Industrial Automation Software Market Size, Share, Growth, and Industry Analysis, By Type (Cloud Based & On Premise), By Application (Automotive & Oil and Gas), and Regional Forecast to 2033

INDUSTRIAL AUTOMATION SOFTWARE MARKET OVERVIEW

The Global Industrial Automation Software Market size was USD 41452.44 billion in 2024 and is projected to touch USD 73261.5 billion by 2032, exhibiting a CAGR of 5.8% during the forecast period.

The market for Industrial Automation Software has come of a sudden dynamism that is chiefly propelled by the increasing drive towards efficiency, productivity, and less operational cost across industries. Such software for industrial automation helps in machines controlling and monitoring processes or whole production lines with innovative technologies like AI, IoT, and machine learning. It has a very important role in the manufacturing, energy, and automotive sectors by streamlining operations and minimizing human intervention. The growing feature of smart factories is said to later be expected to increase even more demand for novel automation solutions. This indeed puts the entire market into further growth within the following years, fueled all through technological advancement and digital transformation initiatives.

GLOBAL CRISES IMPACTING INDUSTRIAL AUTOMATION SOFTWARE MARKET - COVID-19 IMPACT

"Industrial Automation Software Industry Had a Positive Effect Due to remote monitoring, predictive maintenance, and smart manufacturing features"" during COVID-19 Pandemic"

The Global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The emerging pandemic of Covid-19 contributed to a furtherance of the Industrial Automation Software Market by hastening automation technology adoption. Industry after industry has been struggling because of a labor shortage and the inability to provide people at the workstation for conducting a business through remote operation. This results in the emerging usage of more automation in maintaining productivity and continuity in business operations. The effect of these will be the additional number of software solutions that provide remote monitoring, predictive maintenance, and smart manufacturing features. The pandemic held resilience and efficiency at the forefront, and, as such, there was very quick transformation to a digital environment across sectors. This way, the market for industrial automation got quite thick during that time, but with a largely laid foundation for further growth.

LATEST TREND

"Market growth is driven by agentic AI innovations"

Changes under the effect of technology and the need for business developments have brought very huge changes in the Industrial Automation Software Market, which is devoid of restraints today. Some of the trends noticed include further implementation of agentic AI for autonomous decisions, modeled on Software as a Service (SaaS) for scalability, and hyperautomation to simplify possibly complex tasks ahead. Very huge and bright prospects of progress are unitary automation platforms, realizing the interoperability between dissimilar industrial systems. However, agentic AI stands out among such innovations. The technology makes it possible for a system to take decisions in real-time and adjust to continuously changing environments without human interference, thus allowing greater efficiency and responsiveness of operations in the industrial house. Companies, such as Siemens and Dassault Systèmes, have adopted the agentic form of AI to optimize predictive maintenance allocation of resources and offer process automation. This and many other improvements will redefine and widen the agentic AI scope within industries.

INDUSTRIAL AUTOMATION SOFTWARE MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Cloud Based & On Premise

• Cloud-Based: The trending dichotomy of cloud-based software in industrial automation is in growing demand but has proven flexible and scalable at a cost. Real-time data access, along with remote monitoring, will make updates easy without the big, heavy investments in infrastructural holdings. This model holds an integration capability with IoT interfaces and with the capabilities of AI machine learning since the faster the decision is accelerated, the more productive the making of such speed becomes. Cloud solutions are now becoming a necessary requirement for remaining competitive.

• On-Premise: On-premise industrial automation software has always been preferred by industries that insist on perfect security and control over their data. This comprises a combination of installing and maintaining the software on a company's own servers or infrastructure. This arrangement allows a better customization option and is favorable in most cases for large enterprises with complicated operational needs. Although cloud adoption is rising, on-premise solutions still hold large stocks in very regulated sectors.

By Application

Based on application, the global market can be categorized into Automotive & Oil and Gas

• Automotive: Industrial automation software has become critical for the automotive industry in the efforts to optimize production lines and ensure high-quality manufacturing. In real-time, these solution tools look after monitoring, predictive maintenance, and supply chain efficiency. Consequently, automotive companies use automation in order to cater to an ever-growing demand for electric vehicles and advanced driver-assistance systems (ADAS). There lies a great deal of automation in the automotive industry due to rising competition, with added focus on productivity and innovation.

• Oil and Gas: Industrial automation software in oil and gas facilitates efficiency in operations, safety, and environmental compliance. It offers remote monitoring of drilling operations, pipeline management, and equipment maintenance. Initiatives on automation minimize delays, curtail operational costs, and assist in the management of complex offshore and onshore installations. With the industry making strides toward digital transformation, automation software is fast becoming the cornerstone of operations that are ecologically sustainable and resilient.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factor

"Market growth is driven by efficiency and investment"

Industries are adopting industrial automation software to enhance operational efficiency and reduce costs in production. With streamlined processes, real-time remote monitoring, and fewer errors, productivity is maximized. Minimization of downtime by predictive maintenance is the focus of automation tools. This quest for efficiency drives relentless investment and growth in the Industrial Automation Software Market.

"Market growth is driven by smart manufacturing adoption"

The worldwide momentum surrounding smart manufacturing and becoming Industry 4.0 is a major driver of the automation software market. The integration of IoT, AI, and big data analytics with all manufacturing processes needs enhanced automation platforms. Companies are on a digital transformation path to keep their production systems flexible, agile, and innovative. With smart factories being widespread, the demand for advanced automation software hikes.

