Key Influencer in the Factory Automation Market 2025: Impact Of Artificial Intelligence On The Growth Of The Factory Automation Market Driver

What combination of drivers is leading to accelerated growth in the factory automation market?
The growth of factory automation is projected to be driven by the increasing adoption of artificial intelligence (AI). AI simulates human intelligence processes in machines, enabling them to perform tasks that would typically require human intelligence, such as learning and problem-solving. This adoption is spurred by advancements in technology, increased data availability, and a growing demand for automation and efficiency. Integrating AI into factory automation systems improves efficiency, productivity, quality, flexibility, and safety. According to the Department for Digital, Culture, Media, and Sport, AI adoption in the UK increased from 15.1% in 2020 to 22.7% in 2025, and it is projected to reach 34.8% by 2040, with 1.3 million businesses using AI. This growing AI adoption is driving the factory automation market.

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What is the projected compound annual growth rate (CAGR) of the factory automation market from 2025 to 2034, and what factors influence it?
The factory automation market has grown significantly in recent years. It will grow from $288.77 billion in 2024 to $312.09 billion in 2025 at a CAGR of 8.1%. The growth is driven by the demand for control and safety systems, the development of 5G wireless technology, and the adoption of Industry 4.0 principles.

The factory automation market is set to grow rapidly, reaching $497.22 billion by 2029 at a CAGR of 12.3%. Growth is attributed to the need for efficiency, rising manufacturing and industrial demand, autonomous plant implementations, remote operations, and cost-reducing mass production. Key trends include technological advancements, collaborative robotics, AR and VR integration, and supply chain automation.

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How are the latest trends influencing the growth of the factory automation market?
Companies in the factory automation market are advancing with products like ballbar devices to maintain their competitive edge. Ballbar devices are used to ensure the quality and precision of machine tools by detecting errors in their motion and positioning. Renishaw plc, a UK-based engineering company, launched its RCS product line in May 2023. The RCS L-90, a ball-bar device, monitors robot health and accuracy using advanced software. It helps in pinpointing performance issues, enhancing system precision, and improving operational efficiency.

What are the major segments of the factory automation market and their role in driving growth?
The factory automation market covered in this report is segmented -

1) By Component: Sensors, Controllers, Switches And Relays, Industrial Robots, Drives, Other Components
2) By Factory Automation Technology: Supervisory Control And Data Acquisition (SCADA), Programmable Automation Controller (PAC), Programmable Logic Controller (PLC), Distributed Control System (DCS), Human Machine Interface (HMI)
3) By End-User: Manufacturing, Automotive, Packaging And Processing, Energy And Power, Semiconductor And Electronics, Printing And Converting, Other End-Users

Subsegments:
1) By Sensors: Proximity Sensors, Vision Sensors, Temperature Sensors, Pressure Sensors, Level Sensors, Flow Sensors, Position Sensors
2) By Controllers: Programmable Logic Controllers (PLCs), Distributed Control Systems (DCS), Human-Machine Interface (HMI), Motion Controllers, Embedded Controllers
3) By Switches And Relays: Limit Switches, Push Button Switches, Safety Switches, Electromechanical Relays, Solid-State Relays
4) By Industrial Robots: Articulated Robots, SCARA Robots, Cartesian Robots, Collaborative Robots (Cobots), Delta Robots
5) By Drives: AC Drives, DC Drives, Servo Drives, Variable Frequency Drives (VFDs), Stepper Drives
6) By Other Components: Cables And Connectors, Power Supply Units (PSUs), Circuit Breakers, Human-Machine Interface (HMI) Devices, Actuators

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Which regions are key players in the growth of the factory automation market?
North America was the largest region in the factory automation market in 2024. The regions covered in the factory automation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Who are the key firms paving the way for growth in the factory automation market?
Major companies operating in the factory automation market are Siemens AG, Mitsubishi Electric Corporation, Schneider Electric SE, Honeywell International Inc., ABB Ltd., Toshiba Corporation, Eaton Corporation, Parker Hannifin Corporation, Emerson Electric Co., Danfoss, Rockwell Automation Inc., Bosch Rexroth AG, Omron Corporation, Keyence Corporation, Fanuc Corporation, SMC Corporation, Yaskawa Electric Corporation, Festo, KUKA Robotics, Phoenix Contact, Endress+Hauser Group, Beckhoff Automation, Yokogawa Electric Corporation, Advantech Co. Ltd., WAGO GmbH & Co. KG, Pepperl+Fuchs GmbH, Pilz GmbH & Co. KG, HIMA Paul Hildebrandt GmbH

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What Is Covered In The Factory Automation Global Market Report?

•Market Size Forecast: Examine the factory automation market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the factory automation market for a structured understanding.
•Key Players Overview: Analyze major players in the factory automation market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the factory automation market.
•Segment Contributions: Evaluate how different segments drive overall growth in the factory automation market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the factory automation market.
•Industry Challenges: Identify potential risks and obstacles affecting the factory automation market.
•Competitive Landscape: Review strategic developments in the factory automation market, including expansions, agreements, and new product launches.

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