Factory Automation Market

Rising Demand for Automation for Qualitative & Reliable Manufacturing is expected to drive market growth.

The use of equipment to automate systems or production processes is referred to as automation in manufacturing. The ultimate goal is to boost efficiency by expanding production capacity or cutting expenses, or both. Automation has come to be seen as the use of machines to reduce human labor. It has become synonymous with electromechanical systems that may be programmed to execute a wide range of tasks. Manufacturers are increasingly using automation to improve precision, uniformity, and operational efficiency. Although automation helps boost output, it also emphasizes that factors such as reliable manufacturing influence production.

Sensors and devices that monitor equipment and create user-friendly data, visuals, and other outputs often connect production lines and provide additional benefits such as reduced downtime, predictable maintenance, and improved decision-making. The aforementioned factors drive the growth of the factory automation market during the forecast period.

Industrial space has been impacted by incremental technology changes and the rapid adoption of new systems and augmented networking architectures over the last decade.

The Global Factory Automation Market Industry is poised for substantial growth, with projections indicating a market size of 224.1 USD Million in 2024 and an anticipated increase to 503.0 USD Million by 2035. This growth trajectory suggests a compound annual growth rate (CAGR) of 7.63% from 2025 to 2035. Such figures reflect the increasing adoption of automation technologies across various sectors, driven by the need for efficiency, quality, and competitiveness. The market's expansion is indicative of a broader trend towards digital transformation in manufacturing, where automation plays a central role in shaping the future of production.

Quality and precision are paramount in the Global Factory Automation Market Industry, driving manufacturers to adopt automated solutions. The need for consistent product quality and adherence to regulatory standards compels companies to implement advanced automation technologies. Automated systems reduce the likelihood of human error, ensuring that products meet stringent quality benchmarks. This focus on quality is particularly evident in sectors such as pharmaceuticals and automotive, where precision is critical. As manufacturers increasingly prioritize quality assurance, the demand for automation solutions is expected to rise, further propelling market growth in the coming years.

The Global Factory Automation Market Industry is experiencing a shift towards supply chain optimization, driven by the need for efficiency and responsiveness. Automation technologies facilitate real-time data analysis and inventory management, enabling companies to streamline their supply chains. This optimization is crucial in a globalized economy where delays can have significant financial implications. By leveraging automation, manufacturers can enhance their ability to respond to market demands and reduce lead times. The integration of automated solutions into supply chain processes is likely to become a standard practice, contributing to the overall growth of the factory automation market.

The Global Factory Automation Market Industry is significantly influenced by rising labor costs and skill shortages. As wages continue to increase in various regions, manufacturers are compelled to seek automation solutions to maintain profitability. Furthermore, the scarcity of skilled labor in technical fields exacerbates the challenge, prompting companies to invest in automated systems that require less human intervention. This shift not only addresses labor-related issues but also enhances productivity and operational reliability. The ongoing trend towards automation is likely to accelerate as businesses strive to optimize their workforce and adapt to changing economic conditions.

Technological advancements play a pivotal role in shaping the Global Factory Automation Market Industry. Innovations in robotics, machine learning, and the Internet of Things (IoT) are revolutionizing manufacturing processes. These technologies enable real-time monitoring, predictive maintenance, and enhanced production capabilities. As companies adopt these cutting-edge solutions, they can achieve higher levels of precision and efficiency. The integration of smart technologies not only streamlines operations but also contributes to sustainability efforts by minimizing waste and energy consumption. This trend is likely to drive further investment in automation technologies, positioning the industry for sustained growth in the coming years.

The Global Factory Automation Market Industry experiences heightened demand for automation solutions as industries seek to enhance operational efficiency and reduce labor costs. In 2024, the market is projected to reach 224.1 USD Million, reflecting a growing trend towards integrating advanced technologies such as robotics and artificial intelligence. This shift is driven by the need for manufacturers to remain competitive in a rapidly evolving landscape. By 2035, the market is expected to expand to 503.0 USD Million, indicating a robust growth trajectory. The anticipated compound annual growth rate (CAGR) of 7.63% from 2025 to 2035 underscores the increasing reliance on automation across various sectors.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Europe is likely to dominate the industrial automation market share during the forecast period. In January 2021, the International Federation of Robotics (IFR) stated that, by region, Western Europe (225 units per 10,000 employees) and Nordic European Countries (204 units per 10,000 employees) had the maximum robot density worldwide. Germany ranks fourth among the top automated countries globally, with 346 units per 10,000 employees. These are some of the key factors that contribute to the major share of the region.

Figure 3 FACTORY AUTOMATION MARKET SHARE BY REGION 2021 (%)

Source Secondary Research, Primary Research, MRFR Database, and Analyst Review

Asia Pacific is anticipated to showcase a significant growth rate during the forecast period 2022-2029. Japan is the largest producer of robots and factory automation systems. The presence of robotics & factory automation products and manufacturing companies, such as Omron Corp., Yaskawa Electric, Yokogawa Electric, Mitsubishi Electric, and Nidec Corp., across Japan contributes to the industrial automation demand in the region. China is a major producer of sensors, batteries, microchips, and other components used in the IoT system.

In addition, in India, government initiatives such as Make in India and MSME support small and medium-sized businesses to adopt advanced manufacturing solutions. Such active initiatives by the government are expected to propel market growth in this region.

North America will witness significant growth in the coming years due to manufacturers' advanced production capabilities and efficient trading practices. The Middle East & Africa is projected to have notable growth in the coming years. With the increasing digital transformation process, the adoption of artificial intelligence and robotic process automation is gaining traction in the region of South America and is estimated to represent steady market growth. Brazil with growing demand for advanced technologies showcases the vast opportunity for automation players.

Major market players are spending a lot of money on R&D to increase their product lines, which will help the Factory Automation market grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Factory Automation industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth for Factory Automation. With significant market development like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their presence. To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the Factory Automation industry must offer affordable products.

Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the Factory Automation industry to benefit customers and expand the market sector. The Factory Automation market has recently given medicine some of the most important advantages. Major hair care product market players, including ABB, Emerson Electric Co., Mitsubishi Electric Corporation, General Electric, Rockwell Automation, Inc., Omron Corporation, and others, are attempting to increase market demand by funding R&D initiatives.

the Mitsubishi Electric Group will contribute to the realization of a vibrant and sustainable society through continuous technological innovation and ceaseless creativity, as a leader in the manufacture and sales of electric and electronic equipment used in Energy and Electric Systems, Industrial Automation, Information and Communication Systems, Electronic Devices, and Home Appliances.

Also, Rockwell Automation is a pure-play automation competitor that is the successor entity to Rockwell International, which spun off its former Rockwell Collins avionics segment in 2001. As of fiscal 2021, the firm operates through three segments--intelligent devices, software and control, and lifecycle services. Intelligent devices contain its drives, sensors, and industrial components, software and control contain its information and network and security software, while lifecycle services contain its consulting and maintenance services as well as its Sensia JV with Schlumberger.