Software-Defined Automation Market Report 2026

The software-defined automation market market size has grown rapidly in recent years. It will grow from $46.63 billion in 2025 to $54.09 billion in 2026 at a compound annual growth rate (CAGR) of 16%. The growth in the historic period can be attributed to increasing adoption of industrial automation software, rising use of robotic process automation, growing integration of intelligent control systems, expansion of manufacturing automation, increasing demand for cloud based automation platforms.

The software-defined automation market size is expected to see rapid growth in the next few years. It will grow to $96.98 billion in 2030 at a compound annual growth rate (CAGR) of 15.7%. The growth in the forecast period can be attributed to rising focus on artificial intelligence driven process automation, growing enterprise digital transformation initiatives, increasing deployment of hybrid automation solutions, expanding integration of internet of things with automation, growing emphasis on energy efficiency and operational optimization. Major trends in the forecast period include technology advancements in cloud computing, innovations in machine learning for automation, developments in digital twin applications, research and developments in predictive maintenance solutions, advancements in vendor neutral and open architecture automation platforms.

The increasing adoption of automation in manufacturing is expected to drive the growth of the software-defined automation market in the coming years. Automation in manufacturing refers to an approach where production processes and machine operations can be reconfigured, repurposed, or scaled on demand through software control, replacing rigid, hardware-centric setups. The rise in automation adoption is driven by the need for flexible production capable of quickly adapting to changing demand and product variations. Software-defined automation facilitates this by decoupling automation logic from fixed hardware, allowing enterprises to update, reprogram, or scale production rapidly via centralized software platforms. For instance, in September 2025, according to the International Federation of Robotics, a Germany-based industry association representing the robotics sector, China recorded 2,027,000 industrial robots working in factories in 2024, up from just over 1,890,000 units in 2023, with annual installations reaching 295,000 units - an increase of 7% from the previous year - accounting for 54% of global demand and marking the highest level ever recorded. Therefore, the growing adoption of flexible and adaptive manufacturing systems is fueling the growth of the software-defined automation market.

Major companies in the industrial automation market are focusing on industrial reformation initiatives, such as open automation and modular frameworks, to improve flexibility, interoperability, and scalability across diverse hardware environments. Software-defined automation frameworks are technologies that separate control logic from proprietary hardware, enabling 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, launched the Open Automation Movement. This initiative promotes vendor-agnostic automation architectures that decouple automation intelligence from closed control systems and proprietary equipment. It enables real-time data flow, easier system reconfiguration, and improved operational responsiveness, helping industries overcome the constraints of legacy, hardware-locked platforms. The launch represents a major technological advancement by extending software-defined control across broader industrial ecosystems, bridging traditional automation with next-generation, modular, and interoperable architectures. It provides a scalable, future-ready solution that empowers manufacturers to accelerate digital transformation, reduce integration barriers, and optimize plant-wide automation performance.

In July 2025, Comau S.p.A., an Italy-based global provider of advanced automation and robotics solutions, acquired Automha S.p.A. for an undisclosed amount. Through this acquisition, Comau aims to enhance its automated warehousing and intralogistics capabilities, expanding its portfolio of smart manufacturing and Industry 4.0 solutions. Automha S.p.A. is an Italy-based company specializing in software-defined automation solutions for intralogistics and warehouse automation.

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.

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. The countries covered in the software-defined automation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, 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.

Tariffs have had a moderate impact on the software-defined automation market by increasing costs of imported industrial hardware and control equipment supporting automation deployments. On-premises and hybrid deployments in manufacturing-heavy regions such as Asia-Pacific and Europe are most affected. Cloud-based automation platforms face relatively lower impact, encouraging faster cloud adoption. In the long term, tariffs may positively accelerate the transition toward software-centric and service-oriented automation solutions.

The software-defined automation market refers to the use of software-based systems to control and manage automation processes across various industries. It provides greater flexibility, scalability, and efficiency by separating automation logic from physical hardware. This approach enables organizations to optimize operations, reduce costs, and accelerate the implementation of automated solutions.

The main components of software-defined automation include solutions and services. Solutions comprise software-defined platforms that centrally control, orchestrate, and automate infrastructure, network, and application workflows through programmable policies, while services support deployment, integration, customization, and ongoing management. Deployment types include on-premises, cloud-based, and hybrid models. Organization sizes range from large enterprises to small and medium enterprises. Applications cover process automation, network automation, security automation, and others, and these systems are used by end users in information technology and telecom, banking, financial services, and insurance (BFSI), retail and e-commerce, healthcare and life sciences, manufacturing, automotive, and transportation and logistics.

The software-defined automation market consists of sales of industrial automation software, robotic process automation software, intelligent control systems, cloud-based automation platforms, ai-driven process automation tools. 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.

This product will be delivered within 1-3 business days.