According to Fortune Business Insights, the global factory automation market was valued at USD 154.31 billion in 2025 and is expected to grow from USD 165.89 billion in 2026 to USD 369.24 billion by 2034, registering a CAGR of 10.5% during the forecast period (2026–2034). The market is expanding steadily due to increasing industrial automation, adoption of smart manufacturing technologies, and rising investments in advanced production systems that improve efficiency, precision, and operational productivity across manufacturing industries.
Factory automation refers to the use of advanced control systems, robotics, software, and connected technologies to automate industrial production processes. These technologies enable manufacturers to improve equipment coordination, increase process accuracy, reduce downtime, and enhance workplace safety.
Modern automation solutions provide manufacturers with real-time production visibility, improved operational control, and greater manufacturing flexibility. The increasing integration of Industrial Internet of Things (IIoT), artificial intelligence (AI), machine learning, digital twin technology, and autonomous robotics is accelerating the transition toward connected and intelligent manufacturing environments.
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One of the most significant trends in the factory automation market is the rapid adoption of Industrial Internet of Things (IIoT) technologies. Connected sensors, machines, and production systems allow manufacturers to monitor operations in real time and improve production efficiency.
The use of artificial intelligence and machine learning is also increasing across manufacturing facilities. Intelligent automation systems help optimize production processes, improve operational efficiency, and support predictive decision-making.
Another major trend is the growing implementation of digital twin technology, which enables manufacturers to create virtual models of production assets and manufacturing processes for monitoring, simulation, and optimization.
The expansion of robotics and autonomous systems is further strengthening factory automation by improving productivity, precision, and manufacturing flexibility across high-volume production environments.
The increasing need for manufacturing modernization is a major factor driving market growth. Manufacturers are upgrading production facilities to improve asset utilization, strengthen process visibility, and enhance operational efficiency.
The demand for higher production productivity is another important driver. Automation systems reduce dependency on manual operations, improve equipment coordination, and optimize manufacturing workflows.
Rising adoption of smart manufacturing technologies is also accelerating market expansion. Connected automation systems enable manufacturers to collect operational data, improve production monitoring, and support digital manufacturing strategies.
Additionally, the growing focus on process accuracy, product quality, and workplace safety is creating strong demand for industrial control systems, machine vision technologies, robotics, and intelligent automation solutions.
The factory automation market is segmented based on solution, industry vertical, technology, component, and region.