Factory Automation Market Size By Components (Sensors, Controllers, Switches & Relays), By End User (Automotive Manufacturing, Food & Beverage, Oil & Gas Processing), By Control Systems (Distributed Control System (DCS), Supervisory Control and Data Acquisition System (SCADA)), & By Geographic Scope and Forecast

Factory Automation Market and Forecast

Factory Automation Market size is valued at USD 250.29 Billion in 2024 and is anticipated to reach USD 441.49 Billion by 2031, growing at a CAGR of 8.11% from 2024 to 2031

• Factory Automation refers to a range of technologies and automated control systems that improve production efficiency and quality while lowering production costs.
• It is also known as Factory Automation, and it reduces human interference in the industry thus providing better efficiency when compared to humans. It entails the application of computers, robotics, control systems, and information technology to handle industrial processes.
• Automation is being implemented in industries to improve productivity and reduce labor costs. Embedded vision is a technology that improves manufacturing floor processes such as raw material processing and assembly.
• Pneumatic technology is used in Factory Automation because it works at a much lower pressure than hydraulic technology. Control loops were introduced to computer operation with the introduction of automation.
• There are two kinds of control loopsopen loops that allow for human feedback and closed loops that are fully automatic. The primary benefit of these control loops is an improvement in efficiency and output, as well as a reduction in costs.

Factory Automation Market Dynamics

The key market dynamics that are shaping the global factory automation market include

Key Market Drivers

• Increasing Efficiency and ProductivityFactory automation technologies such as robotics, programmable logic controllers (PLCs), and industrial internet of things (IIoT) systems improve operational efficiency and productivity by automating repetitive tasks, reducing downtime, and optimizing production processes.
• Cost Reduction and ROIFactory automation enables cost reduction through labor savings, energy efficiency improvements, and waste reduction. Manufacturers invest in automation solutions to achieve a higher return on investment (ROI) by streamlining operations, increasing throughput, and reducing production costs.
• Global Competitive PressureGlobal competition and market dynamics drive manufacturers to adopt automation technologies to stay competitive. Automation enhances manufacturing agility, flexibility, and responsiveness to changing market demands, allowing companies to adapt quickly to market fluctuations and maintain competitiveness.
• Quality Improvement and ConsistencyAutomation improves product quality and consistency by minimizing human error, standardizing production processes, and implementing real-time quality control measures. Manufacturers rely on automation to achieve higher levels of precision, accuracy, and reliability in manufacturing operations.
• Demand for Customization and PersonalizationConsumer preferences for customized products and personalized experiences drive demand for flexible and adaptable manufacturing solutions. Factory automation technologies enable mass customization, agile production, and just-in-time manufacturing to meet diverse customer needs and preferences.

Key Challenges

• High Initial InvestmentThe initial capital investment required for implementing factory automation systems can be significant, including costs associated with equipment procurement, installation, integration, and training. Manufacturers face challenges in securing funding and calculating the long-term ROI of automation projects.
• Workforce Reskilling and Training The transition to automation necessitates reskilling and upskilling the workforce to operate, maintain, and troubleshoot automated systems effectively. Manufacturers must invest in training programs, retrain existing employees, and recruit skilled automation engineers to address the skills gap and ensure successful automation implementation.
• Interoperability and Integration Complexity Integrating disparate automation systems, legacy equipment, and third-party software solutions poses challenges for manufacturers. Achieving interoperability and seamless integration across different automation platforms, protocols, and data systems requires standardized interfaces, open communication protocols, and compatibility testing.
• Cybersecurity RisksFactory automation systems are vulnerable to cybersecurity threats, including malware, ransomware, and data breaches. Manufacturers must implement robust cybersecurity measures, such as network segmentation, encryption, and access controls, to protect sensitive production data, intellectual property, and operational assets from cyberattacks.
• Maintenance and Downtime ManagementPreventive maintenance, predictive maintenance, and downtime management are critical challenges in factory automation. Manufacturers must develop maintenance schedules, implement condition monitoring systems, and deploy predictive analytics tools to minimize unplanned downtime, optimize equipment performance, and ensure continuous production.

Key Trends

• Industry 4.0 and Smart ManufacturingIndustry 4.0 technologies, including IIoT, cloud computing, artificial intelligence (AI), and big data analytics, drive the evolution of smart manufacturing. Manufacturers adopt interconnected, data-driven automation solutions to create smart factories that optimize production, enhance decision-making, and enable real-time monitoring and control.
• Collaborative Robotics and CobotsCollaborative robots, or cobots, are gaining traction in factory automation. Cobots work alongside human operators, enhancing productivity, safety, and flexibility in manufacturing environments. Manufacturers deploy cobots for tasks such as assembly, pick-and-place, and quality inspection, enabling human-robot collaboration and agile production.
• Edge Computing and Edge AIEdge computing and edge AI technologies enable real-time data processing, analysis, and decision-making at the network edge. Manufacturers deploy edge computing platforms and edge AI algorithms to reduce latency, improve responsiveness, and enhance operational efficiency in factory automation applications, such as predictive maintenance and quality control.
• Digital Twins and SimulationDigital twin technology enables virtual replicas of physical assets, processes, and systems in the digital domain. Manufacturers leverage digital twins for simulation, optimization, and predictive modeling of factory operations, enabling rapid prototyping, process validation, and continuous improvement in production processes.
• Sustainability and Green ManufacturingSustainability initiatives drive the adoption of eco-friendly automation solutions and green manufacturing practices. Manufacturers prioritize energy-efficient equipment, renewable energy sources, and waste reduction strategies to minimize environmental impact, comply with regulatory requirements, and meet consumer demand for sustainable products.

