Europe Process Automation Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

Europe Process Automation Market Trends and Insights

Growing Emphasis on Energy Efficiency and Cost Reduction

European plants are contending with electricity prices that remain 40-60% above pre-2021 levels; therefore, operators are installing variable-speed drives, waste-heat recovery loops, and energy dashboards that reduce specific consumption by double-digit percentages.^{[1]Siemens AG, “Sustainability Report 2024,” siemens.com} As carbon-border taxes begin in 2026, real-time energy metrics are transforming from a cost topic into a market-access prerequisite. Advanced process control software, once limited to refineries, now optimizes ovens, dryers, and fermenters, revealing energy waste hidden behind batch variability. Machine-learning models are being layered on historians to predict fouling or compressor-blade wear before losses compound. Vendors are shifting toward subscription pricing because energy dashboards and predictive models require continual updates rather than one-off sales.

Industry 4.0 and IIoT Integration Across Brownfield Plants

With the median European process asset older than three decades, retrofits dominate capex. Wireless vibration probes and infrared cameras bypass cable trays, letting plants digitalize piecemeal instead of shutting down for rewiring.^{[2]ABB Ltd, “Ability System 800xA Deployment Update,” abb.com} Edge gateways run fast loops locally yet pass curated data to cloud historians, balancing latency and analytics. The retrofit wave, however, increases cybersecurity exposure, so operators now allocate up to 12% more for network segmentation, one-way firewalls, and anomaly detection. Growth, therefore, hinges on suppliers that offer pre-integrated cyber-secure sensor-edge bundles ready for brownfield deployment.

EU Decarbonisation Policies Driving Retrofit Automation

The Fit for 55 package assigns a carbon budget to every high-emitter, prompting cement, steel, and chemical operators to embed greenhouse-gas counters inside their control systems. Emerson integrated emissions ledgers into its DeltaV DCS, allowing plants to automatically feed EU-ETS dashboards.^{[3]Emerson Electric Co., “DeltaV Carbon Ledger Integration,” emerson.com} District heating networks replace pneumatic valves with electro-hydraulic actuators that swing based on weather forecasts, slashing gas use. Operators favor modular skids that scale across budget cycles, spreading cost and limiting downtime. Vendors that ship prefabricated, carbon-aware modules gain a first-mover edge.

Digital Product Passport Mandate Boosting Traceability Automation

Since March 2024, every regulated product sold in the European Union must include machine-readable material, repairability, and recycling data. Pharmaceutical and electronics makers rushed to deploy serialization plus blockchain links, lifting Rockwell’s production-center installs by 41% in 2025. Smaller automation vendors partner with ERP houses to offer end-to-end traceability stacks, challenging incumbents that historically sold siloed solutions. Food processors retrofit track-and-trace middleware across legacy batch lines, merging quality records with sustainability reporting.

High Capital Expenditure and Integration Complexity

Retrofit projects often top EUR 5 million (USD 5.65 million) for mid-sized sites, and more than half of that sum finances integration labor that stitches PROFIBUS, Modbus, and HART loops into Ethernet backbones. Financing remains scarce for smaller firms in Southern and Eastern Europe, so many projects proceed in phases that extend the payback period. Edge sensors and hybrid clouds increase architectural complexity, forcing operators to manage three distinct data planes: on-premises, edge, and cloud, each with its own governance rules.

Cybersecurity Compliance Costs in OT Networks

The NIS2 Directive requires critical operators to file breach reports within 24 hours and demonstrate supply-chain oversight, resulting in annual security expenditures exceeding EUR 800,000 for mid-sized plants. Zoning networks, installing unidirectional gateways, and enforcing multi-factor authentication add latency and administration overhead that some plants fear will degrade control loops. The compliance burden slows IIoT adoption at cautious sites, pitting digitalization goals against risk appetite.

Segment Analysis

By Communication Protocol: Wireless Gains in Hazardous Retrofits

Wired links secured 79.16% of the 2025 process automation market share, as deterministic PROFIBUS, Modbus, and HART continue to dominate safety-critical duties. Wireless nodes, however, are set to grow at a 9.46% CAGR, particularly in hazardous oil, chemical, and wastewater zones where conduit trenching is cost-prohibitive. Emerson shipped 29% more Wireless 1410 gateways into European refineries in 2025, enabling operators to instrument tanks and flare stacks that had previously run blind. Municipal water utilities choose battery-powered LoRaWAN level sensors for remote lift stations, cutting civil works.

