Software-Defined Automation - Global Strategic Business Report

The global market for Software-Defined Automation was estimated at US$37.0 Billion in 2024 and is projected to reach US$71.0 Billion by 2030, growing at a CAGR of 11.5% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Software-Defined Automation market.

Global Software-Defined Automation Market - Key Trends & Drivers Summarized

How is Software-Defined Automation Reshaping Industries with Intelligent Control?

Software-defined automation (SDA) is revolutionizing industrial and enterprise automation by introducing greater flexibility, scalability, and intelligence into control systems. Unlike traditional automation, which relies on rigid hardware-based configurations, SDA leverages software-driven orchestration to dynamically manage processes, making it an integral part of Industry 4.0. Through advanced algorithms, cloud connectivity, and AI-driven decision-making, SDA is enabling enterprises to reconfigure workflows, optimize resources, and enhance efficiency without costly hardware upgrades. A key differentiator is the ability to integrate diverse IoT-enabled devices, sensors, and actuators into a unified automation framework, reducing downtime and increasing overall productivity. This shift from hardware-centric to software-defined control is being fueled by the growing need for agile manufacturing, predictive maintenance, and seamless human-machine collaboration across industries. Businesses across manufacturing, logistics, and utilities are deploying SDA to gain real-time visibility into their operations, improve operational resilience, and accelerate time-to-market for new products. The adoption of open-source automation frameworks and vendor-neutral software solutions is further propelling this transformation, fostering an ecosystem where enterprises are no longer tied to proprietary hardware limitations. As software-driven automation continues to gain traction, the question arises - how far can it go in reshaping industrial processes, and what new capabilities will emerge as AI and machine learning are further integrated into automation workflows?

What Are the Key Technologies Driving the Evolution of Software-Defined Automation?

Several breakthrough technologies are accelerating the growth of software-defined automation, enabling more intelligent and adaptive control systems. Edge computing is playing a pivotal role by reducing latency in automation processes, ensuring real-time decision-making without relying on distant cloud infrastructure. This decentralization of computing power enhances responsiveness in mission-critical applications such as smart factories, autonomous vehicles, and energy grid management. Meanwhile, artificial intelligence (AI) and machine learning (ML) are transforming automation workflows by enabling self-optimizing systems capable of learning from operational data and dynamically adjusting parameters for maximum efficiency. Digital twin technology is another game-changer, allowing industries to create virtual replicas of physical assets and simulate automation strategies before deployment. This predictive approach helps in reducing errors, minimizing downtime, and improving overall system reliability. The convergence of SDA with 5G networks is also reshaping automation landscapes by facilitating ultra-low latency communication between connected devices, making real-time control even more precise and efficient. Additionally, cybersecurity measures such as zero-trust architectures and AI-powered threat detection are becoming integral to SDA deployments, safeguarding critical infrastructure from cyber threats. As enterprises continue to embrace intelligent automation, innovations in self-healing networks and blockchain-based security frameworks are expected to redefine the way automation ecosystems operate. Given these advancements, the future of software-defined automation seems poised to move beyond traditional industrial settings into broader applications such as healthcare, smart cities, and autonomous transportation systems.

Why Are Industries Rapidly Adopting Software-Defined Automation at Scale?

The rapid adoption of software-defined automation is being driven by the increasing need for operational agility, cost efficiency, and sustainability in industrial environments. Companies are recognizing the limitations of traditional automation systems, which are often expensive to upgrade, rigid in configuration, and slow to adapt to evolving business needs. SDA offers a highly flexible and software-driven approach that enables organizations to automate workflows without the need for extensive hardware modifications. One of the strongest adoption drivers is the rising demand for mass customization, particularly in manufacturing sectors where businesses must quickly adapt production lines to meet changing consumer preferences. The ability to reprogram automation software remotely and implement changes on demand gives enterprises a significant competitive edge. Additionally, SDA is facilitating predictive maintenance strategies, allowing industries to minimize unplanned downtime by using AI-based predictive analytics to detect equipment failures before they occur. This results in higher asset utilization rates and lower maintenance costs. Sustainability initiatives are also pushing industries toward SDA, as software-driven automation can optimize energy consumption, reduce waste, and enhance overall resource efficiency. Industries such as logistics, oil and gas, and telecommunications are integrating SDA to streamline supply chain operations, improve data-driven decision-making, and enhance workforce productivity. Furthermore, SDA aligns with the broader trend of IT-OT (Information Technology-Operational Technology) convergence, enabling seamless integration between enterprise IT systems and industrial control networks. With growing investments in smart factories, hyper-automated warehouses, and autonomous production environments, the widespread deployment of SDA is becoming a defining characteristic of next-generation industrial operations.

What’s Fueling the Growth of the Software-Defined Automation Market?

