Manufacturing Automation Market Size, Share and Trends 2024 to 2034

The global manufacturing automation market size accounted for USD 13.53 billion in 2024, grew to USD 14.85 billion in 2025 and is expected to be worth around USD 34.28 billion by 2034, registering a CAGR of solid 9.74% between 2024 and 2034. The Europe manufacturing automation market size is evaluated at USD 4.74 billion in 2024 and is expected to grow at a CAGR of 9.87% during the forecast year.

  • Last Updated : November 2024
  • Report Code : 5237
  • Category : ICT

Manufacturing Automation Market Size and Forecast 2024 to 2034

The global manufacturing automation market size is calculated at USD 13.53 billion in 2024 and is predicted to surpass around USD 34.28 billion by 2034, expanding at a CAGR of 9.74% from 2024 to 2034. The demand for manufacturing automation is rising due to rising labor shortages. This is driving the adoption of technological advancements which help the companies to manage their workflow. 

Manufacturing Automation Market Size 2024 to 2034

Manufacturing Automation Market Key Takeaways

  • Europe dominated the manufacturing automation market with the largest market share of 35% in 2023. 
  • North America is anticipated to grow at a CAGR of 8.07% during the forecast period of 2024 to 2034.
  • By component, the hardware accounted for the highest market share of 53% in 2023. 
  • By component, the services segment is expected to expand at a fastest CAGR of 11.04% during the forecast period of 2024 to 2034. 
  • By technology, the PLC segment registered the largest share of the market in 2023. 
  • By technology, the robotics segment is anticipated to grow at the fastest CAGR in the market during the forecast period of 2024 to 2034.
  • By deployment, the on-premise segment held the highest share of the market in 2023. 
  • By deployment, the cloud-based segment is anticipated to grow at the fastest CAGR in the market from 2024 to 2034.
  • By industry vertical, the automotive segment stood the dominant in the global market in 2023.
  • By industry vertical, the healthcare segment is anticipated to grow at the fastest CAGR in the market during the forecast period of 2024 to 2034.
  • By solution, the control systems segment held the highest share of the market in 2023
  • By solution, the robotics and autonomous segment is anticipated to register the fastest growth during the forecast period of 2024 to 2034
  • By enterprise size, the large enterprises segment contributed the largest market share of 53% in 2023.
  • By application, the assembly line segment led the global market in 2023.
  • By application, the material handling segment is expected to grow at the fastest rate in the market during the forecast period of 2024 to 2034.
  • By end-user, the discrete manufacturing segment was dominant as it registered the highest revenue share in 2023. 
  • By end-user, the process manufacturing segment led the global market in 2023. 

Europe Manufacturing Automation Market Size and Growth 2024 to 2034

The Europe manufacturing automation market size is evaluated at USD 4.74 billion in 2024 and is projected to reach around USD 12.17 billion by 2034, growing at a CAGR of 9.87% from 2024 to 2034.

Europe Manufacturing Automation Market Size 2024 to 2034

Europe dominated the manufacturing automation market in 2023. The dominance of the region is attributed to the well-established manufacturing companies that are adopting automation in their manufacturing processes. This has raised the quality standards in the region, which leads to more investments in robotics and other systems that enhance the whole manufacturing process. Additionally, the European governments' rising focus on adopting sustainable production is expected to generate more business opportunities.

Manufacturing Automation Market Share, By Region, 2023 (%)

North America is anticipated to grow at the fastest CAGR in the market during the forecast period of 2024 to 2034. The growth of the region is attributed to the rising focus on the adoption of smart technologies in the region that helps towards the growth of the manufacturing automation market. The rising labor costs in the region are also one of the major reasons due to the rapid adoption of these solutions by the companies which might help them in generating more revenue share. 

Market Overview

Manufacturing automation refers to the use of technology to perform manufacturing tasks by minimizing human intervention and without compromising the productivity of the process. The manufacturing automation market is witnessing significant demand due to its exceptional work efficiency, which helps perform complex tasks with precision. It mostly uses machinery, robotics, and other computer-based systems to perform the tasks. Technological advancements are leading to magnificent inventions.

How is AI Revolutionizing the Manufacturing Automation Market?

