Factory Automation Market Size, Share, By Component (Software, Hardware, and Services), Type (Fixed Automation, Programmable Automation, Integrated Automation, Others), Application (Quality Control, Maintenance, Packaging, and Others), End-User - Consumer Goods Manufacturing, Packaging Industry, and Others), and Region - Trends, Analysis, and Forecast till 2035

• By 2035, the market is predicted to grow by USD 446.8 Million.
• The factory automation market size was worth USD 224.5 Million in 2024.
• Target market is expanding at a CAGR of 7.8%.

Factory automation is the implementation of technology and systems to automate a manufacturing process with the ultimate goal of increasing productivity and reducing costs. Factory automation can be implemented at any point in the manufacturing process from material quantity control to production and assembly and finally to packaging and dispatch. The ongoing technological advancements, surge in demand for control and safety systems, the development of 5G wireless technology, the adoption of industry 4.0 drive, and others are factors contributing to the factory automation market growth.

Key Takeaways:

International standards are created voluntarily and by consensus by the International Organization for Standardization (ISO), a global federation of national standards bodies. Industrial automation is one of the many industries that makes extensive use of ISO standards. Some of the most important ISO standards in the field of factory automation:

Key Drivers of Target Market:

Rising Adoption of Environmental Regulations can Stimulate Market Augmentation

Factory automation plays a crucial role in helping manufacturers comply with increasingly stringent environmental regulations, which contributes to market expansion. As governments and international bodies set more ambitious sustainability targets, manufacturers must adapt their practices to meet these standards. Automation provides the tools and data necessary to monitor and control environmental impact effectively.

• For instance, some of the most important International Electro technical Commission (IEC) Standards are mentioned below. These standards are essential for guaranteeing industrial automation systems' efficiency, safety, and compatibility.

Restraints:

Market Hindered by Over Dependency on Technology

As automation purely relies on technology, it is not guaranteed that it is completely safe. Issues, such as cybersecurity vulnerabilities, hardware failures, logic bugs, or networking breakdowns can completely hamper the process. And this is even highly time-consuming to replace, considering the technology involved. This produces a very high-risk operation.

• Counterbalance Statements: Creating clear boundaries of technology used by limiting time spending, encouraging people to take break from technology regularly, engagement in regular physical activities, and others are solutions to overcome these problem. 

Opportunities:

Concept of “Smart Manufacturing” in Market is Expected to Expand the Market

The current trend in industrial automation is shifting toward smart manufacturing and Robotic Process Automation (RPA). Through the use of IoT connected devices, data analytics, robotics, RPA practices, and machine learning/artificial intelligence, the concept of “Smart Manufacturing” will lead to an overall more effective and efficient workplace that is both safer for workers and more profitable for employers.

• For instance, in October 2024, Honeywell and Google Cloud have collaborated to integrate AI agents into the factory or industrial sector, to improve autonomous operations, boost productivity, and upskill employees. This partnership combines Google Cloud’s Gemini on Vertex AI with Honeywell Forge’s industrial data, and aims to deliver easy-to-understand insights across multiple use cases. 

The factory automation market is classified based on component, type, application, end-user, and region.

Component

On account of component, market is distributed into software, hardware, and services. The hardware have the largest factory automation market share with 50%. As it is essential to the operation of any automated industrial system.

• For instance, In November 2024, Mobile Industrial Robots, announced the MC600 mobile collaborative robot (cobot), the latest addition to its growing list of MiR Go Approved products. Capable of handling payloads up to 600 kg (1322 lbs), the MC600 combines the MiR600 mobile robot base with the UR20/UR30 collaborative robot arms from Universal Robots (UR) to automate complex workflows in industrial environments.

Type

Fixed automation, programmable automation, integrated automation, and others are types on which market is divided. The fixed automation module hold on to the extensive share of the market due to their comprehensive usage in industries for high production efficiency.  

Application

On the basis of application, the market is segmented into quality control, maintenance, packaging, and others. Among these, the packaging component held the largest factory automation market share owing to their growing adoption.

• For instance, in March 2023, Proco Machinery, a manufacturer of automation systems for the custom bottling and packaging industry, has announced the launch of a new collaborative robot packer to address the growing labor shortages in the packaging industry.

End-User

The market is apportioned into consumer goods manufacturing, packaging industry, food & beverage industry, and others on account of end-users. The food & beverage industry segment engross the target market share due to the improvement of operational efficiency, product equality, consumer demand, and others. 

• For instance, in September 2021, GEA launches sustainable automated system for food processing called Batch2Flow. Batch2Flow, a solution that secures the food production process, saves energy and water, and significantly reduces the use of cleaning chemicals.

Regional

Geographically, the market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America: North America held the largest share of the market due to the mature industrial landscape with a strong emphasis on innovation and technological advancement, fostering a conducive environment for automation adoption, strong regulatory standards regarding safety, efficiency, and environmental sustainability that incentivize industries to invest in automation solutions to remain competitive and compliant, and others.

• For instance, in December 2024, ONDEX Automation announced partnership with Automation & Control Inc., a leader in control systems and industrial automation services. This strategic partnership marks a significant milestone in ONDEX Automation’s mission to deliver innovative automation solutions to its North American manufacturing customers.

Asia Pacific: Asia Pacific is witnessing the fastest growth in factory automation due to the rising labor costs, a growing shortage of skilled workers further incentivize companies to automate manufacturing processes, the increasing demand for customized products and just-in-time manufacturing practices necessitates flexible and agile production systems.

• For instance, in May 2023, YASKAWA Electric Corporation announced that it reached a capital and business alliance with Oishii Farm Corporation. The purpose of this partnership is to become a global leader in automation in the agricultural and food fields by providing Oishii plant factories with automation systems based on the solution concept “i³-Mechatronics” promoted by Yaskawa.

Factory Automation Market Report Scope:

Segmentation:

By Component:

• Software
  • Distributed Control System
  • Human Machine Interface
  • Others
• Hardwar

• Robotic arms
• Sensors
• Others

• Services

• Consulting
• System Integration
• Others

By Type:

• Fixed Automation
• Programmable Automation
• Integrated Automation
• Others

By Application:

• Quality Control
• Maintenance
• Packaging
• Others

By End User:

• Consumer Goods Manufacturing
• Packaging Industry
• Food & Beverages Industry
• Others

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Russia
  • Italy
  • Spain
  • Netherlands
  • Switzerland
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Malaysia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

Emerson Electric Co., ABB, Mitsubishi Electric Corporation, ROCKWELL AUTOMATION, and OMRON Corporation, among others are the companies operating in the market. Integration with advanced technologies, addition of new products in portfolio, launch of sustainable automated system, collaboration & partnerships, and others are some of the key strategies implemented by firms to sustain in the market.

List of Key Players in the Market:

• Emerson Electric Co.
• ABB
• Mitsubishi Electric Corporation
• ROCKWELL AUTOMATION
• OMRON Corporation
• Honeywell International Inc.
• Schneider Electric
• SIEMENS
• Yokogawa India Ltd.
• Advanced Integration Technology, LP
• FANUC
• Festo
• KUKA AG
• ADDVERB TECHNOLOGIES LIMITED

• In November 2022, Mitsubishi Electric Corporation announced “Automating the World” as the global slogan for its Factory Automation Systems business. The new slogan expresses Mitsubishi Electric’s goal to leverage automation for the betterment of global society by combining advanced technology, experience and know-how, and customer support as a trusted partner.
• In November 2021, OMRON Corporation announced that it has signed an agreement with Techman Robot, Inc., a leading global collaborative robot brand. These companies would jointly develop innovative robot solutions to combine OMRON factory automation equipment with Techman's collaborative robots to drive safety and productivity while offering a solution to address the issue of labor shortages at manufacturing sites.

Analyst View:      

In factory automation, products are manufactured, assembled, packaged, machined, and so forth. The ongoing technological advancements, rising demand for control and safety systems, the development of 5G wireless technology, the adoption of industry 4.0, and others are factors contributing to the factory automation market growth.

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