Europe Industrial Control & Factory Automation Market
Europe Industrial Control & Factory Automation Market by Component (Industrial Control System, Software, CNC Controller, Industrial Robotics, Industrial 3D Printing, Process Analyzer, Industrial Communication, Flow Meter) - Forecast to 2032
OVERVIEW
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
The Europe industrial control & factory automation market is estimated at USD 67.72 billion in 2025 and is projected to reach USD 124.68 billion by 2032, registering a CAGR of 9.1%. Growth in the Europe industrial control & factory automation market is driven by widespread modernization of manufacturing facilities and increasing adoption of smart factory technologies. The rising demand for energy efficiency, process optimization, and digitally connected production systems is supporting continued investments in automation across the region.
KEY TAKEAWAYS
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BY COUNTRYGermany is expected to dominate the Europe industrial control & factory automation market with a 31.9% share in 2025.
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BY COMPONENTBy component, the industrial 3D printing segment is expected to grow at a high CAGR of 14.1% during the forecast period.
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BY INDUSTRYThe automotive industry held the largest share in the Europe industrial control & factory automation market in 2024.
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Competitive Landscape - KEY PLAYERSFANUC Corporation, ABB, and KUKA AG were identified as some of the star players in the Europe industrial control & factory automation market, given their strong market share and product footprint.
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Competitive Landscape - STARTUPS/SMESStäubli International AG and COMAU, among others, have distinguished themselves among startups and SMEs by securing strong footholds in specialized niche areas, underscoring their potential as emerging market leaders.
The Europe industrial control & factory automation market is expanding as manufacturers modernize facilities to improve efficiency, reliability, and production flexibility. The strong adoption of Industry 4.0 practices, along with the rising use of industrial software, robotics, and connected control systems, is supporting this growth. In addition, increasing focus on energy efficiency, sustainability, and compliance is encouraging wider automation deployment across both discrete and process industries.
TRENDS & DISRUPTIONS IMPACTING CUSTOMERS' CUSTOMERS
The Europe industrial control & factory automation landscape is undergoing steady transformation as manufacturers move away from conventional control systems toward more connected, software-driven automation. Trends such as industrial IoT, smart sensors, industrial robotics, machine vision, and AI-enabled analytics are reshaping how factories operate and generate value. These shifts are expanding automation use cases across automotive, aerospace, chemicals, food & beverages, and semiconductor manufacturing. At the same time, cloud integration, edge computing, and data-driven operations are enabling predictive maintenance, higher process visibility, and more flexible production across European industries.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
MARKET DYNAMICS
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High adoption of advanced automation in automotive, machinery, and process industries
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Strong focus on Industry 4.0 and smart manufacturing across European economies
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High initial costs associated with advanced automation and system integration
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Longer replacement cycles for legacy equipment in traditional industries
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Rising adoption of AI, digital twins, and predictive maintenance solutions
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Growing demand for automation in pharmaceuticals, food & beverages, and chemicals
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Shortage of skilled automation and control engineering talent
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Interoperability issues across multi-vendor automation environments
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Driver: High adoption of advanced automation in automotive, machinery, and process industries
European manufacturers are accelerating automation adoption to improve productivity, quality, and operational consistency. Automotive, machinery, and process industries are investing heavily in robotics, control systems, and industrial software. This trend is supported by strong Industry 4.0 initiatives and ongoing factory modernization across the region.
Restraint: High initial costs associated with advanced automation and system integration
Advanced automation systems require significant upfront investment in hardware, software, and integration services. Many small and mid-sized manufacturers face budget constraints and long payback concerns. Integration complexity with legacy systems further increases deployment time and costs.
Opportunity: Rising adoption of AI, digital twins, and predictive maintenance solutions
European manufacturers are increasingly using AI and digital twins to optimize production and asset performance. Predictive maintenance is gaining traction as companies seek to reduce downtime and extend equipment life. These technologies enable data-driven decision-making and support more resilient, flexible manufacturing operations.
Challenge: Shortage of skilled automation and control engineering talent
The availability of skilled engineers and technicians remains limited across Europe. Rapid adoption of advanced control systems and software has widened the skills gap. This shortage can delay automation projects and increase dependence on external system integrators.
