Factory Automation Market Valued at USD 144.92 Billion in 2024, Projected to Reach USD 275.85 Billion by 2033 at 8.7% CAGR, Dominate by Asia Pacific with 45% market revenue.

Factory Automation Market was US$144,922 million in 2024 and will reach US$275,849 million by 2033, growing at a CAGR of 8.7% by 2025-2032.

The Factory Automation market is growing due to smart manufacturing adoption, rising labor costs, demand for precision and productivity, AI-driven robotics, and Industry 4.0 investments accelerating operational efficiency globally.

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United States: Key Industry Developments

✅ January 2026: Rockwell Automation expanded its FactoryTalk automation software with AI-driven manufacturing execution and predictive maintenance modules, securing significant contracts with U.S. automotive and aerospace manufacturers.

✅ January 2026: Honeywell reported broad deployment of its Experion DCS and SCADA automation systems across oil & gas and chemical plant operations in the U.S., enhancing control precision and safety.

✅ December 2025: Siemens introduced updates to its Totally Integrated Automation (TIA) platform, accelerating real-time factory monitoring and robotics integration for electronics and semiconductor manufacturing lines.

✅ May 2025: Schneider Electric showcased at Automate 2025 in Detroit its industrial copilot powered by Microsoft Azure AI Foundry, designed to enhance productivity and workforce efficiency in automated manufacturing systems.

✅ May 2025: OKI Electric Cable exhibited motion-tolerant factory automation cables and flexible printed circuits at Automate 2025 in Detroit, addressing durability and performance needs in robotic and automated systems.

Japan: Key Industry Developments

✅ January 2026: Mitsubishi Electric and Omron accelerated deployment of next-generation industrial robots and vision inspection systems across automotive and electronics assembly lines in Japan, backed by government smart manufacturing support.

✅ January 2026: Yokogawa Electric highlighted its advanced DCS and plant asset management solutions at major automation trade events in Tokyo, with focus on pharmaceuticals and chemicals production automation.

✅ October 2025: Factory Innovation Week in Nagoya showcased the latest innovations in robotics, AI-enabled controls, and industrial digitalization, drawing attention to future automation deployments across Japanese manufacturing sectors.

✅ May 2025: Japan's Ministry of Economy, Trade and Industry (METI) announced a ¥300 billion subsidy program to accelerate adoption of collaborative robots (cobots) and AI power automation among SMEs, boosting local smart factory growth.

✅ July 2025: FANUC launched its next-generation CRX-20iA cobot, featuring improved safety and human-robot collaboration enhancements, supporting flexible automation tasks and small to mid-size manufacturing needs.

Factory Automation Market Recent M&A activities:-
→ In January 2026, Automated Industrial Robotics Inc. (AIR) acquired KAON Automation, an Ireland-based provider of industrial automation solutions for manufacturing. The deal, announced on January 9, expands AIR's capabilities in precision assembly and aseptic filling for medical and life sciences, integrating KAON into its global platform backed by Ares Private Equity (transaction value undisclosed).

→ On July 1, 2025, Siemens acquired ebm-papst's Industrial Drive Technology (IDT) division, adding 650 employees and intelligent mechatronic drive systems for autonomous transport. This bolsters Siemens' Xcelerator portfolio in factory automation and robotics .
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→ On May 1, 2025, Applied Industrial Technologies completed the acquisition of IRIS Factory Automation for $14 million. IRIS specializes in vision-guided robotic solutions for material handling, packaging, and traceability in food, pharma, and consumer goods sectors.

→ On March 12, 2025, Emerson completed its acquisition of the remaining shares of AspenTech for $7.2 billion (total enterprise value $16.8 billion). The deal enhances Emerson's industrial automation software with AI-driven asset optimization and digital twins.

Factory Automation Market key Players:-
ABB, Siemens, Schneider Electric, Mitsubishi Electric, General Electric, Honeywell, Rockwell Automation, Yokogawa Electric Corporation, HP and Omron Corporation, among others.

Top 5 Key Players Analysis:-
1. Siemens AG
12% global market share in industrial automation with broad reach across PLC, SCADA, and digital industries segments; widely recognized as market leader.
Strength in end-to-end automation solutions, digital twin software and strong global services network supporting large enterprise digitalization.

2. Schneider Electric
11% market share, with strong presence especially in power-linked automation and energy management integrated into automation systems.
Core strength in EcoStruxure platform combining automation, energy efficiency, and sustainability solutions across industries.

3. ABB Ltd.
9.5% share in industrial controls/automation market with notable robotics and motion control offerings.
Strength in robotics, motion systems and comprehensive automation platforms like OmniCore driving factory floor efficiency.

4. Mitsubishi Electric
8.7% market share focused on factory automation, CNC, and drives platforms in Asia and globally.
Core strength in MELSEC PLCs, motion control and e-F@ctory integration promoting reliability and precision manufacturing.

