Dublin, Feb. 09, 2026 (GLOBE NEWSWIRE) -- The "India Industrial Automation - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.
The India industrial automation market is projected for significant growth, evolving from a valuation of USD 17.28 billion in 2025 to USD 38.02 billion by 2031, boasting a CAGR of 14.05% during the forecast period.
The primary drivers of this expansion include continuous policy support, modernization of legacy plants, and decreasing sensor costs. These factors collectively enhance foreign direct investment, particularly after the introduction of the Production Linked Incentive program, which associates cash disbursements with Industry 4.0 readiness. This initiative has spurred modernization across brownfield sites, elevating productivity and export competitiveness.
Multinational enterprises are expanding their local manufacturing facilities to optimize supply chains and minimize import duties, whereas mid-tier companies are utilizing cloud-based execution software to navigate capital constraints. Concurrently, private 5G trials and edge computing platforms lessen latency concerns, encouraging predictive maintenance implementations in processing plants. Nonetheless, cybersecurity readiness and the availability of skilled labor are key areas requiring vigilance.
Trends and Insights in India's Industrial Automation Market
Investment Surge in Make in India Manufacturing
Increased foreign direct investment post-2024 has bolstered factory-automation budgets significantly. Siemens and Mitsubishi Electric have committed substantial investments into expanding and upgrading local assembly lines. These upgrades emphasize scalable and modular equipment over greenfield capacity, promoting faster returns. Key clusters in regions like Gujarat and Maharashtra attract allied suppliers, proliferating technical expertise across the value chain.
PLI Scheme Encourages Modernization
The Production Linked Incentive program facilitated INR 140.20 billion (USD 1.69 billion) by 2025 to enhance Industry 4.0 compliance in discrete industries. Automotive and electronics sectors are held to rigorous standards, driving upstream demand and forcing tier suppliers to adopt compatible automation layers. This strengthening of the supply chain multiplies market impact across various components and systems.
Barriers to Entry for Tier-3 Suppliers
Tier-3 suppliers face high CAPEX sensitivity due to operational constraints, which restrict comprehensive automation upgrades. Capital needed for such upgrades can be substantial relative to annual revenue, leaving many dependent on subsidized loans. While credit guarantees lower lending risks, the persistent need for collateral hinders rapid adoption, leading to disparate digital evolution across supplier tiers.
Segment Analysis
Industrial control systems dominate the market with a 37.15% share, driven by PLC demand in automotive and DCS rollouts in chemicals. However, software revenue is growing rapidly at a CAGR of 15.05%, facilitated by subscription pricing models that lower market entry barriers. Software solutions are expected to become a major growth area, doubling in market size between 2026 and 2031.
Field devices and service revenues are also rising alongside cheaper sensors, predictive maintenance applications, and ongoing hybrid architecture needs. Enhanced cybersecurity features and role-based access controls now come standard with most upgrades to address evolving regulatory and insurance demands.
Significant growth is also expected in programmable and integrated hyper-automation solutions, with early adopters reporting reduced unplanned downtime and increased efficiency. Automation that logs comprehensive process data is becoming preferred for regulatory compliance, which encourages integrated stack adoption.
The India Industrial Automation Market Report provides in-depth segmentation by solution types, automation types, end-user industries, and deployment modes. Market forecasts include USD value estimations.
Key Companies Covered
- Siemens Limited
- ABB India Limited
- Yokogawa India Ltd.
Key Topics Covered:
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET LANDSCAPE
4.1 Market Overview
4.2 Market Drivers
4.2.1 Accelerated "Make in India" manufacturing investments
4.2.2 Government PLI scheme incentives for discrete industries
4.2.3 Rapid expansion of brownfield digital retrofits across MSMEs
4.2.4 Sharp decline in industrial sensor costs
4.2.5 Under-the-radar: Start-up led AI-driven predictive maintenance demand from mid-tier plants
4.2.6 Under-the-radar: Carbon-credit linked automation for energy-intensive metals vertical
4.3 Market Restraints
4.3.1 High CAPEX sensitivity among Tier-3 suppliers
4.3.2 Fragmented system-integrator ecosystem quality gaps
4.3.3 Under-the-radar: Cyber-insurance premium escalation for OT networks
4.3.4 Under-the-radar: Skilled labour flight from industrial clusters
4.4 Industry Value-Chain Analysis
4.5 Regulatory Landscape
4.6 Technological Outlook
4.7 Porter's Five Forces Analysis
5 MARKET SIZE AND GROWTH FORECASTS
5.1 By Solution
5.1.1 Industrial Control Systems
5.1.2 Field Devices
5.1.3 Software
5.1.4 Services
5.2 By Automation Type
5.3 By End-user Industry
5.4 By Deployment Mode
6 COMPETITIVE LANDSCAPE
6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles
7 MARKET OPPORTUNITIES AND FUTURE OUTLOOK
7.1 White-space and Unmet-need Assessment
For more information about this report visit https://www.researchandmarkets.com/r/1p0olf
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