According to the report, the global factory automation market is projected to expand from USD 234.9 billion in 2025 to USD 561.2 billion by 2035, registering a CAGR of 9.1%, the highest during the forecast period. The growth in demand of energy efficient and sustainable manufacturing solutions is driving the factory automation market by cutting back on energy use, decreasing wastage and help in compliance with regulations. For instance, in July 2025, Schneider Electric extended its EcoStruxure Automation Expert platform, which would combine energy management with automation to streamline the production by reducing carbon footprint. The market is being propelled by sustainable automation solutions that have improved efficiency and helped in manufacturing in a more environmentally responsible manner.
Furthermore, the government programs and favorable policies are increasing the factory automation market stimulating the use of advanced manufacturing, financing the research and development and facilitating the infrastructure progress. For instance, in May 2025, METI in Japan introduced a 300 billion subsidy scheme to speed up the process of AI- and cobot-driven automation of SMEs to boost productivity and competitiveness. The market is being pushed by governmental assistance in terms of making more advanced automation technologies more widespread.
“Key Driver, Restraint, and Growth Opportunity Shaping the Global Factory Automation Market”
The lack of skilled workers who can program and support advanced automation systems is a notable limitation in the factory automation market. A lot of manufacturers have problems with hiring engineers and technicians that are skilled in robotics, IoT, and AI-enabled platforms. Such a gap in skills can slow down the implementation of automation, create more reliance on third-party service providers, and constrain the ability to scale up the automation projects. The lack of workers stalls the adoption rates and demands more training investments, which may increase the costs of operations and impact ROI.
The integration of edge computing for real-time production analytics, which facilitates quicker decision-making and lowers data processing latency, is an emerging possibility in factory automation. By deploying edge devices alongside automation equipment, manufacturers can monitor operations, predict failures, and optimize performance locally without relying solely on cloud infrastructure. Edge computing improves responsiveness, minimizes downtime, and develops new services, paving the way to value-added service providers to offer new services in automated manufacturing.
Expansion of Global Factory Automation Market
“Expansion of Digital Twin and Simulation-Based Process Optimization”
Regional Analysis of Global Factory Automation Market
Prominent players operating in the global factory automation market are ABB Ltd, Azbil Corporation, Beckhoff Automation GmbH & Co. KG, Bosch Rexroth AG, Cognex Corporation, Danfoss A/S, Emerson Electric Co., FANUC Corporation, Festo AG & Co. KG, Fortive Corporation, Fuji Electric Co. Ltd, General Electric Company, Honeywell International Inc., Keyence Corporation, KUKA AG, Mitsubishi Electric Corporation, Omron Corporation, Rockwell Automation Inc., Schneider Electric SE, Siemens AG, Yaskawa Electric Corporation, Yokogawa Electric Corporation, and Other Key Players.
The global factory automation market has been segmented as follows:
Global Factory Automation Market Analysis, By Component
Global Factory Automation Market Analysis, By Communication Protocol
Global Factory Automation Market Analysis, By Deployment Mode
Global Factory Automation Market Analysis, By Organization Size
Global Factory Automation Market Analysis, By Process
Global Factory Automation Market Analysis, By Function
Global Factory Automation Market Analysis, By End-use Industry
Global Factory Automation Market Analysis, By Region
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