Australia Electric Automation Market Outlook to 2030

Australia Electric Automation Market Overview

• The Australia Electric Automation Market is valued at USD 522 million, driven by rapid adoption across manufacturing sectors focused on enhancing productivity and efficiency. Increasing industrialization, government support for modernization, and rising demand for automated solutions in diverse industries have contributed to this growth. Data from the Australian Department of Industry highlights automation initiatives as a significant growth driver, particularly in energy and mining sectors.
• Key cities like Sydney and Melbourne dominate the electric automation market due to their robust industrial infrastructure, availability of skilled labor, and investment in technological innovation. Sydneys position as a financial and industrial hub, combined with Melbournes extensive manufacturing facilities, places them at the forefront of automation adoption, reflecting the concentration of advanced manufacturing and industrial operations in these regions.
• Australias manufacturing policy emphasizes increased automation adoption to enhance competitiveness. In 2023, the government allocated AUD 1 billion towards initiatives promoting automated solutions in manufacturing, highlighting the policys focus on modernizing industrial processes. The Department of Industry states that this policy has led to a 15% increase in automation adoption among mid-sized manufacturers, further reinforcing the role of government support in driving automation within the industry.

Australia Electric Automation Market Segmentation

• By Solution Type: The market is segmented into Industrial Control Systems, Robotics & Machine Automation, and Distributed Control Systems. Industrial Control Systems hold a dominant market share within solution type due to their critical role in managing complex manufacturing processes across multiple sectors. The rise in automation for efficiency and precision, particularly in large-scale operations, has elevated demand for these systems, making them central to Australia's automation infrastructure.
• By Industry: The industry segments include Manufacturing, Automotive, Food & Beverage, and Energy & Utilities. Manufacturing dominates due to high adoption of automated systems to enhance productivity and reduce operational costs. With investments from both private entities and government programs aimed at strengthening Australias manufacturing sector, automation within manufacturing remains at the core of market growth.

Australia Electric Automation Market Competitive Landscape

The Australia Electric Automation Market is led by a mix of multinational giants and strong local players, showcasing a consolidated market structure. Key companies such as Schneider Electric, Siemens Australia, and ABB have maintained market leadership through innovation, extensive product portfolios, and strong customer networks.

Australia Electric Automation Industry Analysis

Growth Drivers

• Industry 4.0 Adoption: Australias adoption of Industry 4.0 practices has been accelerated by strategic initiatives to increase automation, especially in manufacturing. According to the Australian Department of Industry, Science, Energy, and Resources, Industry 4.0 technologies were increasingly deployed across key industrial sectors, leading to enhanced productivity and output. In 2024, manufacturing accounts for approximately 6% of Australias GDP, valued at AUD 156 billion, with Industry 4.0 automation significantly boosting operational efficiency across this segment. Further, data from the Australian Bureau of Statistics highlights a 9% increase in automation-related investments by Australian manufacturers in 2023, underscoring the role of Industry 4.0 in driving automation uptake.
• Advanced Manufacturing: The rise of advanced manufacturing in Australia is further propelling the demand for electric automation solutions. Australian government reports show that advanced manufacturing contributed approximately AUD 90 billion to the national economy in 2023, with notable advancements in sectors like mining, defense, and healthcare. Data indicates a sharp 8% year-on-year increase in advanced manufacturing equipment imports in 20222023, reflecting a growing emphasis on automation-driven manufacturing systems. The increase in investment is bolstered by strong government support aimed at creating highly efficient, technology-driven production facilities that reduce dependency on labor-intensive operations.
• Government Investments (Manufacturing Modernization Fund): The Australian Governments Manufacturing Modernization Fund (MMF) allocated AUD 50 million in 2022 to support manufacturing businesses in integrating automation and digital technology. The MMF primarily aims to assist small and medium-sized enterprises in acquiring automation systems, thereby fostering broader industry adoption of electric automation. In 2023, MMF funding directly supported over 200 Australian firms, according to data from the Department of Industry, Science, Energy, and Resources, promoting a tech-driven manufacturing landscape. This investment contributes to reducing operational costs and promoting sustainable manufacturing practices in Australias key industrial sectors.

Market Challenges

• High Initial Capital Costs: Implementing electric automation in Australian industries comes with significant upfront costs. According to the Australian Bureau of Statistics, automation equipment imports required an average investment of AUD 30 million per major facility in 2023. Additionally, the Department of Industry highlights that about 40% of small and medium-sized enterprises in the manufacturing sector struggle with these high costs, which impacts their capacity to invest in automation. This challenge is exacerbated by the limited financing options available, hindering the widespread adoption of automation among smaller businesses.
• Skills Shortage (Workforce Adaptability): The demand for skilled automation technicians is outpacing supply, with the Department of Employment reporting a 12% increase in unfilled automation-related positions in 2023. This shortage is largely due to a lag in training programs relative to the rapid pace of automation adoption. Australias education sector has been expanding vocational training programs for automation, yet current statistics show a gap, as approximately 35% of automation roles remain unfilled, affecting industries reliant on these technologies for efficient operations.

Australia Electric Automation Market Future Outlook

Over the next five years, the Australia Electric Automation Market is expected to experience notable expansion due to continued government support for manufacturing innovation, increased adoption of Industry 4.0 technologies, and a shift toward energy-efficient solutions. Automation is set to become a crucial enabler for productivity, cost-effectiveness, and sustainability within Australia's primary industries.

Market Opportunities

• IoT and AI Integration: Australias automation sector stands to benefit from integrating IoT and AI into electric automation solutions. The Department of Industry, Science, Energy, and Resources estimates that IoT-enabled automation systems could reduce operational costs by up to AUD 20 million annually for large-scale facilities. In 2023, data showed that industries such as mining and agriculture increasingly adopted IoT-integrated automation systems to enhance productivity and streamline remote monitoring, creating substantial growth opportunities in the electric automation market.
• Cross-Sector Collaboration: The Australian government encourages collaboration across sectors to boost automation capabilities. In 2023, cross-sector partnerships accounted for AUD 500 million in collaborative projects focused on automation technologies in the manufacturing, agriculture, and resources sectors. This collaboration enables knowledge sharing and resource pooling, reducing the financial burden on individual sectors and accelerating the adoption of electric automation solutions. The impact is particularly visible in the mining sector, where such collaborations have contributed to reducing operational inefficiencies and expanding the automation ecosystem.