Latency and certification keep wired backbones entrenched around safety instrumented systems. Pharmaceutical vision systems flood networks with high-speed images that still overload wireless bands. A hybrid future is emerging where edge gateways aggregate wireless field data, compress it, and then forward it to historians over redundant fiber backhauls, maintaining loop integrity while easing retrofit economics.

By System Type: Software Layers on Hardware Base

Hardware captured 56.19% of 2025 revenue as distributed control systems and programmable logic controllers form the control core of continuous plants. Software revenues, growing at a 9.52% CAGR, reflect a pivot toward predictive maintenance, model-predictive control, and digital twins that boost yields without requiring the removal of installed equipment. Honeywell notes that 68% of its European Experion customers now subscribe to cloud analytics that surface optimization opportunities.

Distributed control systems remain the standard for petrochemical polymerization and biotech fermentation, where hundreds of tightly coupled loops demand deterministic scans. Programmable logic controllers dominate batch sectors such as flavors and fragrances. Sensors, valves, and motors are increasingly bundled with algorithms that flag failures before downtime occurs. Human-machine interfaces migrate from proprietary panels to browser dashboards on tablets, shrinking capex but widening the threat surface for cyber attackers.

By Deployment Model: Edge Surges for Latency-Critical Loops

On-premises architectures accounted for 73.69% of the 2025 process automation market size, a legacy of air-gapped philosophies that prioritize uptime. Edge nodes, forecast to grow 22.71% yearly, move analytics closer to pumps, turbines, and reactors that cannot tolerate cloud round-trip delays. Schneider Electric’s edge controllers secured 47% more orders from European district heating networks in 2025, as cities optimized their flow against weather models.

Pharmaceutical contract manufacturers utilize cloud historians to share batch data with brand owners while still maintaining the edge for sub-second bioreactor control. Green hydrogen electrolysers require millisecond current modulation to track renewable energy fluctuations, so developers deploy modular skids that run control logic locally while backhauling summaries to the cloud. Hybrid orchestrators that span on-premises, edge, and cloud are now a procurement priority.

Note: Segment shares of all individual segments available upon report purchase

By End-User Industry: Pharmaceutical Outpaces Traditional Leaders

Oil and gas remained the largest buyer with 28.71% revenue share in 2025, but decarbonization caps refinery investment. Pharmaceuticals will lead growth at a 10.69% CAGR, driven by the need for continuous bioprocessing that requires near-instant oxygen and pH control, as well as unit-level genealogy. Rockwell booked 38% more European pharmaceutical orders in 2025, driven by cell-therapy expansions.

Chemicals invest in systems to comply with REACH emission rules, integrating manufacturing execution systems into sites formerly run on spreadsheets. Utilities retrofit turbines for variable renewable energy sources, installing combustion optimizers that widen the operating windows. Food and beverage processors automate packaging and clean-in-place cycles to offset labor shortages, while pulp mills pursue energy savings as Asian capacity drives down prices. Mining and metals adopt automation to meet tighter discharge permits, but remain capital-disciplined.

Geography Analysis

Germany’s dominant share rests on Ruhr-Valley chemicals and North Sea hydrogen initiatives, yet capex splits between cautious retrofit of legacy crackers and aggressive modular electrolysers. SIMATIC PCS neo logged more than 40 German installations in 2025, underscoring a shift toward flexible, open-standard automation. Dual-apprentice programs produce hybrid OT-IT engineers, enabling German plants to absorb Industry 4.0 layers without relying on outside integrators.

France leverages its France 2030 plan to co-finance pharmaceutical mega-projects and aerospace composites lines that rely on digital twins and augmented-reality commissioning. Plants utilize edge controllers to model carbon intensity in real-time, supporting tax-credit claims. The United Kingdom manages post-Brexit dual standards, keeping offshore oil and gas automation buoyant as operators extend the life of North Sea assets with remote monitoring and predictive analytics.

Poland is the continental hot spot, fueled by battery and chemical greenfields that embed IIoT from day one. Automation demand skews toward extended control systems, unified historians, and traceability suites that conform to Digital Product Passport rules. ABB’s order boom illustrates how multinational OEMs leverage Polish cost advantages while staying close to Western markets.

In the Nordics, hydrogen electrolyser pilots require controllers that modulate load in tandem with wind spikes. Netherlands ports automate ammonia and methanol import terminals aimed at hydrogen re-exports, calling for pipeline monitoring and custody-transfer instrumentation. Spain and Portugal retrofit combined-cycle plants with advanced controls that flex to balance solar surges. