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Factory Industrial Automation SME SMB Market

ID: MRFR/SEM/32336-HCR
128 Pages
Aarti Dhapte
October 2025

Factory Industrial Automation SME SMB Market Research Report By Technology (Programmable Logic Controllers, Supervisory Control and Data Acquisition, Industrial Robots, Human-Machine Interfaces, Machine Vision Systems), By Application (Manufacturing, Packaging, Material Handling, Quality Control, Asset Tracking), By End Use Industry (Automotive, Electronics, Food and Beverage, Pharmaceuticals, Heavy Machinery), By System Type (Discrete Automation, Process Automation, Hybrid Automation), By Service Type (Installation, Maintenance, Consultatio... read more

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Factory Industrial Automation SME SMB Market Summary

As per MRFR analysis, the Factory Industrial Automation Market was estimated at 86.77 USD Billion in 2024. The Factory Industrial Automation SME SMB industry is projected to grow from 92.96 USD Billion in 2025 to 185.14 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 7.13 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Factory Industrial Automation SME SMB Market is experiencing a transformative shift towards advanced technologies and sustainable practices.

  • The adoption of IoT solutions is increasingly prevalent among SMEs and SMBs, enhancing operational efficiency.
  • Energy efficiency remains a focal point, as businesses seek to reduce costs and environmental impact.
  • Collaborative robotics are gaining traction, particularly in manufacturing, to improve productivity and safety.
  • The growing demand for customization and advancements in artificial intelligence are driving market growth, especially in North America and the Asia-Pacific region.

Market Size & Forecast

2024 Market Size 86.77 (USD Billion)
2035 Market Size 185.14 (USD Billion)
CAGR (2025 - 2035) 7.13%

Major Players

Siemens (DE), Rockwell Automation (US), Schneider Electric (FR), Mitsubishi Electric (JP), Honeywell (US), Emerson Electric (US), ABB (CH), Bosch Rexroth (DE), Yaskawa Electric (JP)

Factory Industrial Automation SME SMB Market Trends

The Factory Industrial Automation SME SMB Market is currently experiencing a transformative phase characterized by rapid technological advancements and increasing demand for efficiency. As small and medium-sized enterprises (SMEs) and small businesses (SMBs) seek to enhance productivity, automation solutions are becoming integral to their operations. This market appears to be driven by the need for cost reduction, improved quality, and faster production cycles. Moreover, the integration of smart technologies, such as the Internet of Things (IoT) and artificial intelligence (AI), is reshaping traditional manufacturing processes, enabling real-time data analysis and decision-making. In addition, the growing emphasis on sustainability and energy efficiency is influencing the adoption of automation technologies. Companies are increasingly aware of their environmental impact and are looking for ways to minimize waste and optimize resource usage. This trend suggests that the Factory Industrial Automation SME SMB Market is not only about enhancing operational efficiency but also about aligning with broader societal goals. As these dynamics unfold, the market is likely to witness further innovations and a shift towards more adaptive and flexible manufacturing systems.

Increased Adoption of IoT Solutions

The integration of Internet of Things (IoT) technologies is becoming prevalent in the Factory Industrial Automation SME SMB Market. This trend indicates that businesses are leveraging connected devices to gather data, monitor processes, and enhance operational efficiency. IoT solutions facilitate real-time insights, enabling SMEs and SMBs to make informed decisions and optimize their production workflows.

Focus on Energy Efficiency

There is a growing emphasis on energy efficiency within the Factory Industrial Automation SME SMB Market. Companies are increasingly seeking automation solutions that not only improve productivity but also reduce energy consumption. This trend suggests a shift towards sustainable practices, as businesses aim to lower their carbon footprint while maintaining competitive advantage.

Rise of Collaborative Robotics

Collaborative robotics, or cobots, are gaining traction in the Factory Industrial Automation SME SMB Market. These robots are designed to work alongside human operators, enhancing productivity and safety. The trend indicates that SMEs and SMBs are recognizing the potential of cobots to streamline operations and address labor shortages, thereby fostering a more agile manufacturing environment.

Factory Industrial Automation SME SMB Market Drivers

Growing Demand for Customization

The Factory Industrial Automation SME SMB Market is witnessing a growing demand for customized automation solutions. As small and medium enterprises increasingly seek to differentiate themselves, they require tailored automation systems that can adapt to specific production needs. This trend is supported by data indicating that approximately 70% of SMEs are prioritizing customization in their operational strategies. The ability to offer unique products and services is becoming a competitive advantage, prompting automation providers to innovate and develop flexible solutions. Consequently, this driver is likely to enhance the market's growth trajectory, as SMEs invest in technologies that allow for greater personalization and responsiveness to market demands.

Integration of Advanced Robotics

The integration of advanced robotics is a pivotal driver in the Factory Industrial Automation SME SMB Market. SMEs are increasingly adopting robotic solutions to enhance productivity and streamline operations. The market for industrial robots is projected to grow at a compound annual growth rate of 15% over the next five years. This growth is attributed to the ability of robots to perform repetitive tasks with precision and efficiency, allowing human workers to focus on more complex activities. As SMEs recognize the benefits of robotic automation, the demand for these technologies is likely to surge, further propelling the market forward.

Advancements in Artificial Intelligence

Advancements in artificial intelligence (AI) are significantly influencing the Factory Industrial Automation SME SMB Market. AI technologies are being integrated into automation systems, enabling predictive maintenance, quality control, and enhanced decision-making processes. Reports suggest that the implementation of AI in manufacturing can lead to a 20% increase in productivity. As SMEs adopt these technologies, they are likely to experience improved operational efficiency and reduced downtime. This trend indicates a shift towards more intelligent automation solutions, which could reshape the competitive landscape of the industry, as businesses leverage AI to optimize their manufacturing processes.

Regulatory Compliance and Safety Standards

Regulatory compliance and safety standards are becoming increasingly critical in the Factory Industrial Automation SME SMB Market. Governments and regulatory bodies are enforcing stricter safety regulations, compelling SMEs to invest in automation solutions that ensure compliance. This trend is evident in sectors such as food and beverage, where adherence to safety standards is paramount. Data indicates that non-compliance can result in significant financial penalties, prompting SMEs to prioritize automation as a means to meet these requirements. As a result, the demand for automation technologies that enhance safety and compliance is expected to rise, driving growth in the market.

Focus on Sustainability and Green Practices

A focus on sustainability and green practices is emerging as a significant driver in the Factory Industrial Automation SME SMB Market. SMEs are increasingly adopting automation solutions that minimize waste and energy consumption, aligning with global sustainability goals. Data suggests that companies implementing sustainable practices can reduce operational costs by up to 30%. This trend is prompting automation providers to develop eco-friendly technologies that not only enhance efficiency but also contribute to environmental conservation. As SMEs prioritize sustainability, the demand for innovative automation solutions that support these initiatives is expected to grow, influencing the overall market landscape.

Market Segment Insights

By Technology: Programmable Logic Controllers (Largest) vs. Industrial Robots (Fastest-Growing)

The 'Factory Industrial Automation SME SMB Market' exhibits a diverse landscape with various technologies leading the charge. Programmable Logic Controllers (PLCs) stand out as the largest segment, dominating the market with their widespread use in controlling machinery and processes. Following closely are Industrial Robots, which represent the fastest-growing technology, reflecting a significant shift towards automation in SMEs and SMBs seeking efficiency and precision in operations. These two segments reflect a broader trend towards integrating advanced technologies in manufacturing.

Technology: PLCs (Dominant) vs. Industrial Robots (Emerging)

PLCs have established themselves as the cornerstone of industrial automation, offering flexibility and reliability in process control. They are preferred due to their ability to adapt to various manufacturing environments and their proven track record in increasing operational efficiencies. In contrast, Industrial Robots are emerging rapidly, driven by advancements in artificial intelligence and machine learning. They facilitate tasks like assembly, material handling, and packaging with high precision. This shift towards robots is fueled by the need for cost-effective solutions that improve productivity and reduce labor costs, making them essential for SMEs and SMBs that aim to remain competitive.

