| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 17.35 Billion |
| Market Size (2030) | USD 24.95 Billion |
| CAGR (2025 - 2030) | 7.54 % |
| Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
Latin America Factory Automation and Industrial Controls Market Analysis
The Latin America Factory Automation And Industrial Controls Market size is estimated at USD 17.35 billion in 2025, and is expected to reach USD 24.95 billion by 2030, at a CAGR of 7.54% during the forecast period (2025-2030).
- In Latin America's developing economies, the industrial sector's growth is driving a surge in demand for automation. Industries are turning to Industry 4.0 technologies, aiming to boost production efficiency and cut costs.
- Key market drivers include a rising appetite for the Internet of Things (IoT) and machine-to-machine technologies. Furthermore, ongoing technological advancements and a steady rise in manufacturing facility developments are poised to influence the market's growth rate in the coming years. The uptick in IoT adoption across Latin America is largely due to swift digitalization, tech progress, and proactive government measures, all championing digital transformation and Industry 4.0, thereby fueling market expansion.
- Recognizing the industrial sector's pivotal role in the economy, Brazil's government has rolled out initiatives to bolster its growth. A notable step is the introduction of the "New Industry Brazil" policy, steering Brazil towards neo-industrialization.
- In January 2024, the National Council for Industrial Development unveiled this policy, targeting Brazil's national growth through sustainability and innovation, with eyes set on 2033. The initiative aims to revolutionize the industry, setting ambitious goals: digitizing 90% of Brazilian industrial firms (a leap from the current 23.5%) and tripling output in emerging tech sectors. Focused investments span the 4.0 industry, digital product development, and local semiconductor production, all of which are set to bolster market growth.
- Moreover, foreign direct investment (FDI) is propelling the factory automation wave across Latin America. As the region's industrial landscape undergoes a metamorphosis, global corporations, tech giants, and investment entities are pouring resources into modernizing production units, embedding cutting-edge automation, and amplifying efficiency across pivotal industries.
- Mexico's strategic location near the U.S. and its role in the USMCA have made it a magnet for manufacturing FDI. In 2023, Spain accounted for over 10% of Mexico's FDI, while the U.S. emerged as the dominant source, contributing nearly 37%. The automotive sector, in particular, has seen a flurry of investments, with giants like Ford, General Motors, and Volkswagen not only expanding their footprint but also adopting robotic assembly lines, AI-driven quality checks, and IIoT solutions. These advancements have bolstered efficiency, trimmed costs, and catered to North America's surging vehicle demand.
- Looking forward, FDI is set to remain a catalyst for factory automation's growth in Latin America. As global supply chains shift and industries pivot towards digitalization, Latin America's manufacturing realm will increasingly lean on automation for competitiveness. This momentum will be further fueled by trade agreements, government backing, and tech innovations, solidifying Latin America's stature as a pivotal hub for automated production.
Latin America Factory Automation and Industrial Controls Market Trends
The Automotive End-user Industry is Expected to Hold a Significant Market Share
- Latin America's automobile industry is currently thriving, buoyed by accessible credit, economic stability, and low interest rates, all of which have bolstered consumer confidence and driven up sales. Within the region, Brazil and Mexico stand out as the leaders in automotive development. The growing presence of global OEMs in these countries, responding to rising market demands, signals further growth potential.
- A case in point: In April 2024, electric vehicle manufacturer BYD unveiled plans to ramp up its manufacturing capacity in Mexico, targeting an output of over 100,000 units by 2025. This new facility is also poised to serve as a launchpad for exports to the broader Latin American market in the years to come.
- In a bid to enhance production efficiency and gain deeper insights into equipment performance, manufacturers across the region are increasingly turning to smart technologies. These include sensors, IoT devices, and AI-driven analytics. For example, Mexican automotive producers are harnessing Industry 4.0 innovations to refine their production processes and bolster quality assurance.
- Major players like Volkswagen, Nissan, and BMW are adopting robotics and AI monitoring to curtail defects and minimize waste. Supporting this trend, Mexico's light vehicle exports have surged since 2020, with figures from INEGI indicating a reach of approximately 3.5 million vehicles in 2024.
- Moreover, regional automakers are employing virtual and augmented reality solutions to tackle challenges like machine malfunctions, workplace injuries, and technical downtimes. Therefore, it can be concluded that the horizon looks bright for automation and robotics in LATAM's automotive sector, with AI and machine learning set to elevate robotic efficiency and intelligence. On another front, both government and private sector investments are pouring into the automotive realm, aiming for self-sufficiency in manufacturing. Such moves are poised to amplify the demand for control and automation solutions, particularly robotics and sensors, in the coming years.
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Brazil is Expected to Hold a Significant Market Share
- Over the past decade, Brazil has transformed its economy and emerged as one of the world's fastest-growing nations. According to the IMF, Brazil's real GDP grew by 2.91% in 2023, with projections of a 2.47% increase by 2029.
- Capitalizing on its evolving landscape, Brazil has established itself as a burgeoning manufacturing hub in the region. The surge in start-up investments is poised to drive the adoption of industrial control and automation systems, especially among the nation's sizable SMEs.
- Furthermore, in January 2024, Brazil unveiled a new industrial policy, charting a course with development goals and measures extending to 2033. This policy introduces innovative financing tools, like a dedicated credit line for the industrial sector, aiming to cultivate a sustainable industrial ecosystem. Such initiatives are poised to bolster the growth of smart industries in Brazil, propelling market expansion in the coming years.
