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Factory Automation Market is Expected to Reach $558.8 Billion by 2032

Global factory automation market was valued at $242.5 billion in 2022, and is projected to reach $558.8 billion by 2031, registering a CAGR of 8.7%

WILMINGTON, DE, UNITED STATES, November 11, 2025 /EINPresswire.com/ -- The global factory automation market share is expected to witness considerable growth, owing to an increase in demand for industrial 4.0 -powered solutions, especially in Asia-Pacific and LAMEA, owing to a rise in demand for digital infrastructure solutions across residential, commercial, and industrial sectors in these regions.

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Automating entire production processes is referred to as factory automation. Automation frequently uses hydraulic systems, pneumatic systems, and robotic arms in production environments to build increasingly complicated systems. Automation can assist in enhancing outputs and efficiency while lowering costs in today's competitive environment. In addition, it is made to significantly lower the risks that human operators may encounter when handling dangerous machinery.

Key factors driving the growth of the factory automation market include a rise in demand for Augmented Reality (AR) technology and government initiatives to promote factory automation during the forecast period. Governments all across the world assist in the growth of industries to ensure the comprehensive development of their nations. For the structural development of industries, this has resulted in the use of numerous automation and communication components and technologies. Governments are concentrating on the growth of discrete and process industries. For instance, the Singaporean government has collaborated with a number of organizations, including the Singapore Food Manufacturing Association (SFMA) and the Food Innovation Resource Centre, to implement the most up-to-date automation techniques in the food and beverage sector, including SCADA, PLC, DCS, robots, and cables. The growth of India's manufacturing industry is being fueled by the government's national manufacturing policy (NMP). In addition, the Indian government has launched programs such as the Make in India policy to encourage companies to implement automation in their manufacturing plants.

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The market offers growth opportunities to the key players in the market. Owing to the adoption of Industry 4.0 principles in the manufacturing, oil and gas, food and beverage, chemical, and automotive industries, the market for industrial control and factory automation is expanding quickly. With the introduction of Industry 4.0, the majority of procedures and systems in the manufacturing industry are becoming automated, enabling production facilities to run continuously without any human error.

According to factory automation market analysis, the industrial robots segment was the highest contributor to the market in 2021. The distributed control system (DCS) and supervisory control data acquisition system (SCADA) collectively accounted for a major share in the of the factory automation market share in 2021. Surge in prime players initiatives to develop and deploy next generation renewable energy solution across commercial and residential sectors globally has led to the growth of the factory automation market growth.

The outbreak of COVID-19 has significantly impacted the growth of global supply chain. The decline in growth in manufacturing solutions has significantly impacted the demand for factory automation solutions during the pandemic. Further, the lack of availability of a professional workforce due to the partial and complete lockdown implemented by governments across the globe has restrained the growth of the factory automation market during the pandemic. However, the growing demand for industry 4.0 solution in growing economies such as India, South Korea, Brazil, and others is expected to drive the growth of the factory automation market opportunity during the forecast period.

This reduces the whole production cycle time while maintaining the standard of the processes from the stage of acquiring raw materials to the creation of finished goods. Automation systems like SCADA, HMI, DCS, and PLC can be used to operate and control machines installed in manufacturing facilities. Cloud computing, IoT, and cyber-physical systems all come together to form Industry 4.0. It helps the manufacturing sector by enabling remote manufacturing processes and smart real-time data collection. Operational effectiveness, productivity, product quality, asset utilization, supply chain management, workplace safety, and environmental sustainability can all be improved due to Industry 4.0. Therefore, it is anticipated that during the forecast period, market participants can benefit greatly from the implementation of Industry 4.0 principles for automation in a variety of industries.

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KEY FINDINGS OF THE STUDY

In 2021, the industrial robots segment accounted for maximum revenue and is projected to grow at a notable CAGR of 7.21% during the forecast period.
The supervisory control & data acquisition system (SCADA) segment was the highest revenue contributor to the factory automation market size in 2021.
The automotive manufacturing and oil & gas processing segments collectively accounted for nearly half of factory automation market forecast in 2021.
Europe acquired a major share in the factory automation market outlook with an industry share of 35.0% in 2021.

The key players profiled in the report include ABB Ltd, Danaher Industrial Ltd, Emerson Electric Co., General Electric, Honeywell International Inc., Mitsubishi, Electric Corporation, OMRON Corporation, Rockwell Automation Inc., Schneider Electric, Siemens AG, and Yokogawa Electric Corporation. Market players have adopted various strategies such as product launch, collaboration, partnership, joint venture, and acquisition to expand their foothold in the factory automation market.

David Correa
Allied Market Research
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