Factory Automation Market Outlook 2032
The global factory automation market size was USD 251 Billion in 2023 and is projected to reach USD 560 Billion by 2032, expanding at a CAGR of 8.8% during 2024–2032. The market growth is attributed to the increasing demand for automation to enhance the quality and reliability of manufacturing processes.
Factory automation refers to a set of technologies and automated control mechanisms designed to boost productivity and product quality of manufacturing processes while reducing costs. It is also recognized as industrial automation, which diminishes the need for human involvement in industrial settings, ensuring productive performance compared to manual processes. This encompasses the utilization of computers, robots, control systems, and information technologies to manage industrial operations.
Factory automation solutions contribute to creating safe working environments by automating hazardous tasks and minimizing the risk of accidents. Compliance with stringent safety regulations and standards further drives the adoption of automation technologies. Industry stakeholders prioritize improving manufacturing efficiency to attain cost-effective and high-quality production outcomes, thereby serving as a primary driver for the factory automation market. Cybersecurity has become a top priority with the increasing connectivity of industrial systems. Manufacturers are investing in robust cybersecurity measures to protect their automation systems from cyber threats and ensure data integrity and confidentiality. For instance,
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In July 2021, Siemens AG expanded its collaboration with SAP SE to introduce a new solution for services and asset lifecycle management. The partnership seeks to establish connections between plant floor operations, product development through digital twins, and remote condition monitoring with original equipment manufacturers (OEMs). This integration aims to facilitate collaboration across the entire asset lifecycle.
Impact of AI on the Factory Automation Market
AI-powered algorithms analyze enormous amounts of data from sensors and other sources in real-time to optimize manufacturing processes. This leads to increased efficiency, reduced downtime, and high productivity. AI enables the development of autonomous robots capable of performing complex tasks in manufacturing environments. These robots handle repetitive, hazardous, or precise tasks with precision, freeing up workers for various strategic roles.
Factory Automation Market Dynamics
Major Drivers
Increasing digitization is boosting the demand for IoT-powered smart solutions and automation across diverse industries, facilitating the adoption of new, self-sufficient capabilities. These automation and smart solutions play a crucial role in enhancing product quality, increasing plant efficiency, and ensuring consistent production in industries. Thus, the rising demand for IoT-based smart solutions is projected to propel the market in the coming years.
Transformation of manufacturing industries due to Industry 4.0 drives the market. Industry 4.0 initiatives are anticipated to revolutionize the future of manufacturing industries by standardizing processes and transforming them into smart industries. Governments are allocating funds to industries in various emerging economies to encourage the adoption of automation systems and enabling technologies to enhance industrial processes.
Existing Restraints
Limited availability of professionals and a lack of awareness regarding security measures hinder the market. Numerous industries including automotive, food, chemical, oil & gas, mining, and packaging are investing in automation systems to enhance the efficiency, reliability, and safety of their industrial processes. However, these industries face challenges in finding highly skilled professionals capable of managing, implementing, and monitoring automation workflows. Furthermore, organizations need to provide comprehensive training on system security awareness and protocols, thereby restraining the market.
Emerging Opportunities
Growing sustainable manufacturing practices across the globe creates lucrative opportunities in the market. Automation technologies enable sustainable practices by enhancing energy efficiency, waste reduction, and resource optimization in manufacturing processes. Moreover, remote monitoring and predictive maintenance solutions are gaining traction in the factory automation. Thus, several companies are focusing to develop advanced analytics platforms and predictive maintenance algorithms to help manufacturers optimize equipment performance and minimize downtime.
Scope of the Factory Automation Market Report
The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics are included in the report.
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Attributes
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Details
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Report Title
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Factory Automation Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2023
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Historic Data
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2017 -2022
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Forecast Period
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2024–2032
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Segmentation
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Component (Sensors, Controllers, Switches, Robots, and Others), Type (Fixed Automation, Programmable Automation, Flexible Automation, and Integrated Automation), Technology (SCADA, Programmable Automation Controller (PAC), Programmable Logic Controller (PLC), Distributed Control System (DCS), and Human Machine Interface (HMI)), and End-user (Manufacturing, Automotive, Packaging & Processing, Energy & Power, Semiconductor & Electronics, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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ABB Ltd; Danaher Industrial Ltd; Emerson Electric Co; General Electric; Honeywell International Inc; Mitsubishi; Electric Corporation; OMRON Corporation; Rockwell Automation; Schneider Electric; and Siemens AG.
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Factory Automation Market Segment Analysis
Component Analysis
Based on component, the factory automation market is divided into sensors, controllers, switches, robots, and others. The sensors segment held a major share of the market in 2023, as sensors play a crucial role in gathering data from production process, enabling machines to monitor, control, and optimize various processes. Sensors are utilized across a wide range of industrial applications to detect variables, such as temperature, pressure, position, proximity, flow, level, and vibration. This data is then used to make real-time decisions, improve efficiency, enhance quality, ensure safety, and reduce downtime in manufacturing operations.
The controllers segment is anticipated to register a considerable CAGR during the forecast period. Controllers serve as the brains of automated systems, orchestrating the operation of various components, such as sensors, actuators, motors, and other devices. They receive input from sensors, process data, and generate output signals to control the operation of machinery and equipment in manufacturing processes. Controllers are required to optimize production efficiency, ensure product quality, and enable seamless integration of automation technologies.
Type Analysis
Based on type, the global market is divided into fixed automation, programmable automation, flexible automation, and integrated automation. The integrated automation segment held a significant share of the market in 2023 and is projected to grow rapidly in the coming years, due to its comprehensive and interconnected approach to automation solutions. One of the key advantages of integrated automation is its ability to adapt to changing production requirements and optimize operations in real time.
