Future of the Modular Automation Market: Trends, Innovations, and Key Forecasts Through 2034

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Modular Automation Market Size Growth Forecast: What to Expect by 2025?
Over the past few years, there's been a significant expansion in the size of the modular automation market. The market is expected to surge from $12.76 billion in 2024 to $14.27 billion in 2025, experiencing a compound annual growth rate (CAGR) of 11.9%. Factors contributing to the growth observed in the historical period include an increased focus on operational cost reduction, a surge in demand for more efficient resource usage, a rising necessity for swift production scalability, increased attention towards workplace safety, and a growing need for multi-product production faculties.

How Will the Modular Automation Market Size Evolve and Grow by 2029?
In the coming years, the modular automation market is projected to experience a robust expansion. It's anticipated to swell to a whopping $22.08 billion by 2029, with an 11.5% compound annual growth rate (CAGR). The expected development during the forecast period can be credited to a rising emphasis on minimizing production downtime, a growing concentration on resource preservation in manufacturing, amplified demand for high-volume production flexibility, an increasing predilection for sustainable manufacturing processes, and an intensified focus on reducing material wastage. Notable trends during the forecast timeline include the inclusion of edge computing, the adoption of digital twin technology, self-diagnosing and self-repairing systems, advanced robotics integration, and sophisticated human-machine interfaces (HMI).

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What Drivers Are Propelling the Growth of Modular Automation Market Forward?
The escalating need for automation solutions is anticipated to spur the expansion of the modular automation market in the future. Automation solutions, denoting technologies, systems, or services created to carry out tasks with little human intervention, boost efficiency, precision, and productivity in numerous industries. These solutions are increasingly sought after due to the growing need for operational efficiency, with companies aiming to trim down costs, diminish mistakes, and enhance productivity via intelligent and optimized processes. Modular automation improves automation solutions by providing flexible, scalable, and effortlessly reconfigurable systems that quickly adjust to evolving production requirements and technological progress. For instance, in September 2023, the International Federation of Robotics, a non-profit organization based in Germany, reported that in 2022, there was a 5% year-over-year increase with annual installations reaching 290,258 industrial robots, setting a new record high, and exceeding the previous peak registered in 2021. Consequently, the rising demand for automation solutions is propelling the expansion of the modular automation market.

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Which Emerging Trends Are Transforming the Modular Automation Market in 2025?
Leading firms in the modular automation market are concentrating on introducing technological advancements like modular remote units to improve system adaptability, expedite deployment, and enhance operational effectiveness across various industrial applications. With a modular remote unit, a standalone device that is customisable, users can remotely carry out control, monitoring or data collection tasks within automated systems. This leads to flexible system growth and decentralised action. For example, WEG S.A., a company from Brazil specialising in motors and generators, launched the RUW200, a new generation modular remote unit in May 2025. The unit was designed to enhance device integration and operational effectiveness in industrial automation settings. With a compact and scalable design, the RUW200 offers superior connectivity through two Ethernet ports and is compatible with key industrial communication protocols like EtherNet or IP, Modbus-TCP, and MQTT, establishing it as fully Internet of Things (IoT) compatible. It allows expansion with up to eight I/O modules, offering compatibility with all kinds of automation needs and is seamlessly integrable with WEG's present PLC platforms such as the PLC200, PLC410, and PLC500.

What Are the Key Segments in the Modular Automation Market?
The modular automation market covered in this report is segmented -

1) By Type: Distributed Control System, Module Type Packages
2) By Technology: Industrial Internet Of Things (IIoT), Robotics, Artificial Intelligence (AI), Cloud Computing
3) By Enterprise Size: Small And Medium Enterprises, Large Enterprises
4) By Application: Assembly, Inspection, Testing, Material Handling, Packaging
5) By End-User Industry: Manufacturing, Healthcare, Aerospace And Defense, Energy And Utilities

Subsegments:
1) By Distributed Control System Type: Hardware, Software, Services
2) By Module Type Packages Type: Process Modules, Skid-Mounted Packages, Standardized Module Units, Plug-And-Play Modules, Pre-Engineered Modular Solutions

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Who Are the Key Players Shaping the Modular Automation Market's Competitive Landscape?
Major companies operating in the modular automation market are Siemens AG, General Electric Company (GE), Mitsubishi Electric Corporation, Schneider Electric SE, Honeywell International Inc., ABB Ltd, Toshiba Corporation, Emerson Electric Co., Bosch Rexroth AG, Rockwell Automation Inc., Keyence Corporation, FANUC Corporation, Phoenix Contact GmbH & Co. KG, Festo Inc., Yokogawa Electric Corporation, Beckhoff Automation GmbH & Co. KG, Ascential Technologies Inc., Pilz GmbH & Co. KG, HIMA Paul Hildebrandt GmbH, Modular Automation Ltd.

What Geographic Markets Are Powering Growth in the Modular Automation Market?
North America was the largest region in the modular automation market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the modular automation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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