By Application: Manufacturing (Largest) vs. Quality Control (Fastest-Growing)

In the Factory Industrial Automation SME SMB Market, Manufacturing is the largest segment, commanding a significant share. Its importance lies in facilitating streamlined processes, reducing labor costs, and enhancing production efficiency. Meanwhile, Quality Control is rapidly gaining traction as businesses increasingly prioritize product standards and compliance. This shift results in a growing emphasis on automation technologies that enhance quality assurance and minimize defects, allowing Quality Control to carve out its niche in the market. As the market evolves, various growth drivers are influencing the Application segment. Innovations in automation technologies, such as AI-driven analytics in Quality Control, are leading to enhanced efficiency and accuracy in manufacturing processes. The growing demand for flexible and scalable automation solutions also plays a pivotal role, allowing businesses in Manufacturing to adapt quickly to changing market conditions while maintaining high levels of productivity. These trends not only bolster the growth of Quality Control but also encourage investments across other applications, ultimately transforming the landscape of industrial automation.

Manufacturing: Dominant vs. Asset Tracking: Emerging

In the context of the Factory Industrial Automation SME SMB Market, Manufacturing serves as the dominant application segment, characterized by its comprehensive integration of automated systems that drive productivity and efficiency in production processes. This dominance is underscored by a growing reliance on robotics and IoT technologies, facilitating real-time data collection and operational oversight. In contrast, Asset Tracking is recognized as an emerging solution, rapidly gaining importance as companies seek to enhance visibility over inventory and operational assets. The advent of advanced tracking technologies, including RFID and GPS, empowers businesses to optimize asset utilization and reduce losses, positioning Asset Tracking as a vital component in the automation ecosystem. Together, these segments illustrate the dynamic interplay between established practices in Manufacturing and the innovative solutions found in Asset Tracking.

By End Use Industry: Automotive (Largest) vs. Electronics (Fastest-Growing)

The Factory Industrial Automation SME SMB Market experiences a diverse distribution among its end use industries. The automotive sector currently holds the largest market share, driven by the rising demand for advanced manufacturing processes and automation technologies. In contrast, the electronics industry is witnessing rapid growth, fueled by the increasing complexity of production systems and the need for precision in manufacturing, positioning it as a significant player in this market landscape.

Automotive (Dominant) vs. Electronics (Emerging)

The automotive sector is characterized by its heavy reliance on automation technologies to enhance productivity and ensure quality control in manufacturing processes. As a dominant force in the Factory Industrial Automation SME SMB Market, automotive manufacturers are increasingly adopting smart technologies to streamline operations and reduce costs. On the other hand, the electronics industry, while currently smaller, is emerging rapidly due to technological advancements and consumer demand for innovative products. This sector is incorporating automation to optimize assembly lines, thus driving efficiency and enabling customization, indicating its significant potential for future growth.

By System Type: Discrete Automation (Largest) vs. Process Automation (Fastest-Growing)

The Factory Industrial Automation SME SMB Market is witnessing a diverse share distribution across its key segments of Discrete Automation, Process Automation, and Hybrid Automation. Discrete Automation currently holds the largest market share due to its wide adoption in manufacturing processes that demand precision and speed. This segment is primarily favored by organizations looking to enhance their operational efficiency through automated machinery and robotics. Conversely, Process Automation is emerging rapidly, appealing to sectors focused on continuous production and quality control, thus capturing a growing portion of the market.

Process Automation (Dominant) vs. Hybrid Automation (Emerging)

Process Automation is characterized by its efficiency in managing complex industrial processes and ensuring operational consistency. This segment has become dominant due to its applications in industries like oil and gas, pharmaceuticals, and food and beverage, where regulatory compliance and quality assurance are critical. Meanwhile, Hybrid Automation is an emerging segment that blends both discrete and process automation methodologies, catering to organizations seeking flexibility and scalability in their production processes. This segment is gaining traction as industries strive to adapt to varying manufacturing demands while maintaining automation benefits.

