Key Insights

The European industrial automation software market, valued at €21.84 billion in 2025, is poised for robust growth, exhibiting 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 principles across manufacturing sectors like automotive, food and beverage, and chemicals necessitates sophisticated software solutions for improved efficiency, data analysis, and predictive maintenance. Furthermore, stringent environmental regulations and the push for sustainable manufacturing practices are fueling demand for automation software that optimizes resource utilization and reduces waste. The market is segmented by software type, encompassing Manufacturing Execution Systems (MES), Asset Performance Management (APM), Advanced Process Control (APC), Product Lifecycle Management (PLM), Operator Training Simulators (OTS), and Industrial Control Systems Software (including operational and cybersecurity aspects). Key players like ABB, Siemens, and Rockwell Automation are leveraging technological advancements like AI and machine learning to enhance their offerings and cater to the evolving needs of diverse industries. Growth is particularly strong in Western Europe, with Germany, France, and the UK leading the charge due to their established industrial bases and significant investments in digital transformation initiatives. However, geopolitical uncertainties and potential supply chain disruptions could pose challenges to sustained growth.

The competitive landscape is characterized by both established industry giants and specialized software providers. The market shows a trend towards integrated solutions that combine multiple software functionalities, offering holistic automation strategies for end-users. Companies are focusing on developing cloud-based solutions to enhance accessibility, scalability, and data management capabilities. The increasing complexity of industrial operations and the cybersecurity threats associated with interconnected systems are driving demand for robust security features within automation software. This trend toward cybersecurity integration and the need for skilled personnel to implement and manage these advanced systems create opportunities for both software vendors and specialized service providers. Continued innovation and the development of tailored solutions for specific industry verticals will be crucial for sustained success in this dynamic market.

This comprehensive report provides a detailed analysis of the European Industrial Automation Software market, covering the period 2019-2033, with a focus on 2025. It offers actionable insights for stakeholders, encompassing market size, segmentation, growth drivers, challenges, and key players. The report leverages extensive market research and data analysis to provide a robust forecast and strategic outlook.

European Industrial Automation Software Industry Market Concentration & Innovation

The European industrial automation software market exhibits a moderately concentrated landscape, dominated by a few multinational giants alongside several regional players. Key players like Siemens AG, ABB Ltd, Rockwell Automation Inc, and Honeywell International Inc hold significant market share, estimated collectively at xx Million in 2025. However, smaller, specialized firms are also active, particularly in niche segments like APM and OTS. Market share dynamics are influenced by factors like M&A activity and technological innovation.

• Market Concentration: The Herfindahl-Hirschman Index (HHI) for the market is estimated to be xx, suggesting a moderately concentrated market structure.
• Innovation Drivers: The demand for improved efficiency, enhanced productivity, and data-driven decision-making fuels innovation. Advancements in AI, IoT, and cloud computing are driving the development of sophisticated software solutions.
• Regulatory Frameworks: EU regulations concerning data privacy (GDPR) and cybersecurity significantly impact software development and deployment. Compliance costs and security requirements can affect market entry and competition.
• Product Substitutes: While specific substitutes are limited, companies are increasingly exploring hybrid solutions integrating hardware and software functionalities, potentially impacting the software market's growth.
• End-User Trends: The increasing adoption of Industry 4.0 principles, driven by end-users’ desire for automation, digitalization, and improved operational efficiency, is a key driver of the market's growth.
• M&A Activities: Recent acquisitions, such as Wipro PARI's acquisition of Hochrainer GmbH in July 2022, reflect strategic consolidation efforts in the market and a drive for increased market share. The total value of M&A deals in the European industrial automation software market during the historical period (2019-2024) is estimated to be xx Million.

European Industrial Automation Software Industry Industry Trends & Insights

The European industrial automation software market is experiencing robust growth, driven by several factors. The compound annual growth rate (CAGR) is projected to be xx% from 2025 to 2033, reaching a market value of xx Million by 2033. This growth is fueled by the increasing adoption of smart manufacturing technologies, the growing demand for real-time data analytics and predictive maintenance solutions, and the push towards greater operational efficiency across various industries. Technological disruptions, such as the increased adoption of cloud-based solutions and the integration of Artificial Intelligence (AI) and Machine Learning (ML) into industrial automation software, are significantly impacting the market. Consumer preferences are shifting towards more user-friendly, customizable, and scalable software solutions. The competitive landscape is dynamic, with both established players and new entrants competing to offer innovative solutions and capture market share. Market penetration of advanced software solutions like APM and APC is steadily increasing, particularly among large enterprises in the Oil and Gas, Chemical, and Automotive sectors.

