Software-Defined Automation Market Report 2026

Software-Defined Automation Market Overview

• Software-Defined Automation market size has reached to $46.63 billion in 2025 • Expected to grow to $96.98 billion in 2030 at a compound annual growth rate (CAGR) of 15.7% • Growth Driver: Surge In Adoption Of Flexible And Adaptive Manufacturing Systems Fueling The Growth Of Market Due To Rising Demand For Agile And Scalable Production • Market Trend: Advancing Open, Software-Defined Automation To Enhance Flexibility And Strengthen Industrial Interoperability • North America was the largest region in 2025 and Asia-Pacific is the fastest growing region.

What Is Covered Under Software-Defined Automation Market?

Software-defined automation market refers to the adoption of software-based systems to control and manage automation processes across various industries. It enables greater flexibility, scalability, and efficiency by decoupling automation logic from physical hardware. This approach allows organizations to optimize operations, reduce costs, and accelerate the deployment of automated solutions. The main components of software-defined automation include solutions and services. Solutions consist of software-defined platforms that centrally control, orchestrate, and automate infrastructure, network, and application workflows through programmable policies, while services support deployment, integration, customization, and ongoing management. Different deployment types include on premises, cloud based, and hybrid models. Multiple organization sizes are large enterprises and small and medium enterprises. Various application outlooks cover process automation, network automation, security automation, and others, and they are used by several end users such as information technology and telecom, banking, financial services, and insurance (BFSI), retail and e-commerce, healthcare and life sciences, manufacturing, automotive, transportation and logistics, and others.

What Is The Software-Defined Automation Market Growth Forecast?

The software-defined automation market size is expected to see rapid growth in the next few years. It will grow to $96.98 billion in 2030 at a compound annual growth rate (CAGR) of 15.7%. The growth in the forecast period can be attributed to rising focus on artificial intelligence driven process automation, growing enterprise digital transformation initiatives, increasing deployment of hybrid automation solutions, expanding integration of internet of things with automation, growing emphasis on energy efficiency and operational optimization. Major trends in the forecast period include technology advancements in cloud computing, innovations in machine learning for automation, developments in digital twin applications, research and developments in predictive maintenance solutions, advancements in vendor neutral and open architecture automation platforms.

Global Software-Defined Automation Market Segmentation

1) By Component Outlook: Solutions, Services 2) By Deployment Type: On Premises, Cloud Based, Hybrid 3) By Organization Size: Large Enterprises, Small And Medium Enterprises 4) By Application Outlook: Process Automation, Network Automation, Security Automation, Other Applications 5) By End-user: Information Technology & Telecom, Banking, Financial Services, & Insurance (BFSI), Retail & E-commerce, Healthcare & Life Sciences, Manufacturing, Automotive, Transportation & Logistics, Other End Users Subsegments: 1) By Solutions: Software Defined Control Systems, Industrial Automation Software, Robotic Process Automation Platforms, Cloud Based Automation Solutions, Artificial Intelligence Driven Automation Tools 2) By Services: Consulting Services, Integration Services, Deployment Services, Support And Maintenance Services, Managed Services

What Is The Driver Of The Software-Defined Automation Market?

The growing adoption of automation in manufacturing is expected to propel the growth of the software?defined automation market going forward. Automation in manufacturing is an approach in which production processes and machine operations can be reconfigured, repurposed, or scaled on demand via software control, replacing rigid hardware?centric setups. The rise in automation adoption is due to the need for flexible production that can quickly adapt to changing demand and product variations. Software?defined automation supports automation in manufacturing by decoupling automation logic from fixed hardware, enabling enterprises to update, reprogram, or scale production rapidly through centralized software platforms. For instance, in September 2025, according to the International Federation of Robotics, a Germany-based industry association representing the robotics sector, in 2024, China recorded 2,027,000 industrial robots working in factories, compared to just over 1,890,000 units in 2023, with annual installations reaching 295,000 units, up 7% from the previous year, representing 54% of global demand and marking the highest level ever recorded. Therefore, the growing adoption of flexible and adaptive manufacturing systems is driving the growth of the software?defined automation market.

Key Players In The Global Software-Defined Automation Market

Major companies operating in the software-defined automation market are Amazon Web Services (AWS), Microsoft Corp., Dell Technologies Inc., Cisco Systems Inc., Intel Corporation, HP Inc., General Electric (GE Vernova/Aerospace), Schneider Electric SE, Mitsubishi Electric Corporation, Honeywell International Inc., SAP SE, Asea Brown Boveri Ltd.(ABB Ltd.), Emerson Electric Co., Rockwell Automation Inc., Bosch Rexroth AG, FANUC CORPORATION, KUKA AG, Yaskawa Electric Corporation, Yokogawa Electric Corporation, Red Hat (IBM Subsidiary), PTC Inc., AVEVA Group plc, Beckhoff Automation GmbH & Co. KG, Software Defined Automation GmbH

Global Software-Defined Automation Market Trends and Insights

Major companies operating in the industrial automation market are focusing on industrial reformation, such as open automation initiatives and modular, to enhance flexibility, interoperability, and scalability across diverse hardware environments. Software-defined automation frameworks are technologies that decouple control logic from proprietary hardware, enabling plug-and-play integration, seamless data exchange, and more agile operational management. For instance, in March 2025, Schneider Electric SE, a France-based energy management and industrial automation company, launched the Open Automation Movement. This initiative promotes vendor-agnostic automation architectures that separate automation intelligence from closed control systems and proprietary equipment. The movement enables real-time data flow, easier system reconfiguration, and improved operational responsiveness, helping industries overcome the limitations of legacy, hardware-locked platforms. This launch represents a significant technological advancement by extending software-defined control into broader industrial ecosystems, bridging traditional automation with next-generation, modular, and interoperable architectures. It offers a scalable, future-ready solution that empowers manufacturers to accelerate digital transformation, reduce integration barriers, and optimize plant-wide automation performance.

What Are Latest Mergers And Acquisitions In The Software-Defined Automation Market?

In July 2025, Comau S.p.A., an Italy-based global provider of advanced automation and robotics solutions, acquired Automha S.p.A. for an undisclosed amount. With this acquisition, Comau aims to strengthen its automated warehousing and intralogistics capabilities, enhancing its portfolio of smart manufacturing and Industry 4.0 solutions. Automha S.p.A. is an Italy-based company specializing in software-defined automation solutions for intralogistics and warehouse automation.

Regional Insights

North America was the largest region in the software-defined automation market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

What Defines the Software-Defined Automation Market?

The software-defined automation market consists of sales of industrial automation software, robotic process automation software, intelligent control systems, cloud-based automation platforms, ai-driven process automation tools. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the Software-Defined Automation Market Report 2026?

The software-defined automation market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the software-defined automation industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.