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Factory Automation Market Revenue Outlook: What CAGR Is Expected Through 2030?
The factory automation market size has experienced rapid growth in recent years. It is anticipated to increase from $310.46 billion in 2025 to $347.41 billion in 2026, achieving a compound annual growth rate (CAGR) of 11.9%. The historical expansion of this market can be ascribed to the expansion of mass manufacturing industries, rising labor cost pressures, increasing demand for consistent product quality, growth of electronics and automotive manufacturing, and the availability of programmable automation technologies.
The factory automation market size is anticipated to experience substantial growth over the next few years, reaching $544.59 billion by 2030 with a compound annual growth rate (CAGR) of 11.9%. This expansion during the forecast period is driven by factors like the increasing integration of AI-enabled automation systems, the proliferation of smart factories, a rising demand for customized production runs, a greater emphasis on operational efficiency, and growing investments in industrial digitalization. Key trends expected in this period include the widespread deployment of industrial robots in production lines, the increasing adoption of smart sensors and controllers, the expansion of data-driven predictive maintenance systems, the growing integration of PLC and SCADA platforms, and an enhanced focus on flexible manufacturing systems.
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Factory Automation Market Expansion Supported By Key Demand Factors
The integration of artificial intelligence is projected to stimulate the expansion of the factory automation market. Artificial intelligence refers to machines, typically computer systems, simulating human intelligence processes to perform tasks such as learning, reasoning, and problem-solving, which traditionally require human intellect. The growing use of AI is fueled by technological advancements, increased access to data, the industrial demand for automation and efficiency, and rising investments and research. Incorporating artificial intelligence into factory automation systems allows manufacturers to achieve enhanced efficiency, productivity, quality, flexibility, and safety, leading to competitive advantages and improved business outcomes. For instance, according to Eurostat, a Belgium based government agency, in 2024, 13% of EU businesses used artificial intelligence (AI) technologies. Thus, the adoption of artificial intelligence is a significant factor propelling the growth of the factory automation market.
Factory Automation Market Segment Performance And Strategic Opportunities
The factory automation market covered in this report is segmented –
1) By Component: Sensors, Controllers, Switches And Relays, Industrial Robots, Drives
2) By Factory Automation Technology: Supervisory Control And Data Acquisition (SCADA), Programmable Automation Controller (PAC), Programmable Logic Controller (PLC), Distributed Control System (DCS), Human Machine Interface (HMI)
3) By End-User: Manufacturing, Automotive, Packaging And Processing, Semiconductor And Electronics, Printing And Converting
Subsegments:
1) By Sensors: Proximity Sensors, Vision Sensors, Temperature Sensors, Pressure Sensors, Level Sensors, Flow Sensors, Position Sensors
2) By Controllers: Programmable Logic Controllers (PLCs), Distributed Control Systems (DCS), Human-Machine Interface (HMI), Motion Controllers, Embedded Controllers
3) By Switches And Relays: Limit Switches, Push Button Switches, Safety Switches, Electromechanical Relays, Solid-State Relays
4) By Industrial Robots: Articulated Robots, SCARA Robots, Cartesian Robots, Collaborative Robots (Cobots), Delta Robots
5) By Drives: AC Drives, DC Drives, Servo Drives, Variable Frequency Drives (VFDs), Stepper Drives
Factory Automation Market Growth Trends Influencing Competitive Dynamics
Major corporations within the factory automation market are developing advanced products, such as ballbar devices, to solidify their market presence. Ballbar devices, interchangeably referred to as ballbar systems or testers, are precise measurement instruments utilized in the domains of metrology and precision engineering. Within factory automation, these tools are employed to ensure the quality and accuracy of machined parts by identifying errors and discrepancies in a machine’s movement and positioning. For example, in May 2023, Renishaw plc, a UK-based engineering company, unveiled an RCS product line featuring three items: the RCS L-90, RCS T-90, and RCS P-series, all complemented by a specific software suite. The RCS L-90 functions as a ball-bar device, leveraging straightforward processes managed by its accompanying software suite to monitor robot health, decrease deployment times, and enhance robot system accuracy. The tri-ballbar RCS T-90 system aids robot users in pinpointing the root causes of suboptimal performance. It further performs extensive tests to gather essential robot data, including master-recovery procedures, plotting 3D path performance, and remastering joint offsets to calculated positions. The RCS P-series integrates in-process metrology and automatic recovery into automation processes by embedding a permanent Renishaw probing solution directly within a robot cell.
Factory Automation Market Key Players: Which Companies Shape Industry Competition?
Major companies operating in the factory automation market are Siemens AG, Mitsubishi Electric Corporation, Schneider Electric SE, Honeywell International Inc., ABB Ltd., Toshiba Corporation, Eaton Corporation, Parker Hannifin Corporation, Emerson Electric Co., Danfoss, Rockwell Automation Inc., Bosch Rexroth AG, Omron Corporation, Keyence Corporation, Fanuc Corporation, SMC Corporation, Yaskawa Electric Corporation, Festo, KUKA Robotics, Phoenix Contact, Endress+Hauser Group, Beckhoff Automation, Yokogawa Electric Corporation, Advantech Co. Ltd., WAGO GmbH & Co. KG, Pepperl+Fuchs GmbH, Pilz GmbH & Co. KG, HIMA Paul Hildebrandt GmbH
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#Factory Automation Market Largest Region: Which Geography Holds The Highest Market Share?
North America was the largest region in the factory automation market in 2025. The regions covered in the factory automation market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.