Industrial Automation Services Market

Industry demands for industrial automation are on the rise, driving the industrial automation services market growth

Market CAGR for the industrial automation services market is driven by the increasing demand for industrial automation in manufacturing Industries. The increasing need for greater throughput and lower costs has led manufacturers to adopt automation and Industry 4.0 solutions to enhance efficiency. Automation has become synonymous with machines performing tasks that humans previously performed. This technology involves electromechanical systems that are programmed to perform a wide variety of processes. As automation improves and continues to influence manufacturing, manufacturers strive for a digital system that tracks materials, supply chains, production, and delivery.

A growing number of manufacturers are using automation to ensure precision and consistency and to boost operational efficiency.

Additionally, many companies worldwide are adopting robots in their industrial sectors. In the next decade, robotics will see significant improvements in price and performance with the integration of artificial intelligence and other technological advances, including better machine vision and sensors. Robotics can perform various manual tasks more efficiently and accurately than humans, which is why robotics are considered vital tools for increasing productivity today. Robots have most commonly been adopted in the manufacturing industry, where robots perform manual tasks more efficiently. With the incorporation of artificial intelligence, robots are becoming cheaper, more flexible, and more autonomous.

Some robots replace human workers, while others—collaborative robots, or "cobots," which complement them—are used in conjunction.

For instance, Tetra Pak's warehouse was integrated with a supply chain solution based on a digital twin by DHL International GmbH in July 2019. It would help facilitate scalable, cost-effective, and agile operations across the supply chain. Transport vehicles have Internet of Things (IoT) technology to create a digital twin. This keeps shipments of essentials, such as food and drinks, safe during transportation. The growing demand for automation solutions in the coming years has contributed to adopting digital twin technology. Thus, driving the industrial automation services market revenue.

Sustainability is becoming a pivotal driver in the Global Industrial Automation Services Market Industry. Companies are increasingly prioritizing eco-friendly practices, which often necessitate the adoption of automation technologies to optimize resource use and reduce waste. For instance, automated systems can monitor energy consumption in real-time, leading to a potential reduction in energy costs by 15 percent. This focus on sustainability not only aligns with regulatory requirements but also appeals to environmentally conscious consumers. As a result, the market is poised for substantial growth, with an anticipated increase from 164.7 USD Billion in 2024 to 625.9 USD Billion by 2035.

The Global Industrial Automation Services Market Industry is also shaped by the ongoing transformation of the workforce. As automation technologies become more prevalent, there is a growing need for skilled workers who can operate and maintain these advanced systems. This shift is prompting companies to invest in training and development programs to equip their employees with the necessary skills. For instance, organizations that prioritize workforce training can experience a 25 percent increase in employee productivity. Consequently, the demand for industrial automation services is likely to rise, supporting the market's growth trajectory from 164.7 USD Billion in 2024 to 625.9 USD Billion by 2035.

The Global Industrial Automation Services Market Industry is projected to experience substantial growth over the coming years. With a market value of 164.7 USD Billion in 2024, it is anticipated to reach 625.9 USD Billion by 2035, indicating a remarkable CAGR of 12.91% from 2025 to 2035. This growth is driven by various factors, including technological advancements, rising demand for automation, and a focus on sustainability. The increasing adoption of automation solutions across diverse industries is likely to further propel market expansion, making it a critical area of focus for stakeholders and investors alike.

The Global Industrial Automation Services Market Industry is experiencing rapid technological advancements, particularly in areas such as artificial intelligence, machine learning, and the Internet of Things. These innovations enhance operational efficiency and reduce downtime, which are critical for industries aiming to remain competitive. For instance, the integration of AI in predictive maintenance can lead to a reduction in maintenance costs by up to 30 percent. As companies increasingly adopt these technologies, the market is projected to grow from 164.7 USD Billion in 2024 to an estimated 625.9 USD Billion by 2035, reflecting a robust CAGR of 12.91% from 2025 to 2035.

