U.K. and Ireland Industrial Automation Market Dominated by Hardware Segment
U.K. and Ireland Industrial Automation Market: Size,
Trends, and Future Outlook (2025–2032)
The U.K. and Ireland industrial automation market is poised
for remarkable growth, with its value projected to increase from US$ 12.2
billion in 2025 to US$ 19.9 billion by 2032, reflecting a compound annual
growth rate (CAGR) of 7.2% during the forecast period. This growth
trajectory is shaped by a confluence of technological innovations, shifting
labor dynamics, rising operational costs, and strong government support for
digital transformation.
The U.K.
and Ireland industrial automation market is undergoing a foundational
shift, transforming from traditional manufacturing frameworks into digitized,
smart production ecosystems. This transformation is most visible in sectors
like pharmaceuticals, food and beverage, and logistics—industries that are
heavily reliant on process precision, cleanliness, and operational efficiency.
Industrial automation technologies, including robotics, artificial intelligence
(AI), and the Industrial Internet of Things (IIoT), are playing a crucial role
in redefining production capabilities across the region.
Driving Forces Behind Market Growth
The primary driver fueling the expansion of industrial
automation in the U.K. and Ireland is the rising cost of labor and energy.
Manufacturers are actively seeking solutions to streamline operations, reduce
resource consumption, and mitigate disruptions caused by labor shortages. For
instance, companies like Princes Group have adopted automation technologies
such as automated Clean-In-Place (CIP) systems, which led to a 20% reduction in
water usage and a 15% decrease in cleaning cycle times—translating into
substantial cost savings.
In Ireland, the situation is even more acute within the pharmaceutical
and medtech sectors. As global demand for pharmaceuticals continues to
surge, Irish manufacturers are integrating robotics and process automation
technologies to increase throughput without expanding their workforce. Boston
Scientific’s adoption of robotic systems and machine vision in its Cork
facility has not only improved efficiency but also significantly reduced errors
and downtime, resulting in an 8% boost in Overall Equipment Effectiveness
(OEE).
Moreover, programs such as the Irish Manufacturing
Research (IMR) pilot have shown that even small and medium-sized
enterprises (SMEs) can benefit from automation. Participants in these programs
reported a 25% reduction in waste and a 10–12% increase in throughput within
the first year of automation integration.
Challenges and Market Restraints
Despite its promising outlook, the industrial automation
market in the U.K. and Ireland faces notable challenges. One of the major
obstacles is the legacy infrastructure that dominates many manufacturing
environments. In particular, older facilities in sectors such as textiles and
food processing often lack the digital maturity needed to integrate modern
automation solutions seamlessly. These aging systems often require expensive
retrofits and custom interfaces, increasing the upfront capital needed for
transformation.
A 2023 survey by Make U.K. found that over 40% of
small manufacturers still rely on outdated equipment incompatible with modern
automation interfaces. This limits their ability to transition to more advanced
technologies such as predictive maintenance, machine vision, and real-time
process optimization.
In Ireland, indigenous manufacturers in SME-heavy sectors,
such as agri-food and precision machining, face similar hurdles. While
multinational corporations operating in Ireland benefit from state-of-the-art
facilities and cleanroom environments, local businesses are often lagging in
basic digitization. IMR data indicates that fewer than 30% of small Irish
manufacturers have adopted even basic sensor networks or Manufacturing
Execution Systems (MES), making it challenging to scale toward smart
automation.
Additionally, capital constraints continue to be a
pressing concern. With inflationary pressures and economic uncertainties, many
SMEs are reluctant to invest heavily in automation technology, especially when
the return on investment may not be immediately evident.
5G Networks: A Catalyst for Change
One of the most significant opportunities emerging in the
market is the advent of 5G technology. Ultra-low-latency wireless
communication enables real-time data transmission, remote machine operation,
and seamless integration of a vast network of connected devices.
In the U.K., the Manufacturing Technology Center (MTC)
in Coventry, in collaboration with BT and Ericsson, has established a
5G-enabled testbed to explore the potential of real-time robotic control and
augmented reality in factory environments. Results from these pilot projects
indicate that 5G can reduce robotic control latency to under 10 milliseconds,
allowing for advanced use cases such as mobile robot fleets and remote
diagnostics.
Ireland is also exploring private 5G networks to
enhance production agility. Manufacturers have started using 5G to connect
Autonomous Guided Vehicles (AGVs), real-time sensors, and digital twins across
production lines. The initial results are impressive, with a reported 30%
improvement in quality monitoring and a 25% reduction in changeover times. This
paves the way for flexible batch manufacturing, particularly critical in
high-mix, low-volume sectors like pharmaceuticals and food production.
Segmental Insights: Components and Technologies
The U.K. and Ireland industrial automation market can be
broadly segmented by components and technologies.