By Service Type: Installation (Largest) vs. Maintenance (Fastest-Growing)

In the Factory Industrial Automation SME SMB Market, the service type segment is primarily dominated by Installation services, which command the largest market share. This segment is critical as it involves the initial setup of automated systems, which requires extensive expertise and is essential for the operational efficiency of SMEs and SMBs. Maintenance services follow closely with a significant share, reflecting the ongoing need for support and upkeep of installed systems, ensuring unbroken productivity. The second paragraph focuses on growth trends, where Maintenance services are becoming increasingly important due to the rise in automation technologies. With companies increasingly relying on automated solutions, the demand for regular maintenance has surged. Moreover, the trend toward smart manufacturing is propelling the growth of Consultation and Training services as businesses recognize the need for skilled personnel to manage advanced automation systems. This shift emphasizes the evolving landscape of industrial automation, with companies investing in specialized services to remain competitive.

Service Type: Installation (Dominant) vs. Consultation (Emerging)

In the Factory Industrial Automation SME SMB Market, Installation services are considered dominant as they are foundational to setting up automated processes, ensuring that systems are configured correctly from the outset. These services are characterized by their complexity, requiring skilled technicians who can assess unique factory needs and tailor installations accordingly. Therefore, SMEs and SMBs place a high value on these services to avoid disruptions. In contrast, Consultation services are emerging in significance, especially as businesses seek guidance on integrating automation technologies effectively. Consultation helps companies navigate the complexities of automation and establish strategies for optimal implementation. This complementary service addresses critical decision-making areas, such as system selection and process optimization, facilitating smoother transitions to automated environments.

Get more detailed insights about Factory Industrial Automation SME SMB Market

Regional Insights

North America : Innovation and Technology Leader

North America is the largest market for factory industrial automation, holding approximately 40% of the global share. Key growth drivers include advancements in IoT, AI, and robotics, alongside increasing demand for efficiency and productivity in manufacturing. Regulatory support, such as the Manufacturing USA initiative, further catalyzes investment in automation technologies, enhancing competitiveness in the region. The United States leads the market, followed by Canada, with significant contributions from key players like Rockwell Automation, Honeywell, and Siemens. The competitive landscape is characterized by a mix of established firms and innovative SMEs, all striving to meet the growing demand for automation solutions. The presence of advanced manufacturing hubs in states like Michigan and California bolsters the region's position as a leader in industrial automation.

Europe : Sustainable Automation Initiatives

Europe is the second-largest market for factory industrial automation, accounting for around 30% of the global market share. The region's growth is driven by stringent regulations aimed at sustainability and energy efficiency, such as the European Green Deal. These regulations encourage investments in smart manufacturing technologies, fostering innovation and competitiveness across various sectors. Germany and France are the leading countries in this market, with significant contributions from companies like Siemens and Schneider Electric. The competitive landscape is marked by a strong emphasis on sustainability, with many firms focusing on eco-friendly automation solutions. The presence of numerous SMEs in the region also supports a diverse and dynamic market environment, enhancing Europe's position in the global automation landscape.

Asia-Pacific : Emerging Market Potential

Asia-Pacific is witnessing rapid growth in the factory industrial automation sector, holding approximately 25% of the global market share. The region's growth is fueled by increasing industrialization, urbanization, and a rising demand for automation solutions to enhance productivity. Government initiatives, such as 'Made in China 2025,' are also pivotal in promoting advanced manufacturing technologies across the region. China and Japan are the leading countries in this market, with significant contributions from key players like Mitsubishi Electric and Yaskawa Electric. The competitive landscape is characterized by a mix of large corporations and innovative startups, all vying to capture the growing demand for automation solutions. The region's focus on technological advancements and cost-effective solutions positions it as a key player in The Factory Industrial Automation SME SMB Market.

Middle East and Africa : Resource-Rich Automation Opportunities

The Middle East and Africa region is gradually emerging in the factory industrial automation market, holding about 5% of the global share. Key growth drivers include the region's rich natural resources and increasing investments in infrastructure development. Governments are also promoting automation to enhance operational efficiency in various sectors, including oil and gas, manufacturing, and logistics. South Africa and the UAE are the leading countries in this market, with significant investments from key players like ABB and Bosch Rexroth. The competitive landscape is evolving, with a growing number of local SMEs entering the market, driven by the need for modernization and efficiency. The region's unique challenges and opportunities present a dynamic environment for industrial automation growth.

Factory Industrial Automation SME SMB Market Regional Image

Key Players and Competitive Insights

The Factory Industrial Automation SME SMB Market has transformed into a highly competitive landscape characterized by a diverse range of players striving for market share in an increasingly digitalized environment. The rise of advanced technologies such as artificial intelligence, the Internet of Things, and robotics has intensified competition among players as they seek innovative solutions to enhance productivity, reduce operational costs, and improve process efficiencies.

The market is marked by a strong focus on automation solutions tailored for Small and Medium Enterprises (SMEs) and Small and Medium Businesses (SMBs), which require cost-effective yet scalable automation systems that can seamlessly integrate with existing processes. 

As businesses continue to adopt automation technologies to remain competitive, the landscape is witnessing an influx of new entrants alongside established firms, all vying to meet the evolving needs of the industrial sector. In this dynamic market, understanding the competitive strategies and strengths of key players is critical for stakeholders aiming to succeed. Omron has effectively positioned itself as a prominent player in the Factory Industrial Automation SME SMB Market by leveraging its commitment to evolving technologies and customer-centric solutions. 

The company boasts a rich portfolio of automation products that cater specifically to the needs of SMEs and SMBs, offering solutions that range from sensors and controllers to complete automation systems. Omron's strengths lie in its ability to provide innovative, easy-to-integrate solutions that enhance operational efficiency and minimize downtime for small-scale industrial operations. Furthermore, the company's emphasis on research and development allows it to stay ahead of industry trends, continuously evolving its offerings with cutting-edge technology.

Omron's strong global presence ensures that it can support a diverse array of sectors, and its strategic partnerships enhance its capability to deliver customized solutions that meet specific industry requirements.

Bosch Rexroth has established itself as a formidable contender in the Factory Industrial Automation SME SMB Market, known for its high-quality drive and control technology. The company emphasizes the development of modular and adaptable automation solutions designed to benefit smaller manufacturing enterprises. Bosch Rexroth's strengths include its innovative product development, which is guided by its deep understanding of market demands and technological advancements. 

The company excels in creating flexible production systems that enable SMEs and SMBs to optimize their operations while maintaining cost-effectiveness. Its advanced drive and control systems facilitate seamless integration of automation functions, thereby ensuring that businesses not only achieve high productivity but also enjoy enhanced reliability and ease of use. With a commitment to quality and innovation, Bosch Rexroth continues to strengthen its foothold in the market, serving diverse sectors with tailored solutions that drive growth and efficiency.

Key Companies in the Factory Industrial Automation SME SMB Market market include

Industry Developments

The Global Factory Industrial Automation market, particularly within the SME and SMB sectors, has been witnessing significant developments. Companies like Omron, Bosch Rexroth, Festo, Honeywell, Mitsubishi Electric, and Yaskawa Electric are focusing on technological advancements to enhance operational efficiency while reducing production costs. Recent news highlights ABB's expansion plans to increase its sustainable automation solutions in response to market demand. Similarly, Schneider Electric has unveiled new software aimed at optimizing industrial processes and energy management. Siemens continues to strengthen its digital offerings with new AI-driven solutions for factories. 

Meanwhile, Rockwell Automation is actively investing in machine learning capabilities to streamline manufacturing processes. In terms of mergers and acquisitions, there has been notable activity, with General Electric reportedly exploring partnerships to bolster its capabilities in automation technology and Emerson Electric acquiring smaller tech firms to enhance its product portfolio. The market is experiencing a notable growth trend as stakeholders increasingly shift towards integrated automation solutions, indicating a robust investment landscape influenced by continuous advancements in technology and operational necessity.

