Industrial Control and Factory Automation Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Industrial Control and Factory Automation Market is projected to expand from USD 226.85 Billion in 2025 to USD 461.36 Billion by 2031, achieving a CAGR of 12.56%. This sector involves the application of control systems, including computers and robots, alongside information technologies to manage industrial processes and machinery, effectively replacing human intervention. The primary drivers fueling this market growth include the critical need for enhanced manufacturing efficiency and a persistent shortage of skilled labor in industrial areas, which mandates the use of automated solutions. Additionally, the adoption of Industry 4.0 technologies supports seamless data exchange and improves production capabilities without requiring extensive manual supervision.

A major obstacle hindering market expansion is the substantial initial capital investment needed to implement advanced automation systems, which can be prohibitive for small and medium-sized enterprises. According to the Association for Advancing Automation, North American companies acquired 17,635 robots worth 1.094 billion dollars in the first half of 2025. This statistic highlights a continued interest in automation technologies, even though financial barriers may limit access for smaller manufacturing entities.

Market Drivers

Advancements in Artificial Intelligence and Machine Learning for Predictive Maintenance are acting as a primary catalyst for the Global Industrial Control and Factory Automation Market. Manufacturers are increasingly utilizing AI-driven algorithms to process vast datasets from machinery, allowing them to predict equipment failures before they happen and substantially decrease unplanned downtime. This technological evolution facilitates a shift from reactive repair strategies to strategic asset management, thereby optimizing resource allocation and prolonging the life of critical infrastructure. As noted in Rockwell Automation's '9th Annual State of Smart Manufacturing Report' from March 2024, 83% of manufacturers anticipate employing Generative AI in their operations in 2024, emphasizing the rapid adoption of these intelligent systems to improve operational resilience and efficiency.

The widespread adoption of Collaborative Robots (cobots) in assembly lines is another major force driving market growth, fueled by the demand for flexible manufacturing systems that allow for mass customization. Unlike standard industrial robots, cobots are engineered to operate safely alongside human workers, creating versatile production environments that can quickly adjust to changing product specifications without major reconfiguration. This integration is backed by significant global activity in robotic deployments; the International Federation of Robotics reported in its September 2024 'World Robotics 2024' release that the manufacturing industry installed 541,302 new industrial robots globally in 2023. Furthermore, MHI reported in 2024 that 55% of supply chain leaders are increasing their investment in supply chain technology and innovation, reflecting a broad financial commitment to automated industrial ecosystems.

Market Challenges

The substantial initial capital investment needed to deploy industrial control and factory automation systems constitutes a significant barrier to market expansion. Adopting these advanced technologies entails high upfront costs, covering not only robotic hardware and control units but also software integration, engineering customization, and specialized personnel training. For numerous small and medium-sized enterprises, these expenses are frequently prohibitive, compelling them to rely on manual processes despite the potential for efficiency gains. Even for larger corporations, the magnitude of the financial commitment can result in delayed procurement decisions, particularly during periods of economic uncertainty when capital budgets are closely scrutinized.

This financial burden directly slows market momentum by limiting the volume of new installations. When capital becomes expensive or cash flows are restricted, the difficulty in justifying an immediate return on investment retards the adoption rate across key manufacturing sectors. This hesitation is evident in recent industry performance metrics which indicate a contraction in activity. According to the VDMA Robotics + Automation Association, the sector experienced a 6 percent decline in turnover in 2024, falling to 15.2 billion euros. Such a contraction illustrates how investment constraints can tangibly impede industry growth and reduce the overall turnover of the global market.

Market Trends

The adoption of Industrial 5G and Wireless Connectivity is rapidly reshaping factory environments by removing the limitations of physical cabling and facilitating ultra-low latency communication between machines. This trend promotes the use of private wireless networks that ensure reliable, high-bandwidth data transmission for essential applications like remote control and real-time monitoring. By shifting to these robust wireless infrastructures, manufacturers can seamlessly connect various systems and reconfigure production layouts without the downtime associated with rewiring. This technological transition is providing swift financial validation for industrial operators; according to Nokia's '2024 Industrial Digitalization Report' from June 2024, 93% of enterprises using private wireless networks realized a return on investment within 12 months, proving the immediate operational value and efficiency gains of untethered industrial connectivity.

Simultaneously, the Emergence of Sustainable and Energy-Efficient Automation has become a critical factor as manufacturers align production objectives with strict environmental standards and cost-reduction goals. This trend involves the strategic combination of hardware, such as high-efficiency motors and variable speed drives, with intelligent software that optimizes energy consumption across the entire facility. Companies are increasingly prioritizing carbon footprint reduction and resource optimization, moving beyond simple output metrics to adopt responsible manufacturing practices. This commitment to green operations is now a universal priority across the sector; according to ABB's April 2024 report 'From Insight to Implementation: Business Perspectives on Energy Efficiency Investments', 99% of businesses are actively investing in or planning to invest in energy efficiency measures, highlighting the widespread transition toward environmentally resilient industrial ecosystems.

Key Players Profiled in the Industrial Control and Factory Automation Market

• Schneider Electric SE
• Rockwell Automation Inc.
• Honeywell International Inc.
• ABB Limited
• Siemens AG
• Robert Bosch GmbH
• Emerson Electric Company
• Yokogawa Electric Corporation
• Omron Corporation
• Mitsubishi Electric Corporation

Report Scope

In this report, the Global Industrial Control and Factory Automation Market has been segmented into the following categories:

Industrial Control and Factory Automation Market, by Component:

• Sensors
• Control Values
• Switches & Relays
• Industrial Robots
• Others

Industrial Control and Factory Automation Market, by Industrial Control Systems:

• Distributed Control System (DCS)
• Programmable Logic Controller (PLC)
• Supervisory Control and Data Acquisition (SCADA)
• Product Lifecycle Management (PLM)
• Human Machine Interface (HMI)
• Others

Industrial Control and Factory Automation Market, by Application:

• Automotive
• Aerospace & Defense
• Food & Beverage
• Chemical
• Energy & Utilities
• Healthcare
• Oil & Gas
• Transportation
• E-Commerce
• Others

Industrial Control and Factory Automation Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Industrial Control and Factory Automation Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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