Luton, Bedfordshire, United Kingdom, May 28, 2025 (GLOBE NEWSWIRE) — Market Overview
The global factory automation (FA) market is projected to grow from USD 200 billion in 2024 to nearly USD 370 billion by 2034, expanding at a CAGR of 6.5% over the forecast period. The market is witnessing accelerated growth due to the widespread integration of Industry 4.0 technologies such as the Industrial Internet of Things (IIoT), Artificial Intelligence (AI), and robotics, which are reshaping modern manufacturing ecosystems.
Get a Sample PDF Brochure: https://exactitudeconsultancy.com/reports/64767/factory-automation-fa-market#request-a-sample
Key Market Insights
- Base Year (2024): USD 200 Billion
- Forecast Year (2034): USD 370 Billion
- CAGR (2025–2034): 6.5%
- Historical Period: 2020–2023
- Forecast Period: 2025–2034
- Largest Regional Market: Asia-Pacific (45% market share)
Market Drivers
1. Adoption of Industry 4.0
The integration of Industry 4.0 principles is one of the most significant drivers of growth in the factory automation market. This industrial revolution is transforming traditional manufacturing into smart, interconnected systems by leveraging technologies such as the Industrial Internet of Things (IIoT), Artificial Intelligence (AI), machine learning, and advanced robotics. These technologies enable real-time monitoring, predictive maintenance, autonomous decision-making, and seamless machine-to-machine communication, significantly improving productivity and process optimization. The rising interest in digital twins and cyber-physical systems is further accelerating the deployment of smart factory solutions across various industries.
2. Operational Efficiency and Productivity Gains
Automation plays a critical role in enhancing operational efficiency, reducing production downtime, and improving overall equipment effectiveness (OEE). Automated systems allow for faster production cycles, higher throughput, and greater accuracy, which is vital for manufacturers dealing with tight deadlines and high variability in demand. In an increasingly volatile global supply chain environment, automation enables rapid adjustments, ensuring continuity and resilience in manufacturing operations.
3. Government Incentives and Policy Support
Governments across the globe are promoting automation through a range of policy initiatives, financial incentives, and subsidy programs. For example, policies like “Made in China 2025”, “Make in India”, Germany’s “Industrie 4.0”, and tax incentives in North America are designed to modernize domestic manufacturing capabilities and encourage investment in advanced technologies. These programs often support R&D, workforce training, and infrastructure development, which helps lower the barriers to automation adoption, particularly among small and medium-sized enterprises (SMEs).
4. Rising Demand for Mass Customization
The shift in consumer preferences towards personalized products is fueling the demand for flexible and modular manufacturing systems. Traditional production lines are no longer sufficient to meet the needs of dynamic markets. Instead, manufacturers are investing in automation solutions that allow for rapid reconfiguration, multi-product processing, and on-demand production, thus enabling mass customization at scale. This trend is particularly prominent in industries such as automotive, electronics, and consumer goods, where customer expectations for tailored products are growing rapidly.
Market Challenges
1. High Initial Capital Investment
One of the primary barriers to the adoption of factory automation is the substantial upfront cost associated with acquiring, installing, and integrating automated systems. This includes not only the hardware (robots, sensors, control systems) but also the software, networking infrastructure, and required retrofitting of existing facilities. These capital requirements are particularly challenging for SMEs, which may lack the financial resources or risk tolerance to make such long-term investments without guaranteed returns.
2. Workforce Skill Gaps
The transition to smart manufacturing demands a highly skilled workforce capable of managing complex automation systems, programming industrial robots, analyzing data, and ensuring cybersecurity. However, there is a significant shortage of trained personnel in fields such as automation engineering, mechatronics, and industrial AI. This skills gap slows down the pace of automation adoption and limits the ability of companies to fully exploit the benefits of digital transformation.
3. Regulatory and Compliance Complexities
Navigating the evolving landscape of industrial regulations, safety standards, and environmental compliance poses another challenge for manufacturers. Different countries and regions have varying standards regarding machinery safety (e.g., CE marking in Europe, OSHA in the U.S.), data protection, and energy efficiency, which can complicate system design and deployment. Keeping up with these changes requires additional resources, and non-compliance can result in penalties, delays, or recalls.
4. Supply Chain Disruptions
The global supply chain vulnerabilities witnessed in recent years, due to events such as the COVID-19 pandemic, geopolitical tensions, and semiconductor shortages, have exposed risks in sourcing critical automation components. These disruptions can delay installation schedules, increase costs, and reduce the availability of key equipment like programmable logic controllers (PLCs), sensors, and motors. Integration timelines for new automation projects are often extended as manufacturers struggle to secure essential parts, which in turn affects production scalability and timelines.
Browse full Report – https://exactitudeconsultancy.com/reports/64767/factory-automation-fa-market
Market Segmentation
By Component
| Component | Market Share | Key Insight |
| Sensors | ~25% | Integral for real-time data and predictive maintenance. |
| Actuators | ~15% | Essential for precision motion in robotics and control systems. |
| Robotics | — | Backbone of automated production lines and warehousing. |
| Industrial Control Systems | — | Foundational for automated decision-making and system monitoring. |
| HMIs & Safety Components | — | Enable operator interaction and maintain operational safety. |
By Technology
| Technology | Market Share | Notable Trends |
| PLCs | ~18% | Proven reliability and adaptability across industrial environments. |
| SCADA | — | Centralized control and monitoring of industrial processes. |
| IIoT | ~20% | Rapid growth driven by smart manufacturing and digital transformation. |
| DCS, MES | — | Real-time production control and execution optimization. |
By Application
| Application | Market Share | Description |
| Process Automation | ~30% | Drives consistency and efficiency across batch and continuous operations. |
| Discrete Automation | ~20% | Supports high-volume, varied product manufacturing, especially in electronics. |
| Others | — | Includes quality control, logistics, and supply chain automation. |
By Industry
| Industry | Market Share | Key Insights |
| Automotive | ~25% | Transition to electric and autonomous vehicles accelerates automation use. |
| Food & Beverage | ~20% | Ensures compliance, safety, and traceability across production lines. |
| Electronics, Pharma, Oil & Gas, Chemicals | — | Increasingly reliant on automation for precision and productivity. |
By Deployment Type
- On-Premises
- Cloud-Based – growing due to scalability, remote access, and lower upfront costs.
By End-User
| End-User | Market Share | Insight |
| Small and Medium Enterprises (SMEs) | ~30% | Increased adoption driven by falling costs and modular automation solutions. |
| Large Enterprises | — | Major investors in end-to-end digital transformation initiatives. |
Regional Analysis
Asia-Pacific (45% Market Share in 2024)
The Asia-Pacific region continues to lead the global factory automation market, accounting for nearly 45% of the total market share in 2024. This dominance is largely attributed to the region’s rapid pace of industrialization, coupled with favorable economic and demographic factors. Countries like China, Japan, South Korea, and India are at the forefront of this growth, each contributing significantly through major investments in manufacturing modernization and industrial digitalization.
China plays a pivotal role, driven by government-led initiatives such as “Made in China 2025,” which encourages widespread adoption of intelligent manufacturing and robotics. Japan and South Korea are global leaders in precision manufacturing and robotics, backed by a strong ecosystem of industrial automation technology providers. Meanwhile, India is emerging as a key player due to initiatives like “Make in India,” increased FDI in manufacturing, and a growing emphasis on industrial upskilling and smart factories.
Additionally, the region benefits from a large labor force, expanding middle-class population, and growing demand for consumer goods, all of which drive the need for automated, efficient, and scalable production systems. Ongoing investments in infrastructure, such as industrial parks and smart cities, further reinforce Asia-Pacific’s leading position in the global automation market.
North America (25% Market Share in 2024)
North America holds a substantial share of the factory automation market, estimated at around 25% in 2024. This region is characterized by early and aggressive adoption of advanced automation technologies, including robotics, Industrial IoT (IIoT), AI-driven analytics, and cloud-based automation platforms.
The United States leads the regional market due to its highly developed manufacturing infrastructure, robust research and development ecosystem, and strategic focus on innovation. Automation adoption in North America is driven by labor shortages, rising production costs, and increasing demand for high-quality, customized products. Key sectors utilizing automation include automotive, electronics, pharmaceuticals, and food and beverage industries.
The presence of global technology leaders such as Rockwell Automation, Honeywell, and General Electric further stimulates innovation in the region. Additionally, government support for reshoring manufacturing and investments in digital transformation under initiatives like the CHIPS and Science Act contribute to sustained market growth.
Europe ( 20% Market Share in 2024)
Europe accounts for around 20% of the global factory automation market, supported by its strong tradition of high-quality manufacturing and stringent environmental and safety regulations. The region is known for its early adoption of energy-efficient automation solutions, sustainable manufacturing practices, and highly integrated production environments.
