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India Factory Automation Market to Reach USD 14.3 Million by 2034, Growing at 7.02% CAGR - Get Free Sample Report

India’s factory automation sector is expanding due to rising investments, domestic manufacturing growth, and technological advancements. Increasing demand for efficiency, sustainability, and smart production systems is driving adoption across industries, strengthening supply chains, enhancing productivity, and positioning India as a key automation hub.
Published 12 December 2025

IMARC Group, a leading global market research and consulting company, has recently released a comprehensive report titled "India Factory Automation Market Size, Share, Trends and Forecast by Component, Control and Safety System, Industry Vertical, and Region, 2026-2034" The study offers a profound analysis of the industry, encompassing India factory automation market share, size, growth factors, key trends, and regional insights.

Market Growth and Outlook: According to the latest analysis by IMARC Group, the India factory automation market size is witnessing robust growth, with the broader industrial automation market valued at USD 7.8 Million in 2025.

Looking ahead, the market is projected to witness substantial growth, reaching USD 14.3 Million by 2034, exhibiting a robust Compound Annual Growth Rate (CAGR) of 7.02% during the forecast period of 2026–2034.

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Factors Driving the India Factory Automation Market: The market is witnessing strong growth primarily due to the increasing demand for efficiency, sustainability, and smart production systems across industries.

  1. Rising Adoption of Industry 4.0: The integration of digital technologies, IoT, and data analytics into manufacturing processes is a primary driver, enabling real-time monitoring and data-driven decision-making for enhanced productivity.
  2. Government Initiatives and "Make in India": Strategic government policies and the "Make in India" initiative are encouraging domestic manufacturing and attracting foreign investments, compelling industries to modernize their facilities with advanced automation.
  3. Need for Operational Efficiency and Quality: Manufacturers are increasingly automating production lines to minimize human error, ensure zero-defect production, and reduce operational downtime, particularly in sectors like automotive and electronics.
  4. Labor Cost and Skills Gap: The rising cost of manual labor and the shortage of skilled workforce for complex tasks are driving the adoption of automation solutions to maintain cost-competitiveness and production continuity.
  5. Growth of SME and MSME Sector: The availability of cost-effective and modular automation solutions is enabling Small and Medium Enterprises (SMEs) to adopt automation, expanding the market beyond just large conglomerates.

Key Industry Trends: The report highlights several transformative trends shaping the future of the factory automation industry in India:

  1. Rise of Collaborative Robots (Cobots): There is a growing preference for Cobots that can safely work alongside humans, offering flexibility and safety, which is particularly beneficial for the SME sector where full automation may not be feasible.
  2. Integration of AI and Predictive Maintenance: The shift from reactive to predictive maintenance using AI and smart sensors is becoming standard, allowing manufacturers to anticipate equipment failures and extend machinery lifespan.
  3. Adoption of Cloud-Based Automation: Cloud-based platforms are gaining popularity as they facilitate seamless remote monitoring, multi-site management, and real-time analytics, making operations more agile.
  4. Focus on Sustainability and Energy Efficiency: Tightening regulatory frameworks are driving the adoption of energy-efficient automation systems that optimize resource consumption and reduce the environmental footprint of manufacturing plants.
  5. Convergence of OT and IT: The increasing integration of Operational Technology (OT) with Information Technology (IT), such as connecting SCADA systems with enterprise ERPs, is streamlining workflows and enhancing overall business visibility.

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Comprehensive Market Report Highlights & Segmentation Analysis:

The market report offers a comprehensive analysis of the segments, highlighting those with the largest India factory automation market share. It includes forecasts for the period 2026-2034 and historical data from 2020-2025 for the following segments.

Component Insights:

  • Sensors
  • Controllers
  • Switches and Relays
  • Industrial Robots
  • Others

Control and Safety System Insights:

  • Distributed Control System (DCS)
  • Supervisory Control and Data Acquisition (SCADA)
  • Manufacturing Execution System (MES)
  • Safety Instrumented System (SIS)
  • Programmable Logic Controller (PLC)
  • Human Machine Interface (HMI)

Industry Vertical Insights:

  • Automotive Manufacturing
  • Food and Beverage
  • Oil and Gas Processing
  • Mining
  • Others

Regional Insights:

  • North India
  • West and Central India
  • South India
  • East and Northeast India

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Competitor Landscape: The report offers an in-depth examination of the competitive landscape. It includes a thorough competitive analysis encompassing market structure, key player positioning, leading strategies for success, a competitive dashboard, and a company evaluation quadrant.

Other key areas covered in the report:

  • COVID-19 Impact on the Market
  • Porter’s Five Forces Analysis
  • Strategic Recommendations
  • Market Dynamics
  • Historical, Current and Future Market Trends
  • Market Drivers and Success Factors
  • SWOT Analysis
  • Value Chain Analysis
  • Comprehensive Mapping of the Competitive Landscape
  • Top Winning Strategies
  • Recent Industry News
  • Key Technological Trends & Development

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Note: If you need specific information that is not currently within the scope of the report, we can provide it to you as a part of the customization.

Sources: IMARC Group

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