Report Overview

Growing adoption of Industry 4.0 and smart manufacturing solutions, a spurring demand for cost-efficiency and productivity in industrial operations, and the government’s initiatives including "Make in India" and Production Linked Incentive (PLI) schemes supporting industrial growth are expected to drive India Industrial Automation Market during the forecast period between 2025 and 2031.

India Industrial Automation Market – Industry Trends & Forecast Report, 2031

India Industrial Automation Market size was estimated at USD 15.1 billion in 2024. During the forecast period between 2025 and 2031, India Industrial Automation Market size is projected to grow at a CAGR of 16.2% reaching a value of USD 40.8 billion by 2031. Prominent drivers of the market include advancements in Industry 4.0 and the Industrial Internet of Things (IIoT), which are transforming logistics and production through smart factory automation by connecting machinery and devices via the internet. Labeling equipment, a vital component in production lines, enhances efficiency by reducing downtime and optimizing operations. Additionally, the increasing adoption of automation in healthcare, driven by the expansion of private healthcare providers, pharmaceutical manufacturing, and universal healthcare initiatives, is a key growth factor. These advancements are shaping the future of industrial automation in India.

Industrial Automation – Overview

Industrial automation refers to the use of control systems, such as computers, robots, and information technologies, to operate and manage industrial processes and machinery with minimal human intervention. It represents a progression beyond mechanization, focusing on enhancing efficiency, productivity, and precision while reducing operational costs and human error.

India Industrial Automation Market

Growth Drivers

Government’s Supportive Initiatives and Adoption of Emerging Technologies

The integration of government initiatives and emerging technologies is playing a pivotal role in accelerating the adoption of Industry 4.0 within India’s manufacturing sector. Flagship programs such as “Make in India” and “Digital India” are driving innovation, fostering a robust ecosystem for smart manufacturing, and encouraging investments in advanced technologies. A key initiative in this regard is the "Samarth Udyog Bharat 4.0" program, which aims to facilitate the adoption of Industry 4.0 technologies by providing a platform for smart manufacturing practices. This initiative supports the implementation of technologies like the Internet of Things (IoT), Artificial Intelligence (AI), machine learning, and robotics, revolutionizing traditional manufacturing processes by enhancing automation, operational efficiency, and data-driven decision-making. Smart factories, equipped with real-time monitoring and adaptive production capabilities, are transforming the manufacturing landscape, helping to streamline workflows, reduce costs, and improve product quality to meet global standards. Supported by government policies, incentives, and collaborative frameworks, these advancements position India as a rising hub for advanced manufacturing, capable of competing with established global players.

Challenges

High Initial Investment and Implementation Costs

The high initial investment and implementation costs are significant restraints for the growth of the industrial automation market in India. Many small and medium-sized enterprises (SMEs) struggle to afford the upfront expenses required for automation technology, including equipment, software, and system integration. Additionally, the cost of training employees and maintaining automated systems further adds to the financial burden. These factors limit the adoption of automation, particularly in cost-sensitive industries, hindering the overall market expansion despite the growing demand for increased productivity and operational efficiency. Overcoming these barriers is crucial for market growth in the long term.

Impact of Escalating Geopolitical Tensions on India Industrial Automation Market

Escalating geopolitical tensions could significantly impact India Industrial Automation Market. Uncertainties in global trade and supply chains can disrupt the availability of critical components and raw materials for automation systems, leading to delays and increased costs. Additionally, trade restrictions and sanctions may hinder the import of advanced technologies, slowing down the adoption of automation in various industries. Political instability can also dampen investor confidence, resulting in reduced investments in automation infrastructure. The volatile environment may limit growth opportunities, forcing businesses to reconsider their automation strategies to mitigate risks and ensure operational continuity.

India Industrial Automation Market

Segmental Coverage

India Industrial Automation Market – By Component

Based on component, India Industrial Automation Market is divided into Hardware, Software, and Service segments.