EUROPE INDUSTRIAL CONTROL & FACTORY AUTOMATION MARKET: COMMERCIAL USE CASES ACROSS INDUSTRIES
| COMPANY | USE CASE DESCRIPTION | BENEFITS |
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Implemented a 6-axis MELFA robot system in automation cells for modular soldering processes in electronic component manufacturing at a facility in Germany | Reduced floor space by up to 67%, shortened cycle times to 4.5 seconds per unit, increased flexibility for small batches, achieved cost savings in investment and production, and enhanced process integration with predictive capabilities |
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Deployed a Network Platform-based quality control system with sensors and controls to optimize tissue production at a manufacturing facility in Greece | Improved product consistency and process efficiency, reduced variability, enabled faster responses to changes, lowered energy consumption, optimized raw material usage, and minimized environmental impact through sustainable operations |
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Implemented a collaborative robot for automating quality control and testing of electrical switches at a production facility in Belgium | Enhanced production cost-effectiveness, improved operator ergonomics, minimized repetitive tasks, saved time, and delivered long-term economic benefits |
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Utilized Process Simulate software for simulation, optimization, and offline programming of robotic and automated manufacturing processes at an industrial automation company in Spain | Reduced project time by 30%, enhanced productivity with faster validation tools, improved accuracy and anti-collision detection, enabled early error identification, and increased competitiveness and customer satisfaction |
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USE CASE DESCRIPTION | BENEFITS |
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Implemented a 6-axis MELFA robot system in automation cells for modular soldering processes in electronic component manufacturing at a facility in Germany. | Reduced floor space by up to 67%, shortened cycle times to 4.5 seconds per unit, increased flexibility for small batches, achieved cost savings in investment and production, and enhanced process integration with predictive capabilities. |
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Deployed a Network Platform-based quality control system with sensors and controls to optimize tissue production at a manufacturing facility in Greece. | Improved product consistency and process efficiency, reduced variability, enabled faster responses to changes, lowered energy consumption, optimized raw material usage, and minimized environmental impact through sustainable operations. |
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Implemented an operations maintenance and asset management system to oversee equipment, work orders, and warehouse operations at power and automation facilities in Poland. | Provided full asset visibility and performance tracking, improved MTBF, MTTA, and MTTR metrics, enabled KPI reporting for stock and suppliers, and structured reactive maintenance for better efficiency. |
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Deployed an industrial microgrid integrating renewable energy, battery storage, and EV charging points for energy management at a manufacturing plant in Spain. | Increased energy efficiency, reduced costs and carbon footprint, achieved greater autonomy, optimized grid consumption, and supported decarbonization with reliable energy supplies. |
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Implemented a collaborative robot for automating quality control and testing of electrical switches at a production facility in Belgium. | Enhanced production cost-effectiveness, improved operator ergonomics, minimized repetitive tasks, saved time, and delivered long-term economic benefits. |
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Utilized Process Simulate software for simulation, optimization, and offline programming of robotic and automated manufacturing processes at an industrial automation company in Spain. | Reduced project time by 30%, enhanced productivity with faster validation tools, improved accuracy and anti-collision detection, enabled early error identification, and increased competitiveness and customer satisfaction. |
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET ECOSYSTEM
The Europe industrial control & factory automation ecosystem is well structured, with strong interaction between hardware-focused technology providers, software and platform vendors, and a broad base of end-use industries. Hardware solutions, such as control systems, robotics, and instrumentation, are increasingly integrated with industrial software, analytics, and digital platforms to enable connected and data-driven operations. Demand from manufacturing, energy, chemicals, food processing, and aerospace applications is sustaining steady adoption and continuous innovation across the region.
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET SEGMENTS
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Europe Industrial Control & Factory Automation Market, By Component
The industrial software segment dominated the overall market in 2024 as manufacturers across Europe accelerated digital transformation initiatives. Solutions such as MES, SCADA, and advanced analytics are being widely deployed to improve production visibility, traceability, and operational control. Increasing integration of industrial software with PLCs, robotics, and IIoT platforms is enabling real-time monitoring and data-driven optimization. This strong reliance on software platforms has made them central to factory automation strategies.
Europe Industrial Control & Factory Automation Market, By Industry
The automotive industry is expected to account for the largest share of the overall industrial control & factory automation market due to sustained investments in automation-intensive production environments. European automakers are expanding the use of robotics, motion control, and advanced control systems to support high-volume, high-precision manufacturing. Automation is also playing a key role in managing complex assembly processes and supporting electric vehicle production. These factors continue to position automotive manufacturing as a major driver of automation adoption across Europe.
REGION
Germany to grow at a high rate in Europe industrial control & factory automation market during forecast period
Germany is the fastest-growing country in the Europe industrial control & factory automation market, supported by strong adoption of Industry 4.0 and advanced manufacturing practices. Manufacturers are actively upgrading production facilities with industrial software, robotics, and connected control systems to improve efficiency and flexibility. Continued investment in automotive, machinery, and industrial equipment manufacturing is further accelerating automation growth across the country.
