The global automation COE market value is estimated to be USD 12.9 billion in 2025. The industry is anticipated to advance at a robust CAGR of 41.4% during the projected period. By 2035, the segment value is forecast to reach an impressive value of USD 23.1 billion. In 2024, the worldwide Automation Center of Excellence (COE) industry saw high momentum.
This was mainly due to higher enterprise adoption of automation frameworks, with large enterprises being the major investors in structured COE models. Firms in banking, healthcare, and manufacturing invested heavily in expanding their automation programs, emphasizing scalability, governance, and AI integration.
The year also witnessed increasing demand for hyperautomation, which merged RPA, AI, and process mining to streamline workflows. But some implementations were hampered by challenges like talent gaps, integration issues, and change resistance. North America was the leading region, but the Asia-Pacific region was the fastest-growing sector, fueled by affordable automation solutions.
In 2025, growing mid-sized business involvement and stepped-up use of cloud-based automation platforms. Operators are likely to standardize automation governance and increase COE initiatives across business units. AI-driven automation and generative AI-driven workflows will also transform COE strategies.
Market Metrics
| Metric | Value |
|---|---|
| Market Size (2025E) | USD 12.9 billion |
| Market Size (2035F) | USD 23.1 billion |
| CAGR (2025 to 2035) | 41.4% |
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| 2020 to 2024 (Foundation Phase) | 2025 to 2035 (Expansion & Maturity Phase) |
|---|---|
| Early adoption by large enterprises | Widespread adoption across mid-sized enterprises |
| Focus on cost savings, efficiency, and governance | Strategic value creation, AI-driven automation |
| Key technologies: RPA, AI-driven automation, process mining | Key technologies: Hyperautomation, generative AI, self-learning automation |
| Industry leaders: Banking, healthcare, manufacturing | Cross-industry expansion with deeper AI integration |
| Challenges: Talent shortages, integration complexity, security concerns | Challenges: Scaling automation, managing AI ethics, continuous optimization |
| COE role: Standardizing processes, establishing best practices | COE role: Driving real-time insights, predictive analytics, and AI-augmented workforce |
| Business impact: Operational efficiency, compliance improvements | Business impact: Agile decision-making, autonomous business processes |
| Segment growth: USD 560.8 million in 2024 | Projected industry value: USD 23.1 billion by 2035 |
Regional Variance
High Variance
Convergent & Divergent Perspectives on ROI
Consensus
Regional Variance
Shared Challenges
Regional Differences
Manufacturers
End-Users
Alignment
Divergence
| Countries | Regulations Impacting Automation COEs |
|---|---|
| North America | Data Privacy: CCPA (California Consumer Privacy Act) and GDPR (General Data Protection Regulation) impact how automation systems handle sensitive data. |
| Europe | Environmental Regulations: The EU Green Deal encourages energy-efficient automation solutions to meet carbon neutrality goals. Data Privacy: GDPR impacts automation systems by requiring secure handling and storage of personal data. |
| Asia-Pacific | Cost Sensitivity: Many Asia-Pacific countries have regulations focused on low-cost automation solutions due to budget constraints in certain industries. Data Privacy: China’s Cybersecurity Law requires businesses to adhere to strict data management protocols in automated systems. |
| Japan | Industry-Specific Regulations: Japan’s automotive and electronics industries face strict safety and regulatory standards, impacting how automation is integrated into production processes. Workforce Regulations: Focus on upskilling workers in automation, with strong emphasis on robotics and AI technologies in manufacturing. |
| Germany | Environmental Standards: Germany’s climate policies under the EU Green Deal impact the integration of automation for sustainable practices in manufacturing. |
| China | Cost Efficiency Regulations: Focus on affordable automation solutions in manufacturing and technology sectors due to economic considerations. |
| India | Workforce and Labor Regulations: India's labor laws and regulations are evolving to support automation adoption while encouraging skills development in the workforce. |
| South Korea | Innovation & Research: South Korea is heavily investing in R&D for automation technologies, providing grants and subsidies to businesses for the development of COEs. |
Major players in the Automation COE industry are employing a combination of pricing models, innovation initiatives, strategic collaborations, and geographic expansions to strengthen their industry presence. Pricing strategies in the industry have become more competitive, with a focus on tiered solutions that cater to businesses of varying sizes.
Major corporations are also spending on emerging technologies like AI-powered automation, cloud-native applications, and RPA via in-house R&D or acquisition. Furthermore, partnerships with technology solution providers and industry players facilitate service offerings improvement and industry presence enlargement.
Other strategies for growth encompass geographic expansion into high-growth regions such as Asia-Pacific and Latin America, where adoption of automation is expected to rise significantly as industries shift to modernization. Strategic acquisitions and joint ventures as part of their expansion strategy, enabling them to add more technology offerings and enter new segments.