The Global Industrial Automation Services Market Industry is witnessing a surge in demand for automation solutions across various sectors, including manufacturing, oil and gas, and pharmaceuticals. This demand is driven by the need for increased productivity and efficiency, as well as the desire to minimize human error. For example, the manufacturing sector is increasingly adopting automation to streamline production processes, which can lead to a 20 percent increase in output. As industries continue to embrace automation, the market is expected to expand significantly, with projections indicating a growth from 164.7 USD Billion in 2024 to 625.9 USD Billion by 2035.

The Global Industrial Automation Services Market Industry is significantly influenced by the need for supply chain optimization. As businesses strive to enhance their supply chain efficiency, automation services play a crucial role in achieving this goal. Automated inventory management systems, for example, can reduce stock discrepancies by up to 40 percent, thereby improving overall operational efficiency. The ongoing globalization of supply chains further necessitates the integration of automation solutions to manage complex logistics and distribution networks. This trend is expected to contribute to the market's growth, with projections indicating an increase from 164.7 USD Billion in 2024 to 625.9 USD Billion by 2035.

By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia-Pacific industrial automation services market will dominate the industrial automation services market, owing to the growing emphasis on enhancing process efficiency and reducing production costs throughout various industry verticals. Several factors are influencing the regional economy, including the number of government initiatives for digitalization, the increasing demands for workplace safety, and improved efficiency in industrial processes. A key revenue-generating country in the Asian-Pacific industrial automation services market is China.

Further, the major countries studied in the industrial automation services market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: INDUSTRIAL AUTOMATION SERVICES MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

North America's industrial automation services market accounts for the second-largest market share due to increased competition and end-user expectations. Manufacturing units in the region are implementing the latest technological advances and digital transformation capabilities to make their business processes more efficient and effective. Further, the US industrial automation services market held the largest market share, and the Canadian industrial automation services market was the fastest-growing market in the North-American region

The Europe industrial automation services market is expected to grow at the fastest CAGR from 2023 to 2030. In January 2021, Western Europe and Nordic European Countries had the highest robot densities in the world, according to the International Federation of Robotics (IFR). Moreover, Germany’s industrial automation services market held the largest market share, and the UK industrial automation services market was the fastest-growing market in the European region.

For instance, as part of the new services and asset lifecycle management solution, Siemens AG expanded its partnership with SAP SE. Through digital twins and remote condition monitoring, the partnership aims to facilitate collaboration across the asset lifecycle by connecting plant floor operations, product development, and remote condition monitoring.

Leading market players are investing heavily in research and development to expand their product lines, which will help the industrial automation services market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The industrial automation services industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global industrial automation services industry to benefit clients and increase the market sector. In recent years, the industrial automation services industry has offered some of the most significant advantages to manufacturing industries. Major players in the industrial automation services market, including Siemens AG (Germany), ABB Ltd. (Switzerland), Johnson Controls Inc. (Ireland), General Electric Company (US), Schneider Electric SE (France), Honeywell International Inc. (US), Mitsubishi Electric Corporation (Japan), Yokogawa Electric (Japan), Rockwell Automation Inc. (US), and Ametek Inc. (US)

The ABB Group provides power and automation technologies. In addition to power products, the Company also makes power systems, automation products, process automation, and robotics. In March 2021, as part of its SCADA system, ABB developed an automation control solution that improves the efficiency of solar plants, enabling plant operators to monitor and analyze relevant data about solar projects easily.

The Rockwell Automation India Private Limited company was founded in 2001. The company manufactures a range of electronic components, including antennas, switches, and waveguides. In November 2020, With LifecycleIQ services, Rockwell Automation combined the power of digital technology with expert human knowledge in a transformative partnership. As a result of the services, companies can work faster, smarter, and more agile at every part of the business cycle. Companies can benefit from connecting their operations and maintenance in greenfield and brownfield facilities during the design, operations, and maintenance phases.