Germany, Italy, and France are the leading contributors in Europe. Germany, in particular, is recognized as a global automation hub due to its leadership in engineering and automotive manufacturing, underpinned by initiatives like “Industrie 4.0.” Italy and France also play crucial roles with their advanced machinery production and growing adoption of robotics in industrial operations.
European manufacturers emphasize precision, efficiency, and environmental responsibility. As such, automation solutions in this region often integrate features like predictive maintenance, digital twins, and decarbonization tools. Moreover, collaborative efforts between governments, industry associations, and academic institutions support the development and deployment of cutting-edge automation technologies across the region.
Buy Now : https://exactitudeconsultancy.com/purchase/?currency=USD&type=single_user_license&report_id=64767
Emerging Trends and Opportunities
- Predictive Maintenance: Widespread adoption driven by IoT-based condition monitoring and machine learning analytics.
- Digital Twins: Enabling real-time system simulation, testing, and optimization.
- Sustainable Manufacturing: Automation aiding in energy savings, waste reduction, and regulatory compliance.
- Flexible Manufacturing Systems (FMS): Rising demand for product personalization driving investments in flexible automation.
- Expansion into New Verticals: Pharma, renewable energy, and logistics are increasingly adopting automation to meet precision and scalability needs.
Competitive Landscape
|
Recent Developments:
1. Siemens: Launch of Enhanced TIA Portal for Integrated Automation
In October 2023, Siemens introduced an updated version of its Totally Integrated Automation (TIA) Portal. This advanced software platform is designed to streamline communication between machines, systems, and personnel on production floors. The latest iteration incorporates AI-driven predictive maintenance and improved interoperability, enabling manufacturers to optimize production efficiency and reduce downtime. This development aligns with the industry’s shift towards Industry 4.0, offering a competitive edge to early adopters seeking to modernize their facilities.
2. Rockwell Automation and Microsoft: Integration of Generative AI in Automation Design
In October 2023, Rockwell Automation and Microsoft expanded their longstanding partnership to accelerate industrial automation design and development through generative artificial intelligence (AI). The collaboration integrates Microsoft’s Azure OpenAI Service into Rockwell’s FactoryTalk® Design Studio™, enabling engineers to generate code using natural language prompts. This innovation aims to automate routine tasks, improve design efficiency, and expedite time-to-market for customers building industrial automation systems. The partnership addresses challenges such as skilled labor shortages and is poised to set new standards in automation technologies.
3. ABB: Acquisition of Real Tech for Enhanced Water Monitoring Solutions
In January 2024, ABB acquired Real Tech, a Canadian company specializing in innovative optical sensor technology for real-time water monitoring and testing. This strategic acquisition enhances ABB’s portfolio in smart water management solutions, allowing for more precise and efficient monitoring of water quality. The integration of Real Tech’s technology is expected to provide customers with advanced tools for environmental monitoring, reflecting ABB’s commitment to sustainability and innovation in industrial automation.
4. Honeywell: Development of Honeywell Forge for Industrial Analytics
In June 2023, Honeywell announced the development of Honeywell Forge for Industrial, an advanced analytics software designed to optimize performance across various industrial sectors. This software incorporates AI and machine learning, allowing companies to monitor critical equipment in real time and reduce operational disruptions. The technological advancement aligns with industry trends towards predictive maintenance and enhanced operational efficiency, setting a new benchmark in analytics capabilities.
5. Mitsubishi Electric: Expansion of Manufacturing Facilities in India
In December 2023, Mitsubishi Electric India inaugurated a new manufacturing facility for advanced factory automation systems in the Talegaon Industrial area, Maharashtra. The facility, backed by a greenfield investment of ₹220 crore, spans 40,000 square meters and is designed to meet the growing demand for advanced automation and smart manufacturing solutions in India. The plant aims to enhance local manufacturing capabilities, reduce delivery times, and support the ‘Make in India’ initiative by providing energy-saving equipment and solutions that utilize automation technology.
This report is also available in the following languages : Japanese (ファクトリーオートメーション（FA）市場), Korean (공장 자동화(FA) 시장), Chinese (工厂自动化（FA）市场), French (Marché de l’automatisation industrielle (FA)), German (Markt für Fabrikautomatisierung (FA)), and Italian (Mercato dell’automazione di fabbrica (FA)), etc.
