Factory Automation Market - Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Component (Sensors, Controllers, Industrial Robots, Drives and Others), By Control and Safety System (Distributed Control System, Supervisory Control and Data Acquisition System (SCADA), Manufacturing Execution System (MES), Systems Instrumented System (SIS) and Others), By Industry Verticals (Automotive Manufacturing, Food & Beverage, Oil & Gas Processing, Mining and Others), By Region, and By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 347.86 Billion
CAGR (2026-2031)	7.98%
Fastest Growing Segment	Industrial Robots
Largest Market	Asia Pacific
Market Size (2031)	USD 551.40 Billion

Market Overview

The Global Factory Automation Market will grow from USD 347.86 Billion in 2025 to USD 551.40 Billion by 2031 at a 7.98% CAGR. Factory automation encompasses the integration of control systems, industrial robots, and information technologies to manage manufacturing processes with minimal human intervention. The sector is primarily driven by the escalating necessity for operational efficiency and the mitigation of widespread labor shortages which compel manufacturers to adopt automated solutions for continuity and precision. According to the International Federation of Robotics, in 2024, the global operational stock of industrial robots reached a record level of more than 4.2 million units. This growth trajectory is further supported by the imperative for supply chain resilience and consistent quality output in high-volume production environments.

Despite the operational benefits, high capital expenditure requirements present a substantial barrier to market entry and expansion. Small and medium-sized enterprises often struggle with the significant upfront costs associated with procuring and integrating advanced hardware and software systems. This financial constraint is compounded by the ongoing expense of maintenance and the critical shortage of skilled personnel capable of managing complex automated infrastructures.

Key Market Drivers

Escalating labor costs and the critical shortage of skilled workers are propelling the Global Factory Automation Market as manufacturers face an urgent need to maintain production continuity. With an aging industrial workforce and rising wage pressures, companies are increasingly reliant on automated systems to mitigate human resource deficits and ensure consistent output. This trend is particularly evident in labor-intensive industries that traditionally relied on manual processes but are now pivoting to robotics to secure supply chain resilience. According to the Association for Advancing Automation, February 2025, in the 'A3 Robotics - 4Q 2024 Deluxe Press Release', robot orders in the food and consumer goods sector surged by 65% in 2024, a growth trajectory explicitly attributed to the sector's need to address labor shortages and streamline supply chains.

Simultaneously, the rapid integration of Industry 4.0 and Artificial Intelligence (AI) ecosystems is transforming standard machinery into intelligent, self-optimizing assets. This technological evolution allows for predictive maintenance and real-time process adjustments, significantly reducing downtime and operational waste. Manufacturers are moving beyond basic connectivity to deploy sophisticated AI agents capable of autonomous decision-making to enhance productivity. According to Google Cloud, October 2025, in the 'ROI of AI in Manufacturing' report, 56% of manufacturing executives reported their organizations are actively using AI agents to drive operational efficiency. Underscoring this robust investment climate, according to ABB, January 2025, orders climbed 6% year-on-year to $8.1 billion in the fourth quarter of 2024, driven by strong demand for electrification and automation infrastructure.

Download Free Sample Report

Key Market Challenges

The critical shortage of skilled personnel acts as a significant restraint on the expansion of the factory automation sector. While automated systems reduce the reliance on manual tasks, they simultaneously create a specific demand for a workforce capable of programming, operating, and maintaining complex infrastructure. When manufacturers cannot secure qualified engineers or technicians, they often delay or cancel plans to integrate new technologies. This hesitation stems from the risk of operational downtime caused by a lack of internal expertise to address system errors or technical failures effectively.

This workforce limitation directly impacts strategic investment decisions and slows the overall adoption rate of industrial robotics. According to the National Association of Manufacturers, in 2024, approximately 65 percent of surveyed manufacturers cited the inability to attract and retain employees as their primary business challenge. This persistent talent gap forces companies to operate below potential capacity and limits their ability to fully leverage automated solutions. Consequently, the market faces a deceleration in growth as the disparity between available technology and human technical capability widens.

Key Market Trends

Deployment of Private 5G Networks for Ultra-Low Latency Connectivity is fundamentally altering the communication infrastructure within automated facilities. Unlike legacy Wi-Fi or wired connections, private 5G provides the deterministic reliability and high bandwidth required for mission-critical applications such as autonomous mobile robots (AMRs) and real-time remote control of heavy machinery. This technology eliminates the physical constraints of cabling, allowing for highly reconfigurable production layouts that can adapt swiftly to changing product specifications. Manufacturers are prioritizing these secure, dedicated spectrums to support dense IoT environments and ensure seamless data transmission across the factory floor. According to RCR Wireless News, January 2025, in the 'Nokia and Ericsson hail record 2024 private 5G sales' article, Nokia added 55 new private wireless customers in the fourth quarter of 2024, highlighting the rapid industrial shift toward cellular-grade connectivity solutions.

