Built to provide research that’s more actionable and strategically valuable, The Business Research Company’s 2026 market reports include market attractiveness analysis, total addressable market sizing, company benchmarking matrices, interactive Excel dashboards, broader supply chain intelligence, emerging startup tracking, and in-depth product insights.
Software-Defined Automation Market Expansion Outlook: What Revenue Opportunities Are Ahead?
The software-defined automation market has experienced rapid expansion in recent years. Its valuation is anticipated to rise from $46.63 billion in 2025 to $54.09 billion in 2026, achieving a compound annual growth rate (CAGR) of 16.0%. Historically, this market growth can be attributed to the increasing adoption of industrial automation software, the rising use of robotic process automation, the growing integration of intelligent control systems, the expansion of manufacturing automation, and the increasing demand for cloud based automation platforms.
The software-defined automation market is projected to experience substantial expansion in the coming years, anticipated to reach a valuation of $96.98 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 15.7%. This projected growth is primarily driven by an increasing emphasis on AI-driven process automation, the expansion of digital transformation efforts across enterprises, the wider adoption of hybrid automation solutions, the growing integration of IoT with automation technologies, and a heightened focus on optimizing operations and improving energy efficiency. Key trends foreseen during this period encompass technological advancements within cloud computing, breakthroughs in machine learning tailored for automation, progress in digital twin applications, ongoing research and development in predictive maintenance solutions, and improvements in automation platforms featuring vendor-neutral and open architectures.
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Software-Defined Automation Market Industry Drivers: What’s Behind The Revenue Growth?
The increasing integration of automation in manufacturing is anticipated to drive the expansion of the software-defined automation market in the future. This form of automation involves managing production processes and machine functions through software, allowing for on-demand reconfiguration, repurposing, or scaling, thereby moving away from inflexible hardware-dependent systems. The growing use of automation stems from the necessity for adaptable production capabilities that can rapidly adjust to evolving market demands and product specifications. Software-defined automation facilitates manufacturing automation by separating control logic from physical hardware, enabling businesses to swiftly update, reprogram, or expand production using central software platforms. For instance, in September 2025, the International Federation of Robotics, a Germany-based industry association for the robotics sector, reported that in 2024, China’s factories utilized 2,027,000 industrial robots, an increase from just over 1,890,000 units in 2023. Annual installations in China reached 295,000 units, a 7% rise from the prior year, accounting for 54% of worldwide demand and marking the highest level ever recorded. Consequently, the expanding implementation of adaptable and flexible manufacturing systems is fueling the expansion of the software-defined automation market.
Software-Defined Automation Market Segments: Where Is Growth Concentrated?
The software-defined automation market covered in this report is segmented –
1) By Component Outlook: Solutions, Services
2) By Deployment Type: On Premises, Cloud Based, Hybrid
3) By Organization Size: Large Enterprises, Small And Medium Enterprises
4) By Application Outlook: Process Automation, Network Automation, Security Automation, Other Applications
5) By End-user: Information Technology & Telecom, Banking, Financial Services, & Insurance (BFSI), Retail & E-commerce, Healthcare & Life Sciences, Manufacturing, Automotive, Transportation & Logistics, Other End Users
Subsegments:
1) By Solutions: Software Defined Control Systems, Industrial Automation Software, Robotic Process Automation Platforms, Cloud Based Automation Solutions, Artificial Intelligence Driven Automation Tools
2) By Services: Consulting Services, Integration Services, Deployment Services, Support And Maintenance Services, Managed Services
#Software-Defined Automation Market Growth Trends: What’s Shaping The Future Outlook?
Leading companies in the industrial automation market are prioritizing industrial transformation, focusing on open automation initiatives and modular designs to enhance flexibility, interoperability, and scalability across diverse hardware environments. Software-defined automation frameworks represent technologies that decouple control logic from proprietary hardware, facilitating plug-and-play integration, seamless data exchange, and more agile operational management. For instance, in March 2025, Schneider Electric SE, a France-based energy management and industrial automation company, introduced the Open Automation Movement. This initiative champions vendor-agnostic automation architectures that separate automation intelligence from closed control systems and proprietary equipment. The movement enables real-time data flow, simpler system reconfiguration, and improved operational responsiveness, helping industries overcome the limitations of legacy, hardware-locked platforms. This launch signifies a substantial technological advancement by extending software-defined control into broader industrial ecosystems, effectively bridging traditional automation with next-generation, modular, and interoperable architectures. It delivers a scalable, future-ready solution that empowers manufacturers to accelerate digital transformation, reduce integration barriers, and optimize plant-wide automation performance.
Software-Defined Automation Market Top Companies Driving Competitive Growth
Major companies operating in the software-defined automation market are Amazon Web Services (AWS), Microsoft Corp., Dell Technologies Inc., Cisco Systems Inc., Intel Corporation, HP Inc., General Electric (GE Vernova/Aerospace), Schneider Electric SE, Mitsubishi Electric Corporation, Honeywell International Inc., SAP SE, Asea Brown Boveri Ltd.(ABB Ltd.), Emerson Electric Co., Rockwell Automation Inc., Bosch Rexroth AG, FANUC CORPORATION, KUKA AG, Yaskawa Electric Corporation, Yokogawa Electric Corporation, Red Hat (IBM Subsidiary), PTC Inc., AVEVA Group plc, Beckhoff Automation GmbH & Co. KG, Software Defined Automation GmbH
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Software-Defined Automation Market Global Footprint: Which Region Leads The Market?
North America was the largest region in the software-defined automation market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the software-defined 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.
