Factory Automation Market - Size, Share, Industry Trends, and Forecasts (2024 - 2031)

By Component:

Based on components, the market is segmented into hardware, software, and services.

Trends in the component:

• Increasing technological advancements associated with industrial automation devices such as robotics systems, sensors, controllers, and others.
• There is a rising trend of industrial automation devices in factories for constant monitoring, optimization, and improved operational efficiency.

The hardware segment accounted for the largest revenue share of 56.45% of the total factory automation market share in 2023.

• The primary hardware components include programmable logic controllers (PLCs), industrial robots, sensors, actuators, motors, and others
• PLCs are industrial computers used to control machinery and processes automatically. Industrial robots are used for automating repetitive tasks in factories for increased precision and efficiency.
• Moreover, the aforementioned hardware components help in facilitating automation within factories, in turn leading to improved efficiency, precision, and safety in manufacturing processes.
• For instance, in August 2024, Okuma America Corporation launched its new ORL series of robotics for facilitating automation within factories. The ORL series includes three products, which are optimized to seamlessly load and unload workpieces from both new and pre-existing Okuma machines for increasing productivity and aiding operators' efficiency.
• According to the analysis, the rising innovations associated with hardware components for facilitating automation within factories are driving the factory automation market growth.

The software segment is anticipated to register the fastest CAGR growth during the forecast period.

• Factory automation software provides a centralized platform for monitoring and controlling the automation systems used within factories. The software has the ability to capture, organize, and analyze data to monitor factory equipment and system performance.
• Moreover, the benefits of integrating industrial automation software include smarter maintenance and effective analysis of factory equipment performance.
• In October 2022, Schneider Electric launched EcoStruxure Automation Expert v24, its next-generation industrial automation software. The upgraded industrial automation software is capable of supporting larger industrial plants and additional communication protocols.
• Therefore, the increasing advancements associated with automation software are anticipated to boost the factory automation market size during the forecast period.

By System Type:

Based on system type, the market is segmented into fixed automation, flexible automation, programmable automation, and integrated automation.

Trends in the system type:

• There is an increasing trend towards the adoption of fixed automation systems within factories for performing repetitive tasks with minimal effort to increase operational efficiency.
• Rising adoption of programmable automation in industries where the tasks can vary from one batch to another batch.

The fixed automation segment accounted for the largest revenue in the overall factory automation market share in 2023, and it is anticipated to register a significant CAGR during the forecast period.

• Fixed automation system refers to the simplest type of industrial automation system.
• In fixed automation systems, the machines are permanently set up for performing a particular task. Upon completion of the task, the machines are then reset and typically wait to perform the next task.
• Moreover, fixed automation systems are primarily utilized for discrete mass production or constant flow systems. An example of a fixed automation system includes an automated conveyor belt that is designed to move objects with minimum effort while increasing efficiency.
• For instance, in May 2024, Montech, a Swiss technology company, launched its new belt conveyor line designed for utilization in cleanrooms. The belt conveyors are tested and certified for application in cleanrooms and can be utilized in multiple industries including pharmaceutical, chemical, semiconductor, and others.
• Therefore, the rising developments associated with fixed automation systems are driving the factory automation market trends.

By End-User Industry:

Based on the end user, the market is segmented into manufacturing, food & beverage, pharmaceuticals, automotive, and others.

Trends in the end user:

• Industrial factories have seen a significant growth trend in the utilization of automation systems for optimizing and streamlining industrial processes.
• The prevalence of favorable government initiatives for industrial automation is driving the growth of the manufacturing segment.

The manufacturing segment accounted for the largest revenue share of the total market share in 2023, and it is anticipated to register the fastest CAGR during the forecast period.

• This dominance is attributed to the rising adoption of industrial automation systems in manufacturing factories for optimizing manufacturing processes and operations with minimal human intervention.
• Additionally, the increasing development of smart factories and technological advancements in manufacturing equipment such as artificial intelligence (AI) has further propelled the market expansion.
• For instance, in December 2023, Mitsubishi Electric India introduced its new smart manufacturing facility for advanced factory automation systems in the state of Maharashtra, India. The new manufacturing facility is optimized to deliver products with the highest quality and reliability while strengthening its business in India and addressing the increasing demand for advanced automation and smart manufacturing solutions.
• According to the analysis, the rising developments associated with smart factories and the adoption of automation in manufacturing facilities are driving the factory automation market growth.