Factory Automation Market Regional Analysis

Here is a more detailed regional analysis of the global factory automation market

Asia Pacific

• Asia Pacific is experiencing rapid industrialization, driven by factors such as urbanization, infrastructure development, and economic growth. This fuels demand for factory automation solutions to enhance manufacturing efficiency, productivity, and competitiveness across diverse industries, including automotive, electronics, and consumer goods.
• Asia Pacific is a manufacturing powerhouse, accounting for a significant share of global manufacturing output. Countries such as China, Japan, South Korea, and Taiwan are major manufacturing hubs, attracting investments from multinational corporations seeking to capitalize on the region’s skilled workforce, infrastructure, and supply chain capabilities.
• Industry 4.0 technologies, including robotics, artificial intelligence (AI), internet of things (IoT), and big data analytics, are driving the evolution of smart factories in Asia Pacific. Manufacturers embrace digital transformation and automation to improve operational efficiency, agility, and innovation in response to market dynamics and competitive pressures.

North America

• North America has an advanced manufacturing landscape characterized by innovation, technology leadership, and automation adoption. The region is home to leading manufacturers across various industries, including automotive, aerospace, pharmaceuticals, and electronics, driving demand for cutting-edge factory automation solutions.
• The manufacturers in this region are early adopters of Industry 4.0 technologies and smart manufacturing concepts. Companies leverage robotics, AI, IoT, and cloud computing to create connected factories, digital twins, and data-driven production systems that enhance agility, flexibility, and competitiveness in the global marketplace.
• North America boasts a strong research and development (R&D) ecosystem, comprising universities, research institutions, and technology companies that drive innovation in factory automation. Collaboration between academia, industry, and government fosters technological advancements, new product development, and commercialization of automation solutions.
• The manufacturers prioritize reshoring, supply chain diversification, and supply chain resilience in response to disruptions and geopolitical uncertainties. Factory automation enables companies to localize production, reduce dependence on overseas suppliers, and improve supply chain agility, mitigating risks and ensuring business continuity.

Factory Automation MarketSegmentation Analysis

The Global Factory Automation Market is segmented on the basis of Components, End-Users, Control Systems, And Geography.

Factory Automation Market, By Components

• Sensors
• Controllers
• Switches & Relays
• Industrial Robots

Based on Components, the market is segmented into Sensors, Controllers, Switches & Relays, Industrial Robots, and Others. The industrial robots segment had the strongest market share in 2019 and will continue to lead by 2027. It is due to numerous industry verticals using industrial robot applications to maximize operations that require speed, power, and accuracy. It aids in the reduction of raw material waste, labor requirements, and energy use.

Factory Automation, By End-User

• Automotive Manufacturing
• Food & Beverage
• Oil & Gas Processing
• Mining

Based on End-User, the market is segmented into Automotive Manufacturing, Food & Beverage, Oil & Gas Processing, Mining, and Others. Automotive Manufacturing is expected to dominate the industry. This is because automated robots are assisting businesses in increasing production throughput, achieving organizational quality, and lowering total manufacturing costs.

Factory Automation Market, By Control Systems

• Distributed Control System (DCS)
• Supervisory Control and Data Acquisition System (SCADA)
• Manufacturing Execution System (MES)
• Programmable Logic Controller (PLC)

Based on Control Systems, the market is segmented into Distributed Control System (DCS), Supervisory Control and Data Acquisition System (SCADA), Manufacturing Execution System (MES), Programmable Logic Controller (PLC), and Others. Due to the DCS process automation and control in industrial processing plants, as well as the increasing need for improved protection and safety requirements in oil refineries, the distributed control systems segment is expected to lead the market by 2027.

Factory Automation Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the world

On the basis of Geography, the Global Factory Automation Market is classified into North America, Europe, Asia Pacific, and the Rest of the world. The Asia Pacific held a stronger market share in 2019 and is expected to maintain its lead. It is due to the involvement of key industry players in the country, the increasing automobile and manufacturing sectors in the APAC region, and the increase in industrial demand in the region’s countries.

Key Players

The “Factory Automation Market” study report will provide valuable insight with an emphasis on the global market. The major players in the market are ABB Ltd., Emerson Electric Company, GE Company, Honeywell International Incorporation, Mitsubishi Electric Factory Automation, Omron Corporation, Rockwell Automation, Inc., Schneider Electric SA, Siemens AG and Yokogawa Electric Corporation.

Our market analysis also entails a section solely dedicated for such major players wherein our analysts provide an insight to the financial statements of all the major players, along with its product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share and market ranking analysis of the above-mentioned players globally.

Factory Automation Market Recent Developments

• In June 2022, Mitsubishi Electric Corporation announced that it is setting up a new factory automation equipment plant in India to create a third global production hub to drive revenue growth in the fast-growing market. The company will invest approximately Rs 2.2 billion in Mitsubishi Electric India Pvt. Ltd. This new production hub will strengthen its supply chains, positioning Mitsubishi Electric as a leader in factory automation systems.
• In November 2021, OMRON Corporation announced that it has signed an agreement with Techman Robot, Inc., a leading global collaborative robot brand. OMRON now holds approximately a 10% stake in Techman. These companies would jointly develop innovative robot solutions to combine OMRON factory automation equipment with Techman’s collaborative robots to drive safety and productivity while offering a solution to address the issue of labor shortages at manufacturing sites.

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