India Industrial Automation Market Size & Share Analysis - Growth Trends and Forecast (2027 - 2032)

Market Overview

India Industrial Automation Market Snapshot & Metrics Overview

Study Period	2020 - 2032
Forecast Data Period	2027 - 2032
Base Year Market Size (2026)	USD 19.19 Billion
Market Size (2027)	USD 20.8 Billion
Market Size (2032)	USD 30.75 Billion
Growth Rate (2027 - 2032)	8.13 %
Market Concentration	Medium
Major Players* Siemens Limited ABB India Limited Schneider Electric India Pvt. Ltd. Rockwell Automation India Pvt. Ltd. Mitsubishi Electric India Pvt. Ltd.	*Disclaimer: Major Players sorted in no particular order

• Middle East and Africa

Market Trends and Insights

Accelerated "Make in India" Manufacturing Investments

Manufacturing investment creates an automation requirement when the production process calls for precise handling of fragile components. Fixed capital in India's registered manufacturing sector rose 10.54% in current prices in FY2024-25 from FY2023-24.^[1] In July 2025, Atal Solar said it had ordered equipment from SC Solar for a planned TOPCon module plant in Rajkot, Gujarat, with annual module capacity of 1 GW. The reported design assigned robotic arms to delicate, accurate cell placement. For the equipment supplier, this turns the factory investment into a defined automation task whose commercial relevance rests on handling accuracy.

Government PLI Scheme Incentives for Discrete Industries

PLI-Auto's product qualifications connect the incentive opportunity to manufacturers' ability to deliver eligible automotive output. In February 2026, the Ministry of Heavy Industries said FY2025-26 claims covered actual FY2024-25 sales of domestic-value-addition-certified advanced automotive products and the revised allocation had no implication for investment. As of March 31, 2026, 225 automotive and auto-component manufacturing units had been set up under PLI-Auto across India.^[2] By December 2025, the Ministry of Heavy Industries reported that PLI-Auto required at least 50% domestic value addition for qualifying advanced automotive technology products. Automation suppliers can align production-control proposals with an applicant's eligible products, while the manufacturer retains responsibility for satisfying the localization condition.

Rapid Expansion of Brownfield Digital Retrofits across MSMEs

Retrofitting an existing machine can create an automation project without requiring an MSME to replace its productive equipment. That separates the value of a digital function from the decision to fund new production machinery and redesign the surrounding process. A narrowly defined retrofit can focus on one operating requirement, such as capturing machine status or connecting a production step to supervisory control. The project's feasibility then depends on whether the added function can operate within the existing machine's physical and control constraints. Retrofit suppliers can build an initial assignment around the retained machine, with further work dependent on the additional production functions the operator chooses to connect.

Sharp Decline in Industrial Sensor Costs

Lower sensor costs can make broader measurement coverage economical within an automated production line. The benefit extends beyond cheaper hardware because additional measurement points can reveal operating conditions that a control system would otherwise have to address indirectly. For an operator monitoring several machines, that changes the choice between instrumenting only a critical point and observing a wider set of production states. Additional observations can support more targeted control or maintenance decisions, provided they are connected to a usable application. Denser sensing can increase the number of hardware positions supplied, making lower unit costs a potential source of equipment volume as well as buyer savings.

High CAPEX Sensitivity among Tier-3 Suppliers

Automotive component suppliers can face an automation funding constraint when process investment competes for limited capital. In its 2025 study of India's projected EV transition, WRI India reported that automotive component MSMEs often lacked capital and technology to move to newer manufacturing processes. The study included Tier-2 and Tier-3 automotive component MSMEs in its interview sample. For an automation project, the financing exposure includes equipment and engineering funded before the production task generates a return. That gap can limit the scope a small supplier is able to implement, even when the system has a defined operating purpose. Staging can reduce the initial commitment, but unfinished functions still require funding, extending the period before the full production task is automated.

Fragmented System-Integrator Ecosystem Quality Gaps

Quality variation in system integration can constrain automation when responsibility for a complete production sequence is split across equipment and control functions. In a line linking programmable controllers, field devices and supervisory software, an interface error can interrupt the sequence even when individual components function. Resolving that fault can require engineering work across supplier boundaries, making the completed system more difficult to deliver than its component specifications suggest. The buyer then faces the possibility that commissioning will depend on work outside any single equipment supplier's responsibility. Defined acceptance tests can reduce that exposure, but a disputed handoff can leave the plant waiting for additional engineering before it can use the automated line.

