Industrial automation refers to the use of control systems including computers, robots, programmable logic controllers (PLCs), and software to manage industrial machinery and processes with minimal human intervention. By automating routine and complex tasks, manufacturers can improve efficiency, accuracy, and safety, while reducing operational costs. Automation is becoming a critical component of modern manufacturing, enabling industries to meet increasing demands for high-quality products.
Industrial Automation Market Size and Growth Forecast
The global industrial automation market is projected to expand from US$ 171.23 billion in 2022 to US$ 322.67 billion by 2030, growing at a CAGR of 8.2% between 2023 and 2030. The market growth is driven by the increasing adoption of Industry 4.0, digital transformation initiatives, and the convergence of Information Technology (IT) and Operational Technology (OT). These trends allow manufacturers to monitor operations in real time, optimize production processes, and enhance decision-making capabilities.
Technological Trends Accelerating Market Growth
Industrial automation is increasingly powered by the Industrial Internet of Things (IIoT), AI, and machine learning. Connected devices and smart sensors generate vast amounts of operational data, which is analyzed to predict equipment failures, improve productivity, and reduce downtime. Governments worldwide are promoting automation to improve productivity and safety. Initiatives such as Germany’s Industry 4.0, China’s Made in China 2025, and India’s Make in India program are encouraging investment in automation solutions.
Machine Vision and Smart Manufacturing
The use of machine vision systems with deep learning capabilities is transforming quality control across industries such as automotive, electronics, and food & beverages. These systems allow for real-time defect detection, ensuring product quality and reducing waste. Additionally, growing consumer demand for personalized, high-quality products is driving manufacturers to adopt flexible and scalable automation systems that support faster production cycles.
Benefits and Applications
Industrial automation reduces human intervention in production processes, improving efficiency, reliability, and consistency. Automation solutions are divided into process plant automation and manufacturing automation, both designed to enhance output while lowering operational costs. Key industries benefiting from automation include oil & gas, automotive, chemicals & materials, pharmaceuticals, and aerospace & defense, where accuracy, safety, and productivity are critical.
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Key Market Drivers
- AI and Machine Learning: Enables predictive analytics, autonomous decision-making, and optimized production scheduling.
- Virtual and Augmented Reality (VR/AR): Improves workforce training, supports remote assistance, and reduces errors during maintenance and assembly.
- Industrial IoT and Smart Sensors: Facilitate real-time monitoring, fault detection, and predictive maintenance, increasing operational efficiency.
Market Segmentation
- By Component: Hardware and Software (Hardware dominated the market in 2022).
- By System: SCADA, Distributed Control System (DCS), Programmable Logic Control (PLC), and Others (SCADA expected to see significant growth).
- By End User: Oil & Gas, Automotive, Food & Beverages, Chemical & Materials, Aerospace & Defense, and Others (Oil & Gas held the largest share in 2022).
Regional Insights
The Asia Pacific region is projected to lead the global market due to the presence of major automation players such as Omron, Mitsubishi Electric, and Hitachi, along with expanding industrialization and supportive government policies. North America, Europe, Middle East & Africa, and South & Central America are also witnessing steady adoption of industrial automation solutions, driven by modernization initiatives and efficiency demands.
Major Players in the Market
- ABB Ltd.
- Bosch Rexroth AG
- Emerson Electric Co.
- Hitachi Ltd.
- Honeywell International, Inc.
- Mitsubishi Electric Corporation
- Omron Corporation
- Rockwell Automation, Inc.
- Schneider Electric SE
- Siemens AG
Recent Developments
In 2023, Emerson Electric acquired National Instruments for US$ 8.2 billion, strengthening its software-driven industrial automation capabilities. Additionally, ABB India secured a contract to automate ArcelorMittal Nippon Steel India’s cold rolling mill, improving energy efficiency and operational performance. These strategic moves demonstrate the growing demand for integrated automation solutions worldwide.
Future Outlook
The industrial automation market is poised for sustained growth through 2030. Emerging technologies such as AI, robotics, IIoT, and immersive VR/AR applications will drive the development of intelligent, self-optimizing manufacturing systems. Sustainability, energy efficiency, and cost reduction will continue to influence adoption, while scalable and flexible automation solutions will be crucial for maintaining competitiveness in increasingly complex industrial environments.
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