Dominant Markets & Segments in European Industrial Automation Software Industry

Germany, the UK, and France represent the dominant markets within Europe, driven by strong industrial bases and high technological adoption rates. Within the software segments, MES and APC are currently the largest, fueled by high demand for improved manufacturing efficiency and process optimization.

• Leading Regions: Germany, France, and the United Kingdom are the leading markets in Western Europe. The Eastern European market, while smaller in size, displays significant growth potential.
• Dominant End-user Industries: The Oil & Gas, Chemical & Petrochemical, and Automotive sectors are major consumers of industrial automation software due to their high capital expenditure on automation and digitalization initiatives.
• Key Drivers (by Country):
  • Germany: Strong manufacturing base, government support for Industry 4.0 initiatives, highly skilled workforce.
  • France: Significant investments in digital transformation, strong presence of industrial automation companies, growing focus on sustainability.
  • United Kingdom: Investments in research and development, focus on advanced manufacturing technologies, supportive regulatory environment.
  • Italy: Growing adoption of automation technologies in various industries, increasing demand for digitalization solutions.
  • Eastern Europe: Growing industrial base, cost-effective labor, increasing foreign investment.

The dominance of these segments and countries stems from several factors, including robust industrial sectors, technological advancement, favorable regulatory landscapes, and significant investments in digital transformation projects.

European Industrial Automation Software Industry Product Developments

Recent product developments focus on integrating AI/ML for predictive maintenance, cloud-based deployment for scalability and accessibility, and enhanced cybersecurity features to address growing concerns. These improvements offer competitive advantages through improved efficiency, reduced downtime, and enhanced data security, aligning with industry trends and end-user demands. The market is witnessing a move towards modular and customizable solutions, allowing greater flexibility and integration with existing systems.

Report Scope & Segmentation Analysis

This report segments the European Industrial Automation Software market by software type (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, United Kingdom, Italy, Eastern Europe, Rest of Western Europe). Each segment is analyzed for market size, growth projections, and competitive dynamics. For example, the MES segment is expected to show strong growth, driven by the need for real-time visibility and control in manufacturing processes.

Key Drivers of European Industrial Automation Software Industry Growth

Several factors contribute to the market's expansion, including the increasing adoption of Industry 4.0 principles across various sectors, the rising demand for improved operational efficiency and productivity, government initiatives promoting digitalization, and technological advancements in AI, cloud computing, and IoT. These factors collectively fuel investment in industrial automation software, driving market growth.

Challenges in the European Industrial Automation Software Industry Sector

The market faces challenges, including high initial investment costs, the need for skilled professionals to implement and maintain the software, cybersecurity concerns, data integration complexities, and the potential for regulatory hurdles in different countries. These issues can impede adoption and limit market expansion.

Emerging Opportunities in European Industrial Automation Software Industry

Emerging opportunities include the growing adoption of edge computing, the development of specialized solutions for specific industries (e.g., pharmaceuticals), and the integration of blockchain technology for enhanced data security and traceability. These trends present significant growth potential for market players.

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 Industry

• July 2022: Wipro PARI acquired Hochrainer GmbH, expanding its European presence and strengthening its global position. This acquisition signifies increased consolidation within the market.
• February 2021: Liebherr Mining expanded its use of Operator Training Simulators through a cooperation agreement with ThoroughTec Simulation, highlighting the growing importance of simulation technology in operator training.

Strategic Outlook for European Industrial Automation Software Market

The European industrial automation software market presents significant growth opportunities driven by ongoing technological advancements, increased digitalization initiatives across key industries, and supportive regulatory environments. Companies focusing on innovation, particularly in AI and cloud-based solutions, and those demonstrating robust cybersecurity capabilities are well-positioned to succeed. The market is poised for sustained growth, particularly in the adoption of advanced analytics and predictive maintenance solutions.

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