*Our forecasts treat driver/restraint impacts as directional, not additive. The impact forecasts reflect baseline growth, mix effects, and variable interactions.

India Industrial Automation Market Segment Analysis

Industrial control systems accounted for a 31.04% share of the India industrial automation market size in 2026. In August 2025, Primetals Technologies received an order from Jindal Steel and Power to upgrade Level 1 and 2 automation at its Angul plate mill in Odisha, including a SIMATIC S7-1500 control system. The announced upgrade targeted system availability and a stable supply of spare parts. For the mill owner, this connects a control-system upgrade to the operating requirements of an established production asset. The spare-parts objective makes continued support for installed controls a source of replacement demand, even without a new mill.

Software is the fastest-growing segment, with a forecast CAGR of 9.35% over 2027-2032. In its FY2025-26 report, Tata Power described SAP-MES integration and automated serial-number capture in module manufacturing to enhance production efficiency, quality assurance and traceability. The commercial value is the connection between production activity and usable manufacturing records, making software relevant to a defined operating task. Services add a contracted support role, illustrated by Brahmaputra Cracker and Polymer Limited's September 11, 2025, 3-year maintenance order with Siemens Limited for its Siemens DCS and PLC system at Lepetkata. The 3-year Lepetkata order ties service revenue to installed-system maintenance, while the module-manufacturing example connects software value to production records rather than another equipment sale.

Programmable automation represented a 41.4% India industrial automation market share in 2026. ABB India reported strong PLC automation performance in the solar segment and expansion into new OEM applications and industries in 2025. In OEM applications, PLCs can provide control within the equipment offered to industrial plants. ABB India's reported expansion therefore broadens the potential buyer base beyond the solar segment.

Integrated or hyper-automation is the fastest-growing segment, with a forecast CAGR of 10.05% over 2027-2032. In FY2025-26, Tata Steel reported AI-enabled remote operations and maintenance for predictive, real-time asset management within its manufacturing excellence work. That application joins an operating function with an asset-management function, giving integration a purpose defined by the manufacturing process and its maintenance needs. For suppliers, the opening is to connect these functions into a coherent operating service, so predictive information can inform management of the asset within the same application rather than remain a separate analytical output.

Automotive and transportation was the largest segment, accounting for 22.86% of the market in 2026. In FY2025-26, SIAM reported production of 34.71 million passenger vehicles, commercial vehicles, three-wheelers, two-wheelers and quadricycles in India across its covered manufacturers. That range brings several vehicle formats into the industry's manufacturing base, giving automation suppliers multiple production contexts for their applications. At this aggregate scale, a control application can be commercially relevant across repeated manufacturing tasks, even when its scope is defined at one process step.

The electronics and semiconductors segment is forecast to grow fastest, at a CAGR of 11.75% over 2027-2032. India's electronics goods production value grew 15.8% year over year in FY2025-26. By September 18, 2026, 5 semiconductor manufacturing plants in India had commenced commercial production and were exporting chips as well as serving domestic needs. This gives automation suppliers an electronics sector with higher reported production value alongside chip manufacturers already serving customers, creating distinct operating-buyer contexts. Suppliers can therefore target automation for existing electronics and chip production lines without waiting for additional plants to be built.

On-premise deployment was the largest segment, with 42.74% of the market in 2026. Bharat Petroleum's Mumbai Refinery uses a microprocessor-based digital distributed control system and has 12 million metric tons of annual crude-processing capacity following debottlenecking and major projects. The refinery illustrates the buyer scale served by on-premise control, since its distributed control system operates at a site with that annual crude-processing capacity.

Hybrid is the fastest-growing segment, with a forecast CAGR of 10.8% over 2027-2032. In 2025, Hindustan Zinc implemented an AI-enabled switchyard hotspot monitoring system at its Debari smelter in Rajasthan, accessible through on-premises and cloud platforms. Vedanta Spark and Ripik.AI were development partners. The dual access routes make equipment-condition monitoring a route into hybrid deployment for smelter operators. Growth in this mode can therefore arise from extending access to a single asset-monitoring application, rather than requiring a plant-wide control replacement.

Geography Analysis

Maharashtra Industrial Automation Market

Maharashtra led the India industrial automation market in absolute terms. It generated 15.92% of India's registered-manufacturing gross value added in FY2024-25, the highest state share. Valeo inaugurated an automated e-Axle manufacturing line at its Pune plant on March 28, 2026, to supply Mahindra's Born Electric platform with a system integrating a motor, inverter and reducer. The production scope included automated stator, reducer, inverter and final e-Axle assembly, supported by digitalization and end-to-end traceability. End-to-end traceability across stator, reducer, inverter and final assembly requires an automation supplier serving this plant to connect station controls with final e-Axle production records.

Tamil Nadu Industrial Automation Market

Tamil Nadu is the fastest-growing state, with commercial automation activity illustrated by Delta Electronics India's own power-supply production in Krishnagiri. On September 11, 2025, the company unveiled a smart-manufacturing line combining its own robots, servo motion, programmable controllers and networking switches for home-appliance power-supply applications. Its line-management software facilitated automated production line changeovers through smart configuration, equipment management and real-time materials logistics coordination. For a power-supply manufacturer, the commercial relevance lies in coordinating changeovers across equipment and materials, beyond automating individual assembly motions.

Gujarat offers a semiconductor assembly-and-test buyer context, with CG Semi's Sanand OSAT facility beginning commercial chip packaging in July 2026. Karnataka has a supplier-side role, illustrated by ABB's March 2026 announcement of USD 21 million for expanding low-voltage-drive and specialized-motor manufacturing at Peenya. In Haryana, BEUMER Group began operating its Jhajjar factory in December 2025, with planned output covering baggage handling, conveying, sorting, cement packing and loading equipment, and mineral and mining machinery components. The state-level contrast is between Gujarat's semiconductor assembly buyer base and equipment-supply locations in Karnataka and Haryana, where drives, motors and material-handling systems shape the supplier opportunity.

Regulatory Framework and Outlook

Selected jurisdictions are compared from the perspective of covered factory operators deploying industrial automation. The Occupational Safety, Health and Working Conditions Code, 2020 took effect on November 21, 2025. It assigns factory occupational-safety authority to the concerned state and places workplace hazard-control duties on covered employers. For an operator, the factory's obligations and state administration therefore form part of the commercial setting for equipment deployment.

India's Medium rating reflects a defined employer-duty framework and a registration requirement for new covered establishments. Maharashtra is also Medium because electronic factory administration has an operative baseline and the May 2026 draft develops registration, verification and payment procedures within that approach. No change reflects the existing national electronic-registration requirement and the state proposal's continuity with electronic procedures introduced in October 2025. Electronic administration can organize the filing task, while hazard-control duties keep equipment deployment tied to the factory employer's operating responsibilities.

Value Chain Stages

This comparison follows value from automation equipment supply through application engineering to services attached to installed systems. ABB India's Automation business provides integrated control, software, machine and factory automation, measurement, analytics, and related services for process, hybrid, and maritime industries. Separating these activities clarifies how suppliers can earn from an initial equipment requirement and from the engineering and support needed to apply it.

Application engineering turns product capability into a machine-specific solution, making it the commercial handoff between equipment supply and operational support. Siemens' Bengaluru Digital Experience and Application Center supports machine-tool activities from design through engineering and commissioning. In its 2025 report, ABB India linked digital services attached to its installed base and lifecycle services with smoothing business cycles.^[3] The installed base therefore gives service providers a continuing earnings opportunity, while application knowledge can connect an initial project to subsequent support work.

Key Opportunities for Market Participants

This comparison identifies automation work within distribution-equipment procurement, from field interfaces to control-center integration and lifecycle support. Madhya Pradesh Paschim Kshetra Vidyut Vitran Company Ltd. (MPPKVVCL) invited bids for 11 kV and 33 kV motorized ring main units integrated with existing and upcoming SCADA-DMS/ADMS systems in Ujjain and Indore. The October 17, 2026, tender scheduled bid submissions for October 27 to November 5, 2026.

The central opening is responsibility for the interfaces between field equipment and the utility's control systems. An automation specialist can make its offer commercially useful by fitting that responsibility into the wider equipment package, with a defined route from commissioning to maintenance. Interface engineering can therefore connect commissioning revenue with continuing application support over the contracted maintenance term.