The rise in technologies like artificial intelligence (AI) and machine learning (ML) are playing a transformative role in the growth of this market. AI algorithms play a crucial role in analyzing huge datasets that enhance production efficiency by adjusting multiple helpful parameters. The manufacturing automation market is gaining significant popularity due to the advancements in robotics that are specially designed to work alongside humans.

AI's data-analyzing capabilities also play a vital role in predicting data from sensors and machine logs to ensure equipment maintenance before any severe damage. Many companies across various industries are adopting these technologies that might help them manage product quality with the help of AI-based vision systems and sensors that can detect defective and damaged products.

Manufacturing Automation Market Growth Factors

  • The rising demand for automation in industrial applications is playing a crucial role in the adoption of these technologies that contribute towards the growth of the manufacturing automation market.
  • The limited availability of skilled laborers is raising the demand for automation in the manufacturing industry, which promotes the adoption of these technologies.
  • The rising demand for worker safety, especially in complex tasks, leads to the adoption of robotics, which stands out as a major growth factor in the market.
  • The adoption of automation in new applications like logistics and agriculture is one of the major factors that is helping towards the growth of the manufacturing automation market.

Market Scope

Report Coverage Details
Market Size by 2034 USD 34.28 Billion
Market Size in 2024 USD 13.53 Billion
Market Size in 2025 USD 14.85 Billion
Market Growth Rate from 2024 to 2034 CAGR of 9.74%
Largest Market Europe
Base Year 2023
Forecast Period 2024 to 2034
Segments Covered Component, Technology, Deployment, Industry Vertical, Solution, Enterprise Size, Application, End-Use, and Regions
Regions Covered North America, Europe, Asia-Pacific, Latin America and Middle East, & Africa

Market Dynamics 

Drivers 

Rising manufacturing standards 

Rapid urbanization is one of the major factors that has increased the demand for higher-quality products across various industries. The manufacturing automation market is witnessing significant demand due to the rising demand for product quality and consistency across various industries like electronics, healthcare, and automotive. Rising market competitiveness plays a vital role in enhancing the quality of products, which can help increase customer satisfaction. Governments are imposing regulations that focus on maintaining rules that enhance product quality. Additionally, the rising focus on employee safety is playing a transformative role in adopting automation technologies in the manufacturing industry.

Integration of 5G and advanced connectivity

The rapid technological advancements in internet connectivity are crucial factors that ensure the smooth running of automation. Many companies that use real-time data in their manufacturing processes are dependent on advanced internet connectivity. The manufacturing automation market is witnessing significant popularity due to the rise of advanced internet connectivity that is helping companies manage their workflow efficiently. Additionally, the 5G enables the robots to operate various machinery in real-time, which can perform multiple tasks, such as material inspection.

5G Networks Usage in India (2023)

Restraint 

Higher implementation costs 

The automation systems often require advanced technologies, infrastructure and other software which can be unaffordable for low-income companies. The manufacturing automation market has managed to grow in well-developed areas but its growth can be affected in the developing regions lacking technologies. Additionally, the rising market competition is demanding advanced technologies that could match the market standards. 

Opportunities 

Rising labor costs 

The rising cost of living and inflation is one of the major factors that drive labor costs. The manufacturing automation market stands as a potential alternative to labor shortages, which can eliminate the requirement for physical needs. Adoption of these technologies may require higher investments, but it is expected to provide ROI in some years by also boosting work productivity. Many companies are adopting these automation systems to help them maximize their profits and reduce operational costs.

Expansion of automation as a service

The emergence of automation as a service (AaaS) is one of the crucial factors leading towards adopting these systems. The rising need across various industries is providing several business opportunities in the manufacturing automation market. Companies are adopting subscription-based models which are usually preferred by small-scale businesses. This helps the companies in managing their expenditure by reducing the human labor requirement. Additionally, these technologies are gaining popularity in multiple industries due to their capability to perform complex tasks.

Component Insights

The hardware segment marked its dominance over the global market in 2023. Hardware in the manufacturing industry refers to the sensors, robots, and controllers that are used for automation. The dominance of the segment is attributed to the rising need for automation in multiple applications to match quality standards. The manufacturing automation market is witnessing significant investments to expand the use of this equipment, which can be useful in performing manufacturing tasks. The rising focus on technological advancements is one of the major factors that is expected to bring more opportunities in the upcoming years. 

