• Cat-intel
  • MedIntelliX
  • Resources
  • About Us
  • Request Free Sample ×

    Kindly complete the form below to receive a free sample of this Report

    Leading companies partner with us for data-driven Insights

    clients tt-cursor
    Hero Background

    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...

    Share:
    Download PDF ×

    We do not share your information with anyone. However, we may send you emails based on your report interest from time to time. You may contact us at any time to opt-out.

    Factory Industrial Automation SME SMB Market Infographic
    Purchase Options

    Factory Industrial Automation SME SMB Market Summary

    The Global Factory Industrial Automation SME SMB Market is projected to grow significantly from 86.77 USD Billion in 2024 to 185.14 USD Billion by 2035.

    Key Market Trends & Highlights

    Factory Industrial Automation SME SMB Key Trends and Highlights

    • The market is expected to experience a compound annual growth rate (CAGR) of 7.13 percent from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 185.1 USD Billion, indicating robust growth potential.
    • in 2024, the market is valued at 86.77 USD Billion, reflecting a strong foundation for future expansion.
    • Growing adoption of automation technologies due to increased efficiency demands is a major market driver.

    Market Size & Forecast

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

    Major Players

    Omron, Bosch Rexroth, Festo, Honeywell, Mitsubishi Electric, Yaskawa Electric, General Electric, Keysight Technologies, Emerson Electric, ABB, Schneider Electric, Siemens, Rockwell Automation, Fanuc, KUKA

    Factory Industrial Automation SME SMB Market Trends

    The Global Factory Industrial Automation market is experiencing significant growth driven by several key factors. The increasing demand for operational efficiency and productivity in manufacturing processes plays a central role in promoting automation technologies among small and medium enterprises (SMEs) and small and medium-sized businesses (SMBs). Additionally, advancements in technologies such as the Internet of Things (IoT), artificial intelligence (AI), and machine learning have made automation solutions more accessible, efficient, and affordable for smaller businesses. The push for digital transformation further accelerates the transition toward automated systems, encouraging organizations to embrace innovation to stay competitive.

    Opportunities are abundant in the market as SMEs and SMBs look to enhance their production capabilities and reduce labor costs. As many of these businesses seek to improve their process efficiency, automation presents an attractive solution to meet demand fluctuations and maintain product quality. The integration of smart sensors and data analytics into manufacturing systems provides firms with enhanced decision-making tools, enabling them to optimize their operations continuously. Furthermore, companies can explore collaborative automation, where human workers and robots work together, thus improving both speed and safety in the production line.

    Recent trends indicate a heightened focus on sustainability and eco-friendly practices within industrial automation. Businesses are increasingly looking to adopt green technologies that minimize waste and energy consumption while optimizing output. The rise of customizable automation solutions caters to the unique needs of diverse industries, allowing SMEs and SMBs to implement tailored strategies. As organizations navigate an evolving market landscape, leveraging automation effectively can enhance their competitive advantage and drive future growth. Emphasizing adaptability and resilience will be essential as they implement these changes.

    The ongoing evolution of factory industrial automation within SMEs and SMBs appears to be driven by the increasing need for efficiency and competitiveness in a rapidly changing economic landscape.

    U.S. Department of Commerce

    Factory Industrial Automation SME SMB Market Drivers

    Regulatory Compliance

    Regulatory compliance plays a pivotal role in shaping the Global Factory Industrial Automation SME SMB Market Industry. Governments worldwide are implementing stringent regulations aimed at improving workplace safety and environmental sustainability. SMEs are increasingly adopting automation technologies to meet these compliance standards efficiently. For example, automated monitoring systems can help ensure adherence to safety protocols and environmental regulations, thereby minimizing risks and potential penalties. This trend not only enhances operational safety but also fosters a culture of compliance within organizations. As SMEs navigate these regulatory landscapes, the demand for automation solutions is likely to rise, further contributing to the market's growth.

    Market Growth Projections

    The Global Factory Industrial Automation SME SMB Market Industry is poised for substantial growth, with projections indicating a market value of 86.8 USD Billion in 2024 and an anticipated increase to 185.1 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate of 7.13% from 2025 to 2035, reflecting the increasing adoption of automation technologies among SMEs. The market's expansion is driven by various factors, including technological advancements, demand for efficiency, regulatory compliance, supply chain resilience, and workforce skill development. These elements collectively contribute to a dynamic landscape, positioning the Global Factory Industrial Automation SME SMB Market Industry for continued success.

    Technological Advancements

    The Global Factory Industrial Automation SME SMB Market Industry experiences a robust growth trajectory driven by rapid technological advancements. Innovations in robotics, artificial intelligence, and the Internet of Things are transforming manufacturing processes, enhancing efficiency and productivity. For instance, SMEs are increasingly adopting collaborative robots, which can work alongside human operators, thereby streamlining operations. This trend is reflected in the projected market value of 86.8 USD Billion in 2024, indicating a strong inclination towards automation technologies that facilitate real-time data analysis and decision-making. As these technologies evolve, they are likely to further propel the market towards an estimated value of 185.1 USD Billion by 2035.

    Workforce Skill Development

    The Global Factory Industrial Automation SME SMB Market Industry is influenced by the ongoing need for workforce skill development. As automation technologies become more prevalent, there is a growing emphasis on equipping employees with the necessary skills to operate and maintain these advanced systems. SMEs are investing in training programs to enhance their workforce's capabilities, ensuring they can effectively leverage automation for improved productivity. This focus on skill development not only addresses potential labor shortages but also fosters innovation within organizations. As SMEs prioritize workforce training, the demand for automation solutions is likely to increase, further driving market growth.

    Global Supply Chain Resilience

    The Global Factory Industrial Automation SME SMB Market Industry is also driven by the need for enhanced supply chain resilience. Recent disruptions have highlighted the vulnerabilities within traditional supply chains, prompting SMEs to invest in automation technologies that provide greater flexibility and responsiveness. Automated inventory management systems and predictive analytics tools enable businesses to adapt swiftly to changing market demands. This adaptability is crucial for maintaining competitiveness in a dynamic global market. As SMEs increasingly recognize the importance of resilient supply chains, the demand for automation solutions is expected to grow, supporting the overall expansion of the market.

    Increased Demand for Efficiency

    The Global Factory Industrial Automation SME SMB Market Industry is significantly influenced by the increasing demand for operational efficiency among small and medium enterprises. Companies are seeking to optimize their production processes to reduce costs and improve output quality. Automation solutions, such as advanced manufacturing execution systems, enable SMEs to monitor and control production in real-time, leading to enhanced resource utilization. This shift towards efficiency is underscored by a compound annual growth rate of 7.13% projected for the period from 2025 to 2035. As SMEs continue to embrace these solutions, the market is expected to expand, reflecting their commitment to maintaining competitiveness in a globalized economy.

    Market Segment Insights

    Factory Industrial Automation SME SMB Market Technology Insights

    The Technology segment of the Factory Industrial Automation SME SMB Market has been a focal point of growth and innovation, projected to hold a significant position in the overall market. In 2023, the combined valuation of this segment stands at 75.61 USD Billion, with market projections indicating that this number could rise to 140.5 USD Billion by 2032. This sector is characterized by robust growth dynamics fueled by increasing demand for automation solutions to enhance operational efficiency and reduce labor costs across various industries. 

    Within this segment, Programmable Logic Controllers (PLCs) play a pivotal role, which is evident from their valuation of 15.0 USD Billion in 2023, doubling to 30.0 USD Billion by 2032. PLCs are fundamental for automation, providing reliable control functionality for machinery and processes, thus holding a majority share in the Industrial Automation landscape.

    Another key component is Supervisory Control and Data Acquisition (SCADA), valued at 10.0 USD Billion in 2023 and expected to double to 20.0 USD Billion by 2032, reflects the growing need for real-time data monitoring and control systems in industrial environments, making it a significant player in market dynamics.

    Industrial Robots represent another driving force within this landscape, with remarkable performance figures indicating a valuation of 25.0 USD Billion in 2023, projected to reach 40.0 USD Billion in 2032. The rise of Industrial Robots can be attributed to their ability to perform tasks with precision and repetitiveness, fundamentally transforming manufacturing processes. Furthermore, Human-Machine Interfaces (HMIs) enhance user interaction with machines and are currently valued at 12.0 USD Billion, expected to rise to 25.0 USD Billion during the forecast period, which underscores the critical role they play in facilitating efficient communication between operators and machinery, thus driving productivity. 

    Lastly, Machine Vision Systems are valued at 13.61 USD Billion in 2023, with projections reaching 25.5 USD Billion by 2032, demonstrating their critical importance in quality control and automation. The surge in demand for these systems is a direct response to the increasing need for enhanced accuracy and productivity in various manufacturing processes. Ultimately, the convergence of these technologies within the Factory Industrial Automation SME SMB Market not only illustrates a trend toward more integrated and efficient operations but also points to numerous opportunities for innovation and investment in the years to come.

    Factory Industrial Automation SME SMB Market Application Insights

    The Factory Industrial Automation SME SMB Market revenue is projected to reach 75.61 USD Billion in 2023, reflecting the increasing investment in automation technologies across various applications. This market encompasses several key areas, with manufacturing representing a significant portion as companies strive for efficiency and productivity. Packaging also plays a crucial role, driven by the rising demand for faster processing times and better shelf-life preservation. Material handling systems have become essential to streamline operations and reduce labor costs, ensuring smooth workflows within facilities.

    Quality control is vital for maintaining standard compliance and reducing waste, allowing businesses to achieve higher quality outputs. Asset tracking has gained importance, helping companies optimize resource utilization and minimize losses. The landscape of the Factory Industrial Automation SME SMB Market industry is characterized by ongoing advancements and trends, with industries actively seeking solutions to enhance productivity and operational efficiency. The market growth is supported by innovation and the need for smarter technology adoption across applications, paving the way for substantial opportunities in the coming years.

    Factory Industrial Automation SME SMB Market End Use Industry Insights

    The Factory Industrial Automation SME SMB Market is witnessing substantial growth, driven largely by various end-use industries contributing to its expanding landscape. In 2023, the market is valued at approximately 75.61 USD billion and is poised for significant growth through 2032. Key sectors such as Automotive and Electronics play a crucial role in the market, given their need for advanced automation to enhance production efficiency and reduce operational costs. The Food and Beverage industry also represents a notable segment due to evolving consumer demands for quicker service and higher quality, thus requiring streamlined production processes.

    Additionally, Pharmaceuticals benefit from automation ensuring compliance with stringent regulatory requirements, driving demand for precision and reliability. Heavy Machinery is significant as it incorporates automation to improve safety and efficiency in complex manufacturing environments. The combination of these sectors demonstrates the diverse applicability of factory automation, encouraging innovation and investment, thereby enhancing the overall market growth in the Factory Industrial Automation SME SMB Market. Factors such as technological advancements, labor shortages, and increased emphasis on operational efficiency continue to drive this trajectory, making automation an indispensable aspect of modern manufacturing across these industries.

    Factory Industrial Automation SME SMB Market System Type Insights

    In 2023, the Factory Industrial Automation SME SMB Market was valued at 75.61 USD Billion, demonstrating the significant role of System Type in its overall structure. This market comprises various categories, with Discrete Automation, Process Automation, and Hybrid Automation being the primary components. Discrete Automation plays a vital role by enabling precise control and flexibility, which is essential for manufacturing and assembling products. Process Automation is also significant as it addresses the need for consistent production quality and efficiency, particularly in sectors like chemical and food processing.

    Meanwhile, Hybrid Automation integrates both discrete and process approaches, catering to the growing demand for versatile solutions that can adapt to various production environments. The importance of these segments reflects the shifting landscape in industrial automation, driven by increased demand for efficiency, technological advancements, and a focus on reducing operational costs. This focus shapes the future of the Factory Industrial Automation SME SMB Market as it evolves to meet the challenges posed by modernization and international competition.

    Factory Industrial Automation SME SMB Market Service Type Insights

    The Factory Industrial Automation SME SMB Market, with a revenue of 75.61 billion USD in 2023, showcases a robust landscape driven by various service types crucial for operational efficiency. Among these, installation services play a pivotal role in ensuring that automation systems are accurately deployed, which is essential for optimal functionality. Maintenance services also hold significant importance as they help in prolonging the lifespan of automated systems, thereby reducing potential downtimes. Additionally, consultation services are increasingly sought after, as they assist businesses in effectively implementing automation strategies tailored to their specific needs.

    Training services further enhance this segment by equipping employees with the necessary skills, thus ensuring that companies maximize the use of their automation technologies. These interconnected service types not only contribute to the overall market growth but also address the challenges enterprises face during the automation journey, leading to increased efficiency and productivity in the factory industrial sector. As the market evolves, understanding these dynamics within the Factory Industrial Automation SME SMB Market segmentation becomes essential for stakeholders aiming to capitalize on emerging opportunities.

