Industrial and Factory Automation Market Size (2024 – 2030)

The Global Industrial and Factory Automation Market ​ was valued at USD 42.87 Billion in 2023 and is projected to reach a market size of USD 85.15 Billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 10.3%.

Industrial and factory automation represents a transformative force in modern manufacturing, encompassing the use of control systems, robotics, and information technologies to handle various industrial processes. The market has witnessed substantial growth as manufacturers increasingly embrace digital transformation to enhance operational efficiency and reduce human intervention in dangerous or repetitive tasks. The integration of advanced technologies such as artificial intelligence, machine learning, and the Industrial Internet of Things (IIoT) has revolutionized traditional manufacturing processes, enabling real-time monitoring, predictive maintenance, and data-driven decision-making. The industry has seen remarkable advancement in areas such as collaborative robots, smart sensors, and automated guided vehicles (AGVs), which have become integral components of modern factory floors. These technologies not only improve production efficiency but also contribute to workplace safety and quality control. The push toward Industry 4.0 has accelerated the adoption of automation solutions, with manufacturers seeking to create smart factories that can adapt to changing market demands and production requirements in real time. The market has also witnessed significant developments in software solutions, particularly in manufacturing execution systems (MES) and supervisory control and data acquisition (SCADA) systems, which provide comprehensive control and monitoring capabilities. The integration of edge computing and cloud technologies has enhanced the capabilities of automation systems, enabling better data management and analysis.

Key Market Insights:

• Autonomous mobile robots accounted for 30% of the automation equipment deployed in factories in 2023.

• Collaborative robots (cobots) saw a 28% increase in installations compared to the previous year.

• Approximately 4.2 million industrial robots were operational worldwide by the end of 2023.

• The automation market's software segment, including SCADA and MES, generated revenues of around $27 billion in 2023.

• Artificial intelligence solutions in factory automation were used by 57% of large-scale manufacturers in 2023.

• Around 40% of global factories adopted digital twins in 2023 to optimize production processes.

• Nearly 75% of automotive manufacturing plants utilized robotic process automation (RPA) in 2023.

• In 2023, nearly 80% of automation system upgrades included smart sensors for predictive maintenance.

• The number of automated guided vehicles (AGVs) in operation in manufacturing plants surpassed 200,000 units worldwide in 2023.

• The Industrial Internet of Things (IIoT) accounted for roughly $35 billion in revenue for the automation market in 2023.

• Almost 50% of the newly installed industrial robots in 2023 were used in the electronics and electrical industries.

• Warehouse automation adoption saw a growth of 25%, with the market value exceeding $11 billion in 2023.

• By 2023, approximately 90% of pharmaceutical companies had integrated automation for quality control and packaging processes.

• More than 5,000 new patents were filed in 2023 related to robotics and automation technologies.

• The average cost reduction in manufacturing due to automation implementation was reported at 18% in 2023.

Industrial and Factory Automation Market ​Drivers:

The relentless pursuit of digital transformation has emerged as a primary driver for industrial and factory automation adoption. This transformation is characterized by the convergence of physical and digital systems, creating cyber-physical environments that optimize manufacturing processes and decision-making capabilities. The implementation of Industry 4.0 principles has become a strategic imperative for manufacturers seeking to maintain competitiveness in an increasingly digital marketplace. The integration of advanced analytics, artificial intelligence, and machine learning has enabled predictive maintenance capabilities, reduced unexpected downtime and extended equipment life spans. These technologies allow manufacturers to transition from reactive to proactive maintenance strategies, resulting in significant cost savings and improved operational efficiency. The ability to process and analyze vast amounts of data in real time has revolutionized quality control processes, enabling automated inspection systems that can detect defects with unprecedented accuracy. Furthermore, the adoption of digital twin technology has enabled manufacturers to create virtual replicas of their physical assets, allowing for simulation and optimization of processes before implementation. This capability has significantly reduced the risks associated with new process implementations and has enabled more efficient resource allocation. The increasing sophistication of automation software has also facilitated better integration between various systems, creating seamless communication channels across the entire manufacturing ecosystem.