The services segment is expected to register the fastest growth in the market during the forecast period of 2024 to 2034. These services include support and consultation as an automation service. The rising adoption of technologies like AI is leading to the adoption of these services that help in gaining more precise outcomes. The rising shift towards digitalization is leading to the growth of the manufacturing automation market as it helps in enhancing the operational efficiency of these services.

Technology Insights

The PLC segment registered the largest share of the market in 2023. PLC refers to programmable logic controllers that are specially designed to control the machinery and equipment. The dominance of the segment is attributed to the widespread use of manufacturing automation solutions across various industries. The manufacturing automation market has been efficiently growing due to the dominance of PLC over the past decades. Companies are adopting this technology as it can perform in harsh environments. Technological advancements are focusing on simplifying the use of these controllers, which is anticipated to bring more business opportunities in the upcoming years.

The robotics segment is anticipated to grow at the fastest CAGR in the market during the forecast period of 2024 to 2034. The growth of the segment is attributed to the increasing adoption of industrial robots, which help in reducing the need for human intervention. This helps in maintaining the safety measures, which can further gain more acceptance through multiple companies. Additionally, the manufacturing automation market is expected to gain more importance due to the rising labor shortage. Adopting these systems is expected to help companies grow their operational efficiency in the upcoming years.

Deployment Insights

The on-premise segment held the highest share of the market in 2023. The dominance of the segment is attributed to the widespread use of these technologies in the servers, which ensures the security and control of the systems. The manufacturing automation market is gaining popularity due to the well-established user base of these systems, which is leading toward more technological advancements that can help them gain more value. Rising collaborations and partnerships are gaining more investments from the companies that help maintain market dominance.

The cloud-based segment is anticipated to grow at the fastest CAGR in the market from 2024 to 2034. The growth of the segment is attributed to the rising use of these solutions by the companies due to their scalability, which allows its use for any tasks. The manufacturing automation market is gaining massive popularity due to the rising adoption of cloud-based services by small-sized businesses without the need for any physical infrastructure.

Industrial Vertical Insights

The automotive segment stood the dominant in the global market in 2023. The dominance of the segment is attributed to the widespread manufacturing of vehicles like cars, trucks, and other transportation, which are highly dependent on automation systems. The manufacturing automation segment is growing efficiently due to the rising need for robotics in the automotive segment, where they perform various complex tasks that can eliminate the need for human intervention. This further helps the company grow efficiently as it also saves operational costs.

The healthcare segment is anticipated to grow at the fastest CAGR in the market during the forecast period of 2024 to 2034. The growth of the segment is attributed to the rising demand for medical devices, which is also benefiting the manufacturing automation market. The rising prevalence of diseases is also one of the major contributors that lead to market growth.

Solution Insights

The control systems segment held the highest share of the market in 2023. These systems monitor and manage the machinery and manufacturing processes. The manufacturing automation market is witnessing significant growth due to the significance of these systems, which offer reliable services during the manufacturing process. These systems have been widely used over the past decades, which makes them dominant. 

The robotics and autonomous segment is anticipated to register the fastest growth during the forecast period of 2024 to 2034. The growth of the manufacturing automation market is derived from the shortage of skilled laborers, which gives an upper hand to robotics. Many companies are adopting these solutions to help them perform various tasks without human intervention. 

Enterprise Size Insights

Large enterprises benefit from economies of scale. With extensive manufacturing operations, they can justify the implementation of automation systems that can reduce labor costs, increase productivity, and improve precision across vast production networks. Larger production volumes help spread the cost of automation technology over more units, making it more cost-effective for large companies compared to small and medium-sized enterprises (SMEs).

Manufacturing Automation Market Share, By Enterprise Size, 2023 (%)

Large enterprises often have complex global supply chains that require robust automation to ensure efficiency, consistency, and real-time coordination across multiple regions and facilities. Manufacturing automation solutions enable better tracking of inventory, predictive maintenance, and seamless integration with global logistics systems, making them crucial for large companies managing widespread operations.

