Written by According to Fortune Business Insights, the global industrial automation market size was valued at USD 272.51 billion in 2025. The market is projected to grow from USD 299.21 billion in 2026 to USD 632.12 billion by 2034, registering a CAGR of 9.80% during the forecast period from 2026 to 2034. Increasing adoption of Industry 4.0, industrial Internet of Things (IIoT), 5G wireless technology, digital twins, augmented reality (AR), and advanced automation systems is supporting market expansion across industries. Europe held the largest share of the market in 2025, accounting for 32.99% of global revenue.
Market Overview
The industrial automation market encompasses solutions used across discrete and process manufacturing. The market is segmented by component into hardware and software and by industry into discrete automation and process automation.
Automation software includes human-machine interface (HMI), manufacturing operations management (MOM), and supervisory control and data acquisition (SCADA) solutions. These technologies help manufacturers streamline operations and use industrial data to improve processes.
Hardware includes sensors, PLCs, HMIs, servo systems, laser markers, safety light curtains, robots, drives, and motors. Technological developments in robotics and connected industrial equipment are contributing to the increasing deployment of automation systems.
For detailed market insights: https://www.fortunebusinessinsights.com/industry-reports/industrial-automation-market-101589
Market Trends
Increasing Adoption of Digital Twins and AR
Digital twins are emerging as an important technology in industrial automation. They allow organizations to simulate processes, evaluate feasibility, reduce implementation risks, estimate potential improvements, and support equipment maintenance. The integration of cloud systems and smart sensors has made digital twin implementation more manageable.
AR is also being incorporated into manufacturing applications. It can support employee training, assembly, maintenance, and inspection activities. According to the source, Siemens offers Assist AR for manufacturing-related applications, demonstrating the integration of AR with digital manufacturing technologies.
Rising Industrial IoT Adoption
Industrial IoT is another major market trend. IIoT connects industrial assets and provides greater visibility across manufacturing operations. Combined with edge computing, cloud computing, AI, and advanced analytics, IIoT can help organizations analyze machine data and improve asset productivity and availability.
The growing use of connected industrial systems is therefore increasing demand for automation solutions capable of managing data throughout the manufacturing lifecycle.
Market Drivers
Industry 4.0 and Technology Partnerships
The Fourth Industrial Revolution is encouraging manufacturers to adopt connected and digitally integrated production systems. Changing customer requirements, including personalized and faster services, are encouraging businesses to invest in Industry 4.0 technologies.
Technology partnerships are also supporting market development. The source highlights collaborations involving companies such as Honeywell, Tech Mahindra, Siemens, and SAP to develop digital manufacturing and Industry 4.0 solutions. These collaborations focus on digital transformation, 5G, software capabilities, and connected manufacturing processes.
Growing Demand for Smart Manufacturing
Smart manufacturing is increasing the use of automation technologies across industrial operations. Robots, sensors, software, and connected equipment can help manufacturers streamline production and manage increasingly complex processes.
However, high initial investment remains a restraint. Automation implementation requires substantial capital expenditure and employee training, while the return on investment can be difficult to predict, particularly for small and medium-sized enterprises.
Market Segmentation
By Component
The market is divided into hardware and software. Software is expected to hold a major market share during the forecast period because automation software helps businesses streamline manufacturing processes. Hardware is also projected to experience rapid growth due to increasing demand for advanced automation and IoT-enabled systems.
By Hardware
Hardware includes sensors, PLCs, HMIs, servo systems, laser markers, safety light curtains, robots, drives, and motors. Servo systems are expected to hold a major share within hardware, while robotics is projected to experience notable growth as Industry 4.0 adoption advances.
By Industry
The market is categorized into discrete automation and process automation. Discrete automation covers automotive, electronics, heavy manufacturing, packaging, and other industries. It is projected to account for 29.1% of the market in 2026.
Process automation includes oil and gas, chemicals, pulp and paper, mining and metals, healthcare, and other industries. Mining and metals are projected to hold a major share within process automation.
