India Industrial Automation Market Size and Forecast 2026–2034

Introduction: India’s Manufacturing Revolution Is Going Automated

India is entering a decisive phase in its industrial journey, where automation is no longer optional—it is essential. As manufacturers race to improve productivity, quality, and global competitiveness, industrial automation is emerging as the backbone of modern production ecosystems.

According to Renub Research, the India Industrial Automation Market is projected to grow from US$ 3.64 billion in 2025 to US$ 13.65 billion by 2034, expanding at a robust CAGR of 15.82% during 2026–2034. This remarkable growth is driven by rapid manufacturing digitalization, supportive government policies, expanding electronics and automotive sectors, and deep integration of AI, robotics, and Industrial IoT (IIoT) across industrial operations.

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As India pushes toward Industry 4.0, smart factories, connected machines, and data-driven decision-making are transforming how the nation produces, competes, and scales.

India Industrial Automation Industry Overview

Industrial automation in India refers to the adoption of advanced technologies such as robotics, sensors, AI-based control systems, machine vision, cloud-connected software, and smart analytics to streamline manufacturing and operational processes. These solutions reduce manual intervention, improve precision, minimize downtime, and ensure consistent quality.

Automation is increasingly deployed across:

Automotive & auto components

Electronics & semiconductor manufacturing

Pharmaceuticals & healthcare

FMCG & food processing

Chemicals, metals, and heavy engineering

With manufacturers shifting from traditional production to smart manufacturing, technologies such as digital twins, predictive maintenance, cloud-based monitoring, and autonomous robotics are becoming mainstream. Government programs like Make in India, Production Linked Incentive (PLI) schemes, and industrial corridor development are accelerating automation adoption and attracting global manufacturers to set up digitally enabled plants.

India’s industrial automation ecosystem is evolving rapidly, supported by rising investment in infrastructure, a strong engineering workforce, and a growing focus on operational efficiency and sustainability.

Market Growth Drivers Powering India’s Automation Boom

1. Expansion of Semiconductor and Electronics Manufacturing

India’s ambitious push into semiconductor and electronics manufacturing is one of the strongest catalysts for automation demand. As fabrication processes become more complex, factories require ultra-precise, contamination-free, and high-speed automation systems.

Robotics, cleanroom handling equipment, automated inspection, and intelligent process control systems are critical for ensuring yield, traceability, and reliability. In May 2025, the Indian government approved the sixth semiconductor facility under the India Semiconductor Mission, a collaboration between HCL and Foxconn near Jewar airport. The facility will produce 36 million display driver chips per month with a capacity of 20,000 wafers, backed by an investment of INR 3,700 crore.

Such large-scale projects depend heavily on automation for quality control, workflow optimization, and cost efficiency. As India builds its electronics supply chain—from chips to finished devices—automation adoption will surge across both upstream and downstream segments.

2. Shift Toward Open, Interoperable, and Software-Led Automation

Indian manufacturers are increasingly moving away from rigid, proprietary automation architectures toward open, software-defined, and interoperable platforms. Traditional systems often limit scalability and flexibility, creating integration challenges and high lifecycle costs.

In May 2025, Schneider Electric introduced the Open Automation Movement, enabling plug-and-play interoperability, faster system upgrades, and vendor-neutral connectivity. This new approach allows manufacturers to integrate multi-vendor equipment seamlessly, accelerate digital transformation, and reduce engineering complexity.

Open automation is enabling real-time data analytics, predictive maintenance, improved cybersecurity, and faster innovation cycles—critical capabilities for competitive manufacturing. Industries such as automotive, FMCG, chemicals, and heavy engineering are rapidly adopting these architectures to remain agile and future-ready.

3. Digital Transformation and Sustainability-Driven Manufacturing

Sustainability is now a core business strategy, and automation is playing a key role in achieving environmental and efficiency targets. Smart sensors, AI analytics, and automated control systems help manufacturers monitor energy consumption, emissions, equipment health, and process efficiency in real time.

In December 2024, ABB India partnered with PwC to support manufacturers in accelerating digital transformation and ESG adoption. This collaboration enables integrated automation solutions that align operational performance with sustainability goals.

As global value chains demand greener, more transparent production, Indian manufacturers are investing in digital twins, cloud-based monitoring, and predictive analytics. Automation not only reduces waste and downtime but also enhances compliance, safety, and long-term asset performance—making it indispensable in the modern industrial era.

Key Challenges in the India Industrial Automation Market

High Investment Costs and Slow SME Adoption

Despite strong growth, high capital requirements remain a major barrier—especially for small and medium enterprises (SMEs), which form the backbone of India’s manufacturing sector. Advanced robotics, digital infrastructure, and system integration demand significant upfront investment.

