Key Insights

The European industrial automation software market, valued at €21.84 billion in 2025, is experiencing robust growth, projected to expand at a compound annual growth rate (CAGR) of 8.26% from 2025 to 2033. This expansion is driven by several key factors. Increasing adoption of Industry 4.0 technologies, including advanced process control (APC), manufacturing execution systems (MES), and asset performance management (APM), is a primary catalyst. Furthermore, the rising demand for enhanced operational efficiency, predictive maintenance capabilities, and improved supply chain visibility across various end-user industries like oil and gas, chemicals, and automotive, fuels market growth. Regulations promoting digitalization and sustainability within manufacturing are also contributing to the increased adoption of industrial automation software. Germany, France, and the UK are leading the market, driven by robust manufacturing sectors and early adoption of digital transformation initiatives.

However, challenges remain. The high initial investment costs associated with implementing and integrating complex software systems can act as a restraint, particularly for smaller enterprises. Moreover, ensuring cybersecurity and data privacy in interconnected industrial environments presents a significant concern, potentially hindering the adoption rate. Despite these hurdles, the long-term outlook remains positive. Continued technological advancements, the development of more user-friendly software solutions, and growing government support for industrial automation initiatives are expected to mitigate these challenges and sustain market growth over the forecast period. The ongoing shift towards cloud-based solutions and the increasing adoption of artificial intelligence (AI) and machine learning (ML) in industrial processes will further propel market expansion in the coming years.

European Industrial Automation Software Industry Report: 2019-2033

This comprehensive report provides a detailed analysis of the European industrial automation software market, covering the period 2019-2033. It offers invaluable insights for industry professionals, investors, and strategic decision-makers seeking to understand market dynamics, growth opportunities, and competitive landscapes. The report leverages extensive data analysis to provide actionable intelligence on market size, growth projections, key players, and emerging trends, with a focus on the European market.

European Industrial Automation Software Industry Market Structure & Innovation Trends

The European industrial automation software market is characterized by a moderately concentrated structure, with several multinational corporations holding significant market share. Key players like ABB Ltd, Koyo Electronic Industries Co Ltd, IBM Corporation, Emerson Electric Co, Siemens AG, OMRON Corporation, Daifuku Co Ltd, Rockwell Automation Inc, Yokogawa Electric Corporation, and Honeywell International Inc dominate various segments. However, the market also features numerous smaller, specialized companies contributing to innovation.

• Market Concentration: The top 10 players account for an estimated xx% of the market share in 2025.
• Innovation Drivers: The increasing adoption of Industry 4.0 technologies, the need for enhanced operational efficiency, and stringent regulatory compliance requirements are driving innovation.
• Regulatory Frameworks: EU directives on data privacy (GDPR) and cybersecurity significantly influence software development and deployment.
• Product Substitutes: Open-source software solutions and cloud-based platforms are emerging as alternatives to traditional proprietary software.
• M&A Activities: Recent years have witnessed increased M&A activity, with deal values exceeding xx Million in the last five years. For example, Wipro PARI's acquisition of Hochrainer GmbH in July 2022 highlights the strategic importance of consolidating market presence.

European Industrial Automation Software Industry Market Dynamics & Trends

The European industrial automation software market is experiencing robust growth, driven by several key factors. The market is projected to achieve a Compound Annual Growth Rate (CAGR) of xx% during the forecast period (2025-2033), reaching a market value of xx Million by 2033. Increased automation across various end-user industries, including automotive, chemicals, and food & beverage, is a major driver. Technological disruptions, such as the adoption of Artificial Intelligence (AI), machine learning (ML), and the Internet of Things (IoT), are further fueling market expansion. Consumer preferences are shifting towards cloud-based and subscription-based software models, offering greater flexibility and scalability. Intense competition among established players and emerging technology providers is shaping market dynamics, leading to continuous product innovation and competitive pricing. Market penetration of advanced software solutions like APM and APC is growing at a faster pace than that of MES, illustrating a market shift toward more sophisticated analytics and control capabilities.

Dominant Regions & Segments in European Industrial Automation Software Industry

Germany, the UK, and France represent the largest national markets within Europe, contributing a combined xx% of the total market value in 2025. The strong industrial base in these countries, coupled with supportive government policies and advanced infrastructure, creates a favorable environment for industrial automation software adoption.

• Leading Segments:

  • Type of Software: Manufacturing Execution Systems (MES) remains the largest segment, but Asset Performance Management (APM) and Advanced Process Control (APC) are experiencing the fastest growth due to the increasing focus on operational efficiency and predictive maintenance.
  • End-user Industry: The automotive and transportation, chemical and petrochemical, and oil and gas sectors are leading adopters of industrial automation software.