India Industrial Automation Market – By Mode of Automation

By mode of automation, India Industrial Automation Market is bifurcated into Semi-Automatic Systems and Fully Automatic Systems segments. The semi-automatic systems segment holds a larger share of India Industrial Automation Market by mode of automation, due to their cost-effectiveness, flexibility, and ease of integration. Semi-automatic systems provide a balance between full automation and manual labor, making them more affordable for various industries while reducing labor costs. Their versatility allows manufacturers to quickly adjust to changes in production schedules, product types, or processes, making them ideal for sectors like automotive and consumer goods. Additionally, semi-automatic systems are easier to integrate with existing infrastructure, require less specialized workforce training, and can be implemented more rapidly than fully automated systems, offering faster returns on investment. This combination of affordability, adaptability, and quick deployment makes them an attractive choice for businesses looking to optimize operations.

India Industrial Automation Market – By Vertical

By vertical, India Industrial Automation Market is divided into Oil & Gas, Manufacturing, Automotive, Healthcare, Food & Beverages, Chemicals, Energy & Power, Metal & Mining, and other industry verticals segments. The automotive segment holds the largest share of India Industrial Automation Market by vertical. It is primarily driven by its significant role in global automated manufacturing facilities. Automakers have increasingly automated their production processes to enhance accuracy and efficiency. The shift from conventional vehicles to electric vehicles (EVs) is expected to further fuel demand in the sector. As per the IBEF automobile industry report, the two-wheeler segment leads in market volume, benefiting from the growing middle-class population and the large, youthful demographic in India. Companies are also exploring rural markets, boosting sector growth, while rising demand in logistics and passenger transportation drives the commercial vehicle market. The electrification trend, particularly in small passenger cars and three-wheelers, is anticipated to propel future market expansion. Automation, especially through robotics and vision systems, is optimizing automotive assembly lines for components like motors, gearboxes, fuel systems, and pumps, improving both productivity and worker safety. Additionally, India’s rising role as an auto exporter and government initiatives like the scrappage policy and the Automotive Mission Plan 2026 are expected to position the country as a key player in the two-wheeler and four-wheeler markets.

India Industrial Automation Market – By Region

The in-depth research report on India Industrial Automation Market covers the market in the country’s major regions: North India, South India, East India, and West India regions. North India holds the largest share of India Industrial Automation Market and is expected to maintain its dominance over the forecast period, driven by its strong manufacturing base and a growing emphasis on modernization. Key North Indian states like Haryana, Punjab, and Uttar Pradesh host a diverse range of industries, including food processing, automotive, and textiles, all increasingly adopting automation technologies to enhance efficiency and productivity. Government initiatives such as "Make in India" are fostering investments in smart manufacturing, further boosting the region’s growth. The integration of IoT and robotics into operations is also accelerating. As businesses seek to reduce costs and improve quality, North India is well-positioned for continued expansion in industrial automation.

Competitive Landscape

Major players operating in India Industrial Automation Market include Siemens AG, ABB Ltd, Space Magnum Equipment Pvt Ltd, Godrej Koerber Supply Chain Limited, Kardex India Storage Solutions Private Limited, Armstrong Ltd, Falcon Autotech Private Limited, Grey Orange India, Addverb Technologies Private Limited, and Hinditron Group. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In June 2023 – Schaefer Systems International Pvt Ltd introduced an advanced fully automated piece-picking system, the SSI Piece Picking application. This innovative solution integrates specialized smart software and features including cutting-edge capabilities, such as AI-based object recognition, pick-and-place functionality, patented gripping point determination, and delicate handling of products.

Scope of the Report

By Component

• Hardware

• Software

• Service

By Mode of Automation

• Semi-Automatic Systems

• Fully Automatic Systems

By Vertical

• Oil & Gas

• Manufacturing

• Automotive

• Healthcare

• Food & Beverages

• Chemicals

• Energy & Power

• Metal & Mining

• Others

By Region

• North India

• South India

• East India

• West India