The Proliferation of Collaborative Robots (Cobots) in Shared Workspaces represents a distinct transition from traditional, isolated automation toward safe human-robot cooperation. Cobots are engineered with advanced force-limiting sensors and intuitive programming interfaces, enabling them to operate alongside human workers without the need for extensive safety caging. This accessibility allows manufacturers to automate high-mix, low-volume tasks like assembly, sanding, and quality inspection which were previously cost-prohibitive with standard industrial robots. This segment continues to attract specific investment as companies seek flexible solutions to augment their existing workforce. According to the Association for Advancing Automation, September 2025, in the 'Collaborative Robots Statistics' report, North American firms purchased 1,052 collaborative robots worth $39.2 million in the first quarter of 2025, underscoring the growing reliance on these adaptable units for varied operational tasks.

Segmental Insights

The Industrial Robots segment is currently the fastest-growing category within the Global Factory Automation Market. This expansion is primarily driven by the widespread implementation of Industry 4.0 principles, which demand superior precision and operational efficiency. Manufacturers are increasingly utilizing robotic systems to mitigate labor shortages and enhance workplace safety by automating hazardous tasks. Furthermore, the International Federation of Robotics notes a significant upward trend in global installations, particularly within the automotive and electronics sectors. This shift highlights the indispensable role of robotics in modernizing production lines and securing long-term industrial competitiveness.

Regional Insights

Asia Pacific holds the dominant position in the Global Factory Automation Market, driven by extensive manufacturing activities in China, Japan, and South Korea. The region benefits significantly from strategic government policies, such as China's "Made in China 2025" and South Korea's manufacturing innovation programs, which prioritize industrial modernization. Furthermore, the strong presence of the automotive and consumer electronics sectors accelerates the adoption of robotics and process control technologies. Rising labor costs across the region also compel manufacturers to implement automated systems to ensure consistent production quality and operational efficiency.

Recent Developments

• In March 2025, Mitsubishi Electric launched the MELFA RH-10CRH and RH-20CRH SCARA robot series to enhance digital transformation capabilities in the manufacturing sector. These new robotic solutions were developed to provide high-speed operation and exceptional flexibility, specifically addressing the growing shortage of skilled labor in industrial environments. The robots featured a compact and lightweight design, making them ideal for applications such as assembly, coating, and precision conveyance within restricted workspaces. By offering compatibility with gigabit industrial Ethernet networks, the series facilitated seamless integration into existing production systems, thereby helping manufacturers boost productivity and adapt to changing market demands with greater agility.
• In November 2024, Schneider Electric launched the Modicon M660 motion controller, a powerful industrial PC designed to manage high-speed motion tasks with exceptional efficiency. Unveiled at the Smart Production Solutions event, this controller featured a 64-bit system and an advanced processor, enabling seamless integration with artificial intelligence and digital twin technologies. The product was engineered to address urgent automation challenges by instantaneously calculating outputs for numerous motor and servo drives. This innovation supported the convergence of information technology and operational technology, allowing manufacturers to execute complex motion programming and optimize production performance in modern smart factories.
• In October 2024, Siemens deepened its collaboration with Microsoft to scale the deployment of industrial artificial intelligence across manufacturing sectors. The partners advanced the Siemens Industrial Copilot, a generative AI assistant, to handle demanding engineering and automation tasks in rigorous industrial environments. This development combined Siemens’ extensive industry-specific domain knowledge with the Microsoft Azure OpenAI Service to streamline complex processes and mitigate labor shortages. Major companies began using this AI-powered solution to improve efficiency, reduce downtime, and drive innovation. The initiative represented a significant step in revolutionizing factory automation by making generative AI a robust tool for industrial engineering.
• In June 2024, Rockwell Automation expanded its strategic collaboration with NVIDIA to accelerate the development of next-generation autonomous mobile robots for industrial applications. This partnership focused on integrating the NVIDIA Isaac robotics platform into Rockwell’s automation solutions to create smarter and safer mobile robots for manufacturing logistics. The initiative aimed to improve performance and efficiency in factories by leveraging advanced artificial intelligence and robotics technologies. By combining industrial AI expertise with high-performance computing capabilities, the companies sought to unlock new potential in production automation and help industrial customers achieve greater operational resilience and agility in their facilities.

Key Market Players

• Honeywell International Inc.
• Siemens AG
• ABB Ltd.
• Rockwell Automation Inc.
• Schneider Electric SE
• Emerson Electric Co.
• Mitsubishi Electric Corporation
• Omron Corporation
• Bosch Rexroth AG
• Yokogawa Electric Corporation

By Component	By Control and Safety System	By Industry Verticals	By Region
Sensors Controllers Industrial Robots Drives and Others	Distributed Control System Supervisory Control and Data Acquisition System (SCADA) Manufacturing Execution System (MES) Systems Instrumented System (SIS) and Others	Automotive Manufacturing Food & Beverage Oil & Gas Processing Mining and Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Factory Automation Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Factory Automation Market, By Component:

• Sensors
• Controllers
• Industrial Robots
• Drives and Others

• Factory Automation Market, By Control and Safety System:

• Distributed Control System
• Supervisory Control and Data Acquisition System (SCADA)
• Manufacturing Execution System (MES)
• Systems Instrumented System (SIS) and Others

• Factory Automation Market, By Industry Verticals:

• Automotive Manufacturing
• Food & Beverage
• Oil & Gas Processing
• Mining and Others

• Factory Automation Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE