India Automation Market Outlook to 2028

India Automation Market Overview

• The India automation market was valued at USD 13.2 Bn in 2023, is driven by increased adoption of automation across various industries, including manufacturing, automotive, and IT. The push for efficiency, cost reduction, and improved productivity has led to widespread adoption of automation technologies. Additionally, advancements in AI and machine learning have further propelled market expansion.
• The India automation market is highly competitive, with several key players driving innovation and growth. Prominent companies include Siemens India, ABB India, Larsen & Toubro, Honeywell Automation India Ltd., and Rockwell Automation India Pvt. Ltd. These companies have established a strong presence through continuous innovation, strategic partnerships, and robust distribution networks.
• The partnership between Siemens India and Tata Power. In early 2023, Siemens announced a strategic collaboration with Tata Power to develop automation solutions for renewable energy projects. This partnership aims to enhance the efficiency and reliability of renewable energy generation and distribution, showcasing the increasing integration of automation in India's energy sector.

India Automation Current Market Analysis

• The state of Maharashtra has emerged as a dominant region in the India automation market in 2023. This dominance is attributed to the state's strong industrial base, with significant investments in manufacturing and IT sectors. The presence of major automation companies and a robust infrastructure further contribute to Maharashtra's leading position in the market.
• One of the significant challenges facing the India automation market is the high initial cost of automation systems. Despite the long-term benefits, many small and medium-sized enterprises (SMEs) find it difficult to invest in expensive automation technologies.
• In 2023, the Government of India launched the "National Policy on Advanced Manufacturing" aimed at promoting the adoption of advanced manufacturing technologies, including automation. This policy includes a budget allocation to support R&D in automation and incentivize the adoption of Industry 4.0 technologies across various sectors. This initiative is expected to significantly boost the automation market, driving growth and innovation.

India Automation Market Segmentation

The India Automation Market can be segmented based on several factors:

By Product Type: In India automation market segmentation by product type is divided into industrial automation, building automation and home automation. In 2023, industrial automation's dominance is due to its widespread application in enhancing production efficiency and reducing operational costs. The continuous advancements in robotics and AI further drive this segment's growth.

By End User: In India automation market segmentation by end user is divided into manufacturing, automotive, IT & telecom and healthcare. In 2023, manufacturing's leading position is due to the sector's high demand for automation to improve production processes and reduce costs. The automotive industry follows closely, driven by the need for automated solutions in vehicle manufacturing and assembly.

By Region: In India automation market segmentation by region is divided into north, south, east and west. In 2023, west region's dominance is due to its strong industrial base and significant investments in automation technologies. The presence of major industrial hubs and a favorable business environment contribute to the region's leading position.

India Automation Market Competitive Landscape

• ABB India's Launch of Collaborative Robots: ABB India introduced a new range of collaborative robots (cobots) in 2023, designed specifically for the Indian market. These cobots are equipped with advanced AI capabilities, enhancing their efficiency and user-friendliness. ABB India has invested INR 300 crores in developing and marketing these cobots, which are expected to revolutionize the manufacturing sector by providing flexible and efficient automation solutions.

• Larsen & Toubro's Investment in Smart Factories: Larsen & Toubro (L&T) announced a significant investment in smart factory initiatives in 2023. The company allocated to develop and implement advanced automation technologies in its manufacturing units. These smart factories leverage IoT, AI, and robotics to optimize production processes, reduce operational costs, and improve product quality.

• Honeywell Automation India’s Expansion in Healthcare Automation: Honeywell Automation India Ltd. expanded its focus on healthcare automation in 2023, investing in developing AI-driven diagnostic and treatment systems. This investment aims to enhance the efficiency and accuracy of healthcare services, providing advanced automation solutions for hospitals and clinics. Honeywell’s expansion into healthcare automation underscores the growing demand for automated solutions in the healthcare sector.

India Automation Industry Analysis

India Automation Market Growth Drivers:

• Expansion of IT and Telecom Infrastructure: The rapid expansion of IT and telecom infrastructure in India has fueled the demand for automation technologies. The Ministry of Electronics and Information Technology (MeitY) reported an allocation of INR 10,000 crores in 2024 to develop IT infrastructure across the country. This expansion supports the deployment of automation solutions in data centers, network management, and cybersecurity.
• Rising Demand for Automated Healthcare Solutions: The healthcare sector in India is increasingly adopting automation to improve patient care and operational efficiency. In 2024, the Ministry of Health and Family Welfare allocated INR 5,000 crores to digitize healthcare services, including the implementation of automated diagnostic and treatment systems. Hospitals like Apollo and Fortis have embraced robotic surgery and AI-driven diagnostic tools.
• Growth in E-commerce and Retail Automation: The rising e-commerce sector in India has contributed to the demand for automation in logistics and retail operations. In 2024, the Indian e-commerce market has shown significant growth, driving the need for automated warehousing, inventory management, and customer service solutions. Companies like Flipkart and Amazon India are heavily investing in automation. These investments aim to enhance supply chain efficiency and customer experience.

India Automation Market Challenges:

• High Initial Cost of Automation Technologies: One of the primary challenges is the high initial cost of automation systems. SMEs, which form a significant portion of the industrial landscape, often find it difficult to invest in expensive automation solutions. In 2024, it is estimated that the average cost of implementing a basic automation system in a manufacturing unit is around INR 50 lakhs. This financial barrier limits the adoption of automation technologies among smaller enterprises, hindering market growth.
• Skilled Workforce Shortage: The implementation of advanced automation technologies requires a skilled workforce capable of operating and maintaining these systems. However, India faces a significant shortage of skilled professionals in this field. In 2024, the National Skill Development Corporation (NSDC) reported a gap of 1.5 Mn skilled workers needed to support the automation industry.
• Integration with Existing Systems: Integrating new automation technologies with existing systems can be complex and costly. Many Indian industries rely on legacy systems that are not compatible with modern automation solutions. The cost of upgrading these systems to accommodate new technologies can be substantial. This integration challenge slows down the adoption of automation technologies.

India Automation Market Government Initiatives:

• Digital India Program: The Digital India program, launched in 2015, continues to play a significant role in promoting automation across various sectors. In 2024, the government allocated INR 10,000 crores to expand the program, focusing on digital infrastructure development and the adoption of smart technologies. This funding supports the implementation of automation solutions in government services, healthcare, and education, driving digital transformation across the country.

• Production-Linked Incentive (PLI) Scheme: The Production-Linked Incentive (PLI) scheme, introduced in 2020, aims to boost domestic manufacturing by providing financial incentives to companies. In 2024, the scheme's budget was increased to INR 1.97 lakh crores, with a significant portion allocated to the automation and electronics sectors. This initiative encourages companies to invest in automation technologies to enhance productivity and competitiveness.

• Smart Cities Mission: The Smart Cities Mission, launched in 2015, focuses on developing smart and sustainable urban infrastructure. In 2024, the government supported this mission, promoting the adoption of automation technologies in urban planning, transportation, and public services. This initiative aims to improve the quality of life in cities by leveraging automation for efficient resource management and service delivery.

India Automation Future Market Outlook

The India automation market is expected to show significant growth driven by ongoing digital transformation, increasing investments in smart infrastructure, and government initiatives supporting Industry 4.0 are expected to drive this growth. The market will also benefit from advancements in IoT and AI, leading to more sophisticated and efficient automation solutions.

Future Market Trends

• • Adoption of 5G and Industrial IoT: The rollout of 5G networks will drive the adoption of Industrial IoT (IIoT) solutions, enabling real-time data exchange and advanced automation. This trend will revolutionize industrial automation by providing faster and more reliable connectivity, facilitating the implementation of smart factories and autonomous systems.
  • Growth in Autonomous Manufacturing: Autonomous manufacturing is projected to gain traction, with companies investing in fully automated production lines. This trend is driven by the need for higher efficiency, reduced labor costs, and improved product quality. Major players like Siemens and ABB are expected to lead this transformation with their advanced automation solutions.
  • Expansion of AI and Machine Learning Applications: Over the next five years, the integration of AI and machine learning in automation will significantly expand. Companies are expected to invest INR 20,000 crores by 2028 in AI-driven automation solutions to enhance predictive maintenance, optimize supply chains, and improve decision-making processes. This trend will drive the development of more intelligent and adaptive automation systems, transforming various industries.