Automation Market Analysis

Automation Industry Analysis

Component Insight

• The hardware category holds the largest share in the market, of 55%, in 2024, as hardware is the backbone of any industry as well as the automation ecosystem.
• Machine vision systems (MVS), robots, human–machine interfaces, computer servers and systems on which automated AI Software are installed, sensors, actuators, and many other components make up comprehensive hardware for automation.
• The software category is projected to grow at the highest CAGR, of 4.2%, during 2024–2030. The rapid growth of the category can be attributed to the rising integration of AI/ML and IoT technologies across industries to speed up operations and make them more efficient and cost-effective.
• The shift toward Industry 4.0 has led to the development of high-tech software solutions for robotic process automation (RPA), supervisory control and data acquisition (SCADA), HMIs, and programmable logic controllers (PLC).
• With time and as new operational, communication, and security protocols are released, the software needs to be upgraded, which will be a key reason for the rapid growth in this category.

By component, the following categories have been analyzed:

• Hardware (Largest Category)
• Software (Fastest-Growing Category)
• Services

Technology Insights

• The AI category holds the largest share in the market, of 45%, in 2024.
• AI has enabled the transformation of the working of industries with minimum effort and maximum productivity, while enabling the systems to be adaptive to specific needs.
• AI is leading industries to develop into Industry 5.0, where the production and scalability are coordinated by AI.
• Cobots, supply chains, quality assurance, product development, assembly lines, and many other functions are being managed by AI, which makes operations hassle free with a negligible error rate.

We have analyzed the following technologies

• Artificial Intelligence (Largest and Faster-Growing Category)
• Internet of Things
• Robotics
• Big Data
• Others

Type Insights

• The programmable category dominates the market with 40% revenue in 2024. The largest share of the category can be attributed to the wide use of mass batch production processes in industries.
• Programmable automation enables the production of goods in batches, from dozens to thousands of units, with the ability to reprogram the production of the whole batch as per requirement.
• The robotic process automation category is projected to grow at the highest CAGR, during 2024–2030.
• With the integration of AI/ML, the adoption of robotic process automation has increased rapidly across applications. The ability to manage software robots that mimic human actions and to perform repetitive tasks has popularized the use of RPA.

Listed below are the reviewed categories in the segment:

• Programmable (Largest Category)
• Robotic Process (Fastest-Growing Category)
• Flexible
• Process
• Integrated
• Fixed

Application Insights

• The workforce automation category holds the largest share, in 2024, propelled by the availability of innovative solutions that reduce the human effort in mundane activities.
• Workforce automation solutions reduce human workload by minimizing their requirement for monotonous activities and enabling them to work on activities that need unique skills. This way, industries enjoy increased efficiency, higher productivity, and reduced labor risks and expenses.
• The pre-emptive/proactive automation category is projected to grow at the highest CAGR, during 2024–2030. The need to streamline processes, enhance performance, and ensure smoother operation propels the market growth in this category.
• The implementation of proactive automation lets industries anticipate needs and prevent issues, enabling users to tackle problems before they arise and focus on strategies that support productivity.

The following applications have been analyzed:

• Workforce (Largest Category)
• Pre-Emptive/Proactive (Fastest-Growing Category)
• Self-Service
• Diagnostics, Analysis, & Reporting
• Knowledge Generation Automation
• Others

End User Insights

• The automotive category dominates the market with 30% revenue in 2024. This is credited to the need for rapid and precise production in the automotive sector, to cater to the burgeoning demand for automobiles.
• The vast industry requires a big scale of production with a negligible scope for error. This is why the automotive industry has been using AI-augmented methods with robots for faster and error-free production of the vehicles, to ensure customers’ comfort and safety.
• Hyundai has been augmenting car manufacturing using automation, leading-edge AI, and automated 3D scanners for body dimensional accuracy, quality, and zero-defect production.

The following categories were analyzed in the segment:

• Automotive (Largest and Faster-Growing Category)
• Oil and Gas
• Chemical
• Pharmaceutical
• Food and Beverage
• Metal and Mining
• Aerospace
• Medical Device
• Packaging
• Industrial Machinery
• Others