Future Outlook

Factory Industrial Automation SME SMB Market Future Outlook

The Factory Industrial Automation SME SMB Market is projected to grow at a 7.13% CAGR from 2024 to 2035, driven by technological advancements, increased efficiency demands, and sustainability initiatives.

New opportunities lie in:

  • Integration of AI-driven predictive maintenance solutions
  • Development of modular automation systems for SMEs
  • Expansion of cloud-based automation management platforms

By 2035, the market is expected to achieve robust growth, positioning itself as a leader in industrial efficiency.

Market Segmentation

Factory Industrial Automation SME SMB Market Technology Outlook

  • Programmable Logic Controllers
  • Supervisory Control and Data Acquisition
  • Industrial Robots
  • Human-Machine Interfaces
  • Machine Vision Systems

Factory Industrial Automation SME SMB Market Application Outlook

  • Manufacturing
  • Packaging
  • Material Handling
  • Quality Control
  • Asset Tracking

Factory Industrial Automation SME SMB Market System Type Outlook

  • Discrete Automation
  • Process Automation
  • Hybrid Automation

Factory Industrial Automation SME SMB Market Service Type Outlook

  • Installation
  • Maintenance
  • Consultation
  • Training

Factory Industrial Automation SME SMB Market End Use Industry Outlook

  • Automotive
  • Electronics
  • Food and Beverage
  • Pharmaceuticals
  • Heavy Machinery

Report Scope

MARKET SIZE 202486.77(USD Billion)
MARKET SIZE 202592.96(USD Billion)
MARKET SIZE 2035185.14(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)7.13% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledMarket analysis in progress
Segments CoveredMarket segmentation analysis in progress
Key Market OpportunitiesIntegration of artificial intelligence and machine learning in production processes enhances efficiency in the Factory Industrial Automation SME SMB Market.
Key Market DynamicsRising demand for automation solutions drives competitive innovation among small and medium-sized enterprises in manufacturing.
Countries CoveredNorth America, Europe, APAC, South America, MEA

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FAQs

What is the projected market valuation for the Factory Industrial Automation SME SMB Market in 2035?

The projected market valuation for the Factory Industrial Automation SME SMB Market in 2035 is 185.14 USD Billion.

What was the overall market valuation for the Factory Industrial Automation SME SMB Market in 2024?

The overall market valuation for the Factory Industrial Automation SME SMB Market in 2024 was 86.77 USD Billion.

What is the expected CAGR for the Factory Industrial Automation SME SMB Market from 2025 to 2035?

The expected CAGR for the Factory Industrial Automation SME SMB Market during the forecast period 2025 - 2035 is 7.13%.

Which companies are considered key players in the Factory Industrial Automation SME SMB Market?

Key players in the market include Siemens, Rockwell Automation, Schneider Electric, Mitsubishi Electric, Honeywell, Emerson Electric, ABB, Bosch Rexroth, and Yaskawa Electric.

What are the projected revenues for Programmable Logic Controllers by 2035?

The projected revenues for Programmable Logic Controllers are expected to reach 42.0 USD Billion by 2035.

How much is the Industrial Robots segment projected to grow by 2035?

The Industrial Robots segment is projected to grow to 50.0 USD Billion by 2035.

What is the expected market size for the Automotive end-use industry in 2035?

The expected market size for the Automotive end-use industry is anticipated to be 40.0 USD Billion by 2035.

What are the projected revenues for the Maintenance service type by 2035?

The projected revenues for the Maintenance service type are expected to reach 52.0 USD Billion by 2035.

What is the anticipated growth for the Process Automation system type by 2035?

The anticipated growth for the Process Automation system type is expected to reach 50.0 USD Billion by 2035.

What is the expected market size for the Food and Beverage end-use industry by 2035?

The expected market size for the Food and Beverage end-use industry is projected to be 20.0 USD Billion by 2035.

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