The industrial automation market size is projected to reach US$ 322.67 billion by 2030 from US$ 171.23 billion in 2022. The market is expected to register a CAGR of 8.2% during 2022–2030. The adoption of the Industry 4.0 concept is likely to remain a key trend in the market.
Industrial Automation Market Analysis
The use of artificial intelligence technology, emerging connected enterprises, and focus on operational efficiency are driving the market. The market is anticipated to grow during the forecast period due to the favorable initiatives taken by the government to promote industrial automation. Moreover, the demand for immersive technologies for real-time information-sharing and integration of machine vision systems with deep learning technologies are creating lucrative opportunities for the market.
Industrial Automation Market Overview
Industrial automation replaces human intervention by using control systems such as robots, computers, and information technology to operate various machinery in an industry. Depending on the operations involved, industrial automation control systems are divided into two categories: process plant automation and manufacturing automation. Industrial automation improves product quality, reliability, and production rate while lowering manufacturing and design costs through the use of new, innovative, and integrated technologies and services. They have a variety of characteristics, including high productivity, quality, flexibility, and information correctness, which are projected to promote the use of automation in the industrial sector during the forecast period. Furthermore, the spike in the adoption of automation solutions in oil and gas, manufacturing, chemicals and materials, pharmaceuticals, and other industries is pushing industrial automation.
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Industrial Automation Market: Strategic Insights
Market Size Value in US$ 171.23 Billion in 2022 Market Size Value by US$ 322.67 Billion by 2030 Growth rate CAGR of 8.2% from 2022 to 2030 Forecast Period 2023-2030 Historic Period 2020-2021
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Industrial Automation Market: Strategic Insights
| Market Size Value in | US$ 171.23 Billion in 2022 |
| Market Size Value by | US$ 322.67 Billion by 2030 |
| Growth rate | CAGR of 8.2% from 2022 to 2030 |
| Forecast Period | 2023-2030 |
| Historic Period | 2020-2021 |
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Industrial Automation Market Drivers and Opportunities
Use of Artificial Intelligence Technology to Favor the Market
Artificial intelligence (AI) is transforming manufacturing in incredible ways. AI enables machines to learn, adapt, and make decisions autonomously. Manufacturers utilize the technology to uncover asset patterns and anomalies to optimize production and save downtime. For example, incorporating AI into industrial robots and drones enhances precision and aids in activities such as inspection, maintenance, and material handling. This decreases the need for human involvement, lowers the danger of accidents, increases maintenance efficiency, and extends equipment life. Moreover, operations technology (OT) engineers who are familiar with operations and equipment are increasingly using sophisticated AI technologies with visual, point-and-click user interfaces (UI). The availability of prebuilt machine learning (ML) apps and industrial demand for automation is fueling the market.
Demand for Immersive Technologies for Real-Time Information-Sharing
Virtual reality (VR) and augmented reality (AR) are immersive technologies that enable real-time information sharing to aid worker training, eliminate human errors, and boost performance. That implies VR and AR may add significant commercial value by improving worker safety, increasing productivity, and reducing downtime. AR can aid industrial enterprises by facilitating return-to-work measures such as remote collaboration, remote assistance, augmented work instructions, and 3D training. AR is also assisting with longer-term, future-of-work strategies aimed at closing the skills gap and driving significant gains. Augmented reality is becoming increasingly important in the workplace.
- Stream Industrial Internet of Things (IIoT) and sensor data to improve condition monitoring, troubleshooting, and repairs.
- View immersive 3D work instructions for assembly, inspection, and maintenance procedures.
- Get step-by-step guidance and on-demand assistance from seasoned professionals.
- Pass comments on the circumstances they observe in the factory or field back into the connected digital thread, enabling closed-loop feedback throughout the company.
Operators and service technicians use highly demanding augmented reality to streamline operational processes.
Industrial Automation Market Report Segmentation Analysis
Key segments that contributed to the derivation of the industrial automation market analysis are component, system, and end user.
- Based on components, the industrial automation market is divided into hardware and software. The hardware segment held a larger market share in 2022.
- By system, the market is segmented into supervisory control and data acquisition, distributed control systems, programmable logic control, and others. The supervisory control and data acquisition segment is anticipated to expand during the forecast period.
- based on end users, the market is divided into oil & gas, automotive, food & beverages, chemical & materials, aerospace & defense, and others. The oil & gas segment held a larger market share in 2022.
Industrial Automation Market Share Analysis by Geography
The geographic scope of the industrial automation market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.
The market in Asia Pacific is projected to expand during the forecast period due to the presence of key players. Omron Corporation, Mitsubishi Electric Corporation, Hitachi Ltd., and others are offering their customers technologically advanced factory automation products that improve their operational efficiencies. Expanding industries and increasing adoption of industrial automation technologies are boosting the market.
Industrial Automation Market Report Scope
Industrial Automation Market News and Recent Developments
The industrial automation market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the industrial automation market are listed below:
- In 2023, Emerson Electric's acquisition of National Instruments for US$ 8.2 billion in April 2023 marked a strategic move to fortify its presence in industrial automation. The deal aligned with Emerson's pursuit of testing and measurement growth, tapping into National Instruments' software-driven automated systems to deliver enhanced profitability and industry diversification. This step reflected the surge in demand for advanced automation solutions. (Source: Emerson Electric Co., Company Website, October 2023)
- ABB India secured a significant contract for the electrification and automation of ArcelorMittal Nippon Steel India's advanced cold rolling mill in Hazira. ABB's technology aimed to enhance energy efficiency, zinc consumption optimization, and corrosion resistance, aligning with AM/NS India's sustainability goals. This collaboration showcased industrial automation's transformative potential. (Source: ABB Ltd, Company Website, June 2023)
Industrial Automation Market Report Coverage and Deliverables
The “Industrial Automation Market Size and Forecast (2020–2030)” report provides a detailed analysis of the market covering below areas:
- Industrial automation market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Industrial automation market trends as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- Industrial automation market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments in the industrial automation market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
This text is related
to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
Frequently Asked Questions
The global industrial automation market is estimated to register a CAGR of 8.2% during the forecast period 2022–2030.
The key players holding majority shares in the global industrial automation market are ABB Ltd., Bosch Rexroth AG, Emerson Electric Co., Hitachi Ltd., Honeywell International, Inc., Mitsubishi Electric Corporation, Omron Corporation, Rockwell Automation, Inc., Schneider Electric SE, and Siemens AG.
The global industrial automation market is expected to reach US$ 322.67 billion by 2030.
The integration of new technologies such as IoT, AI, cloud, and others to play a significant role in the global industrial automation market in the coming years.
Asia Pacific dominated the industrial automation market in 2022.
The rising adoption of industrial automation solutions among industries is the major factors that propel the global industrial automation market.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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