Restraining Factor

"Market growth is hindered by high implementation costs"

High initial investments and implementation costs are one of the biggest restraining factors for the Industrial Automation Software Market Growth. The treatment of such costs related to software licensing, system integration, and training is a tall expense for many SMEs. The technicalities involved in integrating new automation software with an existing legacy system can also lead to an operational shutdown. These financial and technical challenges have slowed down the pace of adoption in the cost-sensitive industries.

Opportunity

"Market growth is driven by AI and ML adoption"

The other growth opportunity for the Industrial Automation Software Market is the growing adoption of the AI and ML technologies. AI and ML support applications like predictive maintenance, real-time decision-making, and autonomous operations to enhance production efficiency. Industries want to reduce human intervention and maximize reliability; thus, AI-powered automation solutions become a must-have. Further, the pairing of AI and IoT devices enables a more connected and intelligent manufacturing ecosystem. This technological revolution is expected to account for a significant growth momentum for the market in the coming years.

Challenge

"Market growth is slowed by integration complexity challenges"

Integration complexity is a key challenge of the Industrial Automation Software Market. Many industries are still stuck with legacy systems that are often incompatible with modern automation software. Integrating new software with these existing systems can be time-consuming, costly, and prone to technical problems. Such challenges consume valuable time, resources, and expertise in the process, thereby acting as a bottleneck for mass adoption of advanced automation solutions in some sectors.

INDUSTRIAL AUTOMATION SOFTWARE MARKET REGIONAL INSIGHTS

• North America

"Market growth is driven by innovations, robust infrastructure, and huge investments"

North America occupies the top spot globally as the leading region in industrial automation software by virtue of its technological innovations, robust infrastructure, and huge investments through the key industries. Never shall the United States Industrial Automation Software Market be the least. Though it nurtures major companies that spearhead the advances in automation technologies, it is very instrumental in accumulating a major market share. Some notable companies in the U.S. are destined for growth in the market through strategic acquisitions and extending their automation portfolios. Furthermore, the trade policies help in complementing these factors by boosting demand for automation solutions, creating a fine environment for the United States to be termed as a major participant in the sector of industrial automation software.

• Europe

"Market growth is driven by emphasis on digital transformation"

The Industrial Automation Software Market is quite an important part of Europe, with a strong base in manufacturing and emphasis on digital transformation. Germany, France, and the UK are leaders in Industry 4.0 initiatives and adoption of automation. The region targets sustainability and efficiency as driving forces for industries investing in smart automation solutions. The strength of the regulatory framework in Europe also encourages the transition in using automation technologies towards stringent safety and environmental requirements.

• Asia

"Market growth in automation software is booming in Asia"

Asia is another rapidly growing emerging economy with notable footprints in the Industrial Automation Software Market Share, mainly because this region has been recognized as a manufacturing powerhouse, especially with countries like China, Japan, and South Korea. The main thing driving growth in this market is increased demand for automation in industries such as automotive, electronics, and consumer goods. The factor propelling demand in this region is connected to their heavy emphasis on smart factories and digitalization initiatives directed towards advanced automation solutions. Now, with large-scale infrastructure building as well as the rising cost of labor, Asia continues to need cost-effective and efficient automation software more and more.

KEY INDUSTRY PLAYERS

"Key players drive market growth through innovations and partnerships"

Key players across the industry have definitely been instrumental in driving and shaping the market of industrial automation software constantly through innovations, strategic partnerships, and extensions in the product offerings. Some of the companies, such as Siemens, Rockwell Automation, and ABB, are coming forward for extensive investments in AI, IoT, and cloud-based solutions for bettering last office applications automation in many industries. They are currently quite focused on integrated and scalable software that would be able to facilitate industries in achieving higher efficiency, reduced downtime, and smart manufacturing. To some extent, these players are extending their footprint in developed markets through asset portfolios into emerging markets. They work on offering the best-in-class and customizable software and next-generation technologies to leverage the adoption of their assets and streamline digital transformation in the industries, thus setting through to driving growth into the future.

List of Top Industrial Automation Software Companies

• Emerson Electric (U.S.)
• Rockwell Automation (U.S.)
• Schneider Electric (France)
• Siemens (Germany)
• ABB (Switzerland)

KEY INDUSTRY DEVELOPMENT

March 2025: UiPath, a leading automation software company, acquired Peak, a Manchester-based AI firm specializing in agentic solutions for inventory and pricing optimization. This strategic acquisition aims to enhance UiPath's capabilities in industrial automation software by integrating advanced AI-driven decision-making tools. The collaboration is expected to provide manufacturers with more intelligent automation solutions, enabling them to optimize operations and adapt to dynamic market conditions. By combining UiPath's automation platform with Peak's AI expertise, the company seeks to offer more comprehensive solutions to its clients. This development underscores UiPath's commitment to expanding its offerings in the Industrial Automation Software Market. The integration of Peak's technology is anticipated to drive innovation and efficiency in automated industrial processes.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

This research report examines the segmentation of the market by using both quantitative and qualitative methods to provide a thorough analysis that also evaluates the influence of strategic and financial perspectives on the market. Additionally, the report's regional assessments consider the dominant supply and demand forces that impact market growth. The competitive landscape is detailed meticulously, including shares of significant market competitors. The report incorporates unconventional research techniques, methodologies and key strategies tailored for the anticipated frame of time. Overall, it offers valuable and comprehensive insights into the market dynamics professionally and understandably.