Industrial Automation Market Forecast to Reach $410 Billion by 2031
Global industrial automation is projected to grow at a 9% CAGR through 2031, fueled by AI integration and a record rise in robotic installations.
The global industrial automation sector is valued at $266.7 billion in 2026 and is expected to expand to $410.3 billion by 2031, according to a report from Wissen Research. This 9% compound annual growth rate (CAGR) is driven by the industry's shift from isolated, hardware-centric machines to connected, software-integrated production systems.
Robotic adoption remains a primary driver, with 603,000 units installed globally in 2025. While automotive manufacturing has traditionally led the sector, recent growth shows significant gains in metal machinery and electronics. Furthermore, the competitive landscape is shifting; Chinese manufacturers now supply a majority of robots installed domestically, challenging the market dominance of established global firms.
Artificial intelligence has transitioned from proof-of-concept to operational implementation, with over 60% of organizations using AI in live factory settings. Practical applications, including predictive maintenance and automated quality inspection, are yielding measurable results. However, scaling these technologies remains complex, as nearly half of surveyed companies report gaps in collaboration between IT and operational technology (OT) departments.
Industry momentum is supported by several macro factors, including the need for precision in semiconductor manufacturing, strict traceability requirements in pharmaceuticals, and energy optimization efforts across heavy industry. As companies move to modernize aging infrastructure, the integration of data-driven, real-time analytics is becoming a standard requirement for maintaining competitive production levels.