India Industrial Automation Market By Component (Hardware, Software), By Industry (Process Automation, Factory Automation, Machine Automation), By Vertical (Pharmaceutical, Food & Beverage Machinery, Energy Equipment/Mining/Utilities, Packaging Machinery, Automotive, Textile/Fabric/Coating Machinery), By Region, Competition, Forecast and Opportunities, 2020-2030F

Market Overview

India Industrial Automation Market was valued at USD 16.2 billion in 2024 and is expected to reach at USD 37.42 Billion in 2030 and project robust growth in the forecast period with a CAGR of 14.8% through 2030. The India Industrial Automation Market is experiencing significant growth, driven by rapid technological advancements and the increasing need for improved productivity, efficiency, and safety across industries. Automation technologies, such as robotics, control systems, and artificial intelligence (AI), are being increasingly adopted across various sectors, including automotive, manufacturing, electronics, and pharmaceuticals. The market is further fueled by the government’s push for "Make in India" and "Atmanirbhar Bharat" initiatives, which promote self-reliance and encourage investment in automation technologies to enhance the competitiveness of domestic industries. Additionally, the rising demand for energy-efficient solutions, coupled with the need to reduce operational costs and minimize human errors, is accelerating the adoption of industrial automation systems. Companies are leveraging automation to streamline production processes, improve quality control, and optimize supply chains. The automotive sector, in particular, has been a significant contributor to the market's growth, with automation playing a pivotal role in enhancing manufacturing efficiency and precision. Furthermore, the rise of smart factories, Industry 4.0 technologies, and the Internet of Things (IoT) is transforming traditional manufacturing processes, making automation a key enabler for the digitalization of Indian industries. As these trends continue, the India Industrial Automation Market is expected to expand further, creating new opportunities for technology providers and transforming industrial operations across the country.

Key Market Drivers

Government Initiatives and Policies

One of the key drivers propelling the India Industrial Automation Market is the government’s strong push towards automation through various initiatives and policies. Programs like "Make in India," "Atmanirbhar Bharat," and "Digital India" are designed to boost domestic manufacturing, enhance self-reliance, and encourage investment in advanced technologies. These initiatives have significantly increased the demand for automation technologies across multiple industries, such as automotive, textiles, and electronics. Additionally, the government's focus on improving the ease of doing business and fostering innovation has created a favorable environment for automation solutions. These policies aim to strengthen India’s industrial base, improve competitiveness, and address labor shortages, making automation a crucial tool for modernizing traditional manufacturing processes. Furthermore, the push for smart factories and Industry 4.0 adoption has accelerated the implementation of automation technologies in India. With a more automated workforce, Indian industries are positioning themselves to meet global standards in terms of productivity, quality control, and operational efficiency, further driving the growth of the industrial automation market. The financial incentives, tax breaks, and ease of regulatory approvals introduced by the government continue to make automation a viable and attractive investment for businesses across the country. As of 2023, India’s manufacturing sector is expected to grow at a CAGR of 12-15%, driven by automation adoption, with government support focusing on digitization, smart factories, and modern production lines.

Increasing Need for Operational Efficiency and Cost Reduction

The rising demand for operational efficiency and cost reduction is another significant driver of the India Industrial Automation Market. In a highly competitive global market, Indian industries are increasingly seeking ways to optimize production processes, reduce downtime, and lower operational costs. Automation offers a solution by enabling businesses to streamline their operations, reduce human errors, and improve throughput. Technologies such as robotics, automated control systems, and artificial intelligence (AI) are being integrated into manufacturing processes to achieve higher efficiency and consistency. By automating repetitive and labor-intensive tasks, companies can free up human workers for more strategic activities, reducing labor costs and improving productivity. Automation also plays a crucial role in minimizing material waste, energy consumption, and maintenance costs, leading to a more sustainable operation. The need for greater flexibility in production lines is also driving the market, as industries demand systems that can adapt to changing customer requirements and market dynamics. The ability of automation systems to ensure real-time monitoring and predictive maintenance has been critical in helping industries mitigate risks associated with machine failure and unplanned downtime. Overall, businesses are adopting industrial automation to achieve significant cost savings while maintaining or improving product quality and consistency, thereby accelerating the market’s growth. The government has allocated funds for developing a local ecosystem for industrial automation, which is expected to further fuel market growth by 6-8% annually over the next few years.

Rising Demand for Quality and Precision in Manufacturing

The increasing demand for superior product quality and precision in manufacturing is another pivotal driver of the India Industrial Automation Market. With industries facing pressure to meet stringent quality standards and consumer expectations, automation technologies offer a critical advantage in ensuring high-quality output. Automated systems, such as robotics, advanced sensors, and automated inspection technologies, are being deployed to maintain consistent quality and reduce human errors in production processes. Automation also enables real-time monitoring and precise control over production variables, such as temperature, pressure, and speed, leading to more accurate and uniform products. In industries like automotive, pharmaceuticals, and electronics, where product quality is critical for safety, compliance, and customer satisfaction, automated systems are essential for meeting global standards and regulatory requirements. Additionally, the integration of artificial intelligence (AI) and machine learning (ML) into industrial automation allows for continuous improvement of manufacturing processes by predicting potential issues and optimizing production lines for maximum efficiency. The ability to maintain consistent quality while scaling up production has made automation an indispensable tool for industries aiming to stay competitive in an increasingly globalized market. As the demand for high-quality, defect-free products continues to rise, the adoption of automation solutions is expected to accelerate, further boosting the industrial automation market in India. This has boosted the adoption of automation technologies, particularly in the electronics manufacturing and semiconductor sectors, which are growing rapidly and expected to continue expanding at a CAGR of 10-12% through 2027.

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Key Market Challenges

High Initial Investment and Integration Costs

One of the primary challenges faced by the India Industrial Automation Market is the high initial investment and integration costs associated with automation systems. Many small and medium-sized enterprises (SMEs) in India are hesitant to adopt advanced automation technologies due to the substantial upfront capital required for purchasing equipment, software, and installation. In addition to the cost of automation hardware such as robots, sensors, and control systems, businesses also face integration costs for aligning these new technologies with existing infrastructure and processes. This includes expenses related to training employees, upgrading machinery, and ensuring compatibility between legacy systems and modern automation solutions. For SMEs, the cost of ownership is often prohibitive, preventing them from tapping into the potential benefits of automation. While large corporations may have the financial resources to make these investments, the high costs still pose a barrier to broader adoption, particularly in sectors that are sensitive to cost pressures such as textiles and small-scale manufacturing. Furthermore, the economic uncertainty caused by global events can make businesses more cautious about making large investments in automation, slowing down the market’s growth. Overcoming this challenge requires innovative financing options, such as leasing or pay-per-use models, and government incentives or subsidies to reduce the financial burden on businesses and accelerate the adoption of industrial automation technologies.

Skilled Labor Shortage and Training Needs

A significant challenge hindering the growth of the India Industrial Automation Market is the shortage of skilled labor to operate and maintain automated systems. Automation technologies, including robotics, AI, and advanced control systems, require highly specialized skills to ensure their optimal implementation and ongoing operation. However, India faces a gap in the availability of adequately trained professionals, such as automation engineers, robotics specialists, and data scientists, who can manage these complex systems. This skills shortage creates difficulties for industries looking to adopt automation technologies, as businesses are forced to invest additional time and resources into training their workforce to handle new automation tools. Moreover, the rapid pace of technological advancements means that even skilled labor must continuously update their knowledge to keep up with evolving automation trends. While large companies may be able to invest in training programs or hire specialized talent, smaller businesses often lack the resources to do so, further widening the skills gap. Additionally, traditional educational systems and vocational training programs in India have been slow to adapt to the demands of Industry 4.0, leaving a significant gap in the talent pool for automation-related roles. Bridging this skills gap requires stronger collaboration between educational institutions, industry players, and the government to develop specialized training programs and certification courses that align with the evolving needs of the automation sector. Encouraging the younger workforce to pursue careers in automation and providing on-the-job training will be essential to overcoming this challenge.

Security and Cybersecurity Risks 

As India continues to embrace industrial automation, security and cybersecurity risks have become significant challenges for businesses adopting these technologies. With the integration of IoT, cloud computing, and interconnected devices into manufacturing systems, the risk of cyberattacks and data breaches has grown exponentially. Industrial control systems (ICS) and operational technology (OT) are increasingly vulnerable to hacking, which can result in operational disruptions, intellectual property theft, and significant financial losses. As automation systems become more interconnected, the potential attack surface for cybercriminals expands, posing a serious threat to the integrity of sensitive data and operational processes. Industries such as automotive, energy, and pharmaceuticals, which rely heavily on automated systems, are prime targets for cyberattacks, as a breach in these sectors could lead to catastrophic consequences, including compromised product quality or safety issues. Additionally, legacy systems that were not initially designed for cybersecurity are often inadequately protected, making them more susceptible to attacks. The lack of awareness regarding cybersecurity risks within Indian industries, especially in small and medium enterprises (SMEs), exacerbates the issue. Addressing this challenge requires the implementation of robust cybersecurity protocols and practices, including the integration of advanced security technologies such as encryption, firewalls, and intrusion detection systems in industrial automation systems. Furthermore, businesses need to invest in regular training for employees to raise awareness of cybersecurity best practices and ensure the continuous monitoring and updating of security measures. As the market moves toward greater digitalization, ensuring the cybersecurity of industrial automation systems is paramount to maintaining the integrity and continuity of business operations.

Key Market Trends

Increasing Adoption of Robotics in Manufacturing

A prominent trend driving the growth of the India Industrial Automation Market is the increasing adoption of robotics in manufacturing. Robots are being increasingly used across sectors such as automotive, electronics, and consumer goods for tasks like assembly, material handling, painting, welding, and packaging. The ability of robots to perform repetitive tasks with high precision and speed is enhancing productivity, reducing human error, and improving safety in factories. This trend is particularly evident in the automotive sector, where robots are being deployed for high-precision tasks such as vehicle assembly and part manufacturing. Moreover, the cost of industrial robots has been steadily decreasing, making them more accessible to small and medium-sized enterprises (SMEs), further driving market penetration. Additionally, the integration of advanced technologies such as AI, machine learning, and IoT with robotics is enabling the development of collaborative robots (cobots) that can work alongside human operators, improving flexibility and efficiency in production lines. As India moves towards Industry 4.0, the demand for intelligent, autonomous systems that can handle complex tasks is growing. The government’s initiatives like "Make in India" and "Atmanirbhar Bharat," which focus on fostering domestic manufacturing capabilities, are encouraging manufacturers to invest in robotics. Furthermore, the push for automation in sectors such as pharmaceuticals and electronics, where precision and speed are critical, is expected to accelerate this trend. The ongoing evolution of robotics technology, with advancements in flexibility, affordability, and user-friendliness, continues to play a pivotal role in transforming India’s manufacturing landscape. With over 50 million MSMEs in India, the increasing shift toward automation in this sector is expected to significantly contribute to the growth of the industrial automation market, particularly in the food, textiles, and automotive industries.

Integration of Artificial Intelligence and Machine Learning

Another significant trend shaping the India Industrial Automation Market is the increasing integration of Artificial Intelligence (AI) and Machine Learning (ML) into automation systems. AI and ML algorithms enable industrial automation systems to learn from data, predict failures, and optimize operations in real-time, which results in improved efficiency, reduced downtime, and enhanced decision-making. By incorporating AI and ML into manufacturing processes, Indian industries can achieve higher levels of automation, reducing the reliance on human intervention and improving productivity. For example, AI-powered predictive maintenance tools are becoming critical in preventing equipment failures, allowing manufacturers to schedule maintenance before costly breakdowns occur. Additionally, AI is being used for quality control, where machine vision systems powered by AI can detect defects in products with higher accuracy than human inspectors. The integration of AI with automation is also enabling the creation of smarter factories that can self-adjust processes based on real-time data, enhancing operational flexibility and responsiveness to market changes. The rise of Industry 4.0, which focuses on digitalization and interconnected systems, has further accelerated the adoption of AI in manufacturing. As AI technologies become more affordable and scalable, Indian industries are increasingly adopting these solutions to optimize production, improve product quality, and reduce operational costs. The government’s push for smart manufacturing and digitalization is also fueling the growth of AI in industrial automation. As the AI landscape continues to evolve, its integration into industrial automation systems will drive future growth and innovation in India’s industrial sector.

Growing Focus on Energy Efficiency and Sustainability

A key market trend in the India Industrial Automation Market is the growing focus on energy efficiency and sustainability. With rising energy costs and increasing environmental concerns, manufacturers in India are prioritizing automation solutions that optimize energy consumption and reduce waste. Smart automation systems equipped with IoT sensors are being deployed to monitor and control energy usage in real-time, enabling industries to identify inefficiencies and take corrective actions. For instance, automated systems can regulate heating, ventilation, and air conditioning (HVAC) systems, lighting, and production machinery to reduce energy consumption during non-peak hours or when equipment is not in use. Additionally, energy-efficient machines and equipment are being integrated into production lines to minimize electricity consumption without compromising performance. This trend is particularly relevant in energy-intensive industries such as steel, cement, and chemicals, where automation plays a crucial role in optimizing energy use and lowering costs. Moreover, automation solutions are being employed to support sustainability goals by reducing emissions and waste through efficient production processes. The Indian government’s initiatives aimed at reducing the carbon footprint, such as the implementation of the Energy Conservation Building Code (ECBC) and the push for green manufacturing, are further driving the adoption of energy-efficient automation solutions. As Indian industries increasingly focus on sustainability, automation technologies that contribute to energy conservation and environmental responsibility are expected to gain traction, driving long-term growth in the industrial automation market.

Rise of Smart Factories and Industry 4.0

The rise of smart factories and the widespread adoption of Industry 4.0 technologies are significant trends reshaping the India Industrial Automation Market. Industry 4.0, characterized by the integration of cyber-physical systems, IoT, AI, and big data analytics, is enabling Indian manufacturers to transition from traditional production lines to highly connected, intelligent factories. In smart factories, equipment, machines, and products are interconnected through IoT devices, allowing for seamless communication and data exchange across the supply chain. This connectivity enables real-time monitoring of production processes, predictive maintenance, and data-driven decision-making, resulting in improved efficiency, quality, and flexibility. The move towards smart factories is being driven by the need for greater customization, faster production cycles, and higher operational agility in response to changing consumer demands. Additionally, the Indian government’s focus on digitalization and smart manufacturing under initiatives like "Digital India" and "Make in India" is accelerating the adoption of Industry 4.0 technologies. Manufacturers are investing in automation solutions that allow for faster, more flexible production, enhanced product quality, and greater operational transparency. As the demand for high-quality, low-cost, and customized products increases, the need for intelligent, data-driven manufacturing processes becomes more critical. The adoption of Industry 4.0 and smart factories is expected to transform India’s industrial landscape, leading to significant improvements in productivity and cost efficiency. With technological advancements and increased investment in digital infrastructure, smart factories will continue to shape the future of industrial automation in India.

Segmental Insights

Component Insights

In 2024, the hardware segment dominated the India Industrial Automation Market and is expected to maintain its dominance throughout the forecast period. Hardware components, such as industrial robots, sensors, control systems, programmable logic controllers (PLCs), and motor drives, are the backbone of industrial automation systems, enabling manufacturers to automate their processes and improve operational efficiency. The increasing adoption of robotics for tasks such as assembly, packaging, and material handling, particularly in sectors like automotive and electronics, is driving the demand for hardware. As Indian industries increasingly move towards smart manufacturing and Industry 4.0, the demand for advanced hardware components, such as IoT-enabled devices, sensors, and edge computing systems, continues to grow. These components facilitate real-time data collection, monitoring, and predictive maintenance, essential for optimizing production lines and reducing downtime. Additionally, hardware solutions are crucial for enhancing energy efficiency, safety, and precision in industrial processes. The hardware segment's dominance is further supported by the ongoing infrastructure development in India, with a focus on modernizing manufacturing facilities across various sectors. While software components, including automation software, enterprise resource planning (ERP) systems, and analytics tools, are growing in importance, they are heavily reliant on robust hardware to function effectively. As industrial automation moves toward more interconnected systems, the hardware segment will continue to lead, driving investments in advanced machinery, control systems, and sensors. Furthermore, with industries like automotive, pharmaceuticals, textiles, and consumer goods increasingly adopting automation technologies, the demand for hardware solutions is expected to rise consistently. The combination of technological advancements, government support for automation adoption, and the need for precision, efficiency, and scalability in industrial processes will ensure that the hardware segment remains the dominant driver of growth in India’s industrial automation market.