5. Rockwell Automation
5.5% share with strong leadership in industrial control systems, especially in North America.
Strength in Allen-Bradley control hardware and FactoryTalk software, excelling in connected enterprise and control architectures.

Factory Automation Market Top Technological Partnerships (2026 & 2025):-

Rockwell Automation & UWM Connected Systems Institute - Strengthening Manufacturing Innovation
Rockwell Automation reaffirmed and expanded its collaboration with the University of Wisconsin-Milwaukee's Connected Systems Institute (CSI), committing $1M over five years to advance digital transformation and automation research for manufacturing competitiveness.

Hexagon Robotics & Microsoft - AI-Powered Humanoid Robots for Smart Factories
Hexagon Robotics teamed up with Microsoft to deploy AI-driven humanoid robots optimized for manufacturing and logistics, leveraging Microsoft Azure's cloud and AI infrastructure to improve autonomous operations and workforce productivity.

Siemens & rhobot.ai - Edge AI Embedded into Industrial Automation Software
Siemens and rhobot.ai deepened their collaboration by delivering an edge-native AI solution via the Siemens Xcelerator platform, enabling advanced AI capabilities directly in manufacturing environments.

FANUC & NVIDIA - Bringing 'Physical AI' to Smart Factory Robotics
FANUC partnered with NVIDIA to integrate advanced AI computing (including NVIDIA Jetson and digital twin simulation tools) into factory robots, enabling smarter, adaptive operations and improved real-time decision-making on the production floor.

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Factory Automation Market Drivers :-
Manufacturers are increasingly shifting from siloed processes to connected, data-rich, and autonomous production networks, making Industry 4.0 integration a central growth engine. Around 80 % of producers worldwide plan to adopt Industry 4.0 technologies by 2025, with over 45 % already using IIoT platforms for predictive maintenance and real-time optimization directly accelerating automation uptake and enabling up to 30 % productivity gains in digitalized plants.

The integration of AI and ML into control systems is shifting automation from reactive to proactive operation. AI-driven analytics supports predictive maintenance that reduces unplanned downtime by up to 49 %, while robotics with AI-based motion control can enhance precision and throughput by 24 %, sharply improving OEE (Overall Equipment Effectiveness).

The global base of industrial robots continues to grow as manufacturers look to automate repetitive, hazardous, and precision tasks. Robotics now represent a significant portion of automation demand, and collaborative robots (cobots) are gaining traction for flexible, human-friendly automation supporting adjustments to dynamic production requirements and short-run manufacturing patterns.

Persistent labor shortages and rising wage costs are intensifying the business case for automation. Demographic trends (aging workforces in developed markets) and skill gaps are pressuring manufacturers to increase automation investments, enabling 24/7 production cycles with consistent quality and reducing dependence on scarce skilled labor.

Factory Automation Market Regional Insights:-

Asia-Pacific
Asia-Pacific remains the largest regional market, commanding around 45 % of the global factory automation market thanks to strong manufacturing bases in China, Japan, South Korea, and rising adoption in India; rapid industrialisation and smart factory initiatives are major drivers.
China leads within the region with significant industrial robot deployment and automation integration across automotive, electronics, and consumer goods sectors.

North America
North America typically holds the second-largest share, around 35 % of the global market, supported by high automation penetration in automotive, aerospace, and manufacturing facilities, and strong investment in Industry 4.0 technologies.
The U.S. is the major contributor, driven by advanced manufacturing infrastructure and early adoption of automation systems.

Europe
Europe holds approximately 29 % of the global factory automation market, backed by established manufacturing hubs in Germany, France, Italy, and the UK with strong focus on digital transformation and energy-efficient automation.
Industry 4.0 initiatives and advanced robotics use in automotive and industrial machinery underpin regional demand.

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Factory Automation Market Market Segmentation

By Component:
The factory automation market by component includes hardware and interface technologies that enable automated operations on the shop floor. Industrial robots and sensors dominate adoption due to their role in precision, speed, and real-time monitoring, while HMIs, industrial PCs, vision machines, and control valves support human interaction, data processing, and process control across automated production lines.

By Solutions:
Based on solutions, the market covers software and control platforms that manage, monitor, and optimize industrial processes. PLCs and SCADA systems form the backbone of real-time control and supervision, while MES, DCS, PLM, functional safety, and asset management solutions are increasingly adopted to enhance production efficiency, compliance, lifecycle management, and operational reliability.

By End-User:
By end-user, factory automation serves a wide range of industries where efficiency, safety, and consistency are critical. Automotive, electronics, food & beverages, and pharmaceuticals lead adoption due to high-volume production and quality requirements, while sectors like oil & gas, energy & power, aerospace, and medical devices use automation to improve process accuracy, safety, and regulatory compliance.

This research report delivers actionable insights, data-driven analysis, and future-ready perspectives that enable informed decision-making, reduce market risks, and uncover growth opportunities across the industry

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