Industrial Automation Market is Estimated to Witness High Growth Owing to Rising Adoption of Industrial IoT

Industrial automation involves the use of control systems such as robots,Closed Circuit Television (CCTV),sensors, industrial computers and Embedded Systems for handling different industrial automated processes. Industrial automation helps in optimizing productivity, minimizes operational costs and enhances product quality through integration of industrial control systems with IT systems. With rising adoption of Industrial IoT technologies, industries are collecting large amounts of data from connected devices to gain real-time insights and automate processes in a way that maximizes efficiency. This helps them reduce operational costs, improve production quality and enhance decision making capabilities.

Global industrial automation market is estimated to be valued at USD 238.13 Bn in 2025 and is expected to reach USD 449.77 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 9.5% from 2025 to 2032.

Key Takeaways

Key players operating in the Industrial Automation are ABB Ltd, Adisra, Emerson Electric Co., Endress + Hauser, FANUC Corporation, Fizyr, General Electric Company, Honeywell Process Solutions, Mitsubishi Electric Corporation, Omron Corporation, Rockwell Automation Inc., Schneider Electric SE, Siemens AG, Stratasys, Yokogawa Electric Corporation.

The Industrial Automation Market Demand offers lucrative opportunities for solution providers to develop innovative IoT and AI enabled solutions for predictive maintenance, remote monitoring, process optimization and cloud based asset management. Several industries are also adopting collaborative robots for tasks like picking, packing, palletizing etc. thereby creating significant growth opportunities.

With growing globalization, many industries are setting up manufacturing bases in Asia Pacific and Middle East regions due to availability of low cost operations and resources. This is driving the demand for industrial automation solutions across developing economies. Several industrial giants are also actively collaborating with regional system integrators to tap into new regional markets and expand their global footprint.

Market Drivers

Rising adoption of Industrial IoT applications is a major market driver. Integration of IoT, cloud, analytics and mobility technologies helps industries connect physical assets, gather real-time data, predict equipment failure and take quick decisions. This drives the demand for industrial automation hardware as well as tailor made IoT software from automation solution providers. Other key drivers include growing focus on implementation of industrial 4.0 standards, need for mass customization through flexible manufacturing, demand for minimum downtime and cost optimization.

PEST Analysis

Political: Major changes in trade policies and regulations could impact the adoption of automation technologies across different industries. Any new laws regarding workers' rights and safety would need to be adhered to for automation equipment.

Economic: Economic growth and rising labor costs encourage industries to invest in automation to improve productivity and reduce operating expenses. However, a recession could decrease capital expenditure on automated systems.

Social: Acceptance of automation from the workforce is important for widespread adoption. Younger employees may find automated systems more engaging to work with. Safety is a major concern with any equipment operating alongside humans.

Technological: Advancements in robotics, artificial intelligence, IoT, simulation software, and machine vision are driving new applications for industrial automation. Connected devices allow remote monitoring and predictive maintenance of equipment. Interoperability standards need further development for different automated solutions to communicate seamlessly.

Geographical Concentration

The industrial automation market sees high concentration of value in developed regions like North America, Western Europe, and Japan due to their large manufacturing bases and early adoption. Countries such as the US, Germany, China, and Japan account for over half of the global market size. Automation is most prevalent in industries like automotive, electronics, pharmaceuticals, food processing, and oil & gas equipment manufacturing.

Fastest Growing Region

The Asia Pacific region is forecast to experience the fastest growth in the industrial automation market during the period. This is due to ongoing industrialization and adoption of advanced technologies in major emerging economies like China and India. Expanding manufacturing sectors, rising labor costs, and the need to improve productivity are driving increased investments in automation equipment and systems across industries in the Asia Pacific region.

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