The industrial automation market is anticipated to expand at a rapid pace owing to high emphasis of industries and manufacturing to improve the productivity and efficiency of their operations over the coming years.
WESTFORD, Mass., July 31, 2025 /PRNewswire/ — SkyQuest Technology Consulting published a report, titled, Industrial Automation Market – Global Opportunity Analysis and Industry Forecast, 2025-2032″, valued at USD 238.73 billion in 2024. With a projected CAGR of 8.8% from 2025 to 2032, the market is expected to reach USD 468.75 billion by the end of 2032. Advancements in artificial intelligence technologies and surging labor costs are also expected to play a crucial role in bolstering the demand for industrial automations across the study period.
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Industrial Automation Market Dynamics:
Shift of industries and manufacturers towards smart manufacturing to enhance productivity, reduce costs, and ensure flexibility is promoting industrial automation adoption. Industrial automation enables real-time monitoring, predictive maintenance, and streamlined operations via technologies like IoT, AI, and robotics. Companies benefit from reduced downtime, optimized resource use, and data-driven decision-making. This demand for intelligent, adaptive, and connected manufacturing systems is a core driver pushing industrial automation demand beyond 2032.
Another key factor driving the demand for industrial automation is rising labor wages and shortage of skilled labor around the world. As manual labor becomes increasingly scarce or costly, industries are turning to automated systems to maintain productivity and reduce dependency on human workers. This is particularly true in high-precision sectors like semiconductors, aerospace, and logistics. Automation solutions offer consistent quality, round-the-clock operation, and long-term cost savings despite high initial investment.
Recent Developments in Industrial Automation Market
- In May 2025, Schneider Electric India, a renowned provider of automation announced the launch of Open Automation Movement. The initiative is aimed at at liberalizing industrial automation in India and making it more accessible through Open, software-defined automation.
- In November 2024, GigaDevice, a leading Chinese manufacturer of microcontrollers announced the launch of EtherCAT® SubDevice Controller chip. The new solution is tailored to meet the demands of the industrial automation applications such as servo control, variable frequency drives, and industrial PLCs.
- In October 2024, B&R Industrial Automation, a leading automation provider from Austria announced the launch of new X20 Drives. The new solutions are designed for automating machine components such as conveyors and adjustment axes.
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Major Challenges in Industrial Automation Industry
Substantial upfront cost of hardware, software, integration, and employee training required to deploy industrial automation solutions is expected to hurt market growth potential going forward. Uncertainties around return on investment (ROI) are also expected to make this restraint more prominent. Customization needs, ongoing maintenance, and rapid tech obsolescence further complicate cost-benefit analyses and hurt industrial automation adoption in the long run.
Cybersecurity risks and data privacy concerns are major issues that are expected to impede the demand for industrial automation going forward. Automated systems integrated with IoT and cloud platforms are vulnerable to cyberattacks, data breaches, and ransomware. A single attack can disrupt entire production lines, compromise intellectual property, and result in significant financial losses. Many manufacturers, especially those transitioning from legacy systems, lack robust cybersecurity frameworks.
Competitive Landscape:
Industrial automation companies should collaborate with tech giants to enhance their business scope and boost innovation. Creating integrated and embedded industrial automation solutions is expected to gain popularity in the future. Launch of new digital transformation initiatives and adoption of Industry 4.0 trends are also slated to create new business scope for industrial automation providers through 2032.
The major players in the industrial automation industry include,
- ABB
- Emerson
- Siemens
- Schneider Electric
- Mitsubishi Electric
- Bosch Rexroth
- Endress+Hauser
- Honeywell
- Rockwell Automation
- General Electric
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Industrial Automation Market Segmentation:
Global industrial automation market is segmented by component, end use industry, and region. Based on component, the market is segmented into hardware (industrial control systems, field devices), software (Product Lifecycle Management (PLM), Manufacturing Execution Systems (MES), Enterprise Resource Planning (ERP), Supervisory Control and Data Acquisition (SCADA), Others), and services (installation services, maintenance & support services, consulting & training services, managed services). Based on end use industry, the market is segmented into transportation infrastructure, energy & power, nuclear, oil & gas, manufacturing, life sciences, logistics & supply chain, consumer packaged goods, chemical & material, infrastructure & construction, aerospace & defense, technology & communications, environmental services, mining & metals, and others.
- By component, the hardware segment dominated the global industrial automation market in 2024 owing to high innovation in hardware components and their crucial in automation.
- By end use industry, the manufacturing segment dominated the global industrial automation market in 2024 on the back of rising manufacturing activity across multiple regions of the world.
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Regional Insights
Implementation of stringent safety regulations and early adoption of automation technologies are making North America an attractive region for industrial automation providers. Presence of key automation companies such as Rockwell Automation and Honeywell is also helping create new demand for industrial automation solutions in Canada and the United States going forward.
Europe industrial automation market is driven by launch of new Industry 4.0 initiatives and rising investments in smart manufacturing technology. European Union’s stringent regulatory mandates and rising digitization are also creating new business scope for industrial automation companies. Germany is expected to be at the forefront of industrial automation adoption in this region.
The Asia Pacific region is slated to spearhead the global industrial automation adoption in the long run. Rising investments in adoption of smart manufacturing technologies and robust government support through incentives and subsidies are helping cement the dominance of this region. China, Japan, and South Korea are top countries in the Asia Pacific for industrial automation demand.
In the LAMEA region, the industrial automation market is driven by booming healthcare, manufacturing, and e-commerce sectors. South Africa, Brazil, Saudi Arabia, and Argentina are slated to be the key countries for industrial automation providers operating in this region.
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