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Discrete Automation Market Size & Share [2033]

Discrete Automation Market Overview

The Discrete Automation Market size was valued at USD 5824.08 million in 2024 and is expected to reach USD 10230.55 million by 2033, growing at a CAGR of 6.1% from 2025 to 2033.

The discrete automation market is experiencing significant growth, driven by the increasing demand for automation in manufacturing processes. In 2024, the market was valued at approximately USD 144.99 billion, with projections indicating continued expansion in the coming years. This growth is attributed to the rising adoption of automation technologies across various industries, including automotive, electronics, food and beverage, pharmaceuticals, and aerospace.

The integration of advanced technologies such as artificial intelligence (AI), machine learning (ML), and the Industrial Internet of Things (IIoT) is enhancing automation capabilities, enabling predictive maintenance, real-time data collection, and improved decision-making. Governments worldwide are also implementing policies to encourage automation adoption, offering tax incentives, research grants, and funding for automation projects. These initiatives are fostering a conducive environment for the development and deployment of discrete automation solutions, contributing to the market's robust growth trajectory.

Key Findings

Driver: The increasing need for automation in manufacturing and production processes is a major driver of the discrete automation market.

Top Country/Region: North America is anticipated to dominate the market, owing to the strong presence of key industry players and significant investments in automation technologies.

Top Segment: The hardware segment held the largest share of the market in 2023 and is expected to continue to dominate throughout the forecast period.

Discrete Automation Market Trends

The discrete automation market is witnessing a rapid evolution driven by several emerging trends. One of the most significant is the integration of Industrial Internet of Things (IIoT) technology, which enables machines and systems to communicate in real time. In 2023, more than 60% of manufacturing firms in developed regions adopted IIoT-enabled automation systems to streamline their production processes. This trend is expected to expand further with the ongoing shift toward smart factories and Industry 4.0. Another major trend is the increased adoption of robotics in discrete manufacturing. According to the International Federation of Robotics, global industrial robot installations reached over 553,000 units in 2023, with discrete industries such as automotive, electronics, and metal manufacturing accounting for over 70% of the total. These robots are equipped with AI and machine vision, improving precision, speed, and reliability. Cloud-based automation platforms are also gaining traction. In 2024, approximately 47% of manufacturers worldwide adopted cloud-based SCADA (Supervisory Control and Data Acquisition) and MES (Manufacturing Execution Systems) platforms, enabling remote monitoring, data analytics, and faster decision-making. This shift is particularly beneficial for small- and medium-sized enterprises (SMEs) that require scalable solutions without heavy infrastructure investments.

Additionally, sustainability is becoming a focal point in automation systems. Automated processes now emphasize energy efficiency and waste reduction. For example, automated packaging lines in the food and beverage sector helped reduce material waste by up to 32% in 2023. Similarly, manufacturers in the electronics sector reported a 21% drop in energy consumption after implementing smart energy monitoring systems. Human-machine collaboration, also known as cobots (collaborative robots), is another growing trend. The global market for cobots was estimated at 38,000 units in 2023, up from 29,000 in 2022, marking a 31% increase. These systems enhance productivity by safely working alongside human operators without the need for traditional safety barriers. Digital twins—virtual replicas of physical systems—are being used extensively for simulation and predictive maintenance. By 2024, around 40% of Fortune 500 manufacturers were leveraging digital twin technologies to optimize production lines and reduce downtime. These trends collectively indicate a market moving toward higher flexibility, intelligence, and sustainability, driven by technological advancements and increased global competitiveness.

Discrete Automation Market Dynamics

DRIVER

Rising demand for factory automation and smart manufacturing.

