Global Industrial Automation Market to Hit US$ 410.3 Billion by 2031, Registering 9% CAGR: Wissen Research
SHERIDAN, Wyo., Nov. 2, 2026 /PRNewswire/ -- The global industrial automation market is valued at USD 266.7 billion in 2026 and is projected to reach USD 410.3 billion by 2031, growing at a CAGR of 9% over the forecast period (2026-2031), according to a new study by Wissen Research.
The clearest evidence is on the factory floor. The International Federation of Robotics (IFR) reports that factories installed a record 603,000 industrial robots in 2025, up 11% from the year before, and that the global operational stock reached 5.079 million units. IFR forecasts installations to rise another 9% in 2026, to approximately 655,000 units.
Behind the robots is a broader shift. The market is moving from hardware-oriented, isolated machine control toward connected, software-based production that combines control hardware, robotics, industrial software, and real-time analytics. Demand is driven by labor shortages, rising quality standards, and the need to control complex processes in automotive, electronics, food, and pharmaceutical manufacturing.
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Industrial AI Has Moved From Pilot Projects Into Live Operations
Cisco's 2026 State of Industrial AI study found that 61% of surveyed organizations were using AI in live industrial operations, and 83% planned to increase their AI spending. The use cases already delivering results are practical ones: predictive maintenance, process automation, automated quality inspection, logistics, and energy forecasting. Machine vision systems powered by AI can spot defects and abnormal conditions, and AI can adjust process parameters as production conditions change.
Getting there is harder than buying software. AI has to be integrated with industrial control systems, edge computing, and data platforms, which depends on good machine data, working IT and operational technology (OT) connections, and the state of legacy systems. In the same Cisco study, 97% of respondents expected AI workloads to affect their industrial network requirements, 51% anticipated higher connectivity and reliability requirements, and 43% reported limited or no collaboration between IT and OT teams. The report sees opportunities in industrial networking, edge devices, and real-time data infrastructure alongside conventional automation hardware, and in digital twins, which let companies test production changes virtually before implementing them.
Robots Move Beyond the Car Factory
For years, industrial robotics meant automotive welding and material handling. The IFR data show a broader base. In 2025, robot installations in metal and machinery grew 22%, while automotive and electronics installations each rose 10%. Collaborative robots (cobots) accounted for 66,000 new installations, about 11% of the total, and autonomous mobile robots are taking on internal transport. The growth is concentrated geographically: China installed about 354,000 robots in 2025, roughly 59% of the global total and 20% more than the year before, while India installed nearly 10,500, up 15%, with annual installations growing an average of 27% between 2020 and 2025.
The competitive map is shifting with it. Chinese robot manufacturers supplied 55% of the industrial robots installed in China in 2025, up from approximately 28% a decade earlier, intensifying competition for established international vendors.
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What's Fueling Growth in the Industrial Automation Market
- Semiconductor manufacturing capacity: New wafer plants need tight control of temperature, pressure, gas flow, and contamination, which raises demand for automation systems, sensors, robots, and integrated control systems.
- Electrified vehicle production: Battery manufacturing, motor assembly, and battery pack integration need automated material handling, robotic welding, vision-based inspection, and traceability to keep high-volume production consistent.
- Pharmaceutical traceability and process regulation: Complex biopharma production and regulatory traceability requirements call for automated inspection, batch control systems, paperless technology, and accurate dosing tools.
- Food inspection and packaging: High-speed lines rely on machine vision, automated weighing, fill-level verification, and reject systems to cut product loss and ensure correct packaging.
- Brownfield modernization: Companies are replacing outdated programmable logic controllers (PLCs), old drives, and unintegrated automation with connected platforms that improve equipment visibility and enable remote diagnostics without a complete plant renovation.
- Energy optimization: Chemical, oil and gas, and metals producers are adopting advanced process control, variable frequency drives, and real-time monitoring to stabilize processes and reduce energy use per unit of output.
Challenges Facing the Industrial Automation Market
The upfront cost is the first barrier. Replacing an old control system often means interrupting production, reconfiguring hardware, upgrading software, and validating the result, and companies with several production sites can struggle with incompatible communication standards and production methods. In pharmaceutical and food manufacturing, automated processes may need significant validation before they go live, and smaller businesses can find it hard to finance automation projects.
Connectivity brings industrial cybersecurity risk. Honeywell's 2026 OT Cybersecurity Benchmark Report found that only 21% of surveyed organizations had a complete inventory of their operational technology assets, even though 88% described their cybersecurity programs as mature. Respondents reported an average of 16.2 hours of downtime from their most significant incidents, with losses reaching up to USD 500,000 per hour. The 2025 SANS ICS/OT Security Survey found that only 49% of surveyed organizations had detection capabilities designed specifically for industrial control systems, and just 26% of that group considered them highly effective. Recovery can be slow even when detection is quick: nearly half of surveyed incidents were detected within 24 hours, but almost one in five took more than a month to remediate fully.
