Factory Automation Sensor Market Report 2026

The factory automation sensor market size has grown strongly in recent years. It will grow from $17.6 billion in 2025 to $18.88 billion in 2026 at a compound annual growth rate (CAGR) of 7.2%. The growth in the historic period can be attributed to early adoption of industrial automation, rising need for process optimization, growing use of sensors in manufacturing lines, increased focus on workplace safety monitoring, expansion of robotics in factories.

The factory automation sensor market size is expected to see strong growth in the next few years. It will grow to $24.04 billion in 2030 at a compound annual growth rate (CAGR) of 6.2%. The growth in the forecast period can be attributed to increasing demand for smart factories, rising shift toward real time data driven operations, growing integration of AI enabled sensors, expansion of remote monitoring systems, increasing focus on energy efficient automation. Major trends in the forecast period include increasing deployment of smart sensing technologies, growing demand for predictive maintenance solutions, rising adoption of high precision sensors, expansion of automated quality inspection systems, increasing integration of multi sensor platforms.

The increasing demand for smart factories is expected to drive the growth of the factory automation sensor market going forward. Smart factories are manufacturing facilities that integrate advanced technologies such as IoT, AI, and automation to optimize production processes. The demand for smart factories stems from the need for greater efficiency, flexibility, and competitiveness in manufacturing, driven by the potential to optimize operations, reduce costs, and improve product quality through the integration of automation, data analytics, and connectivity. Smart factories use factory automation sensors to collect real-time data on machinery performance, production processes, and environmental conditions, enabling proactive monitoring, predictive maintenance, and optimization of manufacturing operations to increase efficiency, productivity, and quality control. For example, in June 2025, according to a survey conducted by Rockwell Automation, Inc., a US-based industrial automation company, 95% of manufacturers have invested in or plan to invest in artificial intelligence and machine learning (AI/ML) over the next five years to manage uncertainty and advance smart manufacturing. Additionally, 81% of manufacturers indicated that internal and external pressures are accelerating digital transformation, while 49% plan to deploy AI for cybersecurity in 2025, compared to 40% in 2024. Therefore, the increasing demand for smart factories is driving the growth of the factory automation sensor market.

Leading companies in the factory automation sensor market are innovating in sensor technologies, with a focus on radar-level sensor technology tailored for highly automated processes with stringent hygiene demands. Radar-level sensors are renowned for their versatility, reliability, high accuracy, and low maintenance requirements due to their absence of moving parts. These sensors find application in a wide array of industrial and commercial level measurement tasks. For instance, VEGA Grieshaber KG introduced the VEGAPULS 42 radar-level sensor technology in March 2023. This sensor is specifically designed for non-contact level measurement in factory automation, particularly in sectors like food and pharmaceuticals. Equipped with IO-Link and versatile hygienic adapters, the VEGAPULS 42 meets the crucial requirements of factory automation by delivering fast, complex measurements, user-friendly operation, and cost-effectiveness.

In November 2023, YAGEO Corporation strategically acquired Telemecanique Sensors, a renowned factory automation sensor manufacturer based in France. This acquisition aligns with YAGEO's premium segment focus and aims to expand its high-end product portfolio as a premium component solution provider. Telemecanique Sensors specializes in developing and delivering mission-critical electromechanical and electronic sensors, enhancing YAGEO's capabilities in the factory automation sensor market.

Major companies operating in the factory automation sensor market are Robert Bosch GmbH, Siemens AG, Sony Corporation, Panasonic Corporation, Schneider Electric SE, Honeywell International Inc., ABB Ltd., STMicroelectronics N.V., Infineon Technologies AG, TDK Electronics Co. Ltd., Murata Manufacturing Co. Ltd., TE Connectivity Ltd., Amphenol Corporation, Analog Devices Inc., Seiko Epson Corporation, Alps Electric Co. Ltd., Rockwell Automation Inc., Microchip Technology Inc., Omron Corporation, FANUC Corporation, Texas Instruments Incorporated, Vishay Intertechnology Inc., Stäubli International AG, Pepperl+Fuchs SE, Sensirion AG.

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 on electronic components, sensor modules, and semiconductor materials have raised production costs for factory automation sensors, especially affecting manufacturers dependent on imports from Asia and Europe. The manufacturing, automotive, and electronics sectors face the highest impact due to large scale sensor deployment in automation systems. However, tariffs are motivating companies to localize production, invest in regional supply chains, and innovate in sensor miniaturization and cost efficient designs, ultimately supporting long term market resilience.

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

Factory automation sensors are essential devices employed in industrial settings to detect, measure, analyze, and control diverse parameters and conditions within manufacturing environments. These sensors play a crucial role in automating processes by collecting data concerning physical variables like temperature, pressure, position, proximity, flow, level, and the presence of objects.

The primary types of factory automation sensors include temperature sensors, vibration sensors, humidity sensors, proximity sensors, pressure sensors, vision sensors, and various others. Temperature sensors, for instance, are utilized to monitor temperature variations within specific environments. They find applications across a wide range of industries such as weather monitoring, industrial processes, HVAC systems, medical devices, and consumer electronics, ensuring precise temperature regulation. These sensors are classified into contact and non-contact types and are deployed in numerous sectors including manufacturing, automotive, chemicals, energy and power, food and beverages, oil and gas, aerospace and defense, pharmaceuticals, among others.North America was the largest region in the factory automation sensor market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the factory automation sensor market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the factory automation sensor market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The factory automation sensor market consists of revenues earned by entities by providing services such as consulting, subscription-based models for software services and integration. The market value includes the value of related goods sold by the service provider or included within the service offering. The factory automation sensor market also includes sales of controllers, transmitters, signal conditioners, and actuators. 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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