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Study Period | 2019 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Market Size (2025) | USD 9.12 Billion |
Market Size (2030) | USD 12.55 Billion |
CAGR (2025 - 2030) | 6.58 % |
Market Concentration | Low |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
South Korea Factory Automation & Industrial Controls Market Analysis
The South Korea Factory Automation and Industrial Controls Market size is estimated at USD 9.12 billion in 2025, and is expected to reach USD 12.55 billion by 2030, at a CAGR of 6.58% during the forecast period (2025-2030).
South Korea's manufacturing sector continues to demonstrate robust advancement in industrial automation adoption, particularly in high-tech industries. The country maintains its position as a global leader in robot density, with 932 installations per 10,000 employees in the manufacturing industry. This technological progression is evident in the automotive sector, where, according to Statistics Korea, vehicle ownership reached approximately 0.5 vehicles per capita in 2021, driving the need for sophisticated automated production systems in production facilities. The manufacturing machinery and equipment sector has shown remarkable growth, with revenue reaching USD 109.5 billion in 2021, according to the Korean Statistical Information Service (KOSIS).
The semiconductor industry is experiencing unprecedented expansion, with major players making substantial investments in automated manufacturing facilities. In July 2023, Samsung Electronics commenced operations at its new advanced chip manufacturing line (P3) in Pyeongtaek, representing the largest chip manufacturing facility ever built by the company. This development aligns with the Korean Semiconductor Industry Association's February 2023 announcement of planned investments totaling KRW 56.7 trillion, demonstrating the industry's commitment to advancing smart factory capabilities and maintaining technological leadership.
The automotive sector is undergoing a significant transformation with the integration of smart manufacturing solutions and automated assembly lines. In May 2023, Hyundai Motor Group announced a substantial investment of KRW 21 trillion through 2030 to expand its electric vehicle business in South Korea, with plans to annually build 1.44 million units of EVs by 2030. This strategic move necessitates the implementation of advanced industrial automation systems and industrial controls to achieve the desired production capacity and maintain quality standards in the evolving automotive landscape.
The food and beverage industry has emerged as a significant adopter of automation technologies, driven by the need for efficient production and quality control systems. According to KOSIS, the retail sales of food and beverages in South Korea reached more than KRW 129 trillion in 2021, necessitating advanced automated production systems for production scaling. The integration of automated systems in this sector extends beyond basic manufacturing to include sophisticated quality control mechanisms, packaging automation, and warehouse management systems, reflecting the industry's commitment to maintaining high standards while increasing operational efficiency.
South Korea Factory Automation & Industrial Controls Market Trends
Increasing Adoption of Internet of Things (IoT) and Machine-to-Machine Technologies
The increasing integration of IoT and machine-to-machine technologies is fundamentally transforming industrial operations across South Korea. According to the Ministry of Science and ICT data, IoT device subscriptions have surpassed 10 million, representing a significant increase of around 2 million devices from the previous year. This rapid adoption is driven by the growing need for automated process monitoring, real-time data analysis, and remote control capabilities in manufacturing facilities. The presence of approximately 1,335 Internet of Things service businesses in South Korea further demonstrates the robust ecosystem supporting this technological transformation.
Data management through IoT implementation has become crucial for optimizing industrial operations and enhancing product development cycles. These systems enable manufacturers to detect errors quickly, analyze performance metrics, and make data-driven decisions for process improvements. For instance, major vendors like Yokogawa have introduced pressure and temperature industrial sensors for wireless industrial IoT solutions that help reduce equipment inspection person-hours and detect equipment abnormalities at an early stage. Additionally, the integration of IoT with industrial control systems allows businesses to streamline operations by enabling predictive maintenance, reducing downtime, and improving overall operational efficiency through real-time monitoring and automated alert systems.
Increasing Emphasis on Energy Efficiency and Cost Reduction
The manufacturing sector's focus on energy efficiency and cost reduction has become a primary driver for factory manufacturing automation adoption in South Korea. The implementation of automated systems and advanced control mechanisms allows manufacturers to optimize energy consumption while maintaining high production standards. Industrial automation solutions enable companies to monitor and control energy usage in real-time, leading to significant cost savings through improved resource allocation and reduced waste. For instance, ABB's automation solutions have demonstrated the potential to reduce electricity consumption by up to 10% through the implementation of high-efficiency motors and related technologies.
The integration of smart factory solutions has proven particularly effective in reducing operational costs while enhancing productivity. Manufacturers are increasingly implementing automated systems that can operate with minimal human intervention, resulting in lower labor costs and improved production efficiency. For example, Mitsubishi Electric Corporation has introduced new EcoAdviser data-analysis and diagnostic software that leverages artificial intelligence technology to identify energy losses, diagnose potential energy-loss factors, and quantify the expected effects of energy-saving measures. These technological advancements enable manufacturers to achieve substantial cost reductions while maintaining or improving production quality and output levels.
Exponential Growth of the E-commerce Industry and Customer Expectations
The remarkable expansion of South Korea's e-commerce sector has created an unprecedented demand for automated warehouse and fulfillment solutions. According to recent statistics, e-commerce sales in South Korea reached KRW 192.9 trillion, with online electronic goods and home appliances sales alone accounting for approximately KRW 21,823.42 billion. This explosive growth has compelled companies to adopt sophisticated automation solutions to manage increasing order volumes while maintaining accuracy and efficiency. The need for faster response times and the management of a growing number of stock-keeping units (SKUs) has made warehouse and fulfillment center automation essential rather than optional.
The evolution of customer expectations regarding delivery speed and accuracy has further accelerated the adoption of automation technologies in the e-commerce sector. Unlike many other industries, automation in e-commerce creates better job opportunities due to the high usage of collaborative robots, such as AGVs, in fulfillment centers and third-party warehousing operations. Major e-commerce companies are actively investing in automation solutions to enhance their operational capabilities. For instance, Cainiao Network launched its first distribution center in South Korea with advanced automation systems to enhance cross-border delivery services for its e-commerce platform, demonstrating the industry's commitment to meeting evolving customer demands through technological advancement.
Segment Analysis: By Product Type
Sensors and Transmitters Segment in South Korea Factory Automation and Industrial Controls Market
The sensors and transmitters segment dominates the South Korean factory automation and industrial controls market, commanding approximately 39% market share in 2024. This significant market position is driven by the increasing adoption of IoT and automation practices across various industries in South Korea. The segment's growth is particularly notable in applications such as proximity sensing, pressure measurement, image sensing, flow monitoring, and strain measurement. The rising demand for real-time data collection and analysis in manufacturing processes has further strengthened this segment's position. Additionally, the integration of digital interfaces, data collection capabilities, and condition monitoring features in modern sensors has made them indispensable in industrial automation applications, from automotive manufacturing to petrochemical processing.
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Machine Vision Systems Segment in South Korea Factory Automation and Industrial Controls Market
The machine vision systems segment is emerging as the fastest-growing category in the South Korean factory automation market, with a projected growth rate of approximately 9% during 2024-2029. This rapid growth is driven by the increasing adoption of quality inspection systems and the integration of artificial intelligence in manufacturing processes. The segment is witnessing significant technological advancements, particularly in areas such as 3D vision systems and embedded vision technologies. The automotive and semiconductor industries are major adopters of these systems, using them for automated inspection, robot guidance, and quality control applications. The trend toward smart manufacturing and Industry 4.0 initiatives in South Korea has further accelerated the adoption of machine vision systems, with manufacturers increasingly investing in these technologies to improve production efficiency and quality control. These systems are often integrated with programmable logic controllers and machine control systems to enhance operational efficiency.
Remaining Segments in South Korea Factory Automation and Industrial Controls Market
The market's other significant segments include industrial robotics, industrial power supplies, programmable logic controllers (PLC), human-machine interface (HMI), and various safety devices. Industrial robotics holds a substantial position, particularly in automotive and electronics manufacturing. The HMI segment is gaining prominence due to the increasing need for sophisticated user interfaces in industrial operations. Industrial power supplies play a crucial role in ensuring reliable power distribution across automated systems. Safety devices, including emergency stop devices, safety controllers, and safety mats, continue to be essential components in ensuring workplace safety and regulatory compliance. These segments collectively contribute to creating comprehensive automation solutions that address various industrial needs, from basic control functions to complex manufacturing processes.
Segment Analysis: By End-User Industry
Manufacturing Segment in South Korea Factory Automation and Industrial Controls Market
The manufacturing segment holds the dominant position in the South Korean factory automation and industrial controls market, accounting for approximately 21% market share in 2024. This significant market share is driven by South Korea's position as a global industrial giant, particularly in advanced manufacturing sectors like electronics, semiconductors, and white household goods. The country's strong focus on Industry 4.0 implementation and the highest industrial robot density globally, with 932 installations per 10,000 employees, has further strengthened this segment. Major manufacturers are increasingly investing in automation technologies, including manufacturing execution systems and distributed control systems, to improve productivity and maintain global competitiveness. The Korean government's substantial investments in R&D and factory automation, aimed at improving the country's economic competitiveness, have also contributed to the segment's dominance.