• Key Drivers (by Country):

  • Germany: Strong manufacturing base, supportive government policies for Industry 4.0, and a highly skilled workforce.
  • France: Government initiatives promoting digital transformation and investments in smart manufacturing.
  • United Kingdom: Significant presence of automotive and other manufacturing industries, alongside robust IT infrastructure.
  • Italy: Growth driven by the country's significant manufacturing sector and ongoing investments in automation technologies.
  • Eastern Europe: Growth potential linked to industrialization and modernization efforts.

European Industrial Automation Software Industry Product Innovations

Recent product innovations focus on enhancing connectivity, integrating AI/ML capabilities for predictive maintenance and optimized process control, and improving cybersecurity features to protect critical industrial infrastructure. Cloud-based platforms are gaining traction, offering greater scalability and remote access capabilities. The integration of digital twins and virtual commissioning tools are also becoming increasingly important for optimizing production processes and reducing downtime.

Report Scope & Segmentation Analysis

This report segments the European industrial automation software market by type of software (MES, APM, APC, PLM, OTS, Industrial Control Systems Software), end-user industry (Oil and Gas, Chemical and Petrochemical, Power, Water and Wastewater, Food and Beverage, Automotive and Transportation, Other End-user Industries), and country (Germany, France, UK, Italy, Eastern Europe, Rest of Western Europe). Each segment’s growth projections, market size (in Million), and competitive dynamics are analyzed. For instance, the MES segment is expected to maintain steady growth, while APM and APC segments are projected to exhibit higher growth rates due to the growing demand for predictive maintenance and optimization solutions.

Key Drivers of European Industrial Automation Software Industry Growth

The growth of the European industrial automation software industry is fueled by several key factors: the increasing adoption of Industry 4.0 technologies, driven by the need for enhanced productivity and efficiency; government initiatives promoting digital transformation and smart manufacturing; and the growing demand for predictive maintenance and optimized process control in various industrial sectors. Stringent regulatory compliance requirements related to safety, security, and data privacy are also driving adoption.

Challenges in the European Industrial Automation Software Industry Sector

The industry faces several challenges, including the high cost of implementation and integration, cybersecurity threats to critical industrial infrastructure, the complexity of integrating legacy systems with new software solutions, and the skills gap in the workforce hindering successful implementation and management of advanced automation systems. These issues impact the speed of adoption and could potentially constrain market growth to a certain extent.

Emerging Opportunities in European Industrial Automation Software Industry

The growing adoption of cloud-based solutions, the increasing integration of AI/ML for predictive maintenance and process optimization, and the rise of digital twins present significant opportunities for growth. Expansion into new markets like renewable energy and smart cities, along with the development of specialized software for specific industrial applications, offers further potential for market expansion.

Leading Players in the European Industrial Automation Software Industry Market

• ABB Ltd
• Koyo Electronic Industries Co Ltd
• IBM Corporation
• Emerson Electric Co
• Siemens AG
• OMRON Corporation
• Daifuku Co Ltd
• Rockwell Automation Inc
• Yokogawa Electric Corporation
• Honeywell International Inc
• List Not Exhaustive

Key Developments in European Industrial Automation Software Industry

• July 2022: Wipro PARI acquired Hochrainer GmbH, expanding its European presence.
• February 2021: Liebherr Mining expanded its use of Operator Training Simulators through a collaboration with ThoroughTec Simulation.

Future Outlook for European Industrial Automation Software Market

The European industrial automation software market is poised for continued growth, driven by ongoing technological advancements, increasing digitization across industries, and supportive government policies. The focus on predictive maintenance, enhanced operational efficiency, and improved cybersecurity will shape future market dynamics, presenting significant opportunities for both established players and emerging technology providers. The market is expected to see continued consolidation through mergers and acquisitions, with a focus on developing integrated solutions across multiple platforms.

European Industrial Automation Software Industry Segmentation

• 1. Type of Software
  • 1.1. Manufacturing Execution Systems (MES)
  • 1.2. Asset Performance Management (APM)
  • 1.3. Advanced Process Control (APC)
  • 1.4. Product Lifecycle Management (PLM)
  • 1.5. Operator Training Simulator (OTS)
  • 1.6. Industri
• 2. End-user Industry
  • 2.1. Oil and Gas
  • 2.2. Chemical and Petrochemical
  • 2.3. Power
  • 2.4. Water and Wastewater
  • 2.5. Food and Beverage
  • 2.6. Automotive and Transportation
  • 2.7. Other End-user Industries

European Industrial Automation Software Industry Segmentation By Geography

• 1. Europe
  • 1.1. United Kingdom
  • 1.2. Germany
  • 1.3. France
  • 1.4. Italy
  • 1.5. Spain
  • 1.6. Netherlands
  • 1.7. Belgium
  • 1.8. Sweden
  • 1.9. Norway
  • 1.10. Poland
  • 1.11. Denmark