Key Players
Major companies operating in the industrial automation market include ABB Ltd., Emerson Electric Co., General Electric Company, Honeywell International Inc., Mitsubishi Electric Corporation, Omron Corporation, Rockwell Automation Inc., Schneider Electric SE, Siemens AG, and Yokogawa Electric Corporation.
These companies are focusing on automation technologies, robotics, digital manufacturing, industrial software, and connected solutions. Partnerships, collaborations, and investments in research and development are among the approaches highlighted in the source.
Regional Analysis
Europe
Europe dominated the industrial automation market in 2025 with a 32.99% share and a market value of USD 89.9 billion. The region benefits from high robot density and strong adoption of automated manufacturing technologies. Germany, in particular, is identified among the highly automated countries.
Asia Pacific
Asia Pacific is anticipated to experience significant growth during the forecast period. Japan has a strong presence of robotics and factory automation manufacturers, while China is a major producer of components such as sensors, batteries, and microchips. India is also supported by initiatives such as Make in India and MSME programs.
North America
North America is expected to experience substantial growth due to advanced manufacturing capabilities and efficient trade practices. The increasing adoption of advanced production technologies is supporting automation demand in the region.
Middle East & Africa and South America
The Middle East & Africa is projected to experience notable growth as digital transformation, AI, and robotic process automation gain traction. South America is expected to record steady growth, with Brazil presenting opportunities due to rising demand for advanced technologies.
Competitive Landscape
The competitive landscape is characterized by product development, partnerships, mergers, acquisitions, and collaborations. Companies are investing in robotics, digital factory automation, collaborative robotics, AI, industrial IoT, and software capabilities.
For example, ABB invests approximately 5% in research and development, with a focus on machine-centric robotics, digital factory automation, collaborative robotics, and AI. Rockwell Automation has also collaborated with technology companies to integrate AR, IoT, industrial connectivity, manufacturing execution, analytics, and automation platforms.
Future Outlook
The industrial automation market is expected to continue expanding as manufacturers adopt Industry 4.0, IIoT, 5G, robotics, digital twins, AR, and smart manufacturing technologies. The market’s projected increase to USD 632.12 billion by 2034 reflects growing demand for digitally connected and automated industrial operations.
Software is expected to remain an important component, while robotics, sensors, servo systems, and connected hardware will support the development of increasingly automated production environments. Technology partnerships and digital transformation initiatives are also expected to contribute to future market expansion.
Get a free sample PDF: https://www.fortunebusinessinsights.com/enquiry/request-sample-pdf/industrial-automation-market-101589
Conclusion
The industrial automation market is undergoing significant transformation as manufacturers integrate connected technologies into production and operational processes. Industry 4.0, IIoT, digital twins, AR, robotics, and 5G are creating new opportunities for automation providers. While high initial investment can limit adoption among some SMEs, advancements in smart manufacturing and supportive initiatives are expected to create further opportunities. With the market projected to reach USD 632.12 billion by 2034, industrial automation is expected to remain an important technology area for manufacturing and process industries.
Frequently Asked Questions
1. How much will the industrial automation market be worth in 2034?
Fortune Business Insights says the global industrial automation market is projected to reach USD 632.12 billion by 2034.
2. What was the value of the industrial automation market in 2025?
The global industrial automation market was valued at USD 272.51 billion in 2025.
3. At what CAGR is the industrial automation market expected to grow?
The market is expected to expand at a CAGR of 9.80% from 2026 to 2034.
4. What is the leading segment in the industrial automation market?
The software segment is expected to hold a major market share during the forecast period.
5. What are the key factors driving the industrial automation market?
Increasing adoption of 5G wireless technology, industrial IoT, Industry 4.0, smart factories, robotics, digital twins, and advanced manufacturing technologies are among the factors supporting market growth.
What’s Driving Japan’s Market? Discover the Latest Industrial Automation Market Insights