Recent Strategic Developments in the Industrial Automation Market
In September 2026, Emerson Electric Co. of the United States announced plans for a 3,500-square-meter automation solutions service center in Qatar's Umm Alhoul Free Zone, featuring the region's first certified in-country flow calibration laboratory. The facility will provide measurement instrumentation, control system integration, spare parts, and training services to improve operational efficiency and reduce customer downtime across the Middle East and Africa.
In July 2026, City Electric Supply of the United States partnered with Siemens Digital Industries of Germany to expand industrial automation and control solutions through its Industrial Automation Solutions division. The partnership strengthened its capabilities in PLC systems, control panels, drives, SCADA, application engineering, and troubleshooting for smart manufacturing and automation customers across North America.
In July 2026, ABB Ltd. of Switzerland agreed to acquire Rotork plc of the United Kingdom through a recommended all-cash offer valued at approximately USD 5.5 billion, aiming to expand its portfolio in intelligent flow control, electric actuators, and instrumentation and to strengthen its field-device and industrial process automation capabilities.
In July 2026, American Industrial Partners completed its acquisition of Honeywell International Inc.'s Intelligrated and Transnorm businesses, combining them with Trew to create a warehouse automation provider. The combined organization offers conveyor systems, robotics, sortation, automated storage and retrieval systems, software, and lifecycle services, and generated over USD 1 billion in 2025 revenue.
The four deals cover service networks, distribution, field devices, and warehouse automation, a reminder that portfolios are being reshaped from several angles at once.
Key Insights from Industrial Automation Market Analysis
- Industrial robotics held a strong position in 2025, supported by rising automation across manufacturing, demand for production precision, and flexible robotic systems. FANUC, Yaskawa, ABB, and KUKA compete in robotics, motion control, and integrated manufacturing automation.
- Automotive and transportation remained a major application in 2025. Automotive manufacturers installed 126,088 industrial robots worldwide in 2024, about 23.3% of the 542,000 installed that year, although electronics manufacturers installed slightly more (128,899), showing how closely the two industries compete for robotics demand. Electric vehicle production adds automated battery-cell handling, pack assembly, robotic joining, and testing to conventional assembly lines.
- Asia-Pacific held the leading regional position in 2025. Asia accounted for 74% of global industrial robot installations in 2024, compared with 16% in Europe and 9% in the Americas, and the United Nations Industrial Development Organization (UNIDO) reported that global manufacturing output in higher-technology industries grew 5.8% in 2025.
- The market is moderately consolidated. A few large multinationals compete alongside specialized technology providers. High entry barriers in complex automation systems, established customer relationships, broad product portfolios, and integration capabilities strengthen the leaders, while niche providers compete in robotics, sensors, and industrial software.
- Software and services are measurable differentiators. Siemens generated EUR 6.17 billion in software revenue within its Digital Industries business in fiscal 2025, and Rockwell Automation reported USD 2.20 billion in Lifecycle Services sales. ABB agreed in October 2025 to sell its robotics division to SoftBank Group for approximately USD 5.4 billion, with completion expected in the second half of 2026 subject to approvals and other conditions.
Key Players in the Industrial Automation Market
Leading companies in the industrial automation market are focusing on industrial control systems, programmable logic controllers, sensors, drives, industrial robotics, automation software, process control platforms, and integrated digital manufacturing solutions. Competition is shaped by technology integration, installed equipment base, product reliability, software capabilities, cybersecurity, global service networks, and the ability to automate complex production processes across discrete and process industries.
The report names Emerson Electric Co. (US), ABB Ltd. (Switzerland), Siemens AG (Germany), Schneider Electric SE (France), and Rockwell Automation, Inc. (US) as the top five players. Siemens, ABB, and Rockwell compete across different combinations of control hardware, software, motion systems, and lifecycle services, which shapes their ability to serve integrated factory requirements.
Other companies profiled in the report include Honeywell International Inc. (US), Mitsubishi Electric Corporation (Japan), Yokogawa Electric Corporation (Japan), Omron Corporation (Japan), and FANUC Corporation (Japan). The report also covers Yaskawa Electric, Bosch Rexroth, KUKA, Keyence, Endress+Hauser, Phoenix Contact, Festo, Beckhoff Automation, Danfoss, SICK, Advantech, Delta Electronics, WAGO, SEW-EURODRIVE, and Fuji Electric, among others.
