Industrial Automation Services Market

Market Definition

The market encompasses a broad range of services aimed at automating and optimizing industrial processes to increase operational efficiency, reduce costs, and improve safety. This market includes the provision of engineering, consulting, installation, maintenance, and support services related to automation technologies such as robotics, control systems, and software solutions.

The report explores key drivers of market development, offering detailed regional analysis and a comprehensive overview of the competitive landscape shaping future opportunities.

Industrial Automation Services Market Overview

The global industrial automation services market size was valued at USD 164.13 billion in 2024 and is projected to grow from USD 180.87 billion in 2025 to USD 380.25 billion by 2032, exhibiting a CAGR of 10.93% during the forecast period.

This growth is attributed to the increasing adoption of industrial automation technologies across manufacturing, energy, automotive, and other key sectors, driven by the rising need for operational efficiency, precision, and reduced human intervention. The demand for smart manufacturing solutions is prompting widespread deployment of advanced control systems, robotics, and real-time data analytics across industrial environments.

Major companies operating in the industrial automation services industry are Rockwell Automation, Honeywell International Inc., ABB, Mitsubishi Electric Corporation, Emerson Electric Co., Siemens, OMRON Corporation, Yokogawa Electric Corporation, Schneider Electric, Cisco Systems, Inc., Johnson Controls, Fuji Electric Corp, SAP SE, FANUC, and General Electric Company.

The growing focus of enterprises on minimizing downtime, improving productivity, and enhancing safety standards is further driving the uptake of automation services such as system integration, predictive maintenance, and remote monitoring.

In addition, continuous innovation in automation technologies, rising investment in digital transformation initiatives, and increasing awareness among industries about the long-term cost benefits of automation are accelerating the development of the market.

• In April 2024, Rockwell Automation, a global leader in industrial automation and digital transformation, revealed plans for a new 98,000-square-foot manufacturing facility in Chennai, India, scheduled to open in 2025.

Key Highlights

1. The industrial automation services industry size was valued at USD 164.13 billion in 2024.
2. The market is projected to grow at a CAGR of 10.93% from 2025 to 2032.
3. North America held a market share of 35.95% in 2024, with a valuation of USD 59.00 billion.
4. The project engineering & installation segment garnered USD 54.56 billion in revenue in 2024.
5. The automotive segment is expected to reach USD 84.83 billion by 2032.
6. The market in Asia Pacific is anticipated to grow at a CAGR of 11.82% during the forecast period.

Market Driver

Rising Demand for Operational Efficiency and Productivity

The market is propelled by the rising demand for operational efficiency and productivity across various industrial sectors. As companies face increasing pressure to reduce costs, optimize resource utilization, and accelerate production timelines, there is a growing need for automation solutions that streamline processes and minimize human error. 

This is prompting industries to adopt advanced automation services that enable faster production cycles, consistent quality, and real-time monitoring of operations. This shift is further supported by the availability of data analytics and predictive maintenance tools, which help identify bottlenecks and reduce downtime. 

The increasing focus on maximizing output while maintaining cost-effectiveness is driving stakeholders to invest in scalable, intelligent automation technologies and services, thereby fueling the growth of the global industrial automation services market.

• In April 2025, Rockwell Automation and Amazon Web Services, Inc. partnered to accelerate industrial automation and manufacturing digital transformation by integrating operational technology with cloud services. Their solutions, including FactoryTalk DataMosaix and Fiix CMMS, offer scalable, secure tools to optimize asset performance, showcased at Hannover Messe 2025.

Market Challenge

Complex Integration with Legacy Systems

The complex integration with legacy systems presents a significant challenge to the growth and implementation of industrial automation services, especially in industries with long-standing infrastructure. 

Numerous industrial plants and manufacturing units still depend on  outdated control systems, machinery, and software platforms that lack the interoperability needed to connect with modern automation technologies such as the Internet of Things (IoT), artificial intelligence (AI), and cloud-based solutions. 

This technological gap makes it difficult to achieve seamless data exchange and coordinated process control, requiring costly customization, middleware development, and extended implementation timelines. 

To overcome these challenges, automation service providers are developing modular, scalable integration solutions that enable gradual modernization while minimizing downtime. Collaborative efforts between technology vendors and industrial operators are also helping to create transition strategies that preserve the functionality of legacy systems while enabling digital transformation. 

Market Trend

Growing Adoption of Industry 4.0 Technologies

Advancements in Industry 4.0 technologies are transforming the industrial automation services market by enhancing connectivity, intelligence, and automation capabilities across manufacturing and production processes. Industry 4.0 solutions incorporate the Internet of Things (IoT), artificial intelligence (AI), machine learning, and advanced robotics for real-time data collection, analysis, and autonomous decision-making to optimize operations and reduce downtime. 

These allow for greater flexibility and precision in managing complex industrial environments, making them suitable for diverse sectors. Furthermore, continuous research and development efforts are being led by technology developers, research institutions, and innovation-driven industrial stakeholders. 

These initiatives focus on creating interoperable and scalable automation platforms that enhance system integration, improve operational efficiency, and promote sustainable industrial growth.