EUROPE INDUSTRIAL CONTROL & FACTORY AUTOMATION MARKET: COMPANY EVALUATION MATRIX
ABB and FANUC stand out as leading players in the Europe industrial control & factory automation landscape due to their deep roots in regional manufacturing and long-standing adoption of industrial robotics. Their strength lies in offering reliable, high-performance robot systems that align well with Europe’s focus on precision engineering, quality standards, and flexible production. Continued upgrades in robot intelligence, energy efficiency, and safety features support their strong role in automation programs across European production facilities.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
KEY MARKET PLAYERS
- ABB (Switzerland)
- Emerson Electric Co. (US)
- Siemens (Germany)
- Schneider Electric (France)
- Mitsubishi Electric Corporation (Japan)
- GE Vernova (US)
- Rockwell Automation (US)
- Honeywell International Inc. (US)
- Yokogawa Electric Corporation (Japan)
- OMRON Corporation (Japan)
- FANUC Corporation (Japan)
- KUKA AG (Germany)
MARKET SCOPE
| REPORT METRIC | DETAILS |
|---|---|
| Market Size in 2024 (Value) | USD 63.16 Billion |
| Market Forecast in 2032 (Value) | USD 124.68 Billion |
| Growth Rate | CAGR of 9.1% from 2025 to 2032 |
| Years Considered | 2021–2032 |
| Base Year | 2024 |
| Forecast Period | 2025–2032 |
| Units Considered | Value (USD Million/Billion), Volume (Thousand Units) |
| Report Coverage | Revenue Forecast, Company Ranking, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
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| Regional Scope | Europe (UK, Germany, France, Rest of Europe) |
WHAT IS IN IT FOR YOU: EUROPE INDUSTRIAL CONTROL & FACTORY AUTOMATION MARKET REPORT CONTENT GUIDE
DELIVERED CUSTOMIZATIONS
We have successfully delivered the following deep-dive customizations:
| CLIENT REQUEST | CUSTOMIZATION DELIVERED | VALUE ADDS |
|---|---|---|
| Pan-European Ecosystem Mapping of Industrial Control & Automation | Mapped the regional automation ecosystem covering control platforms, industrial software, robotics, instrumentation, safety systems, and communication technologies across Western, Central, and Eastern Europe, with a focus on cross-border supply chains and compliance-driven deployments | Provides clear visibility into ecosystem linkages, regional strengths, and country-level adoption patterns, supporting localization, market entry, and expansion strategies across Europe |
| Competitive Assessment of Automation Providers | Benchmarked leading vendors based on product depth, robotics integration, software interoperability, sustainability readiness, and strength of local service and partner networks across major European markets | Enhances competitive intelligence, supports vendor comparison, and informs partnership and acquisition decisions in a mature yet fragmented market |
| Industry- and Application-Level Opportunity Analysis | Evaluated automation demand and high-value use cases across automotive, aerospace, chemicals, food & beverages, energy transition projects, and advanced manufacturing clusters | Identifies revenue-rich segments, prioritizes target industries, and sharpens go-to-market focus in precision- and compliance-driven environments |
| Technology Adoption and Digitalization Roadmap | Assessed maturity of IIoT, AI-enabled automation, digital twins, robotics, and edge architectures, incorporating data sovereignty, cybersecurity, and sustainability considerations specific to Europe | Guides long-term technology investment planning and aligns automation strategies with regulatory and decarbonization goals |
| Cost Structure, Integration, and Deployment Barrier Analysis | Analyzed system costs, integration complexity, legacy infrastructure constraints, workforce skill gaps, and cybersecurity risks impacting automation deployments across European facilities | Enables realistic deployment planning, optimized pricing strategies, and proactive risk mitigation in regulation-intensive operating conditions |
RECENT DEVELOPMENTS
- December 2025 : ABB announced the acquisition of UK-based IPEC to strengthen its data center and industrial monitoring capabilities. IPEC’s AI-driven electrical diagnostics technology enhances ABB’s predictive maintenance portfolio by enabling early fault detection, reducing downtime, lowering maintenance costs, and improving asset reliability across critical infrastructure sectors.
- November 2025 : Dangote Petroleum Refinery selected Honeywell to supply advanced refining technologies, automation solutions, catalysts, and services to expand production capacity at its Lekki facility in Nigeria. Honeywell’s solutions will help double refinery throughput, improve efficiency, reduce operational costs, and support large-scale, reliable process automation at one of the world’s largest refining complexes.
- June 2025 : Yokogawa Electric Corporation entered a long-term collaboration with Shell Global Solutions to integrate robotics, drones, machine vision, and AI into plant monitoring and maintenance. The partnership incorporates Shell’s Operator Round by Exception (ORE) technology into Yokogawa’s OpreX Robot Management Core, enabling autonomous inspection, improved asset integrity management, and safer operations across energy and chemical facilities.
- February 2025 : Mitsubishi Electric launched the MELFA RH-10CRH and RH-20CRH SCARA robot series to support digital manufacturing and address skilled labor shortages. The robots feature high-speed operation, compact design, battery-less motors, and simplified installation, improving productivity, reducing maintenance costs, and enabling flexible automation in space-constrained manufacturing environments.