Siemens AG: ~18-20%
Leading the industrial automation sector with strong presence in manufacturing and process automation
Accenture: ~15-17%
Strong in automation consulting, integration, and enterprise solutions across various industries
IBM Corporation: ~12-14%
Focus on AI, cloud automation, and digital transformation solutions, especially in IT and enterprise sectors
Cognizant: ~10-12%
Specializing in automation consulting and services for IT and business operations
Other Players: ~30-35%
Includes niche players, smaller firms, and regional companies with specialized offerings in AI-driven and cloud-based automation
Top Players: ~65-70%
Consolidated share of top companies in the Automation COE landscape
Niche & Emerging Players: ~30-35%
Specialized solutions and new entrants, gaining share in specific verticals or regions
The Automation COE (Center of Excellence) landscape is part of a larger family of solutions under Industrial Automation & Digital Transformation umbrella. This platform encompasses the creation, implementation, and growth of automation technology in multiple sectors, including manufacturing, healthcare, automobile, and technology.
The number of Automation COEs has exploded since digital transformation is picking up speed, making this industry the sweet spot of technology innovation, operational efficiency, and economic growth. Interestingly, from the macro-economic perspective, the Automation COE landscape is, no doubt enjoying the benefits of several global trends.
The first major driver is the increasing push towards manufacturing modernisation and Industry 4.0 adoption. Businesses automating solutions are tending towards streamlining operations, lowering labor costs and enhancing productivity. The demand for energy-efficient and sustainable solutions is also driving investments in advanced automation technologies along with global regulatory pressure to decrease carbon footprints.
Increasing labor costs and supply chain complexities are driving companies to spend more on automation. Technology advancements such as AI, Robotics, Cloud Computing have also contributed to this growth as Automation COE landscape has now become a significant sector for long-term economic growth.
With demand for efficiency, scalability, and innovation on the rise, the Automation COE segment is experiencing significant growth across industries. The small and medium enterprises (SMEs) and the large enterprises are investing in automation technologies to optimize operations, increase productivity, and cut expenditure and operational costs.
Especially SMEs are adopting pocket-friendly solutions, while big enterprises use higher management solutions to boost operations internationally and improve their competitiveness. As enterprises in industries like manufacturing, healthcare, and BFSI continue to adopt digital transformation, the demand for customized digital services support is likely to grow. Such automation is helping the organizations address changing segment demands and provide significant operational value.
Automation COEs for Automation COEs with the rapid automation taking over industries, organizations are investing in services including governance and implementation support to make sure that automation systems are deployed in compliance with the industry regulations.
Automation provides significant cost reductions, along with improved efficiency and customer experience in industries such as banking, finance, and insurance (BFSI). The healthcare and life sciences industry is also embracing automation to do away with repetitive administrative tasks and provide better patient care.
In the Automation COE landscape, adoption is also variable across geographies, with different geographies emphasizing different aspects of automation. AI-driven automation or robotic process automation (RPA) is being heavily focused on across the North America region to drive operational agility and optimize customer experience.
In contrast, Europe is propelled by sustainability initiatives and regulatory compliance, which promotes green automation development. In regions like Asia-pacific, where a bulk of the manufacturing industries exist, factories require cost-effective and scalable automation systems like that of electronics industries and manufacturing.
The USA has been at the forefront of the adoption and innovation of automation technologies worldwide. This trend has been primarily driven by the swift digital transformation seen across various industries such as manufacturing, healthcare, finance, and IT. Automation COEs provide an avenue to design, build, and implement automation across all enterprise applications.
It has also given rise to a robust tech ecosystem in the USA consisting of key industry players like UiPath, Automation Anywhere and SS&C Technologies, further spurring innovation in automation. Automation is not just for large enterprises, small and medium-sized enterprises (SMEs) are also more inclined to adopt automation to achieve scalability.
FMI opines that the United States automation COE sales will grow at nearly 42% CAGR through 2025 to 2035.
The UK has experienced substantial automation growth, fueled by a desire for innovation and efficiency across industries. Automation technologies have been implemented early in key sectors such as banking and finance, retail and manufacturing, with major corporations such as HSBC and Barclays investing in robotic process automation (RPA) and AI-enabled solutions.
A big part of it is the UK’s vibrant tech scene, that is also driving automation forward. As demand for RPA grows, Karim Faris, partner at Bain, said UK companies such as Blue Prism and Automation Anywhere had pioneered the field, guiding businesses on embed automation into their processes.
FMI opines that the United Kingdom automation COE sales will grow at nearly 40% CAGR through 2025 to 2035.
Automation adoption has gained significant momentum in France, particularly in the manufacturing and automotive industries. With advances in innovation, efficiency, goals and a strong industrial base, and an ever-growing focus on automation technologies throughout the country.
Companies like Dassault Systemes and Sopra Steria in France are at the forefront of automation offerings, leveraging AI and robotics in some sectors to boost productivity. That last factor is supported by the French government like Industry 4.0 initiatives is also driving this trend and provides a fertile ground for automation to grow.
FMI opines that the France automation COE sales will grow at nearly 39% CAGR through 2025 to 2035.
Germany has been a long-recognized leader in industrial automation, especially within the manufacturing and automotive industries. German corporates, including the likes of Siemens, Bosch and BMW, are all setting up COEs focused on robotics, AI and automation for production optimization and supply chain optimization across the country.
Germany's robust industrial base has also accelerated the transition towards the implementation of smart factories and AI-driven products with the concept of Industry 4.0, thereby establishing the country as a leader in digital transformation.
FMI opines that the Germany automation COE sales will grow at nearly 43% CAGR through 2025 to 2035.
Italy offers a classic mix of manufacturing, automotive and fashion economies that can be hard to export, as automation technologies have slowly found their way into productive means to remain competitive in international markets.
AI and robotics are also on the rise in the country, especially among SMEs that want to stay cost-effective while increasing efficiency. Automation COEs are being deployed in helping businesses integrate these sophisticated systems. The Italian government is promoting automation adoption through incentives and Industry 4.0 initiatives.
FMI opines that the Italy automation COE sales will grow at nearly 38% CAGR through 2025 to 2035.
Robotics and automation play a very important role in South Korea, particularly in its electronics and automotive sectors. It is also worth noting that major conglomerates such as Samsung, Hyundai, and LG have been spending a lot to implement automation solutions to improve production efficiencies, cut costs, and remain competitive in the global arena.
The focus on robotics and AI technology in South Korea has created a strong ecosystem of automation COEs through which companies that are deploying automation systems to optimize operations across sectors like manufacturing, retail and healthcare. The government’s smart factory initiatives for digital transformation have been the key drivers of automation technologies adoption.
FMI opines that the South Korea automation COE sales will grow at nearly 44% CAGR through 2025 to 2035.
Japan is a world leader in robotics and automation, especially in the auto and electronics sectors. Toyota, Honda, and Sony have been applying automation to improve both manufacturing efficiency and product quality for decades. The countries great potential in automation led to the swift increase in adoption of AI and robotics including smart factories and across advanced manufacturing systems.
Japan is a leader in robotics process automation (RPA), many industries such as healthcare and finance are utilizing process automation to optimize operations and minimize human error. Japan Government initiatives around Industry 4.0 and smart manufacturing also accelerate the adoption of these automation technologies.
FMI opines that the Japan automation COE sales will grow at nearly 43% CAGR through 2025 to 2035.
The country has turned to automation more and more as it tries to hold onto its position in world trade as the world's biggest manufacturing center. Firms like Alibaba, Tencent, and Huawei, are fuelling demand for automation systems based on AI, robots and IoT.
Most recently, the Chinese government has touted AI, and in particular automation, as important pillars of the Made in China 2025 initiative, an aggressive effort to upgrade the country’s industrial base and improve the quality of manufacturing. Automation centers of excellence are transforming industries including electronics, automotive, and e-commerce by enabling production optimization, cost reduction, and quality maintenance.
FMI opines that the China automation COE sales will grow at nearly 45% CAGR through 2025 to 2035.
Driven by competition and the need for more operational efficiency, adoption of automation technologies in Australia and New Zealand is on the rise. In Australia, the likes of Commonwealth Bank of Australia are pumping cash into automation in a bid to streamline banking operations, minimise cost and boost customer service.
In New Zealand, too, businesses in agriculture and horticulture are using automation solutions to fill labor gaps and drive productivity in operations. There are many initiatives in Australia aimed at sharing successful efforts to promote smart manufacturing and digital transformation. These encourage all sectors to embrace automation tools.
FMI opines that the Australia and New Zealand automation COE sales will grow at nearly 37% CAGR through 2025 to 2035.
The Automation COE market has immense growth prospects fueled by the rising need for efficiency, cost savings, and innovation in different industries. With organizations adopting digital transformation, the use of automation technologies will further increase, particularly in industries like manufacturing, healthcare, and BFSI.
Organizations need to invest in the creation of AI-driven automation solutions, as these technologies are critical to automating operations and optimizing resource utilization. Moreover, small and medium-sized enterprises (SMEs) are a sizable market segment with potential opportunities for low-cost, scalable automation solutions that meet their requirements.
Collaborations and partnerships with industry leaders, consultancy companies, and technology vendors will help organizations remain competitive and provide customized automation solutions. Investment in training and upskilling workers to handle automation tools will also be important in facilitating smooth implementation. Finally, businesses need to think of expanding their base in emerging markets such as Asia-Pacific, where demand for low-cost automation solutions is growing exponentially.
Automation COEs usually built within the organizations focus on the implementing, managing and optimizing automation technologies.
Automation COEs for small businesses can help them optimize workflows and eliminate manual work in order to improve productivity and lower operational costs.
Automation COEs are being implemented in different industries like banking, healthcare, manufacturing, retail, and transportation.
Some of those challenges involve the staff not wanting to change, difficulty of integrating it with current systems already in place, hefty initial investments and also guaranteeing
By integrating AI into Automation COEs, organizations can elevate their automation initiatives to a new level.
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Automation COE Market
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