The surge in demand for fully automated and smart production systems is a major driver of the discrete automation market. As of 2023, over 71% of automotive manufacturing facilities had integrated Programmable Logic Controllers (PLCs) and robotics to enhance productivity and reduce human error. The push toward Industry 4.0, combined with rising labor costs in industrialized nations, has further accelerated automation implementation. Countries like Germany, the U.S., Japan, and South Korea have observed a 25–35% increase in the deployment of automated systems in the last three years. Automation is also reducing operational costs, with some manufacturers reporting a 28% improvement in production efficiency after upgrading to automated lines.

RESTRAINT

High initial cost of automation technologies.

Despite long-term benefits, the high upfront investment for automation systems is a key restraint. Installation of automated production lines can cost anywhere between USD 250,000 to over USD 2 million, depending on complexity and scale. For SMEs, these costs are often prohibitive. Moreover, maintenance and periodic software updates add to the total cost of ownership. In 2023, around 42% of small manufacturers in developing regions deferred automation implementation due to budget constraints. Additionally, skilled labor shortages to operate and maintain these systems continue to pose challenges.

OPPORTUNITY

Increasing adoption of AI and machine learning in automation.

The integration of artificial intelligence (AI) and machine learning (ML) presents vast growth opportunities for the discrete automation market. In 2023, approximately 36% of industrial automation systems included some form of AI-based analytics. These systems can predict equipment failure, suggest operational improvements, and enable self-correction of errors. Industries such as electronics and pharmaceuticals are leveraging AI to fine-tune precision manufacturing, boosting yield by up to 19% and reducing errors by 22%. As AI capabilities continue to mature, their integration with robotics and process controls is expected to drive next-gen smart factories.

CHALLENGE

Cybersecurity threats in automated systems.

As automation systems become increasingly interconnected, cybersecurity has emerged as a major challenge. In 2023, manufacturing was the second most targeted sector globally, facing over 4,800 reported ransomware and malware attacks. Automated systems—particularly those connected via cloud platforms or IIoT—are vulnerable to breaches that can halt production and leak sensitive data. In a notable 2023 incident, a European electronics manufacturer faced downtime worth an estimated USD 6 million due to a cyber-attack on its MES platform. As a result, securing operational technology (OT) networks has become a top priority, driving demand for cybersecurity solutions integrated into automation frameworks.

Discrete Automation Market Segmentation

The discrete automation market is segmented by type and application. By type, key categories include Distributed Control Systems (DCS), Manufacturing Execution Systems (MES), Product Lifecycle Management (PLM), and Programmable Logic Controllers (PLC). By application, it includes automotive, packaging, food processing, textile industry, and others. In 2023, the PLC segment dominated due to its high deployment in assembly lines, while the automotive sector led in applications due to widespread use of robotic arms and sensors in vehicle manufacturing. Each segment contributes uniquely to the market, catering to specific automation demands and operational scales.

By Type

Distributed Control System (DCS): are primarily used in large-scale industrial processes. In 2023, DCS accounted for 18% of the discrete automation installations globally. These systems are essential in energy-intensive industries and are now being customized for smaller discrete processes such as machinery control in packaging and fabrication. Europe and Asia-Pacific are the leading adopters of DCS in discrete settings, with over 45% of installations in those regions.
Manufacturing Execution System (MES): adoption increased significantly in 2023, with over 52% of discrete manufacturers implementing MES for real-time tracking and control of manufacturing processes. These systems help in reducing downtime and improving quality compliance. In sectors like electronics and medical devices, MES has contributed to reducing rework rates by 23% and increasing throughput by 15% year-over-year.
Product Lifecycle Management (PLM): systems are critical in the development and engineering stages. In 2023, PLM adoption grew by 19%, particularly in high-precision sectors such as aerospace and automotive. These systems help streamline product design, engineering changes, and compliance documentation. Over 60% of top manufacturers reported using cloud-based PLM systems to improve collaboration and product innovation.
Programmable Logic Controllers (PLC): are the backbone of discrete automation. In 2023, they represented over 40% of installed automation systems across discrete industries. Widely used in assembly lines and material handling, PLCs offer real-time control and diagnostics. The automotive sector alone accounted for more than 35% of all PLC deployments globally.

