Industrial Automation Market Size | Research Report To 2033

INDUSTRIAL AUTOMATION MARKET OVERVIEW

The global Industrial Automation Market size was valued approximately USD 197.98 Billion in 2024 and will touch USD 426.45 Billion by 2033, growing at a compound annual growth rate (CAGR) of 8.9% from 2024 to 2033.

Industrial automation is the process of applying intelligent technology to industrial processes to replace manual, tedious, repetitive tasks with highly efficient and automated workflows. Furthermore, automation helps in reduction of manufacturing costs, increases productivity, enhances quality, and industrial safety. Moreover, it improves process control and significantly reduce lead times compared to outsourcing or going overseas.

COVID-19 IMPACT

“Factory shipments fall”

The industrial automation sector has developed via constant investment and is now a major driver of economic expansion. However, the COVID-19 pandemic has had a detrimental effect on the market's value chain, leading to a decline in shipments of industrial automation components and solutions as well as a decline in the associated revenue. The COVID-19 pandemic has affected almost every industry worldwide, including industrial automation and machinery. The market's growth trend slowed in the first half of 2020. This trend is expected to slow down in the second part of the year as demand increases due to increased focus on resource efficiency, energy, and smart automation.

LATEST TREND

”Growing demand for automation for reliable and qualitative manufacturing is driving market growth”

Market CAGR for industrial automation is being driven by the Growing demand for automation for reliable and qualitative manufacturing. The utilization of equipment to automate systems or production processes is known as automation in manufacturing. The manufacturer's aim is to raise efficiency in the production process, cost optimization, and higher accuracy. Automation helps to collect all of the activities of the firm and allows the flow of information to be easy throughout its components. The job that requires endurance or precision and the works that are dull, repetitive, and need specialized expertise are automated by the manufacturer.

INDUSTRIAL AUTOMATION MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Programmable Logic Control (PLC), Distributed Control Systems (DCS), Supervisory Control and Data Acquisition (SCADA), Manufacturing Execution System (MES), Others

Programmable Logic Controller (PLC): PLCs are special-purpose computer systems used to control industrial systems in real time, automating machines and equipment through programming knowledge.

Distributed Control Systems (DCS): DCS systems handle complex methods by distributing control tasks among multiple controllers, providing centralized tracking and high reliability in industries such as oil, gas or energy era.

Supervisory Control and Data Acquisition (SCADA): SCADA systems remotely monitor and control business processes, collect real-time data from sensors and devices, and ensure green operations and rapid response to faults.

Manufacturing Execution System (MES): MES connects, video display units and controls manufacturing operations on the shop floor, optimizing manufacturing performance, monitoring inventory and improving workflow.

Others: This category consists of advanced robotics, Human Machine Interface (HMI), and Industrial Internet of Things (IIoT) answers that in addition enhance automation and procedure optimization.

By Application

Based on application, the global market can be categorized into Automotive, Power Generation, Pharmaceuticals, Oil & Gas, Chemicals.

Automotive: In the automobile sector, automation enhances productivity and lowers errors in mass production by balancing the accuracy of manufacturing techniques including assembling, welding, and traceability.

Power Generation: Industrial automation in the field of energy technology ensures optimal performance, real-time monitoring and green control of energy production structures such as factories and renewable energy plants.

Pharmaceuticals: Automation simplifies drug production, packaging and quality management, ensuring compliance with strict regulatory requirements and increasing productivity in pharmaceutical plants.

Oil & Gas: Automation technologies in the oil and fuels sector optimize drilling, refining and transportation methods, improve safety, reduce operating expenses and minimize environmental impact.

Chemicals: The chemical industry uses automation to control complex chemical reactions, manipulate hazardous methods, and maintain consistent quality across large-scale production.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

”Advancements in Industrial Automation Market Drives the Market”

By combining IoT, AI, and big data analytics, the implementation of Industry 4.0 concepts has completely changed business paradigms. By facilitating real-time monitoring, predictive maintenance, and smooth machine-to-machine communication, these technologies increase operational effectiveness and save downtime. Industries are changing as a result of smart manufacturing systems' increased adaptability and flexibility.

Restraining Factor

”High initial costs limit market growth”

The high initial cost of putting in place an automated system is a major deterrent to the widespread use of commercial automation. These expenses cover software, equipment integration, staff training, and hardware purchases such robots, sensors, and PLCs. These expenses may be unaffordable for small and medium-sized businesses (SMEs), which could postpone or even stop their shift to automated processes. The financial burden is further increased by the continuous costs needed to improve and maintain automated systems. Even if long-term advantages like productivity and efficiency are readily attainable, early expenses and budgetary limitations are still a worry, particularly for small enterprises and growing markets.

