Industrial Control and Factory Automation Market Size & Share Analysis - Emerging Trends, Growth Opportunities, Competitive Landscape, and Forecasts (2025 - 2032)

Industrial Control and Factory Automation Market Trends & Drivers

Adoption of IoT and AI in Industrial Processes Is Biggest Trend

• IoT is an approach where many devices, such as home appliances, wearables, and even manufacturing machines, are connected to the internet, sharing data with each other and a control center.
• These interconnected smart devices enable automation across various industries.
• Currently, organizations are investing in IoT and industrial automation for their business expansion powered by technological advancements.
• According to Oxford Economics, 34% of the manufacturers said investments in AI were their priority, while 27% said they prioritize predictive analytics and 19% were firmly focused on initiatives involving ML.
• For instance, at Automate 2025, in Detroit, Siemens AG introduced an AI portfolio with new AI agents integrated into the industrial Copilot ecosystem.
• The updated framework includes an orchestrator that coordinates various specialized agents to handle complex operations across the industrial value chain.
• The need to expand production, increase operating efficiency and system uptime, ensure the safety of workers, and strengthen perimeter access and control is one of the major factors responsible for the rising adoption of IoT and AI for industrial automation.
• For instance, it is mandatory for a few industries to comply with certain product quality standards, which are implemented by governments.
• For instance, in the case of food production, the FDA Food Safety Modernization Act mandates companies to provide food products that are fit for consumption.
• It also promotes public health through many programs, such as the FDA Retail Food Code and Current Good Manufacturing Practices.

Government Promotion of Industrial Automation Is Key Driver for Market

• To ensure healthy economic development, governments in almost all countries are supporting industries.
• The structural development of the manufacturing sector depends upon the adoption of advanced communication and automation technologies.
• For instance, Singapore’s government is collaborating with the Singapore Food Manufacturing Association (SFMA) and Food Innovation Resource Centre to incorporate advanced automation solutions, such as DCS, SCADA, PLC, and robots, in the food & beverage industry.
• Similarly, the National Manufacturing Policy (NMP) of the Government of India is focused on boosting manufacturing output and quality.
• The government has also launched the Make in India initiative to encourage companies to set up manufacturing plants here and automate their operations.
• Moreover, the Indian government’s spending on IT in 2022 increased by 12.1% from the previous year, to encourage automation and other technological advancements in different industries.
• In January 2024, the National Telecommunications and Information Administration (NTIA) announced the third round of the Innovation Fund.
• It will focus on software solutions for various verticals and automation integration solutions aimed at supporting the adoption of Open Radio Access Network technology.

High Capital Investment and Operational Cost Restrain Market Growth

• The initial capital investment for automation systems is quite high as they include robots, sensors, control systems, and industrial machinery.
• It becomes challenging to manage for smaller and medium-sized companies, due to which they lack in their ability to compete with the larger players in the market.
• Additionally, the integration of automation systems into the pre-existing production lines and system sometimes requires overall upgradation, which further increases the initial expenses.
• Furthermore, industrial control and factory automation increase energy consumption as it is integrated with robots and heavy-duty industrial machinery.
• This further adds to the operational costs, thus acting as a market growth challenge.

Industrial Control & Factory Automation Market Segmentation and Category Analysis

Component Insights

Among all components, the industrial robots category held the largest market share, of 50%, and is predicted to expand at the highest rate, of around 10.3%, over the projection timeframe. The use of robotics has seen a steady rise across industries such as automotive, electronics, pharmaceuticals, and food & beverage in recent years. For instance, to stay competitive in the market and be future-ready for production needs, industrial facilities in India are widely using robotic automation. To achieve the vision of Make in India, it is essential to increase the use of this technology to complement human operations. This will ultimately enable a judicious mix of speed, skill, accuracy, and consistency.

Additionally, the advancements in robotics, such as the integration of artificial intelligence (AI), machine learning (ML), and collaborative robots (cobots), making robots more precise, adaptable, and capable of working alongside humans. Furthermore, the adoption of Industry 4.0 approaches and the need for advanced manufacturing processes raise the demand for industrial robots. They offer flexibility and scalability in manufacturing, and industrial robots with integrated IoT and cloud-based platforms allow for real-time data collection, predictive maintenance, and seamless communication across various production stages.