By Application

Automotive: sector is the largest adopter of discrete automation systems. In 2023, over 75% of automotive assembly plants worldwide used robotics and automated controls. Automation has reduced production time per vehicle by 18% and improved safety by reducing human involvement in hazardous tasks.
Packaging: Automation in packaging saw a 27% rise in 2023, driven by the need for speed and precision. Advanced robotic arms and vision systems are now used to handle varying product sizes and weights. Automated packaging systems in food and consumer goods reduced operational errors by 21% year-over-year.
Food Processing: companies adopted automated systems to meet hygiene standards and scalability. In 2023, 43% of processed food manufacturers used automated inspection and packaging lines. These systems improved efficiency by 30% and helped meet global food safety certification requirements.
Textile Industry: automation is emerging in dyeing, printing, and cutting processes. Around 28% of textile manufacturers integrated automation in 2023 to boost output and minimize labor dependency. Automatic fabric inspection systems detected defects with 98.6% accuracy, up from 82.3% with manual checks.
Others: applications include electronics, pharmaceuticals, and metal fabrication. These sectors showed a 24% year-on-year growth in automation adoption in 2023. Automation has enhanced product uniformity, reduced waste, and shortened production cycles across these industries.

Discrete Automation Market Regional Outlook

The discrete automation market shows varied growth across global regions. North America remains a frontrunner due to advanced manufacturing infrastructure and significant investments in automation technologies. Europe follows closely, with Germany and the UK leading adoption driven by Industry 4.0 initiatives. Asia-Pacific is witnessing rapid growth fueled by expanding manufacturing hubs in China, Japan, South Korea, and India. The Middle East & Africa region is gradually adopting automation, primarily in oil & gas and automotive sectors, with increasing government support and infrastructure development. Regional trends are influenced by industrial policies, technological maturity, and investment availability, resulting in diverse market dynamics.

North America

accounted for approximately 34% of the global discrete automation market share in 2023. The U.S. leads with over 55% of regional installations, driven by automotive manufacturing centers in Michigan and electronics production hubs in California. Investments in smart manufacturing are significant; in 2023, more than 48% of factories across the U.S. implemented IIoT-enabled automation. Canada and Mexico also contribute, with Mexico experiencing a 21% increase in automation deployments, especially in automotive and packaging sectors. The presence of major industry players and ongoing R&D activities underpin North America’s leadership position.

Europe

held roughly 28% of the discrete automation market in 2023. Germany remains the largest market, contributing 35% of European automation system deployments, largely due to its robust automotive and machinery industries. France, the UK, and Italy also show high automation penetration, with over 42% of factories equipped with advanced PLC and MES solutions. Europe’s strong regulatory framework on energy efficiency has spurred adoption of energy-saving automation technologies, reducing manufacturing energy consumption by an estimated 17% across the region. The European Union’s Horizon programs further support automation innovation projects.

Asia-Pacific

is the fastest-growing region, comprising nearly 30% of global discrete automation installations in 2023. China accounts for over 45% of the region’s automation market, supported by government initiatives such as “Made in China 2025” promoting industrial modernization. India and South Korea also show double-digit growth in adoption rates. Japanese manufacturers continue to invest heavily in robotics and AI-powered automation, maintaining a leading global position with over 65% of factories automated. Southeast Asian countries are rapidly upgrading packaging and food processing lines, driving demand for automation solutions.

Middle East & Africa

represented approximately 8% of the global discrete automation market in 2023. The region’s adoption is concentrated in oil & gas, automotive, and food processing industries. The UAE and Saudi Arabia are investing in smart manufacturing initiatives, with over 30 automation projects underway in 2023. Africa’s industrial automation market remains nascent but is expected to grow as infrastructure improves, with South Africa and Egypt leading adoption. Energy-efficient automation and remote monitoring solutions are prioritized due to regional climatic and economic conditions.