Get a Sample PDF Brochure: https://exactitudeconsultancy.com/reports/64767/factory-automation-fa-market#request-a-sample
More Research Finding –
Ethernet PHY Chips Market
The Ethernet PHY chips market is projected to be valued at approximately $3.5 billion in 2024, with significant growth anticipated during the forecast period from 2025 to 2034, potentially reaching around $6.8 billion. This indicates a robust Compound Annual Growth Rate (CAGR) of roughly 7% over the next decade, driven by increasing demand for faster, more reliable networking solutions.
https://exactitudeconsultancy.com/reports/64838/ethernet-phy-chips-market
Surface Mount Solid State Relays Market
The global market for Surface Mount Solid State Relays (SSR) is valued at approximately $1.2 billion, driven by increasing demand in industries such as automotive, telecommunications, and automation. The market is expected to grow significantly, with projections estimating it will reach around $2.3 billion by 2034, reflecting robust adoption across various applications such as lighting controls and HVAC systems.
https://exactitudeconsultancy.com/reports/64830/surface-mount-solid-state-relays-market
Air Cargo & Freight Logistics Market
The global air cargo and freight logistics market is valued at approximately $150 billion, driven by increasing e-commerce demands and globalization of supply chains. The market is projected to reach around $250 billion by 2034, reflecting a robust growth trajectory. The Compound Annual Growth Rate (CAGR) for the forecast period from 2025 to 2034 is estimated at 5.3%, spurred by advancements in technology and automation in logistics operations.
https://exactitudeconsultancy.com/reports/64785/air-cargo-freight-logistics-market
System on Module SOM Market
The Global System on Module (SOM) market is valued at approximately $1.75 billion in 2024, with projections indicating a robust growth trajectory, aiming to reach around $4.5 billion by 2034. This represents a Compound Annual Growth Rate (CAGR) of about 9.5% during the forecast period from 2025 to 2034.
https://exactitudeconsultancy.com/reports/64588/global-system-on-module-som-market
Biped Robot Market
The global biped robot market is poised for significant growth, currently valued at approximately $6.3 billion in 2024. The market is projected to reach around $15.2 billion by 2034, growing at a robust Compound Annual Growth Rate (CAGR) of about 9.1% from 2025 to 2034. This growth trajectory is driven by advancements in robotics technologies, increasing demand for automation in various sectors, and rising investments in research and development.
https://exactitudeconsultancy.com/reports/64556/global-biped-robot-market
OHT for Semiconductor Manufacturing Lines Market
The global Overhead Transport (OHT) market for semiconductor manufacturing lines is valued at approximately $2.3 billion in 2024. It is expected to reach $4.9 billion by 2034, indicating significant growth driven by the increasing demand for advanced semiconductor technologies and miniaturization in electronic devices. The projected Compound Annual Growth Rate (CAGR) for this period is approximately 8.1%.
https://exactitudeconsultancy.com/reports/64552/global-oht-for-semiconductor-manufacturing-lines-market
Parcel Separator Market
The global parcel separator market is valued at approximately $1.35 billion in 2024 and is projected to reach around $2.6 billion by 2034, reflecting a Compound Annual Growth Rate (CAGR) of 7.1% during the forecast period from 2025 to 2034.
https://exactitudeconsultancy.com/reports/64540/global-parcel-separator-market
Servo System Controller Market
The global servo system controller market is projected to reach approximately $8.5 billion in 2024, driven by increasing automation in manufacturing processes and advancements in robotics technology. As industries seek to enhance precision and efficiency, the demand for sophisticated servo controllers is expected to intensify. The market is forecasted to expand significantly, with an estimated value of around $13.2 billion by 2034, reflecting a Compound Annual Growth Rate (CAGR) of about 4.8% during the period from 2025 to 2034.
https://exactitudeconsultancy.com/reports/64492/global-servo-system-controller-market
Magnetic Angle Encoder IC Market
The global magnetic angle encoder integrated circuit (IC) market is poised for significant growth, with an estimated market value of approximately $1.2 billion in 2024. This market is projected to reach around $2.3 billion by 2034, reflecting a Compound Annual Growth Rate (CAGR) of about 7.2% during the forecast period from 2025 to 2034.
