Seizing India’s Industrial Automation Boom: A Strategic Opportunity for Global Players

India: A market poised for growth

India’s industrial automation market is poised for rapid growth, expanding from 13.4 bln EUR in 2024 to 30.6 bln EUR by 2030, with a robust CAGR of 14.7%. In comparison, the global market is projected to grow from 184.8 bln EUR in 2024 to 305.7 bln EUR by 2030, at a CAGR of 8.7%. India’s faster growth trajectory highlights its emerging role as a key player in industrial automation, currently representing just over 7% of the global market but on track to capture 10% by 2030.

While India’s current market is relatively smaller compared to other major economies, the pace of adoption and increased demand for automation in manufacturing could surpass that of several established markets in the coming years. This shift is being driven by both demand and supply-side factors, including a growing consumption appetite, the need for greater operational efficiency, and strong government support through initiatives like ‘Make in India’ and the PLI scheme. These policies are accelerating R&D, improving cost-efficiency, fostering workforce development, and attracting foreign direct investment (FDI), solidifying India’s position as a global manufacturing hub.

This upward momentum offers significant growth opportunities for companies looking to engage in India’s industrial automation sector.

On the ground Status Quo and challenges

Companies are shifting from traditional manufacturing systems to smart solutions, fueled by Industry 4.0 investments in IoT-connected machines and AI-powered analytics. The growing demand for customization and mass personalization, coupled with shorter product cycles, is pushing manufacturers to adopt flexible automation solutions. Meanwhile, reshoring and localized production have gained momentum, as global supply chain disruptions prompt Indian firms to reduce dependence on imports and strengthen domestic manufacturing capabilities.

Despite these advancements, cost sensitivity remains a challenge. The high upfront investment required for automation hardware, software, and system integration makes adoption a calculated decision, especially for mid-sized manufacturers operating in a price-competitive market. Furthermore, the evolving role of automation in manufacturing raises workforce-related concerns, not just about job displacement but also the growing need for technical expertise. Bridging this gap requires a shift toward continuous training and upskilling programs, ensuring that automation enhances productivity rather than creating operational bottlenecks.

Sector Wise Automation Adoption - Strategic Opportunity for International MNCs

Automation adoption varies across industries, with some sectors leading the way while others gradually integrate advanced technologies. In India, automation is rapidly transforming several key industries, driving efficiency and innovation. In the automotive sector, robotics and advanced automation are extensively used for assembly lines, welding, and quality control, significantly improving precision and reducing human error. The pharmaceutical industry, to cater to enabling compliance with rigorous regulations while maintaining consistent production standards, textiles and apparel industry for the need to enhance productivity, reduce waste, and improve design accuracy and FMCG and F&B sector to allow for faster production cycles and greater flexibility to meet consumer demand are prime targets for automation companies as application segments.