Food & Beverage Segment in South Korea Factory Automation and Industrial Controls Market
The food and beverage segment is emerging as the fastest-growing sector in the South Korean factory automation and industrial controls market, with a projected growth rate of approximately 9% during 2024-2029. This rapid growth is driven by increasing demands for lean manufacturing within the food industry and the seamless integration of robotics technologies. The segment's growth is further accelerated by the rising need for complete traceability of food products, automated machine safety systems, and the implementation of integrated approaches for automated safety control systems. Food and beverage companies are increasingly adopting these technologies to reduce occupational injuries, improve production flexibility, and ensure regulatory compliance. The introduction of automated labeling systems and collaborative robots has also contributed to the segment's rapid expansion, particularly in addressing challenges related to packaging, storage, and logistics operations.
Remaining Segments in End-User Industry
The other significant segments in the market include semiconductor, automotive, chemical & petrochemical, oil & gas, and power & utilities sectors. The semiconductor segment is particularly notable due to South Korea's strong position in global semiconductor manufacturing and continued investments in facility automation. The automotive sector leverages automation for enhancing production efficiency and quality control, while the chemical & petrochemical industry focuses on process automation for safety and operational efficiency. The oil & gas sector emphasizes automated safety systems and real-time monitoring capabilities, and the power & utilities segment concentrates on digital transformation and smart grid technologies. Each of these segments contributes uniquely to the market's growth through their specific automation requirements and technological adaptations.
South Korea Factory Automation & Industrial Controls Industry Overview
Top Companies in South Korea Factory Automation and Industrial Controls Market
The South Korean factory automation and industrial controls market features prominent global players like ABB Korea, Siemens Korea, Emerson Electric Korea, Yokogawa Electric Korea, Honeywell International, and Schneider Electric, alongside regional specialists like Doosan and Hyundai Robotics. These companies demonstrate strong product innovation capabilities through the continuous development of advanced automation solutions, particularly in areas like industrial automation and control systems, IoT integration, artificial intelligence, and machine learning applications. Companies are increasingly focusing on strategic partnerships and collaborations to enhance their technological capabilities, with notable alliances forming between automation providers and cloud technology companies. Operational agility is being achieved through the vertical integration of manufacturing processes and the development of comprehensive end-to-end solutions. Market expansion strategies include significant investments in research and development facilities, strategic acquisitions of local technology firms, and the establishment of innovation centers focused on Industry 4.0 technologies.
Market Dominated by Global Technology Conglomerates
The South Korean factory automation market structure is characterized by the strong presence of global technology conglomerates who leverage their extensive research capabilities and established distribution networks. These multinational corporations maintain their market positions through comprehensive product portfolios spanning multiple automation segments, from basic control systems to advanced robotics solutions. The market shows moderate consolidation, with major players continuously strengthening their positions through strategic acquisitions of local automation specialists and technology startups, particularly those specializing in Industry 4.0 technologies, artificial intelligence, and IoT solutions.
The competitive dynamics are further shaped by the emergence of specialized local players who focus on specific market segments such as robotics, machine vision systems, and specialized control solutions. Market consolidation is driven by the need to acquire new technologies and expand geographical presence, with many global players actively pursuing partnerships with local system integrators and technology providers. The trend of strategic alliances between automation providers and industrial technology companies is reshaping the competitive landscape, as companies seek to offer more integrated and comprehensive industrial automation and control systems to meet evolving customer demands.
Innovation and Integration Drive Market Success
Success in the South Korean factory automation market increasingly depends on companies' ability to provide integrated solutions that combine traditional automation capabilities with advanced digital technologies. Incumbent players are focusing on developing comprehensive IoT platforms, enhancing their artificial intelligence capabilities, and strengthening their cybersecurity offerings to maintain their market positions. The ability to provide end-to-end solutions, from basic automation to advanced analytics and predictive maintenance capabilities, has become crucial for market leadership. Companies are also investing in developing industry-specific expertise and solutions, particularly for key sectors like automotive, semiconductor manufacturing, and electronics.
