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Leading Growth Driver in the Automation Software Market in 2025: Automation Software Market Surges With Increasing Adoption Of Digitalization Driver's Influence
Automation Software Market Size
Significant growth has been observed in the automation software market in recent times. The market, which is expected to swell from $491.48 billion in 2024 to $529.77 billion in 2025, anticipates a compound annual growth rate (CAGR) of 7.8%. Factors contributing to the growth during the historic period include the heightened adoption of industrial technologies, the escalating need to eradicate human error, the surge in demand for enhanced performance, and the enlargement of automation systems.
In the forthcoming years, rapid expansion is anticipated in the automation software market, with its value predicted to reach $831.87 billion in 2029 at a CAGR of 11.9%. The projected growth in this period can be credited to the escalating requirement for automation in dependable operations, the growing tendency toward mass production at reduced operational costs, the extensive acceptance of Industry 4.0, and a surge in the adoption of emerging digital industrial technology. The period also forecasts major trends such as technological progress, the use of advanced devices and equipment, advancements in intelligent process automation, and increased funding into automation across various industry sectors.
What Are the Forces Behind the Rapid Growth of the Automation Software Market?
The proliferation of Industrial Internet of Things (IIoT) and cloud-based technologies is anticipated to fuel the expansion of the automation software market. IIoT and cloud-based applications, which involve the integration of industrial devices and equipment using cloud computing frameworks for data collection, analysis, and management, aim to enhance operational efficiency, productivity, and decision-making in industrial scenarios. These technologies are surging in demand due to their inherent ability to deliver superior connectivity, real-time data analytics, and remote surveillance features. Automation software is employed in IIoT and cloud-based systems for effortless integration, tracking, and regulation of industrial devices and procedures, as well as optimizing operations and boosting efficiency in industrial settings. For instance, as noted in a May 2022 report by the GSM Association, a UK-based non-profit industry organization representing the interests of global mobile network operators, there will be over 23 billion IoT connections by 2025, which represents a significant increase from 15.1 billion in 2021. Moreover, according to the European Commission (EC), the executive authority of the European Union headquartered in Belgium, the adoption of cloud-based applications in the EU in December 2023 swelled by 4.2 percentage points, with 45.2% of organizations availing cloud computing services, reflecting a significant surge as compared to 2021. As such, the burgeoning use of IIoT and cloud-based applications is instrumental in driving the expansion of the automation software market.
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Which Key Market Leaders Are Driving Automation Software Industry Growth?
Major companies operating in the automation software market are Microsoft Corporation, Amazon Web Services (AWS), accenture* plc, International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, NetSuite Inc., SAP SE, Salesforce Inc., Workday Inc., Red Hat Inc., Infor Inc., OpenText Corporation, Citrix Systems Inc., SAS Institute Inc., HubSpot Inc., Epicor Software Corporation, Progress Software Corporation, Deltek Inc., ActiveCampaign LLC, Canonical Ltd., Acoustic L.P., GetResponse Sp. z o.o., Puppet Inc., Act-On Software Inc., QualiSystems Ltd., ActiveTrail Ltd., Push Engage LLC
What Are the Emerging Trends in the Automation Software Industry?
Leading corporations in the automation software sector are prioritizing the development of innovative solutions such as work automation platforms, in order to stand out in the market. These platforms are software solutions that provide a unified space where users can design, implement, monitor, and refine automated procedures and workflows without the need for manual intervention. As an example, V7, a UK-based firm with a niche in healthcare automation, introduced V7 Go, a work automation platform, in April 2024. This platform utilizes foundation models to learn and consistently automate routine operations. It leverages generative AI to understand how to consistently and extensively automate tasks. Its primary areas of focus include back-office tasks like data entry and administration, where it can yield human-like performance within the first couple hours of operation.
What Are the Main Segments in the Automation Software Market?
The automation software market covered in this report is segmented -
1) By Product: On-Premises, Cloud
2) By Organization Size: Small And Medium-Sized Enterprises (SMEs), Large Enterprises
3) By Application: Banking, Financial Services, And Insurance (BFSI), Information Technology (IT) And Telecoms, Retail And Consumer Goods, Travel And Hospitality, Healthcare And Life Sciences, Education, Media And Entertainment, Manufacturing, Other Applications
Subsegments:
1) By On-Premises: Enterprise Resource Planning (ERP) Software, Customer Relationship Management (CRM) Software, Manufacturing Automation Software, IT Process Automation (ITPA) Software, Business Process Management (BPM) Software, Others
2) By Cloud: Cloud-Based ERP Software, Cloud-Based CRM Software, Cloud-Based BPM Software, Cloud-Based IT Process Automation (ITPA) Software, Robotic Process Automation (RPA) Software, Artificial Intelligence (AI) And Machine Learning-Based Automation Tools, Others
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Which Geographic Area Leads the Automation Software Market?
North America was the largest region in the automation software market in 2023. Asia-Pacific is expected to be the fastest-growing region in the market. The regions covered in the automation software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
What Is Covered In The Automation Software Global Market Report?
- Market Size Analysis: Analyze the Automation Software Market size by key regions, countries, product types, and applications.
- Market Segmentation Analysis: Identify various subsegments within the Automation Software Market for effective categorization.
- Key Player Focus: Focus on key players to define their market value, share, and competitive landscape.
- Growth Trends Analysis: Examine individual growth trends and prospects in the Market.
- Market Contribution: Evaluate contributions of different segments to the overall Automation Software Market growth.
- Growth Drivers: Detail key factors influencing market growth, including opportunities and drivers.
- Industry Challenges: Analyze challenges and risks affecting the Automation Software Market.
- Competitive Developments: Analyze competitive developments, such as expansions, agreements, and new product launches in the market.
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