Many SMEs hesitate due to uncertain ROI, limited access to financing, and lack of technical understanding. Integration, maintenance, workforce training, and cybersecurity further increase total cost of ownership. Without affordable automation models, modular solutions, and targeted financing support, SME adoption will remain slower than large enterprises.

Workforce Skill Gaps and Training Shortages

The rapid evolution of automation technologies has created a significant skills gap. Companies struggle to find engineers and technicians proficient in robotics programming, system integration, AI analytics, and predictive maintenance.

Limited training infrastructure and weak industry–academia collaboration slow workforce readiness. As factories become smarter, the need for digitally skilled professionals is increasing faster than talent supply, making skill development a critical bottleneck for large-scale automation deployment.

State-Level Automation Landscape in India

Maharashtra: The Automation Powerhouse

Maharashtra leads India’s automation market due to its strong base in automotive, pharmaceuticals, chemicals, and electronics. Mumbai and Pune are major hubs for robotics, PLCs, SCADA systems, and AI-driven monitoring tools. Industrial corridors and advanced infrastructure support widespread adoption of smart factory technologies.

Tamil Nadu: Precision Manufacturing Hub

Tamil Nadu’s automation growth is driven by automotive, electronics, textiles, and heavy engineering industries. Chennai, Sriperumbudur, and Hosur host high-speed assembly lines, automated inspection systems, and smart manufacturing platforms. The textile sector is also modernizing through automated looms and sensor-based monitoring.

Karnataka: Technology-Driven Automation

With Bengaluru as its innovation center, Karnataka benefits from strong adoption of digital twins, IIoT, robotics, and cloud-connected monitoring systems. Aerospace, machine tools, and electronics manufacturers are investing heavily in smart manufacturing to improve quality and reduce operational risks.

Uttar Pradesh: Emerging Automation Growth Engine

Uttar Pradesh is rapidly embracing automation through electronics clusters, logistics hubs, and new industrial corridors. Noida–Greater Noida drives strong demand for SMT automation, robotics, packaging systems, and industrial software. Government-led industrial expansion is accelerating adoption across large enterprises and MSMEs.

Recent Developments Shaping the Market

September 2025: Schneider Electric acquired full ownership of its India operations for INR 499,000 million, strengthening its ambition to capture nearly 25% market share.

July 2025: Sonepar India partnered with Siemens to expand automation solution availability across Tier-2 and Tier-3 regions.

December 2024: ABB expanded its smart infrastructure capabilities by acquiring Solutions Industry and Building.

December 2024: Rockwell Automation announced plans to make India a global manufacturing hub for digital automation solutions.

October 2024: Delta Electronics launched smart building automation solutions with AI and IoT integration.

August 2024: Neilsoft introduced Industry 4.0 solutions covering digital factory, manufacturing automation, and building automation technologies.

These developments highlight how global and domestic players are strengthening their presence to capture India’s fast-growing automation demand.

Market Segmentation Overview

By Component

Hardware: Sensors, robots, HMIs, industrial PCs, machine vision

Software: MES, SCADA, PLC, DCS, safety systems

Services: Engineering, maintenance, consulting, operational support

By End User

Manufacturing

Automotive

Food & Beverage

Healthcare

Oil & Gas

Chemicals

Energy & Utilities

Mining & Metals

Aerospace & Defense

By Geography

Maharashtra

Tamil Nadu

Karnataka

Uttar Pradesh

Gujarat

West Bengal

Rajasthan

Telangana

Andhra Pradesh

Madhya Pradesh

Other States

Competitive Landscape

Major companies operating in India’s industrial automation market include:

Siemens AG

Honeywell International Inc.

Mitsubishi Electric

Rockwell Automation

Schneider Electric

ABB Ltd

Bharat Heavy Electricals Limited (BHEL)

Each company is evaluated across overview, key personnel, strategies, SWOT analysis, and revenue performance, highlighting intense competition and continuous innovation.

Final Thoughts: Automation Is India’s Industrial Growth Engine

India’s industrial automation market is at a pivotal point. With strong government backing, massive manufacturing investments, and rapid digital adoption, automation is no longer limited to large enterprises—it is becoming the foundation of India’s industrial future.

From semiconductor fabs and automotive plants to textile mills and food processing units, smart machines and intelligent systems are reshaping how India produces and competes. While challenges remain in cost and skills, the long-term outlook is undeniably strong.

As the market grows to US$ 13.65 billion by 2034, industrial automation will play a defining role in transforming India into a globally competitive, digitally enabled manufacturing powerhouse.