For new entrants and challenger companies, success factors include developing specialized solutions for underserved market segments, building strong local partnerships, and offering innovative pricing models such as subscription-based services. The market shows moderate substitution risk due to high switching costs and the critical nature of automation systems in industrial processes. Regulatory compliance, particularly regarding safety standards and cybersecurity requirements, plays a crucial role in shaping competitive strategies. End-user concentration in key industries like automotive and electronics manufacturing necessitates strong relationship management capabilities and a deep understanding of industry-specific requirements for sustained success in the market. Additionally, the integration of digital factory concepts and factory intelligence is becoming increasingly vital for maintaining a competitive edge.
South Korea Factory Automation & Industrial Controls Market Leaders
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Denso Korea Corporation
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ABB Korea Co. Ltd
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Epson Korea Co. Ltd
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Fuji Electric FA Korea Co. Ltd
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Emerson Electric Korea Ltd
- *Disclaimer: Major Players sorted in no particular order
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South Korea Factory Automation & Industrial Controls Market News
In June 2022, Robotics startup Nau Robotics Co. Ltd, which specializes in industrial robots, unveiled a new multi-joint take-out robot for plastic injection, 'NURO X,' at the 'International Packaging Equipment Exhibition 2022 held at KINTEX, Gyeonggi-do. Nau Robotics drew visitors' attention by demonstrating the operation of the articulated robot NURO X in conjunction with the LS Mtron injection machine.
In March 2022, Seoul Robotics launched an infrastructure-based version of its patented SENSR 3D perception software. The new SENSR-I software processes data captured by stationary 3D sensors in large spaces to provide high-resolution environmental insight. The solution is an extension of the SENSR software for autonomous vehicles and autonomous mobile robot (AMR) vehicles.
South Korea Factory Automation & Industrial Controls Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
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4.2 Industry Attractiveness - Porters Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Buyers
- 4.2.3 Threat Of New Entrants
- 4.2.4 Threat of Substitute Products
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Industry Value Chain Analysis
- 4.4 Assessment of Impact of COVID-19 on the Market
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Increasing Adoption of Internet of Things (IoT) and Machine-to-Machine Technologies
- 5.1.2 Increasing Emphasis on Energy Efficiency and Cost Reduction
- 5.1.3 Exponential Growth of the E-commerce Industry and Customer Expectations
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5.2 Market Restraints
- 5.2.1 High Up-front Installation Costs and Interoperability Issues
- 5.2.2 Unavailability for Skilled Workforce
6. MARKET SEGMENTATION
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6.1 By Product Type
- 6.1.1 Presence Sensing Safety Sensors
- 6.1.2 Emergency Stop Devices
- 6.1.3 Safety Controllers/Modules
- 6.1.4 Safety Mats
- 6.1.5 Programmable Logic Controllers (PLC)
- 6.1.6 Human Machine Interface (HMI)
- 6.1.7 Machine Vision Systems
- 6.1.8 Industrial Robotics
- 6.1.9 Sensors and Transmitters
- 6.1.10 Switches
- 6.1.10.1 Safety Switches
- 6.1.10.2 Limit Switches
- 6.1.10.3 Pushbutton Switches
- 6.1.10.4 DIP Switches
- 6.1.11 Relays
- 6.1.12 Industrial Power Supplies
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6.2 By End-user
- 6.2.1 Automotive
- 6.2.2 Semiconductor
- 6.2.3 Manufacturing
- 6.2.4 Oil and Gas
- 6.2.5 Chemical and Petrochemical
- 6.2.6 Food and Beverage
- 6.2.7 Power and Utilities
- 6.2.8 Other End-users
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles
- 7.1.1 ABB Korea Co. Ltd
- 7.1.2 Denso Korea Corporation
- 7.1.3 Emerson Electric Korea Ltd
- 7.1.4 Epson Korea Co. Ltd
- 7.1.5 Fuji Electric FA Korea Co. Ltd
- 7.1.6 Honeywell Korea Ltd
- 7.1.7 Kawasaki Robotics
- 7.1.8 Korea Fanuc Corporation
- 7.1.9 Kuka Robotics Korea Co. Ltd
- 7.1.10 Mitsubishi Electric Automation Korea Co. Ltd
- 7.1.11 Nidec Corporation
- 7.1.12 Omron Electronics Korea Co. Ltd
- 7.1.13 Panasonic Industrial Devices Sales Korea Co. Ltd
- 7.1.14 Rockwell Automation Inc.
- 7.1.15 Schneider Electric
- 7.1.16 Siemens Korea
- 7.1.17 Staubli International AG
- 7.1.18 Universal Robots AS (Teradyne Inc.)