Regional Analysis and Growth Opportunities
Asia-Pacific leads the industrial automation market, supported by a large electronics, semiconductor, automotive, machinery, and electrical equipment manufacturing base. China, Japan, and South Korea are active in industrial robotics, factory automation, and advanced manufacturing, while India is building manufacturing capability in automotive components, electronics, pharmaceuticals, and industrial machinery. The report adds a note of caution: robot adoption alone is a limited measure of automation, and judging which region is growing fastest requires more data on automation activity.
India's semiconductor push is one opportunity the report highlights. The Union Budget 2026-27 allocated ?1,000 crore to the India Semiconductor Mission 2.0, targeting semiconductor equipment, materials, design capabilities, research, and workforce development, which can widen opportunities for automation suppliers serving domestic semiconductor manufacturing.
Europe, North America, Latin America, and the Middle East & Africa complete the report's regional coverage.
Market Segmentation Snapshot
The global industrial automation market is segmented across solution type, end user type, and region:
- By Solution Type:
- Industrial Control Systems (Programmable Logic Controllers, Distributed Control Systems, Supervisory Control and Data Acquisition, Human-Machine Interfaces, Other Industrial Control Systems)
- Field Devices (Industrial Sensors and Transmitters, Control Valves and Actuators, Motors and Drives, Other Field Devices)
- Industrial Robotics
- Industrial Automation Software (Manufacturing Execution Systems, Other Industrial Automation Software)
- Industrial Automation Services (System Integration, Maintenance and Support)
- By End User Type:
- Automotive and Transportation
- Electronics and Semiconductors
- Food and Beverages
- Pharmaceuticals and Life Sciences
- Chemicals and Petrochemicals
- Oil and Gas
- Power and Utilities
- Metals and Mining
- Aerospace and Defense
- Pulp and Paper
- Other Industries
- By Region:
- North America
- Europe
- Asia-Pacific
- Latin America
- Middle East & Africa
Frequently Asked Questions
Q: What is the size of the industrial automation market? A: The global industrial automation market is estimated at USD 266.7 billion in 2026 and is projected to reach USD 410.3 billion by 2031.
Q: What is the growth rate of the industrial automation market? A: The industrial automation market is projected to grow at a CAGR of 9% between 2026 and 2031.
Q: What does the industrial automation market include? A: The industrial automation market comprises the hardware, software, and services used to automate industrial processes, manufacturing operations, production lines, and infrastructure systems. It covers industrial control systems, field devices, industrial robotics, industrial automation software, and industrial automation services used to improve efficiency, productivity, process consistency, quality control, safety, and resource utilization.
Q: How many industrial robots are installed each year? A: According to the International Federation of Robotics, factories installed 603,000 industrial robots in 2025, an increase of 11% from 2024, and the global operational stock reached 5.079 million units. IFR forecasts installations to rise 9% in 2026 to approximately 655,000 units.
Q: Is industrial AI being used in live operations? A: Yes. Cisco's 2026 State of Industrial AI study found that 61% of surveyed organizations were using AI in live industrial operations and 83% planned to increase their AI spending. Predictive maintenance, process automation, automated quality inspection, logistics, and energy forecasting are among the applications already delivering operational benefits.
Q: What are the main challenges in industrial automation? A: The main challenges are high upfront cost, the production interruptions and validation needed to replace legacy control systems, incompatible communication standards across sites, and cybersecurity. Honeywell's 2026 benchmark found that only 21% of surveyed organizations had a complete inventory of their operational technology assets.
Q: Which region leads the industrial automation market? A: Asia-Pacific held the leading regional position in the industrial automation market in 2025, supported by its electronics, semiconductor, automotive, machinery, and electrical equipment manufacturing base and by its 74% share of global industrial robot installations in 2024.
Q: Who are the top players in the industrial automation market? A: Leading companies in the industrial automation market include Emerson Electric Co., ABB Ltd., Siemens AG, Schneider Electric SE, and Rockwell Automation, Inc.
Q: How consolidated is the industrial automation market? A: The market is moderately consolidated, with a few large multinational players competing alongside specialized technology providers. High entry barriers, established customer relationships, broad product portfolios, and integration capabilities strengthen the leading suppliers, while niche providers compete in robotics, sensors, and industrial software.
The report's picture is a market where robots, software, and AI are arriving together, and where the limits are cost, integration, and security more than technology. For suppliers, the work ahead is helping factories modernize existing plants without long shutdowns, connect operations safely, and show measurable returns.
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Expert Profile | Mayur Jain, Wissen Research
Mayur Jain is a Research Expert at Wissen Research with multidomain expertise with more than 12+ years of experience in market research industry.
Email: mayur@wissenresearch.com
LinkedIn: https://www.linkedin.com/in/mayur-jain-0190542a/
About Wissen Research
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