    Get more detailed insights about Factory Industrial Automation SME SMB Market

    Regional Insights

    The Factory Industrial Automation SME SMB Market is projected to reach a valuation of 75.61 USD Billion in 2023, with significant growth anticipated across various regional markets. North America is the major contributor, holding a substantial value of 30.0 USD Billion in 2023 and expected to rise to 55.0 USD Billion by 2032, signifying its dominance in the industrial automation industry due to advanced technology adoption. Europe follows with a market value of 18.0 USD Billion in 2023, anticipated to grow to 34.0 USD Billion, highlighting its significant role driven by stringent regulatory requirements and a strong manufacturing base.

    The APAC region also shows promising growth, with a valuation of 20.0 USD Billion in 2023, expected to reach 38.0 USD Billion, reflecting rapid industrial development and increasing demand for automation solutions. South America and MEA represent smaller portions of the market, valued at 4.0 USD Billion and 3.61 USD Billion in 2023, respectively, but are seen as emerging areas with potential growth opportunities owing to rising investments in automation infrastructure. Overall, the Factory Industrial Automation SME SMB Market segmentation reveals a diverse landscape with North America and Europe being the major players in driving significant market growth.

    Factory Industrial Automation SME SMB Market Regional Insights

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

    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 7.13% CAGR from 2025 to 2035, driven by technological advancements, increased demand for efficiency, and sustainability initiatives.

    New opportunities lie in:

    • Invest in AI-driven automation solutions to enhance operational efficiency.
    • Develop customized automation systems for niche industries to capture market share.
    • Leverage IoT technologies for real-time data analytics and predictive maintenance.

    By 2035, the market is expected to achieve substantial growth, positioning itself as a cornerstone of industrial innovation.

    Market Segmentation

    Factory Industrial Automation SME SMB Market Regional Outlook

    • North America
    • Europe
    • South America
    • Asia Pacific
    • Middle East and Africa

    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

    Report Attribute/Metric Details
    Market Size 2024 USD 86.77 Billion
    Market Size 2025 USD 92.96 Billion
    Market Size 2035 185.14 (USD Billion)
    Compound Annual Growth Rate (CAGR) 7.13% (2025 - 2035)
    Base Year 2024
    Market Forecast Period 2025 - 2035
    Historical Data 2020-2023
    Market Forecast Units USD Billion
    Key Companies Profiled Omron, Bosch Rexroth, Festo, Honeywell, Mitsubishi Electric, Yaskawa Electric, General Electric, Keysight Technologies, Emerson Electric, ABB, Schneider Electric, Siemens, Rockwell Automation, Fanuc, KUKA
    Segments Covered Technology, Application, End Use Industry, System Type, Service Type, Regional
    Key Market Opportunities Increased demand for cost efficiency, Adoption of IoT-enabled solutions, Growing focus on workforce safety, Rise in sustainable manufacturing practices, Expansion of cloud-based automation technologies
    Key Market Dynamics rising labor costs, increasing productivity demands, technological advancements, focus on energy efficiency, growing importance of data analytics
    Countries Covered North America, Europe, APAC, South America, MEA

    FAQs

    What is the expected market size of the Factory Industrial Automation SME SMB Market in 2035?

    The expected market size of the Factory Industrial Automation SME SMB Market in 2035 is 172.81 USD Billion.

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

    The CAGR for the Factory Industrial Automation SME SMB Market from 2025 to 2035 is projected to be 7.13%.

    Which region holds the largest market share in the Factory Industrial Automation SME SMB Market?

    North America holds the largest market share, with a projected value of 55.0 USD Billion in 2032.

    What is the market size for Programmable Logic Controllers in 2032?

    The market size for Programmable Logic Controllers is expected to reach 30.0 USD Billion in 2032.

    Who are the key players in the Factory Industrial Automation SME SMB Market?

    Key players in the market include Omron, Honeywell, Siemens, ABB, and Rockwell Automation.

    What is the projected market size for Industrial Robots in 2032?

    The projected market size for Industrial Robots is expected to be 40.0 USD Billion in 2032.

    How much is the South American market expected to grow by 2032?

    The South American market is expected to grow to 7.0 USD Billion by 2032.

    What is the expected market size for machine vision systems by 2032?

    The expected market size for machine vision systems is projected to reach 25.5 USD Billion by 2032.

    What is the anticipated market size for Human-Machine Interfaces in 2032?

    The anticipated market size for Human-Machine Interfaces is expected to reach 25.0 USD Billion in 2032.

    What is the growth opportunity for the Factory Industrial Automation SME SMB Market?

    The market presents significant growth opportunities driven by technological advancements and increasing demand for automation.

    Download Free Sample

    Kindly complete the form below to receive a free sample of this Report

    Case Study
    Chemicals and Materials