Table of Contents
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Methodology
The study involved major activities in estimating the current market size for the industrial control & factory automation market. Exhaustive secondary research was done to collect information on the industrial control & factory automation industry. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain using primary research. Different approaches, such as top-down and bottom-up, were employed to estimate the total market size. After that, the market breakup and data triangulation procedures were used to estimate the market size of the segments and subsegments of the industrial control & factory automation market.
Secondary Research
The market for the companies offering industrial control & factory automation solutions is arrived at by secondary data available through paid and unpaid sources, analyzing the product portfolios of the major companies in the ecosystem, and rating the companies by their performance and quality. Various sources were referred to in the secondary research process to identify and collect information for this study. The secondary sources include annual reports, press releases, investor presentations of companies, white papers, journals, certified publications, and articles from recognized authors, directories, and databases. In the secondary research process, various secondary sources were referred to for identifying and collecting information related to the study. Secondary sources included annual reports, press releases, and investor presentations of blockchain vendors, forums, certified publications, and whitepapers. The secondary research was used to obtain critical information on the industry's value chain, the total pool of key players, market classification, and segmentation from the market and technology-oriented perspectives.
Primary Research
Extensive primary research has been conducted after understanding and analyzing the current scenario of the industrial control & factory automation market through secondary research. Several primary interviews have been conducted with the key opinion leaders from the demand and supply sides across four main regions—North America, Europe, Asia Pacific, and the Rest of Europe. Approximately 25% of the primary interviews were conducted with the demand-side respondents, while approximately 75% were conducted with the supply-side respondents. The primary data has been collected through questionnaires, emails, and telephone interviews.
After interacting with industry experts, brief sessions were conducted with highly experienced independent consultants to reinforce the findings from our primary. This, along with the in-house subject matter experts’ opinions, has led us to the findings as described in the remainder of this report. The breakdown of primary respondents is as follows:
About the assumptions considered for the study, To know download the pdf brochure
Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and validate the total size of the industrial control & factory automation market. These methods were also used extensively to estimate the size of various subsegments in the market. The research methodology used to estimate the market size includes the following:
Data Triangulation
After arriving at the overall market size using the market size estimation processes as explained above, the market was split into several segments and subsegments. The data triangulation and market breakdown procedures were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment. The data was triangulated by studying various factors and trends from the demand and supply sides.
Market Definition
Industrial control & factory automation is a highly digitalized and connected production system that can self-optimize performance across a broad network, self-adapt in various conditions in real time, and autonomously run an entire production process. The major advantage of industrial control & factory automation is its ability to evolve with the changing needs of organizations. Industrial control & factory automation uses a network to connect the virtual and physical elements of production processes to actual manufacturing operations. It helps to create an autonomous manufacturing environment that can handle any technical issues during real-time production, using fragmented information and communication structures to optimize production processes.
Key Stakeholders
- End users
- Government bodies, venture capitalists, and private equity firms
- Manufacturers of industrial control & factory automation components
- Distributors of industrial control & factory automation components and solutions
- Industrial control & factory automation industry associations
- Professional service/solution providers
- Research institutions and organizations
- Standards organizations and regulatory authorities related to the industrial control & factory automation market
- System integrators
- Technology consultants
Report Objectives
- To describe and forecast the industrial control and factory automation market, in terms of value, based on component, and industry
- To forecast the industrial control and factory automation market, in terms of volume, by component
- To forecast the market size, in terms of value, for four main regions—North America, Europe, Asia Pacific, and the RoW.
- To provide detailed information regarding drivers, restraints, opportunities, and challenges influencing the market growth
- To provide a detailed overview of the value chain of the industrial control and factory automation ecosystem
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and contributions to the total market
- To provide a detailed overview of the industrial control and factory automation market value chain
- To provide an ecosystem analysis, case study analysis, key conferences, patent analysis, trade analysis, technology analysis, average selling price (ASP) analysis, Porter’s five forces analysis, buying criteria, and regulations pertaining to the market
- To track and analyze competitive developments undertaken by key players in the industrial control and factory automation market
- To profile key players and analyze their market share, core competencies2, and detailed competitive landscape for market leaders
- To benchmark market players using the company evaluation matrix, analyzing players based on various parameters within broad business categories and product strategies.
- To analyze strategies, such as product launches, acquisitions, partnerships, and expansions, adopted by the players in the industrial control and factory automation market
- To study the impact of AI on the market under study, along with the macroeconomic outlook for each region
Available Customizations
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- Detailed analysis and profiling of additional market players based on various blocks of the supply chain
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Growth opportunities and latent adjacency in Europe Industrial Control & Factory Automation Market