Modular Automation Market Report 2025

The modular automation market size has grown rapidly in recent years. It will grow from $12.76 billion in 2024 to $14.27 billion in 2025 at a compound annual growth rate (CAGR) of 11.9%. The growth during the historic period can be credited to a heightened focus on reducing operational costs, increasing demand for optimized resource utilization, an expanding need for rapid production scalability, greater emphasis on enhancing workplace safety, and a rising requirement for multi-product production capabilities.

The modular automation market size is expected to see rapid growth in the next few years. It will grow to $22.08 billion in 2029 at a compound annual growth rate (CAGR) of 11.5%. The growth projected for the forecast period can be attributed to an increased emphasis on reducing production downtime, heightened attention to resource conservation in manufacturing, a rising demand for high-volume production flexibility, growing preference for sustainable manufacturing practices, and a stronger focus on minimizing material waste. Key trends expected during this period include the integration of edge computing, adoption of digital twin technology, development of self-diagnosing and self-healing systems, advanced robotics incorporation, and enhancements in human-machine interfaces (HMI).

The growing demand for automation solutions is anticipated to drive the expansion of the modular automation market in the coming years. Automation solutions encompass technologies, systems, or services designed to execute tasks with minimal human intervention, thereby improving efficiency, accuracy, and productivity across multiple industries. This rise in automation solutions is mainly fueled by the increasing need for operational efficiency, as businesses aim to lower costs, reduce errors, and boost productivity through intelligent and streamlined processes. Modular automation enhances these solutions by offering flexible, scalable, and easily reconfigurable systems that swiftly adapt to evolving production demands and technological progress. For example, according to the International Federation of Robotics, a Germany-based non-profit organization, in 2022, annual installations of industrial robots reached 290,258 units - a 5% increase year-over-year - setting a new record and surpassing the previous high in 2021. Consequently, the rising demand for automation solutions is propelling the growth of the modular automation market.

Leading companies in the modular automation market are concentrating on technological advancements such as modular remote units to improve system flexibility, accelerate deployment, and enhance operational efficiency across various industrial applications. A modular remote unit is a configurable, self-contained device used within automation systems for control, monitoring, or data acquisition tasks remotely, facilitating flexible system expansion and decentralized operation. For instance, in May 2025, WEG S.A., a motors and generators company based in Brazil, launched the RUW200, a next-generation modular remote unit designed to optimize device integration and operational performance in industrial automation environments. Built as a compact and scalable solution, the RUW200 provides advanced connectivity via dual Ethernet ports and supports key industrial communication protocols, including EtherNet/IP, Modbus-TCP, and MQTT, making it fully IoT-ready. The unit supports expansion with up to eight I/O modules, allowing adaptability to diverse automation needs, and is fully compatible with WEG’s existing PLC platforms such as PLC200, PLC410, and PLC500.

In October 2022, Rockwell Automation Inc., a US-based company specializing in industrial automation and digital transformation technologies, acquired CUBIC for an undisclosed sum. This acquisition aims to enhance Rockwell Automation’s technological capabilities, broaden its market reach, and provide advanced automation and digital transformation solutions to customers. CUBIC, headquartered in Denmark, specializes in modular systems for manufacturing electrical panels and switchboards.

Major players in the modular automation market are Siemens AG, General Electric Company (GE), Mitsubishi Electric Corporation, Schneider Electric SE, Honeywell International Inc., ABB Ltd, Toshiba Corporation, Emerson Electric Co., Bosch Rexroth AG, Rockwell Automation Inc., Keyence Corporation, FANUC Corporation, Phoenix Contact GmbH & Co. KG, Festo Inc., Yokogawa Electric Corporation, Beckhoff Automation GmbH & Co. KG, Ascential Technologies Inc., Pilz GmbH & Co. KG, HIMA Paul Hildebrandt GmbH, and Modular Automation Ltd.

North America was the largest region in the modular automation market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in modular automation report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the modular automation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The swift increase in U.S. tariffs and the ensuing trade tensions in spring 2025 are significantly affecting the machinery sector by increasing costs for steel, hydraulic systems, and precision bearings critical components often imported from tariff-affected regions. Manufacturers of construction, agricultural, and industrial machinery now face squeezed margins, as many long-term contracts prevent immediate price adjustments. The uncertainty has also delayed investment in automation and smart machinery technologies, slowing productivity gains. To adapt, firms are accelerating local supplier development, redesigning products to use alternative materials, and leveraging predictive maintenance to extend equipment lifespans amid higher replacement costs.

Modular automation is a system design strategy that employs standardized, interchangeable modules to create flexible and scalable automation solutions. Its goal is to simplify customization, enable rapid adaptation to evolving production requirements, and reduce setup time and costs.

The primary types of modular automation include distributed control systems (DCS) and module-type packages. A distributed control system (DCS) is an automated control framework where control components are spread across a plant or process, allowing centralized monitoring alongside decentralized control to enhance reliability, scalability, and efficiency. These systems incorporate various technologies such as the industrial internet of things (IIoT), robotics, artificial intelligence (AI), and cloud computing. They serve enterprises of all sizes, from small and medium enterprises (SMEs) to large organizations. Key applications encompass assembly, inspection, testing, material handling, and packaging, and they are widely used in industries including manufacturing, healthcare, aerospace and defense, as well as energy and utilities.

The modular automation market research report is one of a series of new reports that provides modular automation market statistics, including the modular automation industry global market size, regional shares, competitors with the modular automation market share, detailed modular automation market segments, market trends, and opportunities, and any further data you may need to thrive in the modular automation industry. This modular automation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The modular automation market includes revenues earned by entities from system integration services, installation and commissioning services, maintenance and repair services, training and education services, and upgrade and retrofitting services. The market value includes the value of related goods sold by the service provider or included within the service offering. The modular automation market also includes sales of programmable logic controllers (PLCs), human-machine interfaces (HMIs), industrial robots, modular conveyor systems, and automated guided vehicles (AGVs). Values in this market are ‘factory gate’ values; that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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