Opportunity

”Advances in AI-driven analytics create new opportunities in the market”

New advancements in the commercial automation industry are being pushed by edge computing, AI-driven analytics, and the Industrial Internet of Things (IIoT). These technologies foster creativity by enabling real-time data processing, predictive saving, and intelligent decision-making. Thanks to the development of collaborative robots, or cobots, automation can now reach industries with lesser budgets, such small and medium-sized firms. Furthermore, an increased emphasis on sustainability has created opportunities for automation systems that optimize energy use and lower emissions. The potential is further enhanced by increased use in developing markets and unexplored sectors like industry and agriculture. A dynamic and varied future is made possible by these developments.

Challenge

”Excessive initial financing costs could pose a potential challenge to the market”

One of the major challenges in the commercial automation market is the complex mix of new systems with existing infrastructure. Many industries have legacy systems that are not aligned with modern automation technologies, resulting in costly and time-consuming development. Additionally, there is a skills gap since industry expansion is hampered by a shortage of qualified experts who can oversee and operate intricate automation systems. Risks can arise from security concerns about data breaches and cyberattacks, particularly as more devices join the network. Finally, one of the biggest obstacles for small and medium-sized businesses (SMEs) is still high initial financing costs.

INDUSTRIAL AUTOMATION MARKET REGIONAL INSIGHTS

North America

North America controls a significant share of the global industrial automation market due to its advanced technological infrastructure, widespread usage of automation systems, and strong emphasis on innovation. The area is home to top companies in automation technology, including robotics, AI, and the Internet of Things. The market is growing as a result of the explosion of digital transformation and the increased need for production efficiency and accuracy. A robust industrial base in sectors like automotive, aerospace, and energy is another advantage of North America. Its leadership has also been solidified by large expenditures in environmental practices and smart factories.

Europe

Europe's robust production base, technical innovation, and commitment to sustainable growth have made it a significant player in the worldwide commercial automation industry. The majority of the largest commercial automation firms are based in the area, particularly in nations like Germany, which leads the world in automation technology, particularly in the manufacturing, robotics, and automotive industries. The EU's emphasis on energy efficiency, smart production, and digitization also helps the market expand. Additionally, the adoption of automation technologies that support sustainable development is encouraged by Europe's stringent environmental standards. Another important reason for Europe's dominant position is the ongoing investments in Industry 4.0 and smart factories.

Asia

Asia is a major player in the global industrial automation market, driven by rapid industrialization, growing demand for production efficiency, and technological advancements. Countries such as China, Japan, South Korea, and India are leading in automation applications in different industries such as automotive, electronics, and consumer goods. The large manufacturing base, strong focus on smart production, and the rise of IoT and robotics all bring locational advantages to Asia. In addition, Asia's labor cost advantages and growing investments in automation technology make it an attractive market. The impetus for Industry 4.0 and virtual transformation continues to drive Asia's overall growth.

KEY INDUSTRY PLAYERS

”Market players are actively innovating”

Leading market players are investing heavily in research and development in order to spread their product lines, which will help the Industrial Automation market grow even more. Market participants are also undertaking a various strategic activities to expand their global footprint.

List of Top Industrial Automation Companies

Rockwell Automation Inc.
Plex Systems
Siemens AG
Emerson Electric Co.
Adverb
ABB Ltd.

KEY INDUSTRY DEVELOPMENTS

May 2023: To speed up industrial automation, Mitsubishi Electric lately decided to make a strategic investment in the Otto Motors. The parent company of Otto Motors, the market leader in autonomous mobile robots, Clearpath Robotics, has agreed to receive a strategic investment from Mitsubishi Electric, a provider of factory automation systems.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

Thanks to developments in robotics, artificial intelligence, and the Industrial Internet of Things (IIoT), the market for industrial automation is currently expanding rapidly. Automation is being used more and more by the industrial, automotive, and chemical industries to increase productivity, save costs, and improve product quality. The market is expected to grow even though obstacles like the costly initial investment and the requirement for skilled staff still exist. Collaborative robotics (cobots), AI-driven automation, and an emphasis on sustainability will all be crucial in the future transformation of operations. As industries embrace automation technologies to stay competitive and satisfy changing needs, emerging markets—especially in Asia-Pacific—are anticipated to experience substantial development.