• In May 2025, Siemens launched advanced AI agents for its Industrial Copilot platform, enabling autonomous industrial workflows and boosting productivity by up to 50% compared to traditional manual processes and earlier automation systems.. These agents integrate with Siemens and third-party tools and will be available via the Siemens Xcelerator marketplace. The Copilot suite supports design, planning, engineering, operations, and maintenance, enhancing efficiency and decision-making across industries.

Industrial Automation Services Market Report Snapshot

Segmentation	Details
By Type	Project Engineering & Installation, Maintenance & Support Services, Consulting Services, and Operational Services
By End Use	Automotive, Manufacturing, Oil & Gas, Chemical, Pharmaceutical, Food & Beverages, Energy & Utilities, and Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Type (Project Engineering & Installation, Maintenance & Support Services, Consulting Services, and Operational Services): The project engineering & installation segment earned USD 54.56 billion in 2024 due to increased investments in new automation infrastructure and the rising demand for customized system integration across industries.
• By End Use (Automotive, Manufacturing, Oil & Gas, Chemical, Pharmaceutical, Food & Beverages, Energy & Utilities, and Others): The automotive segment held 22.42% of the market in 2024, due to the high demand for automation to enhance production efficiency, ensure quality control, and meet the growing complexity of automotive manufacturing processes.

Industrial Automation Services Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

North America industrial automation services market share stood around 35.95% in 2024, with a valuation of USD 59.00 billion. This dominance is attributed to the region’s advanced manufacturing ecosystem, early adoption of Industry 4.0 technologies, and the presence of leading automation service providers. 

Additionally, strong government support for digital transformation initiatives, substantial investments in smart factory developments, and the high demand for automation in key industries such as automotive and aerospace are fueling market growth in North America. 

Robust research and development activities, combined with a skilled workforce and continuous innovation in automation solutions, are further driving the adoption of industrial automation services across the region. Furthermore, increasing focus on operational efficiency, sustainability, and reducing production costs is accelerating the deployment of advanced automation technologies, thereby boosting market expansion.

• In September 2023, Red Hat and Intel partnered to launch an open-source industrial edge platform aimed at advancing industrial automation on the manufacturing shop floor. The solution enhances automation, cybersecurity, and predictive maintenance through real-time data and open standards.

The industrial automation services industry in Asia-Pacific is poised for significant growth at a robust CAGR of 11.82% over the forecast period. This growth is attributed to rapid industrialization, increasing adoption of smart manufacturing technologies, and expanding infrastructure development across the Asia-Pacific region. 

The region’s large industrial base, coupled with rising labor costs and the growing need for operational efficiency, supports the accelerating implementation of automation services. The increasing presence of multinational companies and government initiatives promoting digital transformation further drive demand for advanced industrial automation solutions. 

Additionally, investments in research and development, along with collaborations between technology providers and local manufacturers, are enhancing service quality and innovation, thereby propelling market growth in this region.

Regulatory Frameworks

• Globally, the International Electrotechnical Commission (IEC) 61508 standard governs the functional safety of electrical, electronic, and programmable electronic safety-related systems in industrial automation. This standard ensures that automated systems are designed to minimize risks and maintain reliability in safety-critical applications.
• In the U.S., the National Institute of Standards and Technology (NIST) Cybersecurity Framework provides guidelines for securing industrial control systems, which is critical for the safe and secure delivery of industrial automation services. Additionally, the Occupational Safety and Health Administration (OSHA) standards regulate workplace safety concerning the installation, maintenance, and operation of industrial automation systems.

Competitive Landscape

The industrial automation services industry comprises a varied combination of well-established global companies and innovative regional firms. These players aim to broaden their service offerings and expand their geographic presence through technological innovation, strategic collaborations, and increased market penetration. 

Leading firms are heavily investing in research and development to enhance automation capabilities, improve system integration, and deliver more efficient, scalable, and customized solutions. They are also offering cost-effective service models to meet the growing demand across manufacturing, energy, automotive, and other key industries. 

• In February 2023, Schneider Electric, Capgemini, and Qualcomm partnered to develop a 5G private network for industrial automation. Their 5G-enabled hoisting system replaces wired connections with wireless technology, improving efficiency, precision, and reliability across manufacturing and logistics sectors.

List of Key Companies in Industrial Automation Services Market:

• Rockwell Automation
• Honeywell International Inc.
• ABB
• Mitsubishi Electric Corporation
• Emerson Electric Co.
• Siemens
• OMRON Corporation
• Yokogawa Electric Corporation
• Schneider Electric
• Cisco Systems, Inc.
• Johnson Controls
• Fuji Electric Corp
• SAP SE
• FANUC
• General Electric Company

Recent Developments (Partnerships)

• In December 2024, ONDEX Automation partnered with Automation & Control Inc., a specialist in custom automation and control systems. The collaboration is intended to strengthen ONDEX’s solution offerings and drive business growth by expanding its reach, enhancing customer engagement, and increasing revenue opportunities within the North American industrial automation market.