- 7.1.19 Yaskawa Electric Corporation
- 7.1.20 Yokogawa Electric Korea Co. Ltd
- *List Not Exhaustive
8. LIST OF KEY DISTRIBUTORS & SUPPLIERS
9. MARKET OUTLOOK
South Korea Factory Automation & Industrial Controls Industry Segmentation
Industrial control and factory automation are rising trends in the manufacturing industry, which provide smart manufacturing infrastructure. Industrial control and factory automation facilitate cost efficiency, product quality, standardized manufacturing, reliability, and flexibility in manufacturing.
The South Korean automation industry was revolutionized by combining the digital and physical aspects of manufacturing to deliver optimum performance. Furthermore, the focus on achieving zero waste production and a shorter time to market augmented the market's growth. The market defines revenues generated from selling and installing different factory automation and industrial control systems products in the region.
The market size was derived for the South Korean FAICS market by evaluating contributions of various product types, such as presence sensing safety sensors, emergency stop devices, safety controllers/modules, safety mats, programmable logic controllers (PLC), human-machine interface (HMI), machine vision systems, industrial robotics, sensors and transmitters, switches, relays, and industrial power supplies. The South Korean FAICS market also covers various end-user industries in the region, such as automotive, semiconductor, manufacturing, oil and gas, chemical and petrochemical, food and beverage, and power and utilities. The market sizes and forecasts regarding value (USD million) for all the above segments are provided.
By Product Type | Presence Sensing Safety Sensors | ||
Emergency Stop Devices | |||
Safety Controllers/Modules | |||
Safety Mats | |||
Programmable Logic Controllers (PLC) | |||
Human Machine Interface (HMI) | |||
Machine Vision Systems | |||
Industrial Robotics | |||
Sensors and Transmitters | |||
Switches | Safety Switches | ||
Limit Switches | |||
Pushbutton Switches | |||
DIP Switches | |||
Relays | |||
Industrial Power Supplies | |||
By End-user | Automotive | ||
Semiconductor | |||
Manufacturing | |||
Oil and Gas | |||
Chemical and Petrochemical | |||
Food and Beverage | |||
Power and Utilities | |||
Other End-users |
South Korea Factory Automation & Industrial Controls Market Research FAQs
How big is the South Korea Factory Automation and Industrial Controls Market?
The South Korea Factory Automation and Industrial Controls Market size is expected to reach USD 9.12 billion in 2025 and grow at a CAGR of 6.58% to reach USD 12.55 billion by 2030.
What is the current South Korea Factory Automation and Industrial Controls Market size?
In 2025, the South Korea Factory Automation and Industrial Controls Market size is expected to reach USD 9.12 billion.
Who are the key players in South Korea Factory Automation and Industrial Controls Market?
Denso Korea Corporation, ABB Korea Co. Ltd, Epson Korea Co. Ltd, Fuji Electric FA Korea Co. Ltd and Emerson Electric Korea Ltd are the major companies operating in the South Korea Factory Automation and Industrial Controls Market.
What years does this South Korea Factory Automation and Industrial Controls Market cover, and what was the market size in 2024?
In 2024, the South Korea Factory Automation and Industrial Controls Market size was estimated at USD 8.52 billion. The report covers the South Korea Factory Automation and Industrial Controls Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the South Korea Factory Automation and Industrial Controls Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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South Korea Factory Automation and Industrial Controls Market Research
Mordor Intelligence provides a comprehensive analysis of the industrial automation landscape in South Korea. We leverage our extensive expertise in process automation and industrial control systems. Our research thoroughly examines the integration of automated production systems and Industry 4.0 technologies. This includes the implementation of programmable logic controller systems, distributed control systems, and industrial robotics. The report PDF, available for download, offers detailed insights into smart manufacturing trends, industrial sensors deployment, and manufacturing automation strategies within South Korea's rapidly evolving digital factory ecosystem.
Stakeholders gain valuable insights into smart factory implementations, manufacturing execution systems, and industrial networking solutions that are shaping South Korea's manufacturing sector. Our analysis covers emerging industrial process control technologies, industrial control equipment, and machine control systems that drive operational efficiency. The report examines industrial automation software applications, factory intelligence solutions, and manufacturing control systems. This enables decision-makers to understand how these technologies contribute to building sophisticated industrial automation and control systems. This comprehensive research empowers businesses to make informed strategic decisions when implementing advanced automation solutions.