Industrial Automation Market Segmentation: Uncovering the Core Trajectory of Smart Manufacturing

2025-11-10

View: 7

On the increasingly competitive global manufacturing stage, accurately grasping the market segmentation of 

industrial automation has become crucial for enterprises to formulate strategies and seize opportunities.


As the cornerstone of smart manufacturing, industrial automation is reshaping the global manufacturing 

landscape at an unprecedented pace. With continuous technological advancements and expanding application 

scenarios, this market has evolved into a complex, multi-layered, and multi-dimensional ecosystem.


Understanding these market segments not only enables precise positioning but also unlocks growth potential 

and optimizes resource allocation. This article delves into the core segments of industrial automation, revealing

 the underlying logic and future opportunities within this vast blue ocean.


Two Market Models: Dual Pathways of Process and Discrete Manufacturing


The industrial automation market can be primarily divided into two directions: process automation and discrete automation 

(also known as factory automation), each corresponding to distinct production models and technical requirements.


Process automation primarily serves industries with continuous production processes, such as chemicals, power generation, 

and municipal utilities. In these sectors, production flows are fixed and continuous, with automation systems focused on

 ensuring process stability, safety, and efficiency.


In 2022, China's process automation market reached 182.6 billion yuan, growing 6.1% year-on-year, primarily driven by 

investments in chemical projects and infrastructure.


Discrete automation serves industries assembling individual components, such as machine tools, robotics, lithium 

battery equipment, and photovoltaic equipment. Demand in this segment fluctuates significantly. While the 2022 

market size was 113.7 billion yuan, specific sectors like lithium battery and photovoltaic industries maintained high 

growth momentum, sustaining robust demand for specialized equipment.


Product Segmentation: The Core Building Blocks of Automation


From a product perspective, the industrial automation market can be segmented into several key areas, each with 

unique technical characteristics and market dynamics.


Control systems, serving as the “brain” of automation, include Programmable Logic Controllers (PLCs) and Distributed

 Control Systems (DCS). The PLC market reached 17 billion yuan in 2022, growing 7.2% year-over-year.


Within this segment, domestic brands are steadily increasing their share in the small PLC market, while foreign 

brands continue to dominate the medium-to-large PLC market.


Industrial robots and actuation systems serve as the “limbs” of the automation world, translating control commands

 into physical actions. The industrial robotics sector exhibits a trend of domestic brands breaking through while 

engaging in global competition and cooperation. Domestic brands are gaining recognition, and industrialization

 rates are accelerating.


The sensing and instrumentation sector acts as the “senses” of automation systems, responsible for collecting 

various environmental and operational data. In 2022, the sensor market reached 20.4 billion yuan, growing by 

15.6% year-over-year.


Machine vision demonstrated outstanding performance with a growth rate of 25%.


Drive systems, including servo systems and frequency converters, serve as the “muscles” of automated equipment. 

The frequency converter market reached 37.5 billion yuan in 2022, growing 3.0% year-on-year.


Despite short-term fluctuations, the servo system market maintained a compound annual growth rate of 16.9% 

over the past three years, with domestic enterprises continuously enhancing their competitiveness.


Emerging Forces: The Rise of Industrial Software and Cloud Services


Beyond hardware equipment, industrial IoT software and cloud services are becoming the smallest yet fastest-growing 

segment within the industrial automation market.


This domain encompasses solutions connecting diverse industrial equipment within factories and enabling 

data-driven manufacturing through analytics. Current growth rates reach 18%, significantly outpacing the automation 

market average.


Surveys indicate that 69% of industrial automation users and suppliers report digital solutions as a critical 

component of their automation efforts, with 94% deeming such solutions particularly vital for future automation

 initiatives.


Regional Markets: China's Influence in the Global Landscape


Regionally, China has emerged as a major force in the global industrial automation market. China's industrial 

automation market exceeds RMB 250 billion, accounting for over one-third of the global market share.


China's automation industry is projected to achieve leapfrog growth over the next five years.


Meanwhile, the Asia-Pacific region is expected to dominate the global market due to the extensive adoption 

of automation technologies across all industries.


Future Trends: Navigating Automation's Evolution


Looking ahead, several distinct trends will shape the industrial automation segment:


Market growth potential remains substantial, with advanced manufacturing markets like China, Japan, South

 Korea, and Western Europe poised to lead the automation revolution by 2030. Global sales of industrial 

automation control systems are projected to reach 1.87 trillion yuan by 2031.


Shifting labor structures are accelerating automation adoption. Population aging has prompted approximately 

40% of employers in high-income countries to pursue transformation, while rising labor costs further drive 

automation substitution.


Deepening technological convergence sees emerging technologies like industrial AI, embodied intelligence, and 

humanoid robots becoming key focus areas for manufacturers. The profound integration of industrial automation 

with digital transformation is reshaping the competitive landscape.


As the industrial automation market becomes increasingly specialized and mature, enterprises must accurately 

grasp the characteristics and trends of each segment to gain a competitive edge in the fiercely competitive market.


Whether in the rapidly growing digital solutions sector or the traditional yet stable process control domain, 

unique opportunities and challenges exist. Understanding the underlying logic of these market segments is 

not only essential for market participants but also the key to unlocking the future of smart manufacturing.