How Big Is the Factory Automation Market | Size & Key Trends 2025

Q: What is the overall size of the factory automation market?

The factory automation market is projected to reach USD 88.7 billion by 2031.

Q: What is the expected CAGR of the factory automation market?

The factory automation market is expected to grow at a CAGR of 8.10% during forecast period.

Q: Which technologies are transforming factory automation?

Artificial intelligence, collaborative robotics, digital twins, and industrial IoT are driving transformation.

Q: Which industries are driving demand for factory automation?

Automotive, electronics, pharmaceuticals, and food & beverage sectors are leading automation adoption.

Q: How does 6W market outlook report help businesses in making decisions?

6W monitors the market across 60+ countries Globally, publishing an annual market outlook report that analyses trends, key drivers, Size, Volume, Revenue, opportunities, and market segments. This report offers comprehensive insights, helping businesses understand market dynamics and make informed decisions.

Q: Do you also provide customisation in the market study?

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Code: MTA6018

Publication Date: Jul 2025

How big is the factory automation market?

According to 6Wresearch internal database and industry insights, the Global factory automation market was valued at approximately USD 50.3 billion in 2024 and is projected to reach USD 88.7 billion by 2031, expanding at a CAGR of 8.10% during the forecast period.

This growth is being driven by the increasing demand for industrial efficiency, adoption of advanced robotics, and integration of AI and IoT across manufacturing sectors. Furthermore, manufacturers are focusing on reducing operational costs and improving production flexibility through automation.

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Key Growth Factors of the Factory Automation Market

Rising need for operational efficiency and reduced human error
Adoption of Industry 4.0 and smart manufacturing solutions
Growing labor costs and shortage of skilled labor in many regions
Increased deployment of AI, robotics, and machine learning in production lines
Expansion of industrial sectors in emerging economies
Government incentives and regulations promoting automation

Factory Automation Market Trends

The market is witnessing a surge in the use of collaborative robots (cobots) and AI-based predictive maintenance systems. Edge computing and 5G connectivity are streamlining real-time decision-making on the factory floor. Integration of digital twins for process simulation and energy-efficient automation solutions is also gaining popularity.

Emerging Developments in the Factory Automation Market

With the push for more intelligent and agile production, emerging developments in the factory automation market include hyperautomation, autonomous mobile robots (AMRs), and AI-powered visual inspection systems. The use of low-code platforms for process customization and the fusion of OT and IT systems are also reshaping the automation landscape.