Global Factory Automation Market Overview
Factory Automation Market Size was valued at USD 205.0 Million in 2023. The Factory Automation market industry is projected to grow from USD 224.1 Million in 2024 to USD 403.8 Million by 2032, exhibiting a compound annual growth rate (CAGR) of 7.6% during the forecast period (2024 - 2032). Automation has come to be seen as the use of machines to reduce human labor. Industrial robotization incorporates mechanization innovations and control gadgets, which are conveyed in computerizing machines. PC programming and modern robots are progressively used in enterprises to deal with different cycles to develop efficiency and productivity further. A few current areas that incorporate oil and gas businesses, synthetic substances, materials, clinical sites, and other urgent enterprises are progressively conveying computerization procedures. Expanding the efficiency with insignificant assembling costs is the essential characteristic of the production line computerization innovation, which is considered the invigorating development variable for the Factory Automation Industry. A few nations progressively put resources into carbon-free strategies that incorporate eco-friendly procedures. Particularly end-client ventures like cars are zeroing in on such procedures. Such factors are considered the significant driving variables of the Factory Automation Industry.
Source Secondary Research, Primary Research, MRFR Database, and Analyst Review
Factory Automation Market Trends
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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.
Additionally, The convergence of technologies has enabled manufacturers to take the next step toward the fifth industrial revolution, in which different Industrial Automation Services systems collaborate and share resources. Companies must leverage existing technologies, accelerate technology deployment, and unlock new sources of value to stay ahead of the curve. The industrial automation space has conventionally been resistant to innovation or early adoption of high-end technologies. Often, enterprises in this segment prefer to leverage proven technologies and standards to ensure safe, secure, and consistent operations. However, things have started to change rapidly with the advent of Industry 4.0. Industrial space has been impacted by incremental technology changes and the rapid adoption of new systems and augmented networking architectures over the last decade.
Factory Automation Market Segment Insights
Factory Automation Technology Insights
The Factory Automation market segmentation, based on technology, includes Supervisory control and data acquisition (SCADA), Programmable Automation Controller (PAC), PLC, Distributed Control System (DCS), and Human Machine Interface (HMI). The Supervisory Control and Data Acquisition System (SCADA) segment dominated the factory automation industry in 2021 in terms of revenue and is expected to dominate the market during the forecast period.
Factory Automation End-user Insights
Based on End-user, the Factory Automation market segmentation includes Manufacturing, Automotive, Packaging & processing, Energy & Power, semiconductors & Electronics, Printing & converting Others. In 2021, the automotive manufacturing segment dominated the market in terms of revenue and is expected to follow the same trend during the forecast period.
Figure 2 Factory Automation Market, by technology, 2021 & 2030 (USD Million)
Source Secondary Research, Primary Research, MRFR Database, and Analyst Review
Factory Automation Regional Insights
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.
Factory Automation Key Market Players & Competitive Insights
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.
Key Companies in the Factory Automation market include
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ABB
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Emerson Electric Co.
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Mitsubishi Electric Corporation
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General Electric
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Rockwell Automation, Inc.
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Omron Corporation
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Honeywell International Inc.
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Schneider Electric SE
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Siemens AG
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Yokogawa Electric
Factory Automation Industry Developments
Jun 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.
The Indian market is expanding at about 8%, mainly in industries such as automobiles, pharmaceuticals, food & beverage, data centers, and textiles, and further market expansion is expected in the future. The new factory is expected to start operations in Dec. 2023 and manufacture inverters & other factory automation (FA) control system products, expanding Mitsubishi's capabilities to meet the growing demand in India.
Emerson announced the release of its PACSystems RSTi-EP CPE 200 programmable automation controllers (PAC) in May 2022. This new family of compact PACs ensures OEMs can meet customer requirements successfully while reducing reliance on specialized software engineering talent.