- Additionally, Brazil stands as a pivotal player in Latin America's oil production landscape. The International Trade Association highlights Brazil's dominance, noting it boasts the world's largest recoverable ultra-deep oil reserves. With a staggering 97.6% of the nation's oil output sourced from offshore, the significance of the oil and gas sectors becomes evident. Furthermore, the application of factory automation and industrial control solutions can enhance plant efficiencies, leading to improved productivity and safety, thereby fueling market growth.
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Latin America Factory Automation and Industrial Controls Market Overview
The Latin American factory automation and industrial controls market exhibits significant fragmentation, featuring prominent players like Rockwell Automation Inc., Honeywell International Inc., General Electric Company, ABB Limited, and Dassault Systemes SE. These key participants employ strategic approaches, including partnerships and acquisitions, to bolster their product portfolios and establish a sustainable competitive edge.
Robots are becoming more intelligent, versatile, and capable of performing complex tasks, leading to improved efficiency and productivity in the manufacturing sector. The use of advanced robotics in factory automation is expected to increase during the forecast period.
The growth is also associated with nearshoring as more companies move their base from Asia to Latin American countries such as Mexico. Investments in manufacturing plants and factories will continue to increase in the region which is prompting implementations of robots and automation systems.
Manufacturers often pay more than five times the cost of an industrial robot to get the robot to work, mainly due to the additional equipment, end-of-arm tooling, requirement for robot specialists, re-calibration, and quality control tests involved in the customization process during implementation. Going forward, cost reduction becomes the only solution to achieve advancements in machine vision.
Latin America Factory Automation and Industrial Controls Market Leaders
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Rockwell Automation Inc.
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Honeywell International Inc.
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General Electric Company
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ABB Limited
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Dassault Systemes SE
- *Disclaimer: Major Players sorted in no particular order
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Latin America Factory Automation and Industrial Controls Market News
- May 2024: Hero MotoCorp announced plans to start a new bike manufacturing plant in Brazil, which would address the increasing demand for bikes in the Latin American market and the emerging trend for local manufacturing facilities in Latin American countries. The plant is also expected to support industrial sector growth in Latin America and boost the adoption of factory automation and industrial control solutions.
- March 2024: Rockwell Automation Inc., a prominent global provider of industrial automation and digital transformation technologies, announced establishing a strategic, multi-year collaboration with Prometeon Tyre Group. This partnership will significantly advance Prometeon’s digitalization strategy by integrating Rockwell’s state-of-the-art manufacturing execution system (MES). Implementing this system will enable comprehensive digital integration and operational efficiency across all of Prometeon’s manufacturing facilities, reinforcing their commitment to innovation and technological advancement.
Latin America Factory Automation and Industrial Controls Market Industry Segmentation
Factory automation refers to the use of control systems, machinery, and computer systems to automate industrial processes and tasks, reducing the need for human intervention. This includes processes like manufacturing, material handling, and quality control. Industrial controls encompass the products and systems used to monitor and control various industrial processes. This includes components like programmable logic controllers (PLCs), human-machine interfaces (HMIs), sensors, and software that manage and optimize the operation of machinery and equipment in industrial settings. These technologies and solutions are essential for improving efficiency, safety, and productivity in industrial operations.
The Latin America factory automation and industrial controls market report is segmented by type (industrial control systems and field devices), end-user industry (oil and gas, chemical and petrochemical, power and utilities, food and beverages, automotive, and pharmaceutical), and country. The market sizes and forecasts are provided in terms of value in usd for all the above segments.
| By Product Type | Industrial Control Systems | Distributed Control System (DCS) | |
| Programmable Logic Controller (PLC ) | |||
| Supervisory Control and Data Acquisition (SCADA) | |||
| Product Lifecycle Management (PLM) | |||
| Human Machine Interface (HMI) | |||
| Manufacturing Execution System (MES) | |||
| Enterprise Resource Planning (ERP) | |||
| Other Industrial Control Systems | |||
| Field Devices | Machine Vision | ||
| Robotics (Industrial) | |||
| Sensors and Transmitters | |||
| Motors and Drives | |||
| Relays and Switches | |||
| Other Field Devices | |||
| By End-user Industry | Oil and Gas | ||
| Chemical and Petrochemical | |||
| Power and Utilities | |||
| Food and Beverages | |||
| Automotive | |||
| Pharmaceutical | |||
| Other End-user Industries | |||
| By Country*** | Brazil | ||
| Argentina | |||
| Mexico | |||
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Latin America Factory Automation And Industrial Controls Market Research Faqs
How big is the Latin America Factory Automation And Industrial Controls Market?
The Latin America Factory Automation And Industrial Controls Market size is expected to reach USD 17.35 billion in 2025 and grow at a CAGR of 7.54% to reach USD 24.95 billion by 2030.
What is the current Latin America Factory Automation And Industrial Controls Market size?
In 2025, the Latin America Factory Automation And Industrial Controls Market size is expected to reach USD 17.35 billion.
Who are the key players in Latin America Factory Automation And Industrial Controls Market?
Rockwell Automation Inc., Honeywell International Inc., General Electric Company, ABB Limited and Dassault Systemes SE are the major companies operating in the Latin America Factory Automation And Industrial Controls Market.
What years does this Latin America Factory Automation And Industrial Controls Market cover, and what was the market size in 2024?
In 2024, the Latin America Factory Automation And Industrial Controls Market size was estimated at USD 16.04 billion. The report covers the Latin America Factory Automation And Industrial Controls Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Latin America Factory Automation And Industrial Controls Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Latin America Factory Automation And Industrial Controls Industry Report
Statistics for the 2025 Latin America Factory Automation And Industrial Controls market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Latin America Factory Automation And Industrial Controls analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
