Growth Trends in Industrial Automation

2025-09-08

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As a core driver of modern manufacturing development, industrial automation continues to 

attract widespread attention for its growth trajectory. Comprehensive industry observations and 

market data analysis reveal a steady and positive growth curve in this sector.


Sustained Strong Drivers:


Labor Cost and Structural Shifts: In major manufacturing regions, the long-term rise in labor costs 

and shortages of specialized skilled workers continue to drive enterprises toward automation solutions 

to stabilize production and enhance efficiency.


Demand for Production Efficiency and Quality Improvement: Intensifying market competition compels 

manufacturers to demand higher production efficiency, product consistency, and quality stability, with 

automation serving as a key means to achieve these goals.


Supply Chain Resilience Requirements: Recent global supply chain challenges have prompted companies

 to reevaluate production layouts and processes. Automation plays a vital role in enhancing the feasibility 

and efficiency of localized/nearshored production.


Technological Advancements and Cost Reduction: Core automation components—such as sensors, controllers, 

and actuators—continue to improve in performance while decreasing in cost. Simultaneously, the adoption of 

industrial networking standards (e.g., OPC UA, TSN) and enhanced software capabilities have reduced 

automation system complexity and integration challenges.


Emerging Application Scenarios: Automation technology is accelerating its penetration into traditionally 

labor-intensive sectors, including light industrial assembly, logistics warehousing (particularly sorting and 

handling), food processing, and laboratory automation, opening new growth avenues for the market.


Growth Rate Performance:


According to comprehensive analyses from multiple independent market research institutions, the 

industrial automation market has maintained growth rates significantly higher than the global manufacturing 

average over recent years. While specific figures vary based on research scope (hardware, software, services, 

etc.) and statistical periods, the market is widely recognized as operating within a mid-to-high single-digit or 

even low double-digit compound annual growth rate range.


Growth varies across different segments:


Robotics (especially collaborative robots and mobile robots): Often regarded as one of the fastest-growing 

sub-segments, driven by flexibility, ease of use, and optimized deployment costs.


Machine vision systems: Demonstrate robust growth fueled by applications such as quality inspection and 

guidance positioning.


Industrial software (MES/MOM, SCADA, industrial IoT platforms): Serving as the bridge connecting physical 

equipment with information management, its growth rate generally exceeds that of traditional hardware.


Core control systems (PLC, DCS) and drives/motors: As the foundation of automation, they maintain steady 

growth and benefit from upgrade demand.


Growth Stages and Characteristics:


The market is transitioning from large-scale automation deployment toward deeper, smarter integration 

and optimization. This shift emphasizes not just individual equipment automation, but interconnected 

production lines, entire factories, and supply chain-level data-driven decision-making and flexible manufacturing 

capabilities.


The importance of system integration services is increasingly evident, as the successful implementation of 

complex automation projects heavily relies on specialized planning, design, installation, and operational capabilities.


Demand for modular, scalable, and easily maintainable automation solutions continues to grow to

 accommodate rapidly changing production requirements.


Future Outlook:


Core growth drivers (efficiency, quality, cost, resilience) are expected to maintain their influence over the 

medium to long term.


Continuous technological advancements, particularly in data analytics, advanced sensing, and the integration 

of edge computing with cloud computing, will empower automation systems with enhanced perception, analysis, 

and adaptive capabilities, further unlocking growth potential.


Market penetration is expected to rise steadily as automation solutions become more accessible and 

cost-effective across a broader range of industries and enterprise sizes, including small and medium-sized businesses.


In summary, the industrial automation sector demonstrates robust and sustainable growth momentum. Its 

expansion rate reflects the manufacturing industry's urgent need to enhance efficiency, quality, resilience, and 

adaptability. Driven by technological advancements, cost optimization, and expanding application scenarios, it is 

projected to maintain growth rates exceeding the manufacturing sector average for the foreseeable future.