The growth in the software-defined automation market is driven by several factors, each contributing to its accelerating adoption across industries. One of the primary drivers is the increasing reliance on artificial intelligence and machine learning to enhance automation decision-making and predictive analytics. AI-powered SDA enables industries to achieve self-optimizing operations, reducing inefficiencies and improving process adaptability. Another critical factor is the rise of Industry 4.0 and smart manufacturing, where organizations are actively transitioning to digital-first automation strategies to gain real-time visibility and agility in their production environments. The proliferation of IoT devices is further fueling SDA adoption, as interconnected sensors and smart machines require intelligent software-based orchestration for seamless coordination. Additionally, the growing adoption of cloud and edge computing is transforming automation architectures by enabling distributed intelligence and reducing reliance on centralized data centers. The demand for software-defined automation is also being driven by the increasing need for cybersecurity in industrial control systems, with enterprises prioritizing software-driven security measures to protect against evolving cyber threats. End-user behavior is another significant driver, as businesses seek greater customization, scalability, and interoperability in automation solutions. Companies are moving away from proprietary automation hardware in favor of vendor-agnostic software platforms that offer greater flexibility and integration capabilities. Furthermore, regulatory compliance and sustainability mandates are encouraging industries to adopt energy-efficient automation solutions that align with environmental goals. Emerging markets in Asia-Pacific, particularly China and India, are witnessing a surge in SDA investments due to rapid industrialization and smart infrastructure initiatives. Finally, the growing emphasis on autonomous operations in logistics, agriculture, and healthcare is expanding the use cases for software-defined automation beyond traditional manufacturing, ensuring continued market growth and technological evolution in the years ahead.

Report Scope

The report analyzes the Software-Defined Automation market, presented in terms of market value (US$ Thousand). The analysis covers the key segments and geographic regions outlined below.

Segments: Component (Solutions, Services); Deployment (On-Premise, Cloud-based); Application (Process Automation, Network Automation, Security Automation, Others); End-Use (Information Technology & Telecom, BFSI, Retail & E-Commerce, Healthcare & Life Sciences, Manufacturing, Automotive, Transportation & Logistics, Others)

Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the Solutions segment, which is expected to reach US$41.7 Billion by 2030 with a CAGR of a 9.6%. The Services segment is also set to grow at 14.7% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, estimated at $10.1 Billion in 2024, and China, forecasted to grow at an impressive 15.2% CAGR to reach $14.5 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Why You Should Buy This Report:

• Detailed Market Analysis: Access a thorough analysis of the Global Software-Defined Automation Market, covering all major geographic regions and market segments.
• Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
• Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Software-Defined Automation Market.
• Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.

Key Questions Answered:

• How is the Global Software-Defined Automation Market expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of players such as ABB Ltd., Appian Corporation, Azuqua (acquired by Okta), Beckhoff Automation GmbH & Co. KG, BMC Software, Inc. and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Select Competitors (Total 42 Featured):

• ABB Ltd.
• Appian Corporation
• Azuqua (acquired by Okta)
• Beckhoff Automation GmbH & Co. KG
• BMC Software, Inc.
• Bosch Rexroth AG
• Bright Machines
• Cisco Systems, Inc.
• CodiQ
• Copia Automation
• Cubic Telecom
• Dell Technologies Inc.
• Emerson Electric Co.
• General Electric Company
• Hewlett Packard Enterprise (HPE)
• Honeywell International Inc.
• IBM Corporation
• INGEAR Drivers
• Intellisense Systems, Inc.
• Juniper Networks, Inc.
• Mitsubishi Electric Corporation
• Oracle Corporation
• Rockwell Automation, Inc.
• Schneider Electric SE
• Siemens AG
• Software Defined Automation
• StackStorm (part of Extreme Networks)
• UiPath
• VMware, Inc.
• Yokogawa Electric Corporation

Tariff Impact Analysis: Key Insights for 2025

Global tariff negotiations across 180+ countries are reshaping supply chains, costs, and competitiveness. This report reflects the latest developments as of April 2025 and incorporates forward-looking insights into the market outlook.

The analysts continuously track trade developments worldwide, drawing insights from leading global economists and over 200 industry and policy institutions, including think tanks, trade organizations, and national economic advisory bodies. This intelligence is integrated into forecasting models to provide timely, data-driven analysis of emerging risks and opportunities.

What’s Included in This Edition:

• Tariff-adjusted market forecasts by region and segment
• Analysis of cost and supply chain implications by sourcing and trade exposure
• Strategic insights into geographic shifts

Buyers receive a free July 2025 update with:

• Finalized tariff impacts and new trade agreement effects
• Updated projections reflecting global sourcing and cost shifts
• Expanded country-specific coverage across the industry