The persistent challenge of labor shortages and increasing labor costs has become a significant driver for automation adoption.

Manufacturing industries worldwide face difficulties in recruiting and retaining skilled workers, particularly in developed economies with aging populations. This demographic shift, combined with the increasing complexity of manufacturing processes, has created a compelling case for automation implementation. Automation technologies provide a reliable solution to these challenges by reducing dependence on manual labor while improving consistency and quality in production processes. The implementation of collaborative robots has enabled manufacturers to optimize their workforce by automating repetitive tasks while maintaining the flexibility to handle varying production requirements. This has resulted in significant improvements in productivity and worker safety, as automated systems can handle dangerous or ergonomically challenging tasks. The economic benefits of automation extend beyond direct labor cost savings. Automated systems operate with greater precision and consistency, reducing waste and improving resource utilization. They can operate continuously without fatigue, enabling 24/7 production capabilities when required. Additionally, the improved accuracy and reliability of automated systems have led to reduced warranty claims and customer complaints, contributing to overall cost savings and improved customer satisfaction.

Industrial and Factory Automation Market Restraints and Challenges:

Technical complexity presents another significant challenge, as the implementation of automation systems requires specialized expertise and skilled personnel. The shortage of qualified automation engineers and technicians can make it difficult for organizations to properly implement and maintain these systems. Additionally, the rapid pace of technological advancement means that systems may become obsolete before organizations can fully realize their return on investment. Integration challenges with legacy systems pose a significant hurdle, as many manufacturers operate with a mix of old and new equipment. Ensuring seamless communication and compatibility between different generations of technology requires careful planning and additional investment. Cybersecurity concerns have also emerged as a critical challenge, as increased connectivity creates potential vulnerabilities that need to be addressed through robust security measures. The resistance to change among workforces and management teams can impede successful automation implementation. Workers may fear job displacement, while managers may be hesitant to disrupt existing processes that have proven reliable. The need for extensive training and change management programs adds to the complexity and cost of automation projects.

Industrial and Factory Automation Market Opportunities:

The industrial and factory automation market presents numerous compelling opportunities for growth and innovation. The increasing demand for smart manufacturing solutions offers significant potential for automation providers to develop integrated systems that leverage artificial intelligence and machine learning capabilities. The growing emphasis on sustainability and energy efficiency creates opportunities for automation solutions that can optimize resource utilization and reduce environmental impact. The emergence of 5G technology presents opportunities for developing more sophisticated and responsive automation systems. The increased bandwidth and lower latency enable real-time control and monitoring capabilities that were previously impossible. This creates potential for new applications in areas such as remote operations and augmented reality-based maintenance. The trend toward mass customization in manufacturing creates opportunities for flexible automation solutions that can handle varying production requirements while maintaining efficiency. The growing adoption of Industrial Internet of Things platforms opens possibilities for developing new services and business models based on data analytics and predictive maintenance. The expansion of automation into non-traditional industries such as agriculture, healthcare, and logistics presents new market opportunities. Additionally, the increasing focus on reshoring manufacturing operations in developed economies creates demand for advanced automation solutions that can offset higher labor costs while maintaining competitiveness.

INDUSTRIAL AND FACTORY AUTOMATION MARKET REPORT COVERAGE:

Industrial and Factory Automation Market Segmentation: By Types

• Programmable Logic Controllers (PLCs)

• Distributed Control Systems (DCS)

• Supervisory Control and Data Acquisition (SCADA)

• Manufacturing Execution Systems (MES)

• Human-Machine Interface (HMI)

• Industrial Robots

• Industrial Sensors

• Safety Systems

• Industrial 3D Printing Systems

Industrial robots have emerged as the fastest-growing segment, driven by advancements in collaborative robotics and increasing applications in diverse industries. The segment benefits from improving price-performance ratios and enhanced capabilities in human-robot collaboration.

