India’s industrial automation solutions industry targets 14.9% CAGR

India’s industrial automation solutions industry is projected to grow at a 14.9% compound annual growth rate, or CAGR, from FY2026 to FY2029. The industry is forecast to rise from USD 19.40 billion to USD 29.43 billion as adoption extends from established automotive, electronics and pharmaceutical users to micro, small and medium enterprises, or MSMEs, and newer manufacturing sectors.

How fast will India’s industrial automation solutions industry grow through FY2029?

India’s industrial automation solutions industry is projected to add USD 10.03 billion in market value between FY2026 and FY2029. The FY2029 forecast of USD 29.43 billion represents a 14.9% CAGR from USD 19.40 billion in FY2026, according to the industry report commissioned from Dun & Bradstreet Information Services India Private Limited.

India’s industrial automation solutions industry grew from USD 8.40 billion in FY2020 to USD 19.40 billion in FY2026, a period described in the disclosure as having an annual growth rate of about 15%. The 14.9% forecast CAGR to FY2029 is therefore close to the historical pace, rather than dependent on a material acceleration from the FY2020-to-FY2026 trend.

The forecast applies to automation solutions used in manufacturing and infrastructure operations. Industrial automation means using control systems, including computers, robots and information technologies, to manage industrial processes with minimal or no human intervention; the disclosed objectives are higher productivity, better quality, lower operating costs and improved safety.

What is driving India’s industrial automation solutions industry growth?

India’s industrial automation solutions industry growth is linked to manufacturing expansion, demand for precision and traceability, and the need to reduce downtime. The disclosure identifies Make in India, Digital India and the national Industry 4.0 drive as enabling initiatives, while India’s industrial sector recorded year-on-year growth of 7.9% in FY2026, compared with 7.3% in FY2025.

The systems used in India’s industrial automation solutions industry serve different operating requirements. Programmable logic controllers, or PLCs, are industrial computers that control machinery and electromechanical processes; supervisory control and data acquisition, or SCADA, centralises real-time equipment monitoring; and distributed control systems, or DCS, manage real-time control across complex continuous processes such as refining, chemicals and power generation.

The report also identifies pressure to improve efficiency and lower downtime, export-oriented production, global integration and access to cost-effective, scalable systems as demand drivers. For the projected growth rate to persist, manufacturers must be able to integrate such systems with existing equipment and justify factory-level capital expenditure through requirements such as repeatable quality, data capture, equipment monitoring or safety controls.

Manufacturing conditions provide a wider backdrop but are uneven across activities. Mining grew 5.15% in FY2026, down from 11.69% in FY2025; construction grew 7.36%, compared with 7.30%; and utilities grew 1.74%, down from 2.87%. The industrial sector’s contribution to gross value added, or GVA, edged up from 29.4% in FY2025 to 29.5% in FY2026.

Which users are expanding India’s industrial automation solutions industry?

India’s industrial automation solutions industry is expected to broaden beyond automotive, electronics and pharmaceuticals into fast-moving consumer goods, or FMCG, textiles, food processing and intralogistics. The disclosure identifies mid-sized enterprises and MSMEs as an important source of the next adoption phase, with demand expected for platforms tailored to Indian manufacturing conditions.

Automotive factories illustrate the scale of established deployment. Volkswagen India operates 123 robots at its Pune facility, while Hyundai Motor India operates 400 robots at its Chennai plant. The disclosure says the body shop, most of the paint shop and parts of final assembly are automated in these factories, alongside automated guided vehicles, smart conveyors and robotic vision systems used in logistics and inspection.

Pharmaceutical manufacturers use automation in tablet pressing, packaging, labelling and serialisation to support traceability and regulated production. SCADA and DCS systems monitor cleanroom conditions including humidity, air quality and temperature, while automated formulation and filling lines reduce human contact in sterile production processes.

Food and beverage users deploy robotic pick-and-place systems, automated filling and sealing machines, and PLC-controlled batch-processing units. The report identifies integrated sensors and human-machine interfaces, or HMIs, as tools for tracking temperature and mixing parameters in dairy and beverage production, where handling of perishable products makes process monitoring relevant.

How are robotics and digital systems shaping India’s industrial automation solutions industry?

India’s industrial automation solutions industry is becoming more connected through robotics, artificial intelligence, or AI, the Industrial Internet of Things, or IIoT, edge computing and advanced analytics. India installed 9,123 industrial robots in FY2025-26, a 7% increase from the previous fiscal year, making it the world’s sixth-largest annual installer behind Germany, Korea, the United States, Japan and China.

India’s industrial robotics market was projected to reach USD 1.36 billion in CY2026, with annual installations expected to exceed 10,000 units. Industrial robots can carry out material handling, assembly, welding and inspection, while collaborative robots, or cobots, are designed to work alongside people and are identified as relevant to smaller enterprises because of their flexibility and lower integration costs.

Industry 4.0 combines cyber-physical systems, IIoT and AI so equipment can communicate, analyse data in real time and make decentralised decisions. The report cites predictive maintenance, in which sensor and operating data are used to identify likely equipment failures before they occur, as a use case alongside machine-vision quality inspection and process optimisation.

Cloud systems and edge computing have separate roles in this model. Cloud platforms provide scalable data storage and central access, whereas edge computing processes information close to the machine to reduce latency in time-sensitive operations. Wider adoption therefore depends on sufficient connectivity, cybersecurity, data infrastructure and the ability to connect control systems reliably with production operations.

What must hold for India’s industrial automation solutions industry forecast to be met?

India’s industrial automation solutions industry forecast depends on digital transformation among small and medium enterprises, or SMEs, and MSMEs, continuing demand from core sectors, and adoption of customised, flexible production systems. The disclosure specifically lists cybersecurity and data-infrastructure challenges as factors that could affect future growth.

Government programmes can improve the enabling environment, but the report states that automation investment remains dependent on company-level capital-expenditure decisions. The Ministry of Heavy Industries had established eight centres of excellence in automation and robotics, with combined investments exceeding Rs 200 crore, covering smart robotics, IIoT, precision welding and advanced manufacturing.

The SAMARTH Udyog Bharat 4.0 initiative is another disclosed support mechanism. As of February 6, 2026, the Ministry of Heavy Industries had four operational Smart Advanced Manufacturing and Rapid Transformation Hub centres, while the Centre for Industry 4.0 Lab in Pune had been assigned responsibility for establishing 10 additional Industry 4.0 centres under Phase II.

The FY2029 outcome also depends on whether users can deploy automation for energy monitoring, resource management and quality control without disrupting existing production. Smart sensors, AI models and automated controls can monitor energy consumption and equipment conditions, but the forecast requires reliable integration, adequate data protection and sustained spending by individual factories.

Conclusion

India’s industrial automation solutions industry is projected to maintain a growth rate close to its FY2020-to-FY2026 pace, reaching USD 29.43 billion in FY2029 from USD 19.40 billion in FY2026. The central change in the outlook is the expected widening of demand from large established users toward MSMEs and sectors including FMCG, textiles, food processing and intralogistics.

The next development to watch is whether the disclosed expansion of Industry 4.0 centres, robotics installations and scalable platforms translates into wider factory deployment. The 14.9% CAGR projection remains conditional on company-level capital expenditure, workable cybersecurity and data infrastructure, and successful integration of automation equipment with operating processes.