U.K. and Ireland Industrial Automation Market Outlook (2021–2028)
The industrial automation market in the U.K. and Ireland is poised for steady expansion, recovering from the negative effects of the COVID-19 pandemic. The market size reached USD 7.93 billion in the U.K. and USD 1.24 billion in Ireland in 2020, with post-pandemic recovery expected to accelerate growth. The U.K. market is forecasted to grow from USD 8.42 billion in 2021 to USD 14.64 billion by 2028 at a CAGR of 8.2%, while Ireland’s market is projected to increase from USD 1.33 billion to USD 2.59 billion at a CAGR of 10.0%.
COVID-19 Impact: Investment Shifts and Government Support
During the pandemic, lockdowns disrupted production, reduced hardware spending, and slowed automation software adoption. However, post-pandemic recovery efforts have reignited investment in manufacturing. The U.K. government, for example, allocated over USD 386 million in 2020 to boost manufacturing productivity by 30%. Such initiatives are driving renewed demand for robotics, AI, and digital manufacturing technologies across both nations.
Rising Adoption of Robotics and AMRs in Manufacturing and Logistics
Automation in the U.K. and Ireland is rapidly advancing through the integration of artificial intelligence (AI), the Internet of Things (IoT), and robotics. According to the International Federation of Robotics (IFR), around 21,700 industrial robots are currently deployed in U.K. factories. National initiatives such as the Robotics Technology Council continue to strengthen domestic robotics capability, fostering digital transformation across industries.
Market Drivers: Industry 4.0 Accelerating Digital Transformation
Industry 4.0 adoption is a key growth driver. Manufacturing represents 16% of Europe’s GDP and accounts for 64% of private-sector R&D. As digital transformation reshapes production, smart manufacturing technologies—including IoT-enabled automation, predictive analytics, and cloud-based control—are expected to significantly enhance productivity, competitiveness, and sustainability in the U.K. and Ireland.
Market Restraints: High Initial Capital Investment
Despite strong growth potential, high upfront costs remain a major barrier to adoption. Many small and mid-sized manufacturers hesitate to implement automation systems due to uncertain ROI and post-pandemic financial constraints. Market fragmentation and diverse technology standards further limit investment confidence, slowing overall adoption rates in the region.
Market Segmentation by Component
The market is segmented into hardware and software.
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Software: Expected to lead revenue generation, driven by demand for analytics, SCADA, and HMI solutions from key players like GE, Honeywell, and Siemens.
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Hardware: Includes sensors, PLCs, HMIs, servo drives, robots, and safety systems. Robots and sensors are projected to witness the fastest growth, supported by advancements in micro-electromechanical systems (MEMS) and industrial robotics.
Market Segmentation by Industry
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Discrete Industries: Automotive, aerospace, and electronics manufacturing dominate the U.K. market. The presence of major companies such as Rolls-Royce, BAE Systems, and Meggitt fuels automation demand in high-precision and high-output production.
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Process Industries: In Ireland, industries such as pharmaceuticals, oil & gas, and paper manufacturing lead automation investments, supported by the country’s strong ICT and semiconductor base.
Regional Insights: U.K. and Ireland
Both markets are characterized by intense competition and rapid digital readiness. According to Cisco’s 2019 Digital Readiness Index, the U.K. ranked 9th and Ireland 12th among Western European nations, reflecting strong AI and IoT integration. Ireland’s innovation ecosystem, ranking 16th in Bloomberg’s Innovation Index (2020), provides fertile ground for automation startups and digital infrastructure investment.
Competitive Landscape: Partnerships and Collaborations Drive Growth
Leading players—including ABB Ltd., Siemens AG, Bosch, GE, Rockwell Automation, Mitsubishi Electric, Schneider Electric, Honeywell, and Emerson—are expanding through partnerships and joint projects.
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Hitachi ABB Power Grids (2020) partnered with Power Networks Services to enhance the U.K.’s high-speed rail energy systems, a USD 6.6 million project.
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Omron Corporation (2020) collaborated with Reeco Automation to promote collaborative robots for safer and more efficient production lines in the U.K.
Key Companies in the Market
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ABB Ltd. (Switzerland)
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Siemens AG (Germany)
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General Electric (U.S.)
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Mitsubishi Electric Corporation (Japan)
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Robert Bosch GmbH (Germany)
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Rockwell Automation Inc. (U.S.)
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Schneider Electric (France)
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Honeywell International Inc. (U.S.)
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Emerson Electric Co. (U.S.)
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Fanuc Corporation (Japan)
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Yokogawa Electric Corporation (Japan)
Conclusion: Toward a Smart and Sustainable Industrial Future
The U.K. and Ireland industrial automation markets are entering a new phase of intelligent transformation, powered by robotics, AI, and Industry 4.0. Although high capital costs pose challenges, increasing government investment, technological innovation, and cross-industry collaboration are paving the way for a smarter, more resilient industrial economy.