PLCs maintain the largest market share due to their fundamental role in automation systems and widespread adoption across industries. Their reliability, flexibility, and essential function in process control contribute to their dominant position

Industrial and Factory Automation Market Segmentation: By Distribution Channel

• Direct Sales

• System Integrators

• Distributors

• Online Channels

• Value-Added Resellers

Online channels show the highest growth rate, benefiting from increasing digitalization and the growing comfort with online procurement of industrial equipment and solutions.

System integrators maintain the largest market share due to their crucial role in implementing complex automation solutions and providing comprehensive services.

Industrial and Factory Automation Market Segmentation: Regional Analysis

• North America

• Europe

• Asia-Pacific

• Latin America

• Middle East and Africa

The Asia-Pacific region dominates the market, driven by rapid industrialization, government initiatives supporting manufacturing modernization, and significant investments in automation technologies. The region benefits from a strong manufacturing base, particularly in countries like China, Japan, and South Korea. The presence of major electronics and automotive manufacturers contributes to high adoption rates of automation solutions.

North America represents the fastest-growing region, with the United States leading the growth trajectory. The region's growth is driven by the increasing focus on reshoring manufacturing operations, substantial investments in Industry 4.0 technologies, and the need to address labor shortages. The strong presence of automation technology providers and early adoption of advanced technologies contribute to the region's rapid growth.

COVID-19 Impact Analysis on the Industrial and Factory Automation Market ​:

The COVID-19 pandemic has significantly influenced the industrial and factory automation market, acting as both a disruptor and catalyst for transformation. Initially, the pandemic caused disruptions in supply chains and manufacturing operations, leading to temporary slowdowns in automation projects. However, these challenges ultimately accelerated the adoption of automation solutions as organizations sought to build resilience against future disruptions. The pandemic highlighted the vulnerabilities of human-dependent operations and demonstrated the value of automated systems in maintaining production during crisis periods. This realization led to increased investment in automation technologies, particularly in sectors deemed essential during the pandemic. The need for social distancing in workplace environments accelerated the adoption of collaborative robots and remote monitoring systems. Manufacturing organizations increasingly embraced digital solutions that enabled remote operations and monitoring capabilities. The pandemic drove significant growth in the implementation of Industrial IoT solutions that facilitate remote access to production systems and equipment maintenance. This trend has continued beyond the immediate crisis period, reflecting a permanent shift in operational strategies. The experience of the pandemic has also influenced automation system design and implementation, with greater emphasis on flexibility and adaptability to handle sudden changes in production requirements. Organizations have increased their focus on developing robust business continuity plans that incorporate automation as a key element of risk mitigation.

Latest Trends/ Developments:

The industrial and factory automation market continues to evolve with several emerging trends shaping its future direction. The integration of artificial intelligence and machine learning capabilities has become increasingly sophisticated, enabling more autonomous decision-making in manufacturing processes. Edge computing adoption has grown significantly, allowing for faster processing of data closer to the source and reducing latency in control systems. The concept of lights-out manufacturing, where facilities can operate with minimal human intervention, has gained traction, particularly in industries with highly standardized processes. The development of more sophisticated collaborative robots has expanded the applications of robotics in manufacturing, enabling closer human-robot interaction while maintaining safety standards. Digital twin technology has evolved beyond basic simulation capabilities to include real-time monitoring and predictive analytics. The integration of augmented reality and virtual reality technologies in maintenance and training applications has increased, improving efficiency and reducing errors in complex procedures. Sustainability considerations have become more prominent in automation system design, with an increased focus on energy efficiency and waste reduction. The development of more modular and flexible automation solutions has enabled manufacturers to adapt more quickly to changing market demands and production requirements.

Key Players:

1. Siemens AG

2. ABB Ltd.

3. Rockwell Automation

4. Schneider Electric

5. Honeywell International

6. Emerson Electric Co.

7. Mitsubishi Electric

8. Fanuc Corporation

9. Yokogawa Electric Corporation

10. KUKA AG

11. Omron Corporation

12. General Electric Company

13. Bosch Rexroth

14. Phoenix Contact

15. Advantech Co., Ltd.