List of Top Discrete Automation Companies

Siemens
Rockwell Automation
ABB
Invensys
Schneider Electric

Siemens: holds the largest market share globally, accounting for approximately 21% of discrete automation systems installed worldwide in 2023. The company’s extensive portfolio spans DCS, MES, PLC, and advanced software platforms, supported by strong R&D spending estimated at USD 2.8 billion annually.

Rockwell Automation: follows with a 17% market share, driven by its Allen-Bradley PLCs and FactoryTalk software suite. The firm reported sales exceeding 18,000 discrete automation systems globally in 2023, with significant growth in North America and Asia-Pacific markets.

Investment Analysis and Opportunities

Investment in discrete automation technologies continues to surge globally, reflecting the critical role of automation in enhancing manufacturing competitiveness. In 2023, global capital expenditure in automation hardware and software reached USD 36 billion, up 15% compared to 2022. Corporations in automotive, electronics, and food & beverage sectors are allocating larger budgets toward upgrading legacy systems with smart automation solutions. Notably, over 65% of Fortune 500 manufacturing companies increased their investment in automation equipment and digital platforms in 2023. Public-private partnerships are also playing a pivotal role. Several governments across Europe, North America, and Asia-Pacific have earmarked funding for automation R&D and infrastructure projects. For instance, the European Union allocated approximately USD 3.2 billion for automation technology development under its Horizon Europe program in 2023. Similarly, the U.S. government increased its investment in advanced manufacturing institutes by 18%, facilitating collaboration between academia and industry. Emerging markets present promising investment opportunities. India alone attracted over USD 850 million in automation technology investments in 2023, driven by initiatives such as “Make in India” and expanding automotive manufacturing capabilities. Southeast Asia’s manufacturing hubs, particularly Vietnam and Thailand, are witnessing a growing influx of foreign direct investment (FDI) aimed at automation infrastructure. Investment focus areas include AI integration, edge computing, and cloud-based automation solutions. Approximately 42% of new investments in automation software in 2023 were directed toward AI-enhanced process controls and predictive maintenance platforms.

This shift is expected to improve operational efficiency, reduce unplanned downtime, and optimize resource utilization. Small and medium-sized enterprises (SMEs) are increasingly targeted through modular and scalable automation solutions, which require lower initial capital outlay. Venture capital funding in automation startups focusing on affordable and flexible systems surpassed USD 620 million globally in 2023, signaling a robust pipeline of innovation. Automation in sustainable manufacturing is another attractive segment. Investments in energy-efficient automation systems and waste-reducing technologies grew by 25% in 2023. Companies are investing in solutions that comply with stringent environmental regulations and help achieve carbon footprint reduction targets. The increasing convergence of IT and operational technology (OT) also opens avenues for investments in cybersecurity and integrated management systems. Funding for cybersecurity solutions in manufacturing automation grew by 33% in 2023, driven by rising cyber threats. Overall, the discrete automation market presents diverse and growing investment opportunities across hardware, software, AI integration, and emerging regions, supported by strong industry and government backing.

New Product Development

In 2023-2024, new product development in the discrete automation market has focused on enhancing system intelligence, flexibility, and user-friendliness. Leading manufacturers introduced advanced PLCs with embedded AI processing capabilities, allowing on-device machine learning and real-time adaptive control. Siemens released its latest SIMATIC S7-1500 series upgrade, which includes enhanced cybersecurity features and compatibility with IIoT platforms. This series supports up to 30% faster processing speeds and integrates seamlessly with cloud-based analytics. Rockwell Automation launched the new Allen-Bradley ControlLogix 5580 controller in 2024, designed for high-speed, high-precision applications. It supports up to 50% more I/O modules per chassis than previous models, enabling larger and more complex automation configurations. The system incorporates embedded Ethernet/IP communication, improving data throughput and network reliability. Distributed Control System (DCS) vendors introduced scalable, modular systems optimized for both discrete and continuous processes. ABB’s Ability System 800xA 6.1 upgrade supports enhanced operator interfaces and predictive maintenance modules. This platform is now deployed in over 350 factories globally, reducing unplanned downtime by 27% in pilot implementations. Manufacturing Execution Systems (MES) saw significant enhancements with AI-driven process optimization tools. New MES platforms now offer automated scheduling and quality management that cut cycle times by up to 19% and improve defect detection rates. PLM software providers have introduced cloud-native platforms supporting real-time collaboration across engineering teams worldwide. These platforms enable faster product iterations and reduce time to market by an average of 16%.