Based on component, the market has the following categories:

• Sensors
• Control Valves
• Switches and Relays
• HMI
• Industrial Robots (Largest and Fastest-Growing Category)

Solutions Analysis

The SCADA category held the largest market share, of 50%, in 2024, as it is used in various industries, including energy, water treatment, manufacturing, and utilities. SCADA helps in monitoring and controlling processes in real-time, thus ensuring operational efficiency and safety. SCADA also helps industries remotely monitor and control the equipment, especially those used in challenging environments, such as oil and gas rigs, where the operational locations are far away from a centralized control hub.

The MES category will grow at the highest CAGR, of 10.4%, during the forecast period, attributed to the increasing demand for real-time production monitoring. The capability of MES to collaborate with Industry 4.0 and IoT devices will further drive industries to adopt it in their operations.

Additionally, cloud-based MES solutions allow manufacturers to deploy MES solutions at lower costs, which further makes them more accessible to medium-sized enterprises (SMEs). Furthermore, they provide scalability, faster implementation times, and easy integration with enterprise systems.

Based on solution, the market has the following categories:

• SCADA (Largest Category)
• PLC
• DCS
• MES (Fastest-Growing Category)

Industry Insights

The automotive category has the largest market share, of 55%, owing to its high production volume and requirement for industrial robots, PLCs, SCADA, and machine vision to manage and optimize production lines. As per OICA, global automotive production rose from 85,016,728 units in 2022 to 93,546,599 units in 2023. This sector is integrating advanced technologies, such as AI, ML, and cobots, for real-time monitoring, predictive maintenance, and autonomous operation.

The aerospace and defense category will grow at the highest CAGR, of 10.5%, during the forecast period, as it is moving to more-customized and flexible production processes. Furthermore, with the ongoing wars between countries, there is also rise in the demand for defense systems. As per Airbus SE, the world will demand 43,420 new aircraft for freight and passengers during the next two decades. Similarly, SIPRI recorded USD 2,718-billion military spending in 2024 worldwide.

• Aerospace & Defense (Fastest-Gowing Category)
• Automotive (Largest Category)
• Chemical
• Energy & Utilities
• Food & Beverage
• Healthcare
• Manufacturing
• Mining & Metal
• Others

Industrial Control and Factory Automation Market Geographical Analysis

Asia-Pacific dominated the market with a share of over 45%, and it will grow at the highest CAGR, of 10%, during the forecast period, due to the rising demand for improved solutions to manage industrial plants in India and China. The strong growth is also attributed to the presence of key market players and emerging companies in the region. Essentially, the shift to smart production facilities from conventional facilities supports the acceptance of industrial automation, thus driving the market growth.

Moreover, the automotive sector is one of the fastest-growing sectors in India, which has itself become one of the biggest auto component manufacturers across the globe. This is driven, in part, by the burgeoning popularity of electric and autonomous vehicles. To keep pace with the rising demand, automobile OEMs are making large investments in various aspects of vehicle manufacturing.

Based on geography, the market has the following categories:

• North America
  • U.S. (Larger Country Market)
  • Canada (Faster-Growing Country Market)
• Europe
  • Germany (Largest and Fastest-Growing Country Market)
  • U.K.
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (Largest and Fastest-Growing Regional Market)
  • Japan
  • China (Largest Country Market)
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America
  • Brazil (Larger Country Market)
  • Mexico (Faster-Growing Country Market)
  • Rest of LATAM
• Middle East and Africa
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E. (Faster-Growing Country Market)
  • Rest of MEA

Industrial Control and Factory Automation Market Share

• The market nature is fragmented due to the wide range of technologies used for factory control and industrial automation.
• This results in the existence and entry of a wide number of market players catering to various end users, such as the automotive, pharmaceuticals, food and beverage, aerospace, and energy sectors.
• Additionally, various smaller companies and startups are entering the market due to the low entry barriers.
• This motivates them to provide specialized products for niche segments, such as AI-integrated predictive maintenance solutions.

Industrial Control and Factory Automation Market News & Updates

• In June 2025, Schneider Electric announced plans to construct a 500,000-square-foot manufacturing facility for its IT business at Horizon Industrial Park in Tamil Nadu. The project, which will be completed in two phases, is designed to enhance production capacity and operational efficiency.
• In June 2025, ABB Ltd. expanded its industrial robot portfolio with the launch of the IRB 6730S, IRB 6750S, and IRB 6760.
• In June 2025, Honeywell International Inc. announced new digital technologies that leverage AI. Honeywell Cyber Proactive Defense and OT Security Operations Center solutions leverage AI to strengthen operations and safety.
• In May 2025, Schneider Electric SE showcased innovations aimed at advancing manufacturing at Automate 2025. The company also introduced a generative AI assistant developed in collaboration with Microsoft Corporation.