https://exactitudeconsultancy.com/reports/64469/global-magnetic-angle-encoder-ic-market
Magnetic Encoder Chip Market
The global magnetic encoder chip market is valued at approximately $2.1 billion in 2024 and is projected to reach around $3.5 billion by 2034, reflecting a robust growth trajectory. This translates to a Compound Annual Growth Rate (CAGR) of about 5.2% during the forecast period from 2025 to 2034.
https://exactitudeconsultancy.com/reports/64468/global-magnetic-encoder-chip-market
Piezoelectric Actuators Market
The global piezoelectric actuators market is projected to reach a value of approximately $3.6 billion in 2024, driven by the increasing demand across industries such as automotive, healthcare, and aerospace. The market is expected to grow significantly, with a compounded annual growth rate (CAGR) of around 7.2% during the forecast period from 2025 to 2034, potentially reaching $7.4 billion by 2034.
https://exactitudeconsultancy.com/reports/64271/global-piezoelectric-actuators-market
3C Smart Peripheral Products Market
The global 3C smart peripheral products market is valued at approximately $150 billion in 2024, with projections indicating significant growth, reaching around $250 billion by 2034. This represents a Compound Annual Growth Rate (CAGR) of around 5.2% over the forecast period from 2025 to 2034, driven by increased consumer demand for interconnected devices and smart technology integration.
https://exactitudeconsultancy.com/reports/64261/global-3c-smart-peripheral-products-market
Photoelectric Sensors Market
The global photoelectric sensors market is valued at approximately $3.5 billion in 2024 and is projected to reach around $5.8 billion by 2034, reflecting a robust Compound Annual Growth Rate (CAGR) of about 5.2% during the forecast period from 2025 to 2034.
https://exactitudeconsultancy.com/reports/64239/global-photoelectric-sensors-market
Surface Inspection Equipment Market
The global surface inspection equipment market is valued at approximately $4.5 billion in 2024, with an anticipated growth trajectory leading to a projected market value of around $8.2 billion by 2034. This forecast indicates a Compound Annual Growth Rate (CAGR) of approximately 6.5% from 2025 to 2034.
https://exactitudeconsultancy.com/reports/64216/global-surface-inspection-equipment-market
Integration Platform as a Service iPaaS Future Trends
The Global Integration Platform as a Service (iPaaS) market is valued at approximately $8.2 billion, driven by the increasing need for organizational agility and operational efficiency. The market is forecasted to reach around $20.5 billion by 2034, indicating substantial growth opportunities.
https://exactitudeconsultancy.com/reports/64147/global-integration-platform-as-a-service-ipaas-market
Low-Voltage Differential Signaling LVDS Chip Future Trends
The global Low-Voltage Differential Signaling (LVDS) chip market is valued at approximately $3.1 billion in 2024, with expectations to reach around $5.6 billion by 2034, reflecting a Compound Annual Growth Rate (CAGR) of approximately 6.4% during the forecast period of 2025-2034.
https://exactitudeconsultancy.com/reports/64070/global-low-voltage-differential-signaling-lvds-chip-market
PID Temperature Regulators Market
The global PID temperature regulators market is poised to reach an estimated value of $2.5 billion in 2024, driven by increasing demand across industries such as manufacturing, HVAC, and food processing. The market is projected to grow at a robust Compound Annual Growth Rate (CAGR) of 8.5% from 2025 to 2034, reaching approximately $5 billion by the end of the forecast period.
https://exactitudeconsultancy.com/reports/64027/global-pid-temperature-regulators-market
Software Testing Market
The global software testing market is poised for significant growth, valued at approximately $50 billion in 2024. Projections indicate that the market will reach about $110 billion by 2034, reflecting the critical importance of quality assurance in increasingly complex software environments. The anticipated Compound Annual Growth Rate (CAGR) for the period from 2025 to 2034 is estimated to be around 8.1%, driven by the ongoing digital transformation across industries.
https://exactitudeconsultancy.com/reports/64009/global-software-testing-market
Special Equipment Manufacturing Market
The global special equipment manufacturing market is projected to reach approximately USD 250 billion in 2024. This sector encompasses a diverse array of industries, including construction, mining, and specialized machinery. The market is expected to exhibit robust growth, reaching an estimated value of USD 425 billion by 2034, reflecting a Compound Annual Growth Rate (CAGR) of 5.3% from 2025 to 2034.
https://exactitudeconsultancy.com/reports/63940/global-special-equipment-manufacturing-market
Contact Data Irfan Tamboli (Head of Sales) Phone: + 1704 266 3234 Email: sales@exactitudeconsultancy.com