Integrated automation systems collect and analyze vast amounts of data from various sources across the manufacturing industry by leveraging advanced technologies, such as the Industrial Internet of Things (IIoT), artificial intelligence (AI), and cloud computing. This data-driven approach enables predictive maintenance, proactive decision-making, and continuous optimization of production processes, thereby boosting the segment.
The programmable automation segment is anticipated to hold a large market share during the projection period. The programmable automation systems are designed to be flexible and adaptable to varying production needs. Users quickly switch between different tasks or adjust the production process without significant downtime by programming the desired sequence of operations. Programmable automation technologies include industrial PCs (IPC) and software-based automation platforms, which are widely used across industries such as manufacturing, automotive, food and beverage, pharmaceuticals, and electronics for tasks ranging from simple control and monitoring to complex process automation and robotics.
Technology Analysis
On the basis of technology, the factory automation market is segregated into SCADA, programmable automation controller (PAC), programmable logic controller (PLC), distributed control system (DCS), and human-machine interface (HMI). The programmable logic controller (PAC) segment is anticipated to dominate the market in terms of revenue generation during the projected timeframe, owing to its robust control capabilities, high reliability, and flexibility, which makes it suitable for a wide range of applications across various industries.
PLCs are widely used in industrial automation to control machinery in manufacturing environments. They are often used in conjunction with other technologies to create comprehensive automation solutions tailored to specific manufacturing requirements. They are designed for harsh industrial environments, ensuring uninterrupted operation even in challenging conditions.
The human-machine interface (HMI) segment is anticipated to hold a large market share during the assessment period, owing to its enhanced operational efficiency, productivity, and safety in factory automation by providing operators with intuitive interfaces for monitoring and controlling manufacturing operations. HMI serves as the interface between human operators and automated systems, allowing users to monitor, control, and interact with industrial equipment and processes. It serves as a central component in modern automation systems, enabling human operators to effectively collaborate with automated machinery and systems.
End-user Analysis
Based on end-user, the factory automation market is divided into manufacturing, automotive, packaging & processing, energy & power, semiconductor & electronics, and others. The manufacturing segment dominated the market in 2023 and is expected to expand at a considerable CAGR during the forecast period, due to stringent quality and safety regulations in manufacturing industries. Automation systems help ensure compliance with these standards by providing precise control, monitoring, and documentation of production processes. Manufacturing industries encompass a wide range of industries, including automotive, aerospace, consumer goods, and pharmaceuticals. These industries rely heavily on automation technologies to optimize production processes, improve efficiency, ensure product quality, and reduce costs.
The automotive segment is projected to expand at a rapid pace in the coming years. The automotive industry heavily used automation technologies throughout the manufacturing process. Automotive manufacturers leverage factory automation to enhance production efficiency, improve product quality, and reduce manufacturing costs. The demand for factory automation solutions is expected to increase in the automotive industry, as automotive manufacturers continue to invest in automation technologies to enhance efficiency, quality, and sustainability, thereby driving the segment.
Regional Outlook
In terms of region, the factory automation market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America held a major share of the market in 2023 owing to substantial investments in automation in the power and oil & gas sectors. The increasing demand for automation in various industries is a key driver propelling the market in this region. Furthermore, the growing need for energy-efficient solutions and the imperative to minimize resource wastage in various process industries present lucrative opportunities in the market in North America.
The US accounted for a significant share of the regional market and the market in the country is projected to expand at a CAGR of 8% during the forecast period, due to substantial investments made by key vendors to bolster automation solutions. The country hosts prominent automotive original equipment manufacturers (OEMs), benefiting from a robust infrastructure and government support for electric vehicles. Moreover, the growing preference for luxury and premium automobiles is anticipated to boost the market.
Europe is expected to hold a large share of the market during the projected timeframe due to increasing demand for control systems in the oil & gas industry. The rapid modernization of infrastructure in sectors such as oil & gas, water & wastewater, and power has encouraged the adoption of automation technologies for several tasks, such as drilling ground analysis and drill speed maintenance. The market in Germany is anticipated to expand at a CAGR of 6.4% during the forecast period, as Germany is at the forefront of factory automation due to significant advancements in Industrial Internet of Things (IIoT) technologies.
Segments
The factory automation market has been segmented on the basis of
Component
- Controllers
- Switches
- Robots
- Others
Type
- Fixed Automation
- Programmable Automation
- Flexible Automation
- Integrated Automation
Technology
- SCADA
- Programmable Automation Controller (PAC)
- Programmable Logic Controller (PLC)
- Distributed Control System (DCS)
- Human Machine Interface (HMI)
End-user
- Manufacturing
- Automotive
- Packaging & processing
- Energy & Power
- Semiconductor & Electronics
- Others
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
Competitive Landscape
Key players competing in the global factory automation market are ABB Ltd; Danaher Industrial Ltd; Emerson Electric Co; General Electric; Honeywell International Inc; Mitsubishi; Electric Corporation; OMRON Corporation; Rockwell Automation; Schneider Electric; and Siemens AG.
These players utilize several development strategies, including product launches, partnerships, acquisitions, and geographical expansion, to increase their global presence. For instance,
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In July 2021, Rockwell Automation Inc. joined forces with Kezzler AS, a cloud-based platform for product digitalization and traceability. The collaboration empowers manufacturers to track their products' complete journey, from raw material origins to their sales and beyond by utilizing cloud-based chain solutions.
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