Manufacturing Automation - Global Stategic Business Report

The global market for Manufacturing Automation was estimated at US$13.1 Billion in 2024 and is projected to reach US$21.5 Billion by 2030, growing at a CAGR of 8.6% 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 Manufacturing Automation market.

Global Manufacturing Automation Market - Key Trends & Drivers Summarized

What’s Powering the Next Industrial Revolution? The Unstoppable Rise of Smart Factories

Manufacturing automation has transitioned from a futuristic concept to an essential backbone of modern industry, redefining how goods are produced across various sectors. The integration of cutting-edge technologies like artificial intelligence (AI), Internet of Things (IoT), and robotics into manufacturing processes has paved the way for smart factories, which optimize efficiency, reduce downtime, and minimize errors. Automation has enabled predictive maintenance, allowing machines to self-diagnose faults before they lead to costly breakdowns. Furthermore, digital twin technology has emerged as a game-changer, enabling manufacturers to create virtual replicas of production lines to test processes and identify inefficiencies without disrupting operations. The adoption of cobots (collaborative robots) has also increased, allowing human workers to seamlessly interact with robotic counterparts, thus blending manual dexterity with machine precision. Countries with a robust industrial base, such as Germany, Japan, and the United States, are spearheading the adoption of Industry 4.0 principles, ensuring that automation continues to evolve at an exponential pace. Supply chain resilience has become a key focus, and manufacturers are leveraging automation to enhance adaptability in times of crisis, such as pandemics or geopolitical disruptions. The ability of automation to facilitate mass customization, where production lines can switch between different products with minimal downtime, is another pivotal factor driving widespread adoption. Additionally, advancements in human-machine interfaces (HMI) are making automation more accessible, empowering workers with intuitive control over complex machinery. Smart factories are no longer a luxury but a necessity for manufacturers seeking to remain competitive in an increasingly digital and interconnected world.

How Are Robotics and AI Reshaping the Competitive Landscape of Manufacturing?

The relentless march of robotics and AI in manufacturing is rewriting industry dynamics, creating both opportunities and challenges for businesses worldwide. Industrial robots are becoming more advanced, integrating machine learning algorithms to enhance their ability to perform intricate tasks with unprecedented accuracy. Unlike traditional robots that required extensive programming, AI-driven robots can learn from data, improving their efficiency over time and adapting to changing production requirements. The rise of edge computing has further accelerated automation adoption, enabling real-time data processing directly on factory floors, reducing latency and enhancing decision-making. The automotive and electronics industries are at the forefront of robotics-driven automation, deploying autonomous mobile robots (AMRs) for material handling, assembly, and quality control. Simultaneously, the increasing affordability of automation solutions is making them accessible to small and medium enterprises (SMEs), which were previously unable to invest in such technologies. Computer vision, powered by deep learning, is revolutionizing quality control processes, ensuring that even microscopic defects are detected with near-perfect accuracy. The integration of robotic process automation (RPA) is also optimizing back-end operations, such as supply chain management and procurement, further streamlining manufacturing workflows. Cloud-based robotics platforms are enabling manufacturers to deploy and update robots remotely, reducing operational complexity and costs. Furthermore, swarm robotics - where multiple robots coordinate to complete tasks in a decentralized manner - is gaining traction, particularly in warehousing and logistics. As AI continues to evolve, the boundary between physical and digital manufacturing is blurring, leading to an era where robots and intelligent systems play an indispensable role in shaping industrial productivity and competitiveness.

Why Is Industrial IoT (IIoT) the Secret Weapon Behind Manufacturing Efficiency?

Industrial IoT (IIoT) is a cornerstone of modern manufacturing automation, enabling real-time connectivity between machines, sensors, and analytics platforms. By harnessing IIoT, manufacturers can gain deep insights into production processes, allowing for data-driven decision-making and optimized resource utilization. Smart sensors embedded in machinery collect and transmit data continuously, offering unprecedented visibility into operational efficiency, energy consumption, and potential equipment failures. One of the most transformative applications of IIoT is predictive analytics, where AI-powered algorithms process vast amounts of data to anticipate machine failures before they occur, drastically reducing unplanned downtime. The adoption of 5G technology is further amplifying IIoT’s potential, enabling ultra-low latency communication between machines, ensuring seamless automation across large-scale facilities. Cloud-based IIoT platforms are also democratizing access to automation, allowing manufacturers to scale digital transformation initiatives without requiring extensive on-premises infrastructure. Meanwhile, cybersecurity in IIoT remains a critical focus, as increased connectivity presents vulnerabilities that must be mitigated through robust encryption and network security frameworks. IIoT is also playing a pivotal role in sustainable manufacturing, with smart energy management systems optimizing power consumption and reducing waste. Additionally, digital supply chains, powered by IIoT, are enabling manufacturers to respond dynamically to fluctuations in demand, ensuring just-in-time production and minimizing inventory costs. As IIoT adoption accelerates, industries ranging from pharmaceuticals to aerospace are leveraging its capabilities to drive unprecedented levels of automation, efficiency, and innovation.

The Growth in the Manufacturing Automation Market Is Driven by Several Factors

The rapid expansion of the manufacturing automation market is being propelled by multiple technological, economic, and consumer-driven factors. The increasing demand for mass customization is compelling manufacturers to invest in flexible automation solutions that allow production lines to adapt seamlessly to varying product specifications. The growing need for hyper-efficiency in industries such as automotive, electronics, and food processing is driving the adoption of high-speed, precision robotics integrated with AI-powered analytics. The rise of electric vehicles (EVs) is another catalyst, as automakers deploy advanced automation to handle complex battery assembly and drivetrain production. The labor shortages in manufacturing hubs across North America, Europe, and Asia-Pacific have further accelerated automation deployment, as industries seek to maintain productivity despite workforce constraints. Additionally, stringent regulations surrounding workplace safety are encouraging companies to replace hazardous manual tasks with robotics and autonomous systems. The advent of 5G connectivity is enabling ultra-fast, reliable communication between machines, fostering new levels of automation and process optimization. The push for sustainable manufacturing is also fueling the adoption of energy-efficient automation solutions, as companies prioritize carbon footprint reduction in response to regulatory and consumer pressures. The increasing adoption of cloud computing and digital twins is enabling manufacturers to simulate production processes before execution, minimizing errors and improving overall efficiency. The rising popularity of servitization, where manufacturers offer automation-as-a-service, is lowering entry barriers for smaller firms, allowing them to access advanced automation technologies without significant upfront investment. Lastly, geopolitical factors such as reshoring initiatives in key economies are driving investments in automation to enhance domestic manufacturing capabilities and reduce dependency on global supply chains. As these factors converge, the manufacturing automation market is set to experience sustained growth, transforming industries worldwide and redefining the future of production.

Report Scope

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

Segments: Component (Hardware Component, Software Component, Services Component); Solution (Control Systems Solution, Monitoring & Diagnostics Solution, Robotics & Autonomous Systems Solution); Technology (Programmable Logic Controller Technology, Robotics Technology); End-Use (Discrete Manufacturing End-Use, Process Manufacturing End-Use); Application (Assembly Line Automation Application, Material Handling Automation Application, Welding & Fabrication Automation Application, Transportation & Logistics Application, Packaging Automation Application, Other Applications)

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 Hardware Component segment, which is expected to reach US$12.9 Billion by 2030 with a CAGR of a 8.2%. The Software Component segment is also set to grow at 10.0% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, estimated at $3.6 Billion in 2024, and China, forecasted to grow at an impressive 13.3% CAGR to reach $4.6 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 Manufacturing 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 Manufacturing 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 Manufacturing 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., Advantech Co., Ltd., Beckhoff Automation GmbH & Co. KG, Bosch Rexroth AG, Delta Electronics, Inc. and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Select Competitors (Total 43 Featured):

• ABB Ltd.
• Advantech Co., Ltd.
• Beckhoff Automation GmbH & Co. KG
• Bosch Rexroth AG
• Delta Electronics, Inc.
• Emerson Electric Co.
• FANUC Corporation
• Hitachi, Ltd.
• Honeywell International Inc.
• Keyence Corporation
• KUKA AG
• Mitsubishi Electric Corporation
• Omron Corporation
• Panasonic Corporation
• Rockwell Automation Inc.
• Schneider Electric SE
• Siemens AG
• Universal Robots A/S
• Yaskawa Electric Corporation
• 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