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The global industrial automation market size was valued at US$ 184.43 billion in 2025. It is now projected to grow at a CAGR of 8.5% from 2025 to 2032, reaching nearly US$ 326.48 billion by 2032.
Key market trends
By component, hardware dominates: The hardware segment captured the largest share of 50-60% in 2025, driven by increasing demand for physical components in manufacturing automation systems. Industrial robots, PLCs, HMI panels, and sensors form the backbone of automation infrastructure.
Investments in robotics and advanced control systems are projected to remain robust, particularly in automotive, electronics, and energy utilities.
Software and services gaining rapid traction: The industrial automation software and services market is witnessing accelerated adoption, fueled by smart manufacturing solutions, AI-driven process control, and real-time analytics platforms. This segment is expected to experience faster growth than hardware, as companies increasingly implement predictive maintenance, remote monitoring, and data-driven optimization to enhance operational efficiency.
Industrial robotics leads automation innovation: Industrial robots continue to be a core driver of automation growth. Leading manufacturers such as Fanuc, Yaskawa, ABB, and KUKA collectively held 62% of the global industrial robotics market in 2022.
Collaborative robots (cobots) and AI-enabled robots are increasingly adopted in production lines for assembly, welding, and material handling. Emerging markets in Asia-Pacific, especially China, are driving installations with a 23% year-on-year increase in units shipped in 2022.
Automotive industry leads end-use adoption: The automotive sector is the largest end-user of industrial automation technologies due to its reliance on precision manufacturing, assembly line automation, and quality control systems. Automation adoption ensures higher productivity, reduced production errors, and operational efficiency, making the sector a primary driver of market growth.
North America dominates industrial automation market: North America leads the global industrial automation market, driven by strong adoption of advanced robotics, smart manufacturing solutions, and high exports of automation equipment. Europe and APAC follow, with IoT-driven Industry 4.0 technologies and government-backed initiatives fueling regional growth.
Emerging trends: Predictive maintenance and safety compliance are leading. Predictive maintenance systems, AI-driven diagnostics, and industrial IoT platforms are rapidly transforming manufacturing operations by reducing unplanned downtime and enhancing equipment efficiency. Safety automation solutions are increasingly critical to prevent workplace accidents and ensure compliance with IEC and ISO functional safety standards.
Mergers, collaborations, and technological consolidation: Industry consolidation is shaping the competitive landscape. Strategic partnerships and mergers among leading automation providers aim to integrate AI, IoT, and cloud-based solutions, expanding product portfolios and delivering end-to-end smart manufacturing capabilities.
Industrial robots and smart manufacturing driving Industry 4.0 growth
Industrial automation market is dominated by hardware, with industrial robots driving transformative efficiency across automotive, electronics, and energy sectors. Complemented by smart manufacturing solutions, predictive maintenance systems, and cloud-based automation, these advanced components power Industry 4.0 operations.
From PLC and SCADA to HMI and distributed control systems, the integration of hardware, software, and services is redefining production lines, supply chain automation, and quality control, unlocking unprecedented productivity and market growth globally.