Impact Of Artificial Intelligence On The Growth Of The Factory Automation Market: Strategic Insights Driving Factory Automation Market Momentum in 2025

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How Large Will the Factory Automation Market Size By 2025?
In the last few years, the size of the factory automation market has been rapidly expanding. It is projected to rise from $288.77 billion in 2024 to $310.46 billion in 2025, representing a compound annual growth rate (CAGR) of 7.5%. The substantial growth observed during the historic period is largely due to the increased need for control and safety systems, advancements in 5G wireless technology, and the implementation of industry 4.

How Big Is the Factory Automation Market Size Expected to Grow by 2029?
In the coming years, the factory automation market is slated to witness a notable expansion, projecting to reach a valuation of $487.62 billion by 2029, with a compound annual growth rate (CAGR) of 11.9%. The remarkable growth observed during the historical period has been driven primarily by factors including a growing demand for workload efficiency in a shorter duration, a surge in the manufacturing and industrial sector, the roll-out of self-functioning plants, and an increased reliance on remote operations. Additionally, there has been an amplified need for high volume production with a cut in operational expenses. Key trends anticipated to dominate the market in the forecast period are advancements in technology, cooperative robotics, augmented reality (AR) and virtual reality (VR), and the automation of supply chain processes.

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Which Key Market Drivers Powering Factory Automation Market Expansion and Growth?
The growth of the factory automation market is projected to be accelerated by the increasing use of artificial intelligence. Artificial intelligence involves the replication of human cognitive processes by machine systems, primarily computers. This allows machines to undertake activities that generally require human brainpower such as learning, problem-solving, and rationalizing. The rise in AI use is fueled by progresses in technology, greater data accessibility, industrial demands for efficiency, increased investments, and research. By incorporating artificial intelligence in factory automation systems, manufacturers can augment their efficiency, quality, flexibility, productivity, and safety, securing them a competitive edge and enhancing their business results. For example, in January 2022, as per the records of Department for Digital, Culture, Media, and Sport, a department of the UK government, an additional 267,000 UK businesses began using AI in their operations, elevating the AI uptake rate from 15.1% in 2020 to 22.7% in 2025. By the year 2040, the overall AI adoption rate is projected to hit 34.8%, with around 1.3 million businesses using AI as per the central forecast. So, the uptake of artificial intelligence is fueling the expansion of the factory automation market.

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What Are the Key Trends Driving Factory Automation Market Growth?
Leading manufacturers in the factory automation market are pioneering innovative products like ballbar devices to maintain their market standing. These devices, also called ballbar systems or testers, are utilized in areas like metrology and precision engineering for accurate measurement. In factory automation, they ensure the precision and quality of machined pieces by identifying inaccuracies and variations in the machine's operation and placement. For example, in May 2023, UK engineering enterprise Renishaw plc introduced a RCS range featuring three products: RCS L-90, RCS T-90, and RCS P-series, each backed by a dedicated software suite. The RCS L-90, a ball-bar device, employs straightforward processes, controlled by its accompanying software, to keep track of robot health, conserve deployment times, and enhance robotic system precision. The RCS T-90 tri-ballbar system enables robot users to identify the root causes for underperformance, while conducting comprehensive tests to accumulate important robot data, such as master-recovery procedures, 3D path performance plotting, and re-establishing joint offsets to calculated positions. The RCS P-series uses in-process metrology and automatic recovery to automation procedures by fitting a permanent Renishaw probing solution into a robot cell.

What Are the Emerging Segments in the Factory Automation Market?
The factory automationmarket 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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Who Are the Global Leaders 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

Which are the Top Profitable Regional Markets for the Factory Automation Industry?
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.

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