLC); Distributed Control System (DCS); Human Machine Interface (HMI)
• 3) By End-User: Manufacturing; Automotive; Packaging And Processing; Semiconductor And Electronics; Printing And Converting
• Subsegments:
• 1) By Sensors: Proximity Sensors; Vision Sensors; Temperature Sensors; Pressure Sensors; Level Sensors; Flow Sensors; Position Sensors
• 2) By Controllers: Programmable Logic Controllers (PLCs); Distributed Control Systems (DCS); Human-Machine Interface (HMI); Motion Controllers; Embedded Controllers
• 3) By Switches And Relays: Limit Switches; Push Button Switches; Safety Switches; Electromechanical Relays; Solid-State Relays
• 4) By Industrial Robots: Articulated Robots; SCARA Robots; Cartesian Robots; Collaborative Robots (Cobots); Delta Robots
• 5) By Drives: AC Drives; DC Drives; Servo Drives; Variable Frequency Drives (VFDs); Stepper Drives
• Companies Mentioned: Siemens AG; Mitsubishi Electric Corporation; Schneider Electric SE; Honeywell International Inc.; ABB Ltd.; Toshiba Corporation; Eaton Corporation; Parker Hannifin Corporation; Emerson Electric Co.; Danfoss; Rockwell Automation Inc.; Bosch Rexroth AG; Omron Corporation; Keyence Corporation; Fanuc Corporation; SMC Corporation; Yaskawa Electric Corporation; Festo; KUKA Robotics; Phoenix Contact; Endress+Hauser Group; Beckhoff Automation; Yokogawa Electric Corporation; Advantech Co. Ltd.; WAGO GmbH & Co. KG; Pepperl+Fuchs GmbH; Pilz GmbH & Co. KG; HIMA Paul Hildebrandt GmbH
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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