Application Insights

The assembly line segment led the global market in 2023. Assembly in the manufacturing process refers to fitting and joining the components that create the final product. The manufacturing automation market is witnessing significant growth due to its rising need in automotive manufacturing. Many companies are adopting the use of robotics, which leads to enhanced results in assembly applications. Automation becomes a crucial factor as it plays a vital role in detecting the quality of the final product. Many companies are adopting these applications, which are helping them to generate more revenue in less time.

The material handling segment is expected to grow at the fastest rate in the market during the forecast period of 2024 to 2034. The process involves storing, protecting and moving the materials throughout the manufacturing process. The manufacturing automation market is witnessing significant demand due to the rising demand in e-commerce where companies require automated material handling.

End-user Insights

The discrete manufacturing segment was dominant as it registered the highest revenue share in 2023. The segment involves the production of distinct items like cars and electronics which are produced on a large scale. The manufacturing automation market is gaining significant popularity as it requires high precision in assembling, controlling and inspecting essential components in these applications. The rising adoption of robotics is anticipated to bring more opportunities can perform complex tasks repeatedly.

The process manufacturing segment led the global market in 2023. The segment refers to the production of goods continuously by using chemical and biological transformations. The manufacturing market is growing significantly due to the rising user base in the food and beverage industry where they are produced in bulk quantities.

Manufacturing Automation Market Companies

Manufacturing Automation Companies
  • ABB Ltd.
  • FANUC CORPORATION
  • Honeywell International, Inc.
  • Reko Automation Inc.
  • Rockwell Automation Inc.
  • Schneider Electric
  • Mitsubishi Electric Corporation
  • Motoman (Yaskawa America, Inc.)
  • Omron Corporation
  • Teradyne, Inc.

Recent Developments 

  • In November 2024, CynLr, a Bengaluru-based robotics startup, raised USD 10 million in a Series A funding round to enhance its CyRo robotics platform, expand its workforce from 60 to 120 employees, and reach a USD 22 million revenue milestone by 2027.
  • In November 2024, Catalyx, a global leader in machine vision and automation, and INEL, an advanced machine builder for the pharmaceutical and medical device sectors, formed a strategic partnership to enhance packaging automation, improving inspection, verification, serialization, and labelling processes in pharmaceutical manufacturing.

Latest Announcement by Company Leaders

  • In September 2024, Rockwell Automation announced plans to open a 98,000-square-foot manufacturing facility in Chennai, India, by mid-2025 to enhance supply chain resilience and create 230 new jobs.

Segments Covered in the Report 

By Component 

  • Hardware
  • Software
  • Services
    • Professional Services
    • Managed Services

By Technology 

  • PLC
  • Robotics

By Deployment 

  • On-Premises
  • Cloud-Based

By Industry Vertical 

  • Automotive
  • Consumer Electronics
  • Healthcare
  • Transportation and Logistics
  • Others

By Solution 

  • Control Systems
  • Monitoring and Diagnostics
  • Robotics and Autonomous Systems

By Enterprise Size 

  • SME's
  • Large Enterprises

By Application 

  • Assembly Line Automation
  • Material Handling Automation
  • Welding And Fabrication Automation
  • Transportation And Logistics
  • Packaging Automation
  • Others

By End-Use 

  • Discrete Manufacturing
  • Process Manufacturing

By Geography

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • Middle East and Africa

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Frequently Asked Questions

The global manufacturing automation market size is expected to grow from USD 13.53 billion in 2024 to USD 34.28 billion by 2034.

The manufacturing automation market is anticipated to grow at a CAGR of 9.74% between 2024 and 2034.

The major players operating in the manufacturing automation market are ABB Ltd., FANUC CORPORATION, Honeywell International, Inc., Reko Automation Inc., Rockwell Automation Inc., Schneider Electric, Mitsubishi Electric Corporation, Motoman (Yaskawa America, Inc.), Omron Corporation, Teradyne, Inc., and Others.

The driving factors of the manufacturing automation market is the rising demand for product quality and consistency across various industries like electronics, healthcare, and automotive.

Europe region will lead the global manufacturing automation market during the forecast period 2024 to 2034.

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