Home Automation Indian Automation Industry: A Complete Guide

Indian Automation Industry: A Complete Guide

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Welcome to a comprehensive exploration of the Indian automation industry. Buckle up and join us as we journey through industrial sector, its history, key players, sectors, impacts, challenges, and future trends. Prepare to be enlightened about this dynamic sector that is shaping India’s industrial landscape.


Automation, the use of machines, control systems, and information technologies to optimize productivity, has played a crucial role in India’s industrial growth. Whether it’s the manufacturing process, IT, healthcare, automotive, or retail, automation is increasingly becoming the backbone of every sector.

Overview Of Indian Automation Industry

The Indian automation industry is a rapidly evolving field. This growth rate is fueled by an increasing demand for fast and efficient production processes, higher product quality, and improved safety conditions.

Importance Of Automation In India

Automation carries significant importance in India. Not only does it boost productivity and efficiency, but it also reduces dependence on manual labor, minimizes errors, and improves safety. As the country aims to become a global manufacturing hub, automation plays a pivotal role in driving this transformation.

The Indian automation industry was forecast period be valued at approximately $3.49 billion in 2020, demonstrating its significant contribution to the country’s economy.

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History Of Automation In India

Let’s take a step back in time and explore how automation evolved in India, from its early beginnings to its current state.

Early Stages Of Automation

In the early stages, automation in India was primarily focused on manufacturing processes. The introduction of Programmable Logic Controllers (PLCs) marked the beginning of automation. These devices were used to control machinery and production lines, leading to increased efficiency and precision in industrial processes.

Progress And Current State Of Automation

The turn of the millennium saw a significant leap in automation practices in India. The advent of technologies such as artificial intelligence (AI), machine learning, and robotics has taken advancing industrial automation in to new heights. Today, India is home to a thriving automation industry with a presence in multiple sectors including manufacturing, IT, healthcare, automotive, and retail.

The industry is projected to grow at a 15% CAGR between 2021 and 2026, indicating that market share and substantial expansion.

Key Players In The Indian Automation Industry

Let’s now shift our focus to some of the leading companies and emerging startups that are driving the Indian automation industry.

Leading Automation Companies

India boasts India’s industrial automation market with several multinational and domestic companies leading the automation charge. Siemens, ABB, and Schneider Electric, for instance, are among the foreign companies making significant strides. On the home front, companies like Larsen & Toubro, Honeywell Automation India, and Tata Consultancy Services are playing pivotal roles in pushing the boundaries of automation in India.

Emerging Startups In Automation

The startup ecosystem in India is also buzzing with innovative ideas. Companies like GreyOrange, Addverb, and Systemantics are revolutionizing various industry segments with their cutting-edge robotic solutions promoting industrial automation, while companies like Zoho and Jiffy.ai are making waves in the IT automation space.

As of 2021, around 45% of Indian manufacturers have adopted some form of automation in their production processes.

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Major Sectors Using Automation In India

Automation in India is not limited to one or two sectors. It’s widespread and is making substantial impacts in various industries. Let’s delve into some of the major sectors using automation in India.

1. Manufacturing Sector

The manufacturing sector is one of the primary beneficiaries of automation in India. From automated assembly lines to robotic quality control and checks, automation has revolutionized the way products are manufactured, leading to enhanced productivity and reduced production costs.

2. IT and ITES Sector

The IT and ITES sectors are another major user of automation. With a focus on improving efficiencies and reducing costs, companies are employing more automation solutions for software testing, data analysis, and even customer service through chatbots and AI assistants.

3. Healthcare Sector

The healthcare sector is also embracing automation. From patient registration and diagnosis to drug dispensing and surgery, automation is enhancing healthcare delivery and patient care. Companies like Practo and Cure.ai are pioneering this change in India.

4. Automotive Sector

The automotive industry in India, one of the world’s largest, is heavily reliant on automation for vehicle assembly, quality checks, and even warehouse management. This has led to technological advancements, increased production speed, improved quality, and reduced labor costs.

5. Retail Sector

In the retail sector, the automation technology is being used for inventory management, billing, customer service, and even product delivery. This has not only improved operational efficiency but also enhanced customer experience, giving Indian retailers a competitive edge in the global market.

India is expected to have around industry 4.0 million industrial robots in operation by 2025, enhancing manufacturing efficiency.

The Impact Of Automation On Indian Economy

Automation is having a profound impact on the Indian economy. By increasing efficiency and productivity, it’s contributing to economic growth. It’s also creating new job opportunities, as the demand for skilled professionals to manage and maintain automated systems grows. However, it’s worth noting that automation could also lead to job displacement in certain sectors, a challenge that needs to be addressed.

The Internet of Things (IoT) sector in India is forecasted to receive investments worth $1.8 billion by 2023, driving the industrial automation, and connectivity.

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Challenges In The Indian Automation Industry

Despite the progress, the path to full-scale automation in India is fraught with challenges. Let’s examine some of them.

Technological Challenges

A major hurdle in the path of automation in India is the lack of adequate technological infrastructure. Issues such as inconsistent power supply, inadequate internet penetration, and lack of skilled manpower to manage advanced technologies are significant challenges.

Economic Challenges

The high cost of implementing automation technologies is another obstacle. Many small and medium enterprises (SMEs) find it difficult to invest in expensive automation equipment, limiting their ability to compete with larger, more technologically advanced companies.

Regulatory Challenges

Regulatory challenges also pose an obstacle to the growth of automation in India. While the government has been proactive in promoting digital transformation, additional efforts are needed to create a conducive legal and regulatory environment for automation technologies.

Implementing building automation systems can result in energy savings of up to 40% in commercial and industrial facilities.

Trends And Future Of Automation In India

Looking ahead, the future of automation in India seems promising. Trends like Artificial Intelligence and Machine Learning, Internet of Things (IoT), and Robotics Process Automation (RPA) are expected to drive the next wave of automation in India. As these technologies mature, we can expect a more rapidly adopting automation technologies more pervasive adoption of automation across various sectors, leading to increased efficiency, productivity, and economic growth.

The Indian automotive sector has witnessed a 60% adoption rate of robotics and automation technologies in manufacturing processes.

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Final Thoughts On The Indian Automation Industry

The Indian automation industry is at an exciting juncture. While challenges exist, the potential benefits of automation are immense. As India continues to push the boundaries of technology and innovation, the role of automation in shaping its industrial landscape cannot be overstated. As we look towards the future, it’s clear that automation will continue to play a pivotal role in India’s journey towards becoming a global industrial power.

Last Updated on October 6, 2023 by himani


  • Parina

    Parina Parmar is a full-time dog mom with a knack for content, editing & advertising. She has years of experience in the communication industry, and her dedication to maintaining the integrity of the author's voice while ensuring clarity and coherence in the text sets her apart in her field. She is dedicated to immersing her love for culture, music, and the advertising industry in her works.


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