Mitsubishi Electric Corporation plans to put up INR 2.2 billion into Mitsubishi Electric India Pvt. Ltd., one if its subsidiaries towards opening another factory in India; this was revealed on June 4th, 2022 (U.S office of Secretary commerce n.d.). Company expects to commence factory operations from December-23, with factory manufacturing the Inverters and other Factory Automation (FA) Control System products to increase its capabilities to cater the rising demand in India.
July 2022 – Rockwell Automation, Inc., a global leader in industrial automation and digital transformation services, launched PowerFlex AC variable frequency drives across Asia Pacific for efficient control of motor functions. This will enable customers have more flexible, stronger and smarter next generation drive through TotalFORCE Technology.
Nov 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.
July 2021- Rockwell Automation Inc. collaborated with a cloud-based product digitalization and traceability platform, Kezzler AS. The partnership aims to enable manufacturers to capture their product's end-to-end journey from raw material sources to the point of sale or beyond by using cloud-based chain solutions.
July 2021- Siemens AG expanded its partnership with SAP SE to deliver a new solution for services and asset lifecycle management. The partnership aims to connect plant floor operations, product development through digital twins, and remote condition monitoring with original equipment manufacturers (OEMs) to facilitate collaboration across the asset lifecycle.
ABB presented cobots portfolio i.e GoFa and SWIFTI cobots in February 2021. Cobots are highly capable and facilitate the movements of robots.
In June 2021, Rockwell Automation Inc. acquired Plex Systems with USD 2.22 billion that specializes on smart manufacturing solutions. The company wants to expand its industrial cloud offerings by adding Plex’s cloud-native smart manufacturing platform.
Siemens AG expanded its partnership with SAP SE to deliver a new solution for services and asset lifecycle management in July 2021. The partnership will enable plant floor operations, product development via digital twins, and remote condition monitoring with original equipment manufacturers (OEMs) allowing for collaboration across the asset lifecycle.
Factory Automation Market Segmentation
Factory Automation Type Outlook
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Fixed Automation
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Programmable Automation
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Flexible Automation
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Integrated Automation
Factory Automation Technology Outlook
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Supervisory control and data acquisition (SCADA)
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Programmable Automation Controller (PAC)
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Programmable Logic Controller (PLC)
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Distributed Control System (DCS)
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Human Machine Interface (HMI)
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Others
Factory Automation End User Outlook
Factory Automation Regional Outlook
- North America
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Africa
- Latin America
| Report Attribute/Metric |
Details |
| Market Size 2023 |
USD 205.0 Million |
| Market Size 2024 |
USD 224.1 Million |
| Market Size 2032 |
USD 403.8 Million |
| Compound Annual Growth Rate (CAGR) |
7.6% (2024-2032) |
| Base Year |
2023 |
| Market Forecast Period |
2024-2032 |
| Historical Data |
2018 & 2022 |
| Market Forecast Units |
Value (USD Million) |
| Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Type, Technology, End-User, and Region |
| Geographies Covered |
North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered |
The U.S, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled |
ABB, Emerson Electric Co., Mitsubishi Electric Corporation, General Electric, Rockwell Automation, Inc., Omron Corporation, Honeywell International Inc., Schneider Electric SE, Siemens AG, Yokogawa Electric |
| Key Market Opportunities |
The ongoing trend toward Factory Automation is being reflected in an increase in the number of industrial robots. |
| Key Market Dynamics |
Rising Demand for Automation for Qualitative & Reliable Manufacturing |
Frequently Asked Questions (FAQ) :
The Factory Automation market size was valued at USD 205.0 Million in 2023.
The market is projected to grow at a CAGR of 7.6% during the forecast period, 2024-2032.
Europe had the largest share in the Factory Automation market.
The key players in the market are ABB, Emerson Electric Co., Mitsubishi Electric Corporation, General Electric, Rockwell Automation, Inc., Omron Corporation, Honeywell International Inc., Schneider Electric SE, Siemens AG, Yokogawa Electric, Fanuc Corporation, Hitachi, Robert Bosch GMBH, Danfoss, and Danaher Corporation
The Supervisory control and data acquisition (SCA) category dominated the market in 2021
Automotive-based had the largest share in the market for Factory Automation.
