Factory & Industrial Automation Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Factory Automation And Industrial Controls Market size is estimated at USD 311.87 billion in 2025, and is expected to reach USD 461.28 billion by 2030, at a CAGR of 8.14% during the forecast period (2025-2030).

Factory automation enables manufacturers to enhance production output, minimize downtime, and improve overall operational efficiency. The real-time monitoring and predictive maintenance capabilities facilitated by automation optimize processes and reduce disruptions. Automation significantly increases productivity by enabling factories to operate efficiently for extended periods, including continuous, round-the-clock production. By reducing the need for manual intervention in repetitive tasks, businesses can streamline their manufacturing processes, ensuring faster order fulfillment and improved customer satisfaction.

Key Highlights

• Industries are increasingly emphasizing operational efficiency to enhance profitability, improve customer experiences, and gain a competitive advantage in the market. By streamlining processes, reducing waste, and leveraging advanced technologies, companies can become more agile, responsive, and resilient. For instance, robots can perform repetitive, hazardous, or physically demanding tasks, thereby allowing human workers to focus on more strategic responsibilities. Enhancing operational efficiency not only increases the value delivered to customers but also significantly improves overall business performance, which is driving the rising demand for factory automation technologies.
• As global energy efficiency initiatives gain momentum, companies are increasingly adopting automated technologies to optimize energy consumption, resulting in significant cost savings and enhanced operational efficiency. With manufacturers having largely automated downtime and Overall Equipment Effectiveness (OEE) programs, energy efficiency has emerged as the next frontier for optimization. Faced with rising electricity costs and tightening regulatory demands, manufacturers are now leveraging automation to tackle energy optimization challenges. The International Energy Agency (IEA) projects that these new efficiency programs could enable industries to cut carbon emissions by a staggering 70% in the next few years.
• As energy demands surge and environmental concerns mount, the push for energy efficiency has taken center stage. Automation is at the forefront of this energy revolution, providing advanced solutions to curb waste and enhance consumption. A Capgemini survey highlights the industry's commitment: 87% of manufacturers target carbon neutrality by 2040, and over 80% report an uptick in their ESG ratings. Notably, more than half of these manufacturers are prioritizing technology deployment to further their sustainability goals, with automation leading the charge. As the emphasis on energy efficiency continues to grow, the adoption of advanced automated products is set to grow significantly.
• Businesses aiming to adopt industrial automation face hurdles from trade tensions and implementation challenges. Trade disputes and tariffs can disrupt supply chains, inflate costs, and push back project timelines. On the home front, steep initial costs, intricate integration processes, and pushback from the workforce can stymie the move towards industrial automation. While automation promises enhanced efficiency and cost savings, these rising expenses can make it seem less appealing. Factors that drive the challenges, driven by the increasing trade tensions, include:

Factory Automation and Industrial Controls Market Trends

Utility to be the Largest End User Industry

• Digital technologies have found a foothold in the utility sector, leading to enhanced process automation and control. Energy companies are ramping up their investments in these digital technologies, signaling a swift acceleration in the sector's digitalization journey.
• In March 2025, Lauritz Knudsen Electrical and Automation, a frontrunner in India's electrical and automation landscape, rolled out its cutting-edge smart energy and automation solutions, promising energy efficiency and cost savings of up to 30%.
• These innovations not only resonate with India's decarbonization ambitions but also prime the nation’s energy infrastructure for the future. With a focus on smart energy control and heightened automation, Lauritz Knudsen is set to boost productivity and spur growth.
• As power generation activities surge in the region, the market is poised for growth. The evolution of smart grids, designed to balance electricity demand during peak and off-peak times, is set to drive heightened demand from the energy and utility sectors.
• In power generation, utilities are increasingly turning to automation to boost operational efficiency, safety, and cost-effectiveness. By streamlining processes and reducing human error, automation enables real-time monitoring and control. This shift not only cuts downtime but also enhances energy efficiency and profitability.
• In March 2025, China generated nearly 41 terawatt-hours of power from solar energy, as reported by the National Bureau of Statistics of China. Monthly solar power production saw a significant uptick over the past three years. To bolster the nation's energy independence, the government poured investments into developing solar farms. Consequently, in certain cities, the cost of solar electricity began to rival that of coal-generated power, which further increased the use utili.ty
• Today's power plants churn out more data in a single day than they did in an entire month a decade ago. From equipment and smart devices to sensors and business systems, a typical production plant generates terabytes of data daily.

North America Holds Largest Market Share

• Major automotive OEMs are based in the nation, benefiting from a substantial infrastructure and the government's support for electric vehicles. In addition, the increasing inclination of young people for luxury and premium vehicles is predicted to present lucrative opportunities.
• The automotive industry's attention has switched to electric vehicles due to the growing emphasis on decreasing vehicle emissions. Governments and environmental agencies are rolling out stringent emission rules and laws to address growing environmental concerns, which could increase the cost of producing electric drive trains and fuel-efficient diesel engines. As a result, over the past five years, battery electric car demand in North America has reached an all-time high.
• Additionally, the automotive industry will similarly undergo a change fueled by digitization, rising automation, and new business models. Four disruptive technology-driven trends are emerging in the automobile industry as a result of these factors: diversified mobility, autonomous driving, electrification, and connection. However, market participants may face difficulties due to the growing popularity of rental and used car markets. Growing logistics and delivery services, along with the expansion of vehicle fleets by major e-commerce players like Amazon etc., significantly impact the demand for commercial cars.
• The adoption of factory automation solutions can help these manufacturers in cost savings, enhance productivity, and improve quality. Recently, the Royal Bank of Canada (RBC) collaborated with Microsoft and launched the Go Digital program to help Canadian businesses invest in smart automation technologies and cloud solutions. The program is available to Canadian food manufacturers and will continue expanding to other industries.
• In addition, in North America, orders for robots from automakers and component manufacturers accounted for 47% of all orders in the first quarter of 2022. Several automakers have announced investments to better outfit their plants for future electric drive car models or to boost battery production capacity. These significant initiatives will increase the demand for industrial robots in the coming years.

Factory Automation and Industrial Controls Industry Overview

The global factory automation and industrial controls market is fiercely competitive, with numerous major players vying for market share and pushing the envelope on innovation. Key strategies driving this competition include geographic expansion, strategic partnerships, and acquisitions of startups to bolster product offerings. The landscape is dotted with a mix of established global giants and emerging regional contenders.

Major players like ABB Ltd., Emerson Electric Co., Yokogawa Electric, Honeywell International Inc., and Schneider Electric Co. dominate the scene, leading to a heightened intensity of competitive rivalry.

These industry giants are in a constant race to carve out a competitive edge, focusing on diversifying their product portfolios and honing their expertise. Market penetration is robust, with distribution channels tightly regulated. For example, while ABB is a frontrunner in electric power generation, its footprint extends significantly into the oil and gas sector. Similarly, Honeywell boasts a vast installed base in process automation systems.

Specialization is a hallmark of the industry; for instance, Fanuc Corp. and KUKA Robotics have carved niches in robotics, whereas ABB and Siemens focus on industrial control systems.

Companies are racing to harness Industry 4.0 technologies like IoT, AI, and machine learning, reshaping the market landscape. These firms are not just enhancing automation and data analysis; they're in a relentless pursuit of innovation, crafting new products and refining existing ones to align with the industry's shifting demands.

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• The market estimate (ME) sheet in Excel format
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