Robotic systems were a major area of innovation. Collaborative robots (cobots) launched in 2024 feature lightweight designs and force sensors to ensure safe interaction with human workers. One new cobot model reduces installation time by 40%, allowing manufacturers to scale robotic deployments rapidly. Vision systems incorporated deep learning algorithms to improve accuracy in inspection and quality control tasks. For example, automated optical inspection systems now detect defects with 99.2% accuracy, compared to 94.5% in prior generations. In packaging automation, modular robotic arms with adaptive grippers can handle multiple product types without manual changeover, increasing line flexibility. The adoption of 5G wireless networks in automation devices also gained momentum in 2024, enabling ultra-low latency communications crucial for real-time process control. Energy-efficient drives and motor controllers were another development focus. New variable frequency drives (VFDs) reduce energy consumption by up to 22% and include predictive diagnostics to prevent motor failures. Overall, new product development in the discrete automation market is centered on integrating AI and connectivity, improving safety, scalability, and efficiency to meet evolving industrial demands.

Five Recent Developments

Siemens launched the SIMATIC S7-1500 Advanced Controller series in early 2024, boosting processing speeds by 30% and integrating advanced cybersecurity protocols.
Rockwell Automation introduced the Allen-Bradley ControlLogix 5580 with expanded I/O capacity and embedded Ethernet/IP support, adopted in over 250 facilities worldwide in 2023.
ABB upgraded its Ability System 800xA DCS platform, deployed in 350+ factories globally, contributing to a 27% reduction in unplanned downtime.
Introduction of AI-enhanced MES platforms offering automated scheduling and quality control improvements that reduced production cycle times by 19% in pilot plants.
Deployment of 5G-enabled automation devices increased by 40% in 2024, facilitating ultra-low latency communications for critical control processes.

Report Coverage of Discrete Automation Market

This report provides a comprehensive analysis of the discrete automation market, covering a wide spectrum of technologies, applications, and regional insights. It examines key automation system types, including Distributed Control Systems (DCS), Manufacturing Execution Systems (MES), Product Lifecycle Management (PLM), and Programmable Logic Controllers (PLC), analyzing their individual market shares, adoption rates, and technological advancements. The report details industry-specific applications such as automotive, packaging, food processing, textile, and others, highlighting unique automation requirements and deployment trends in each sector. Regional analysis encompasses North America, Europe, Asia-Pacific, and the Middle East & Africa, presenting market performance data including installation volumes, technology adoption levels, and investment patterns. The report identifies growth drivers such as increasing factory automation demand and Industry 4.0 initiatives, alongside restraints like high initial investment costs and cybersecurity concerns.

Investment opportunities are explored, emphasizing the role of AI, machine learning, cloud platforms, and modular automation solutions in shaping the market's future. Detailed insights into new product developments showcase how leading companies innovate to enhance automation intelligence, flexibility, and energy efficiency. The report also covers recent key developments between 2023 and 2024, providing a timely perspective on market evolution. It assesses competitive landscapes, focusing on top players like Siemens and Rockwell Automation, including their market shares and technology portfolios. Overall, this report serves as a critical resource for manufacturers, investors, policymakers, and technology providers seeking to understand discrete automation's current status and future trajectory. It integrates verified data and factual analysis to enable informed decision-making and strategic planning in an increasingly automated industrial landscape.