The UK industrial automation market is moving into a decade of accelerated adoption as manufacturers respond to labour shortages, cost pressure, supply-chain volatility and the need for higher productivity. The UK factory automation and industrial control systems market is estimated at about USD 17.63 billion in 2025 and is projected to reach USD 46.57 billion by 2035, implying a 10.2% CAGR. Growth will be led by robotics, PLCs, SCADA, sensors, industrial software, AI-enabled production systems, and connected factory infrastructure.
Major Factors Accelerating Automation Adoption in UK Industries
Productivity and cost competitiveness
Productivity remains in the central business case for automation. UK manufacturers face high energy costs, wage inflation, and global competition from more automated economies. Automation helps reduce downtime, improve throughput, cut waste, and support more consistent product quality. The opportunity is particularly important because UK manufacturing still contributes materially to the economy: government materials cite £205 billion in manufacturing value added in 2022 and £361 billions of manufactured goods exports, equal to 43% of total UK exports.
Labour shortages and skills gaps
Automation is increasingly viewed as a response to limited availability of production, engineering, and maintenance of talent. Robotics, automated material handling, vision inspection and predictive maintenance tools can reduce dependency on repetitive manual work while shifting demand toward higher-skilled roles. The UK also has room to catch up: Make UK has reported robot density of about 112 robots per 10,000 manufacturing workers, well below many industrial peers. This gap creates a long runway for investment.
Digitalization, AI and smart factories
The next phase of automation will be less about isolated machines and more about connected production systems. Manufacturers are integrating IoT sensors, cloud platforms, digital twins, MES, industrial cybersecurity, and AI-based analytics. Government research estimated UK-wide data investment in 2024 at 11–12% of GVA, indicating growing enterprise spending on data infrastructure that can support smart manufacturing.
Government Policies and Initiatives Supporting Industrial Automation Growth
Government policy is a major enabler. The UK’s Advanced Manufacturing Plan includes £4.5 billion of funding for strategic manufacturing sectors over five years from 2025, including automotive, aerospace, life sciences and clean energy supply chains. The Made Smarter Adoption programmer also supports SME manufacturers with digital roadmaps, leadership training and grants; one regional programmer offers 50% match-funded grants up to £20,000 for digital technology adoption.
Competitive Landscape of Leading Automation Providers in the UK
The market is fragmented but increasingly sophisticated. Large global automation vendors such as Siemens, Rockwell Automation, Schneider Electric, ABB, Honeywell, Mitsubishi Electric and Emerson compete alongside UK system integrators, robotics specialists, machine builders and industrial software providers. Competitive advantage is shifting toward end-to-end solutions: hardware, software, cybersecurity, analytics, lifecycle services and sector-specific expertise. Demand is strongest in automotive, aerospace, food and beverage, pharmaceuticals, logistics, energy and advanced materials.
Key Challenges Limiting Industrial Automation Adoption in the UK
High upfront investment
Automation projects often require significant capital expenditure, systems integration, and staff training. This can slow adoption among SMEs, especially where payback periods are uncertain, or financing is limited.
Skills and integration complexity
Legacy machinery, fragmented data systems, and shortage of automation engineers remain barriers. Many manufacturers need support not only buying equipment, but redesigning workflows, securing industrial networks and training teams to operate advanced systems effectively.
Future Outlook
By 2035, the UK industrial automation market is expected to be larger, more software-defined, and more service-oriented. Growth will likely shift from standalone automation to integrated smart factories using AI, robotics, machine vision, digital twins, and real-time production analytics. Market forecasts point to strong expansion, with factory automation and industrial controls potentially more than doubling by 2035. The strongest adopters will be manufacturers that combine automation investment with workforce reskilling, data maturity, and clear productivity targets.
Consultants at Nexdigm, in their latest publication “UK Industrial Automation Market Outlook to 2035,” analyze the sector by System Type (Industrial Robots, Programmable Logic Controllers, Distributed Control Systems, Supervisory Control and Data Acquisition Systems), By Platform Type (Automotive Manufacturing Automation Platforms, Electronics and Semiconductor Manufacturing Platforms, Energy and Utilities Automation Platforms), and By Fitment Type (New Industrial Automation Installations, Retrofit Automation for Existing Facilities, Integrated Smart Factory Automation Systems). Nexdigm suggests that businesses should prioritize phased automation adoption, invest in workforce upskilling, and build scalable digital infrastructure to improve productivity, reduce operational risks, and remain competitive in the UK’s evolving smart manufacturing landscape.
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Harsh Mittal
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