On a component level, hardware dominates the market,
accounting for approximately 62.7% of the total share in 2025. The demand is
driven by the region’s heavy reliance on machinery, robotics, and programmable
controllers. Industries such as automotive, aerospace, and food processing are
major consumers of Programmable Logic Controllers (PLCs), Human-Machine
Interfaces (HMIs), and robotic arms, which are critical for achieving
productivity improvements.
Software, while smaller in share, is growing rapidly.
As manufacturers move toward more agile and data-driven production, platforms
such as MES, SCADA, and analytics tools are becoming indispensable. In Ireland,
software adoption is accelerating within the pharmaceutical and medtech
sectors, where regulatory compliance, traceability, and data
integrity are non-negotiable.
From a technology standpoint, industrial robotics
leads the charge, expected to capture around 28.4% of the market in 2025. The
rise of collaborative robots (cobots) is particularly noteworthy—they
are safer, more affordable, and easier to integrate than traditional robotic
systems, making them ideal for SMEs with constrained resources.
Other prominent technologies include:
- Machine
Vision Systems, used for real-time quality control and inspection
- Artificial
Intelligence and Machine Learning, enabling predictive maintenance and
process optimization
- Industrial
Internet of Things (IIoT), which connects assets and equipment to
enable data-driven decision-making
- Advanced
Process Control (APC) and HMI, critical for managing complex
manufacturing environments with real-time control and visibility
Country-specific Insights
United Kingdom Market Dynamics
The U.K. has lagged in industrial automation adoption
compared to its G7 counterparts, especially in terms of robot density.
According to the International Federation of Robotics, the U.K. had just 111
robots per 10,000 employees in 2023, compared to Germany’s 397 and Italy’s 224.
However, this gap is closing, particularly in the aerospace and
pharmaceutical sectors.
The Made Smarter initiative by the U.K. government is
a driving force behind this improvement. Through financial support, training
programs, and expert consultations, the initiative is helping SMEs across
regions like the Northwest and the Midlands adopt industrial automation. Engineering
firms in Greater Manchester have reported productivity gains of up to 15% after
integrating IoT platforms and robotics.
Ireland Market Dynamics
Ireland has emerged as a regional leader in automation,
largely due to its focused Industry 4.0 roadmap, which was launched in 2020 and
aims for full implementation by 2025. Backed by €6 billion in investment, the
strategy focuses on building a collaborative ecosystem among academia,
government, and industry players.
Pharmaceutical companies such as Eli Lilly, MSD, and
Boston Scientific are at the forefront of automation in Ireland,
integrating robotics in quality control, lab automation, and packaging. This
shift is not only enhancing operational efficiency but also contributing to the
onshoring of manufacturing operations, further strengthening Ireland’s
industrial base.
Local engineering firms like Noreside Engineering are
playing a key role in integrating automation solutions into the pharmaceutical
landscape. Ireland’s combination of a skilled workforce, a strong R&D
infrastructure, and a favorable regulatory environment makes it a fertile
ground for automation innovation.
Competitive Landscape
The U.K. and Ireland industrial automation market is highly
competitive and fragmented, with participation from global technology giants
and local system integrators. Key players include Siemens, ABB, Rockwell
Automation, Schneider Electric, and Honeywell, all of whom have
established a strong foothold in the region.
What makes this market unique is the significant presence
of regional system integrators and start-ups, who offer customized
solutions tailored to legacy infrastructure. These local players are
particularly critical for SMEs that require retrofitting rather than greenfield
automation projects. They often provide end-to-end services—from system design
to implementation and training.
Cybersecurity is becoming a key differentiator among
automation providers. As operational technology (OT) systems become
increasingly connected, they also become more vulnerable to cyber threats.
Vendors that offer built-in OT security features—such as intrusion detection,
role-based access control, and encrypted communication—are gaining favor among
manufacturers with sensitive production data.
Future Outlook
Looking ahead, the U.K. and Ireland industrial automation
market is well-positioned for sustained growth. Several trends will shape its
evolution:
- Human-centric
automation, blending human expertise with robotic efficiency
- Energy
optimization technologies, aimed at achieving sustainability targets
- Digital
twins, enabling real-time simulation and process optimization
- Scalable
cloud platforms, fostering remote monitoring and predictive analytics
Government support will remain a pivotal factor in driving
automation adoption. As policy frameworks such as Made Smarter in the
U.K. and Industry 4.0/5.0 roadmaps in Ireland mature, they will serve as
catalysts for broader implementation.
In conclusion, the U.K. and Ireland industrial automation
market is transitioning from promise to performance. Backed by technology,
policy, and pressing industrial needs, automation is becoming not just a
strategic advantage but a necessary pillar for manufacturing competitiveness in
the region. Stakeholders who invest early and wisely in automation will be best
positioned to thrive in this rapidly changing landscape.
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𝐓𝐫𝐞𝐧𝐝𝐢𝐧𝐠
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