Industrial Automation Market by Offering (Solutions (Enterprise-level Controls, Plant Instrumentation, Plant-level Controls), Services), Mode of Automation, End-use Industry (Oil & Gas, Automotive, Food & Beverage), and Geography - Global Forecast to 2031

The Industrial Automation Market accounted for $188 billion in 2023. The Industrial Automation Market is projected to reach $368.05 billion by 2031, at a CAGR of 9.1% during the forecast period 2024–2031.

Industrial Automation Market Size & Forecast

The market growth is attributed to government support for industrial development, rising investments in automation across industries, the increasing need for power-efficient systems, and the need to optimize supply chains. However, high capital expenditure and workforce displacement concerns restrain the growth of this market. Moreover, the growing need for sustainable solutions is expected to generate growth opportunities for market stakeholders.

However, concerns over the cybersecurity of automated systems are a challenge for market growth.

Government Initiatives Promoting Industrial Development Fueling Market Growth

Major robot-producing nations, including Japan, South Korea, and the U.S., have increased automation applications in manufacturing industries. The Japanese government is investing in the Society 5.0 initiative to create a society that integrates digital technology and human capabilities. The initiative envisions the seamless integration of various technologies into everyday life. This includes AI, IoT devices, robotics, autonomous systems, and advanced data analytics. These technologies are expected to be used in various sectors, including healthcare, transportation, education, and manufacturing.

According to the International Federation of Robotics, South Korea's robot-related budget for 2020 was USD 126 million. In January 2021, the European Commission launched the Horizon2020 framework, 24 new robotics projects. This framework covers various research and innovation topics — from manufacturing, commercial, and healthcare use to consumer, transportation, and agri-food robotics.

In August 2020, the U.S. announced funding of USD 1 billion to establish 12 new research and development hubs nationwide. Moreover, AI institutes, along with the University of Oklahoma, University of Texas, University of Colorado, University of Illinois, University of California, and the Massachusetts Institute of Technology, conducted research on how technologies can be used in areas such as precision agriculture and weather forecasting, among others. Poland is a growing manufacturing power in Europe, as there is demand for new and innovative manufacturing technologies. The Polish government provides incentives for advanced manufacturing and industrial transformation. The Polish government also provides grants to support industry research.

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Some of the developments in this market space are as follows:

• In March, ABB Ltd (Switzerland) collaborated with Automated Architecture Ltd (AUAR) (U.K.) to integrate robotic automation into the building process. The collaboration focuses on advancing the capabilities of robots enabled by vision and AI to build sustainable, low-energy homes.
• In February 2024, Automation Technology GmbH (Germany) launched a 3D sensor series, the ECS (Eco Compact Sensor) sensor, for machine vision applications in industries such as food and beverage, packaging, and robotics.
• In November 2023, SAP SE (Germany) launched the SAP Hong Kong Cloud ERP Experience Center to support midsize companies to automate their operations through cloud-based enterprise resource planning (ERP) technologies with embedded business AI and automation capabilities.
• In June 2023, Siemens AG (Germany) launched the SICAM 8 power automation platform. It includes two new software solutions: the SICAM HMI (Human Machine Interface) visualization tool and the SICAM S8000 software solution for power automation. It forms part of the Siemens Xcelerator portfolio, an open digital platform that enables customers to accelerate their digital transformation at scale.
• In February 2023, AVEVA Group Limited (U.K.) launched the AVEVA Manufacturing Execution System to help standardize and introduce best practices more quickly and at scale and improve operational efficiency and sustainability.
• In March 2022, Emerson Electric Co. (U.S.) launched MTConnect, an industrial control platform driver for enabling easy integration of Computer Numerical Control (CNC) machines with modern data analysis automation environments. The solution allows vital data that was previously isolated and inaccessible to be easily collected from machines, tools, robots, devices, and other manufacturing equipment.

Key Findings in the Industrial Automation Market Study:

In 2024, the Solutions Segment to Dominate the Industrial Automation Market

By offering, the industrial automation market has been segmented into solutions and services. In 2024, the solutions segment is expected to dominate the industrial automation market. Solutions are further segmented into plant instrumentation, plant-level controls, and enterprise-level controls. The segment’s major share is primarily attributed to the growing adoption of ERP, SCADA, PLM, and DCS solutions to streamline production & enterprise processes in the manufacturing & industrial sectors, the rising focus on data analytics and predictive maintenance capabilities for optimizing operations, reducing downtime, and improving overall equipment effectiveness, the rising need to lower operating costs and maximize resource utilization, and the adoption of Industry 4.0 technologies.

In 2024, the Semi-automatic Systems Segment to Dominate the Industrial Automation Market

By mode of automation, the industrial automation market is segmented into semi-automatic systems and fully automatic systems. In 2024, the semi-automatic systems segment is expected to account for the major share of the industrial automation market. The segment’s major market share is primarily attributed to the lower costs of implementing semi-automatic systems compared to fully automatic systems, the increasing need for improved flexibility in manual and automated processes, and the growing need to monitor industrial systems and intervene promptly to avoid costly downtime and quality issues. However, the fully automatic systems segment is expected to record the higher CAGR during the analysis period.

In 2024, the Oil & Gas Segment to Dominate the Industrial Automation Market

By end-use industry, the industrial automation market is segmented into automotive, oil & gas, food & beverage, chemicals & materials, consumer goods, semiconductors & electronics, power, pharmaceuticals & biotech, machines & tools, paper & pulp, mining & metals, aerospace & defense, and other end-use industries. In 2024, the oil & gas segment is expected to dominate the industrial automation market. The segment’s largest share is attributed to the rising need for streamlined operations in the oil & gas production value chain, the growing demand for automated monitoring systems for minimizing environmental impacts and enhancing safety, and the rising need to avoid unplanned downtimes, improve asset lifespan, and lower maintenance expenses. However, the automotive segment is expected to record the fastest growth during the analysis period.

Asia-Pacific to be the Fastest-growing Regional Market

By geography, the industrial automation market is segmented into Europe, North America, Latin America, Asia-Pacific, and the Middle East & Africa. Asia-Pacific is projected to register the fastest growth during the analysis period primarily due to rapid urbanization & industrialization, the growing adoption of smart manufacturing solutions, the increasing utilization of industrial robots, the adoption of Industry 4.0 technologies, the expanding automotive industry, the rising need for enhanced productivity and efficiency in manufacturing industries such as electronics, machinery, automotive, and consumer goods, technological advances in robotics, AI, and IoT, and the increasing automation of production processes to reduce manual labor and increase cost-competitiveness.

Key Players

The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by the leading market participants in the industrial automation market in the last three to four years. The key players profiled in the industrial automation market report are ABB Ltd (Switzerland), Rockwell Automation Inc. (U.S.), Siemens AG (Germany), Yaskawa Electric Corporation (Japan), Schneider Electric SE (France), Yokogawa Electric Corporation (Japan), KUKA AG (Germany), Emerson Electric Co. (U.S.), FANUC CORPORATION (Japan), Honeywell International Inc. (U.S.), Mitsubishi Electric Corporation (Japan), OMRON Corporation (Japan), Advantech Co., Ltd. (Taiwan), Hitachi Ltd. (Japan), and General Electric Company (U.S.).

Industrial Automation Market Report Summary:

Key questions answered in the industrial automation market report: