Industrial Automation Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented 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, Logistics and Transportation Equipment, Electrical/Electronic Manufacturing, Building Materials Machinery & Fluid Machinery, Machine Tool Industry, Plastics/Rubber Machinery, Industrial Robotics, Wood Working Machinery, Others), By Region, By Competition Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 236.06 Billion
CAGR (2026-2031)	12.32%
Fastest Growing Segment	Process Automation
Largest Market	North America
Market Size (2031)	USD 473.99 Billion

Market Overview

The Global Industrial Automation Market will grow from USD 236.06 Billion in 2025 to USD 473.99 Billion by 2031 at a 12.32% CAGR. Industrial automation refers to the use of control systems, such as computers or robots, and information technologies for handling different processes and machineries to replace or minimize human intervention. The market is primarily driven by the urgent need for improved operational efficiency and the escalating shortage of skilled labor in manufacturing sectors globally. Furthermore, the rapid adoption of Industry 4.0 principles is accelerating the deployment of these technologies. According to the International Federation of Robotics, in 2025, statistics revealed that 542,000 industrial robots were installed globally in 2024.

Despite the robust growth trajectory, the market faces a significant challenge regarding the substantial capital expenditure required for implementation. The high initial costs associated with purchasing, installing, and maintaining automation systems can be prohibitive, particularly for small and medium-sized enterprises. This financial barrier often delays adoption, as companies must carefully weigh the long-term return on investment against the immediate budgetary constraints. Consequently, the economic burden of transition remains a critical hurdle impeding broader market expansion.

Key Market Drivers

The rapid adoption of Industry 4.0 and smart manufacturing technologies is fundamentally reshaping the industrial landscape by integrating advanced digital tools with physical production processes. Manufacturers are increasingly prioritizing the integration of artificial intelligence and machine learning to optimize control systems, enhance decision-making capabilities, and implement predictive maintenance protocols that significantly reduce downtime. This digital transformation enables real-time data analytics and seamless connectivity across the value chain, driving substantial improvements in operational efficiency and agility. Validating this aggressive technological shift, according to Rockwell Automation, March 2024, in the '9th Annual State of Smart Manufacturing Report', 83% of manufacturers anticipate using Generative AI (GenAI) in their operations in 2024.

Simultaneously, the critical need to mitigate labor shortages and offset rising operational costs is acting as a powerful catalyst for the expansion of automated systems, particularly collaborative robots. As industries grapple with a widening skills gap and wage inflation, companies are accelerating the deployment of flexible automation to augment the workforce and ensure business continuity. This urgent demand is evident in recent market activity; according to the Association for Advancing Automation, November 2024, in the 'Robot Orders in North America Grow Significantly in Q3 of 2024' report, robot sales in North America increased by 8.8% in the third quarter of 2024 compared to the same period the previous year. This momentum contributes to a massive installed base of automation worldwide; according to the International Federation of Robotics, September 2024, in the 'World Robotics 2024' report, the global operational stock of industrial robots reached a record of approximately 4.3 million units in 2023.

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Key Market Challenges

The substantial capital expenditure required for implementation constitutes a primary restriction on the expansion of the Global Industrial Automation Market. Procurement of automated systems involves heavy upfront costs for hardware, software integration, and necessary infrastructure modifications. This financial requirement creates a high barrier to entry, particularly for small and medium-sized enterprises that often operate with limited liquidity. Consequently, many organizations delay or scale back modernization initiatives, prioritizing immediate capital preservation over long-term efficiency gains.

The direct impact of these financial constraints is a tangible deceleration in the adoption rate of new technologies. When the return on investment is perceived as too distant relative to the initial outlay, companies defer the acquisition of automated solutions. This hesitation directly correlates with fluctuations in equipment orders, as manufacturers navigate budgetary limits. According to the Association for Advancing Automation, in 2024, robot orders in North America declined by 6 percent in the first quarter compared to the same period in the previous year. This data highlights how economic pressures and high investment costs effectively dampen market activity and restrict the broader deployment of industrial automation technologies.

Key Market Trends

Utilization of Private 5G Networks for High-Speed Industrial Communication is significantly enhancing connectivity standards on the factory floor, enabling the seamless transmission of massive data volumes required for advanced IIoT applications. Unlike legacy Wi-Fi systems, private 5G offers deterministic low latency and enhanced security, which are critical for coordinating autonomous mobile robots and ensuring reliable machine-to-machine communication in complex environments. This infrastructure layer is becoming a prerequisite for digital transformation as manufacturers seek robust backbones to support real-time analytics and remote operations. The financial viability of this technology is driving rapid uptake; according to Nokia, June 2024, in the '2024 Industrial Digitalization Report', 93% of private network early adopters achieved a return on investment within 12 months, validating the immediate operational gains offered by these dedicated connectivity solutions.

Simultaneously, the Adoption of Sustainable and Energy-Efficient Manufacturing Practices has evolved from a regulatory compliance requirement into a core strategic imperative for industrial operators. Manufacturers are increasingly embedding energy management software and eco-efficient hardware into their automation frameworks to monitor carbon footprints and optimize resource consumption dynamically. This shift is motivated by the dual goals of reducing long-term operational costs and meeting stringent global environmental standards, which now directly influence procurement decisions. The universality of this commitment is evident in the sector's strategic planning; according to Rockwell Automation, March 2024, in the '9th Annual State of Smart Manufacturing Report', 98% of manufacturers have established some form of sustainability or Environmental, Social, and Governance (ESG) policy, highlighting how green initiatives have become integral to modern industrial automation strategies.

Segmental Insights

Process automation has emerged as the fastest-growing segment in the global industrial automation market due to the rising demand for operational safety and regulatory compliance in continuous manufacturing sectors. Industries such as chemicals, energy, and water treatment are increasingly adopting these systems to minimize human error and adhere to strict environmental guidelines established by institutions like the Environmental Protection Agency. Additionally, the drive to optimize resource utilization and reduce operational costs compels manufacturers to implement automated monitoring solutions, thereby accelerating the expansion of the process automation sector.

Regional Insights

North America commands the leading position in the Global Industrial Automation Market, driven by the rapid adoption of Industry 4.0 technologies and smart manufacturing practices. This dominance is primarily fueled by the need to offset high labor costs and address workforce shortages through efficient, automated solutions. The region benefits from robust industrial infrastructure and the significant presence of major technology providers. Furthermore, strategic initiatives supported by organizations such as the Association for Advancing Automation (A3) encourage the integration of robotics and artificial intelligence, solidifying the United States and Canada as central hubs for market expansion and technological progress.

Recent Developments

• In June 2024, Rockwell Automation strengthened its position in the Global Industrial Automation Market through an expanded collaboration with NVIDIA to advance industrial AI mobile robots. The partnership focused on integrating the NVIDIA Isaac robotics platform into autonomous mobile robots (AMRs) to enhance performance and efficiency in manufacturing logistics. This initiative aimed to accelerate the deployment of smarter, safer automation solutions by leveraging advanced artificial intelligence. Furthermore, the companies worked to integrate cloud application programming interfaces with emulation software, enabling the creation of high-fidelity digital twins that allow manufacturers to design, build, and operate industrial-scale production systems with greater precision.
• In May 2024, Siemens introduced a transformative solution for the Global Industrial Automation Market with the launch of the Simatic Automation Workstation. This innovation allows manufacturers to replace traditional hardware components, including programmable logic controllers (PLCs), human-machine interfaces (HMIs), and edge devices, with a single software-based workstation. By merging Information Technology (IT) workflows with Operational Technology (OT) environments, the workstation provides software-defined control over factory processes. This development was designed to simplify the management of numerous hardware control points, offering industrial companies unprecedented flexibility and security in their manufacturing operations while paving the way for future-proof factory architectures.
• In February 2024, Schneider Electric unveiled a significant development for the Global Industrial Automation Market by launching the "Distributed Control Node" software framework in collaboration with Intel and Red Hat. As an extension of the EcoStruxure Automation Expert, this innovative framework enables industrial enterprises to adopt a software-defined, plug-and-produce automation architecture. The solution was designed to decouple control software from hardware, fostering a more open and flexible automation environment. This advancement allows manufacturers to reduce system complexity, optimize operational costs, and future-proof their control systems, thereby driving greater interoperability and portability across diverse industrial control applications.
• In January 2024, Universal Robots significantly advanced the Global Industrial Automation Market by launching the UR30, a robust collaborative robot with a 30 kg payload capacity. Built upon the architecture of previous next-generation models, this cobot was engineered to deliver superior motion control and lifting capabilities within a compact footprint. The new product specifically targets heavy-duty applications such as machine tending, material handling, and high-torque screw driving. By enabling the use of multiple grippers and heavier tools, the UR30 allows manufacturers to automate complex tasks, thereby enhancing productivity and flexibility in industrial production environments worldwide.

Key Market Players

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

By Component	By Industry	By Vertical	By Region
Hardware Software	Process Automation Factory Automation Machine Automation	Pharmaceutical Food & Beverage Machinery Energy Equipment/Mining/Utilities Packaging Machinery Automotive Textile/Fabric/Coating Machinery Logistics and Transportation Equipment Electrical/Electronic Manufacturing Building Materials Machinery & Fluid Machinery Machine Tool Industry Plastics/Rubber Machinery Industrial Robotics Wood Working Machinery Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Industrial Automation Market, By Component:

• Hardware
• Software

• Industrial Automation Market, By Industry:

• Process Automation
• Factory Automation
• Machine Automation

• Industrial Automation Market, By Vertical:

• Pharmaceutical
• Food & Beverage Machinery
• Energy Equipment/Mining/Utilities
• Packaging Machinery
• Automotive
• Textile/Fabric/Coating Machinery
• Logistics and Transportation Equipment
• Electrical/Electronic Manufacturing
• Building Materials Machinery & Fluid Machinery
• Machine Tool Industry
• Plastics/Rubber Machinery
• Industrial Robotics
• Wood Working Machinery
• Others

• Industrial 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