Factory Automation Market Accelerates in USA, Japan, and Emerging Asia: DataM Intelligence Insights

Factory Automation growth led by Asia-Pacific, with U.S. and Japan investing in robotics, AI, and smart manufacturing infrastructure.

WISCONSIN, WI, UNITED STATES, August 28, 2025 /EINPresswire.com/ -- DataM Intelligence, a leading global market research and consulting firm, reports that the global Factory Automation Market is witnessing strong momentum, particularly in the United States, Japan, and Southeast Asia, fueled by industrial digitalization, policy incentives, and rising investments in smart manufacturing.

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Factory automation encompasses the deployment of automated machinery, robotics, control systems, and smart technologies throughout end-to-end production processes. Automation delivers higher consistency, lower wastage, increased productivity, improved workplace safety, and higher product quality. Industries like automotive, pharmaceuticals, chemicals, food and beverages, oil and gas, energy, and mining are leveraging automation to meet rising quality expectations and market demands. The COVID-19 pandemic highlighted the need for greater automation, as businesses sought to reduce manual intervention and dependence on skilled labor.

Market Overview & Values

The global factory automation market was valued at USD 144,922 million and is projected to surpass USD 275,849 million by 2033, growing at a CAGR of 8.7% (DataM Intelligence analysis based on World Bank industrial data, OECD manufacturing output reports, and company financial disclosures).

• United States: The U.S. market accounted for nearly USD 45 billion in 2023, driven by large-scale adoption of robotics and industrial IoT across automotive and electronics sectors.
• Japan: Japan, home to leading automation giants like Mitsubishi Electric and Fanuc, generated approximately USD 38 billion in 2023, underpinned by advanced robotics deployment and Industry 5.0 initiatives.
• Emerging Asia (Vietnam & Indonesia): Southeast Asia is rapidly advancing, with Vietnam’s smart factory initiatives estimated to grow at >12% CAGR, positioning it as a key low-cost manufacturing hub integrating automation technologies.

Recent Industry News

• Mitsubishi Electric (Japan) announced in June 2025 the launch of a new AI-powered predictive maintenance solution for assembly lines, enhancing operational efficiency in semiconductor and automotive factories.
• Rockwell Automation (USA) in July 2025 unveiled a strategic partnership with NVIDIA to accelerate AI-driven industrial automation platforms.

Mergers & Acquisitions

• In May 2025, Omron Corporation (Japan) acquired a 60% stake in a U.S.-based robotics software startup to strengthen its AI-driven automation portfolio.
• Rockwell Automation completed the acquisition of Clearpath Robotics (Canada) in June 2025, expanding its mobile robotics offerings.

Government Policy Developments

• USA: The Biden administration’s 2025 Smart Manufacturing Resilience Initiative introduced a USD 1.5 billion funding program for upgrading U.S. factories with automation and robotics, particularly in critical supply chain sectors like semiconductors and EV batteries.
• Japan: In April 2025, Japan’s Ministry of Economy, Trade and Industry (METI) announced a national subsidy program worth ¥300 billion (USD 2 billion) to accelerate adoption of collaborative robots (cobots) and AI-powered automation in small and medium-sized enterprises (SMEs).

New Product & Service Launches

• Fanuc Corporation (Japan) launched its next-gen CRX-20iA cobot in July 2025, featuring enhanced safety and human-machine collaboration capabilities.
• ABB (USA operations) introduced its FlexArc robotic welding cell in June 2025, aimed at automotive manufacturers adapting to EV-driven structural redesigns.

Market Players

Leading companies in the factory automation market include:
• ABB
• Siemens AG
• Schneider Electric
• Mitsubishi Electric
• General Electric
• Honeywell International
• Rockwell Automation
• Yokogawa Electric Corporation
• HP
• Omron Corporation

These players are recognized for their strong technological capabilities, global presence, and innovative offerings.

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Market Segments:

By Type: (Fixed automation, programmable automation, flexible automation, integrated automation)
By Component: (Industrial Robots, Vision Machines, Control Valves, Field Instruments, Human–Machine Interface (HMI), Industrial PC, Sensors, Other)
By Solutions: (Supervisory Control and Data Acquisition (SCADA), Programmable Logic Controllers (PLC), Distributed Control Systems (DCS), Manufacturing Execution Systems (MES), Product Lifecycle Management (PLM), Functional Safety, Plant Asset Management (PAM), Others)
By End-User: (Oil & Gas, Chemicals, Paper & Pulp, Pharmaceuticals, Mining & Metals, Food & Beverages, Energy & Power, Automotive, Electronics & Semiconductors, Aerospace and Defense, Medical Devices, Others)

Fixed automation and automotive industry hold the largest share, with automotive leading due to high-volume production and historical automation adoption. Flexible and integrated automation are gaining traction as manufacturers seek adaptability and digitalization.

Market Dynamics

Drivers
• The growing need for operational efficiency, cost control, and rapid, scalable production processes propels automation adoption.
• Expansion of the middle class worldwide is raising product quality expectations, encouraging industries to automate for consistency and defect reduction.
• Automation enables 24/7 production, reducing downtime and human error while improving workplace safety through minimized manual intervention.

Restraints
• High capital investment, especially in advanced robotic and integrated systems, limits adoption to larger enterprises, creating barriers for SMEs.
• Proprietary system architectures hinder interoperability and integration of various automation platforms, slowing industry-wide adoption.

Opportunities
• The adoption of unified design architecture can break down interoperability barriers, enabling more widespread, flexible, and cost-effective automation deployments.
• Advancements in AI, Industrial IoT, and virtual reality integration into automation will introduce new efficiencies and extend the benefits of automation to new sectors.

Challenges
• The lack of a sufficiently skilled workforce to manage, operate, and maintain advanced automation systems remains a major challenge.
• Ensuring continuous innovation in both technology and training is critical to fully realizing automation’s potential.

Regional Analysis

Asia-Pacific is the largest and fastest-growing region, led by China and fueled by rapid industrialization in India, Vietnam, Thailand, and other developing countries. This region’s dominance stems from both production and consumption of automation systems. North America follows as the fastest-growing, thanks to early tech adoption, innovation investment, and strong presence of high-tech industries.

Europe’s growth is supported by regulatory pressure for digital transformation and the widespread adoption of robots in automotive and food production. Stricter regulations in some sectors (e.g., food and beverage) also shape adoption trends.

DataM Intelligence Perspective

“Factory automation is no longer a cost-saving measure but a strategic imperative for industrial resilience and competitiveness. The U.S. and Japan are spearheading innovation, while emerging economies like Vietnam are catching up with rapid adoption,” said DataM Intelligence’s research team. “With rising policy support and technology integration, the market outlook remains highly favorable.”

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Sai Kumar
DataM Intelligence 4market Research LLP
+1 877-441-4866
sai.k@datamintelligence.com
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