Factory Automation Market Report 2026

The factory automation market size has grown rapidly in recent years. It will grow from $310.46 billion in 2025 to $347.41 billion in 2026 at a compound annual growth rate (CAGR) of 11.9%. The growth in the historic period can be attributed to expansion of mass manufacturing industries, rising labor cost pressures, increasing demand for consistent product quality, growth of electronics and automotive manufacturing, availability of programmable automation technologies.

The factory automation market size is expected to see rapid growth in the next few years. It will grow to $544.59 billion in 2030 at a compound annual growth rate (CAGR) of 11.9%. The growth in the forecast period can be attributed to increasing adoption of ai-enabled automation systems, expansion of smart factories, rising demand for customized production runs, growing focus on operational efficiency, increasing investments in industrial digitalization. Major trends in the forecast period include increasing deployment of industrial robots in production lines, rising adoption of smart sensors and controllers, expansion of data-driven predictive maintenance systems, growing integration of plc and scada platforms, enhanced focus on flexible manufacturing systems.

The adoption of artificial intelligence is anticipated to drive the growth of the factory automation market. Artificial intelligence involves the simulation of human intelligence by machines, usually via computer systems, allowing them to execute tasks that typically require human intellect, such as learning, reasoning, and problem-solving. The increasing uptake of AI is fueled by technological advancements, greater data availability, industry demand for automation and efficiency, and rising investment and research. Incorporating artificial intelligence into factory automation systems allows manufacturers to enhance efficiency, productivity, quality, flexibility, and safety, resulting in competitive advantages and better business outcomes. For example, according to Eurostat, a Belgium-based government agency, in 2024, 13% of EU businesses utilized artificial intelligence (AI) technologies. Consequently, the adoption of artificial intelligence is propelling the growth of the factory automation market.

Key players in the factory automation market are focusing on developing innovative products to maintain their market positions. One such innovation is the development of ballbar devices, precision measurement tools used in metrology and precision engineering. In factory automation, ballbar devices are utilized to ensure the quality and precision of machined parts by detecting errors and deviations in the machine's motion and positioning. For instance, un May 2023, Renishaw plc, a UK-based engineering company, introduced the RCS product line comprising the RCS L-90, RCS T-90, and RCS P-series, supported by a dedicated software suite. The RCS L-90 is a ball-bar device that simplifies processes through its companion software suite to monitor robot health, reduce deployment times, and enhance robot system accuracy. The RCS T-90 system assists users in identifying underlying reasons for subpar robot performance through comprehensive testing and data gathering, while the RCS P-series integrates permanent Renishaw probing solutions within robot cells, applying in-process metrology and automatic recovery to automation processes.

In July 2024, Lear Corporation, a US-based manufacturer, acquired WIP Industrial Automation for an undisclosed amount. This acquisition allows Lear to optimize its operations, leading to improved efficiency. As a result, the company is better equipped to address ongoing macroeconomic challenges, such as high wage inflation. WIP Industrial Automation, based in Spain, specializes in delivering automation solutions and technologies for a range of industries.

Major companies operating in the factory automation market are Siemens AG, Mitsubishi Electric Corporation, Schneider Electric SE, Honeywell International Inc., ABB Ltd., Toshiba Corporation, Eaton Corporation, Parker Hannifin Corporation, Emerson Electric Co., Danfoss, Rockwell Automation Inc., Bosch Rexroth AG, Omron Corporation, Keyence Corporation, Fanuc Corporation, SMC Corporation, Yaskawa Electric Corporation, Festo, KUKA Robotics, Phoenix Contact, Endress+Hauser Group, Beckhoff Automation, Yokogawa Electric Corporation, Advantech Co. Ltd., WAGO GmbH & Co. KG, Pepperl+Fuchs GmbH, Pilz GmbH & Co. KG, HIMA Paul Hildebrandt GmbH.

North America was the largest region in the factory automation market in 2025. The regions covered in the factory 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 factory automation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The factory automation market consists of revenues earned by entities by providing services, such as consultation and assessment services, customized solution design, installation and integration services, training and support services, remote monitoring and management, and data analytics and optimization. The market value includes the value of related goods sold by the service provider or included within the service offering. The factory automation market also includes sales of sensors and vision systems, motion control systems, human-machine interface (HMI) devices, industrial Internet of Things (IIoT) devices, and automated storage and retrieval systems (AS/RS). 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.