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Regional Insights

In 2024, South India dominated the India Industrial Automation Market and is expected to maintain its leadership throughout the forecast period. South India, comprising states such as Tamil Nadu, Karnataka, Andhra Pradesh, and Telangana, has established itself as a manufacturing hub with a strong industrial base, particularly in sectors like automotive, electronics, pharmaceuticals, and textiles. Tamil Nadu, in particular, is known for its robust automotive and engineering industries, while Bengaluru, the capital of Karnataka, is a center for technology and innovation, with a growing emphasis on automation solutions. The region's industrial growth is further supported by a highly skilled workforce, well-established infrastructure, and a favorable business environment. The rapid adoption of automation technologies in manufacturing processes, driven by the need for enhanced productivity, precision, and cost-efficiency, has made South India the dominant region in the industrial automation market. Additionally, the government’s initiatives such as the "Make in India" campaign and "Digital India" are fostering industrial growth in the region, encouraging companies to invest in automation to stay competitive in the global market. The demand for factory automation, driven by advancements in robotics, AI, and IoT, is particularly strong in South India, where manufacturing facilities are modernizing and adopting smart technologies. Furthermore, South India’s focus on green and sustainable manufacturing practices is contributing to the adoption of energy-efficient automation solutions. As industries in South India continue to embrace digitalization and Industry 4.0 technologies, the region is expected to maintain its dominance in the industrial automation market, offering significant growth opportunities for technology providers and fueling the expansion of automation systems across various sectors.

Recent Developments

• In Oct 2024, Delta Electronics has announced the launch of its new smart building solutions at the Integrated Systems Europe (ISE) 2025 exhibition. The innovative solutions include energy-efficient building automation, lighting, and HVAC systems, designed to optimize energy consumption and enhance operational efficiency. Delta’s integrated approach combines cutting-edge IoT technologies with AI-driven data analytics, offering building operators real-time insights and predictive maintenance capabilities. This initiative underscores Delta’s commitment to sustainability and advancing smart building technologies in the global market.
• In August 2024, Delta Electronics has introduced its advanced industrial automation solutions at the Hannover Messe 2025. The showcased products include innovative robotics, AI-driven control systems, and energy-efficient automation technologies aimed at enhancing operational efficiency and sustainability in manufacturing. These solutions cater to diverse sectors, including automotive, electronics, and food processing. Delta's integration of IoT and AI technologies provides real-time monitoring and predictive analytics, empowering industries to streamline production processes, reduce energy consumption, and improve overall productivity.
• In Dec 2024, Honeywell has been selected to drive automation and energy efficiency for the new Melton Hospital in Australia. The company will implement its advanced building management systems, including IoT-enabled solutions, to optimize energy use, enhance operational efficiency, and improve patient comfort. Honeywell’s technology will integrate heating, ventilation, air conditioning (HVAC), lighting, and other critical systems to reduce energy consumption and operational costs. This collaboration underscores Honeywell’s commitment to advancing sustainable and smart building technologies in healthcare infrastructure.
• In Oct 2024, Honeywell and Chevron have partnered to develop AI-assisted solutions aimed at optimizing refining processes. This collaboration will leverage Honeywell’s advanced process control technologies and Chevron’s industry expertise to enhance operational efficiency, improve safety, and reduce environmental impact in refineries. By incorporating artificial intelligence and machine learning, the solutions will enable real-time data analysis and predictive maintenance, driving cost reductions and increased production uptime. The partnership highlights the companies’ commitment to innovation and sustainability in the energy sector.

Key Market Players

• Siemens AG
• ABB Ltd.
• Rockwell Automation, Inc.
• Schneider Electric SE
• Honeywell International Inc.
• Mitsubishi Electric Corporation
• FANUC Corporation
• Hitachi, Ltd.

Report Scope:

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

• India Industrial Automation Market, By Component:

o   Hardware

o   Software

• India Industrial Automation Market, By Industry:

o   Process Automation

o   Factory Automation

o   Machine Automation

• India Industrial Automation Market, By Vertical:

o   Pharmaceutical

o   Food & Beverage Machinery

o   Energy Equipment/Mining/Utilities

o   Packaging Machinery

o   Automotive

o   Textile/Fabric/Coating Machinery

• India Industrial Automation Market, By Region:

o   North India

o   South India

o   West India

o   East India     

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the India Industrial Automation Market.

Available Customizations:

India Industrial Automation Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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