Industrial automation market to hit $368.05 billion by 2031

The industrial automation market is expected to reach 368.05 billion by 2031, growing at a CAGR of 9.1% during the forecast period of 2024-2031, according to Research And Markets.

The market growth is driven by government initiatives promoting industrial development, increasing investments in industrial automation, rising demand for energy-efficient systems, and increasing need for supply chain optimization. However, high CAPEX requirements and concerns about workforce displacement restrain the market’s growth.

Moreover, the increasing demand for sustainable solutions is expected to create market growth opportunities. However, cybersecurity risks associated with automated systems pose challenges to the market’s growth.

In 2023, Asia-Pacific is expected to account for the largest share of the snacks processing equipment market, followed by North America and Europe. The APAC food industry has witnessed increasing demand for advanced industrial automation solutions to enhance productivity, efficiency, and competitiveness in manufacturing sectors such as automotive, electronics, machinery, and consumer goods.

In addition, the growing need to automate production processes to reduce reliance on manual labor and remain cost-competitive, expansion of the automotive industry, increasing technological advancements and adoption, with significant investments in robotics, artificial intelligence, IoT, and digitalization to achieve greater efficiency, precision, flexibility, and connectivity in industrial processes further drive the regional market.

Based on offering, the global industrial automation market is segmented into solutions and services.

In 2024, the solutions segment is expected to account for the larger share of the global industrial automation market. The solutions segment is also projected to register the highest CAGR during the forecast period. The large market share of this segment is attributed to the high adoption of PLM, ERP, and MES solutions for streamlining the production & enterprise processes across the manufacturing & industrial sectors, increasing demand for data analytics and predictive maintenance capabilities to optimize operations, reduce downtime, and improve overall equipment effectiveness (OEE), growing need to reduce operational costs and optimize resource utilization, and the emergence of Industry 4.0 & enabling technologies.

Based on mode of automation, the global industrial automation market is segmented into semi-automatic systems and fully-automatic systems.

In 2024, the semi-automatic systems segment is expected to account for the larger share of the global industrial automation market. The large market share of this segment is attributed to the lower cost of implementation compared to fully-automatic systems, the increasing need for a higher degree of flexibility between manual and automated processes, and the growing need for monitoring industrial systems closely and intervene promptly in cases of anomalies that lead to costly downtime or quality issues. However, the fully-automatic systems segment is projected to register the highest CAGR during the forecast period.

Based on end-use industry, the global industrial automation market is segmented into oil & gas, automotive, food & beverage, semiconductors & electronics, chemicals & materials, consumer goods, mining & metals, power, pharmaceuticals & biotech, machines & tools, paper & pulp, aerospace & defense, and other end-use industries.

In 2024, the oil & gas segment is expected to account for the largest share of the global industrial automation market. The large market share of this segment is attributed to the growing need to streamline operations across the entire value chain of oil & gas production, increasing demand for automated monitoring systems to minimize environmental impact and enhance safety, and the growing need to prevent unplanned downtime, extend asset lifespan, and reduce maintenance costs. However, the automotive segment is projected to register the highest CAGR during the forecast period. Research And Markets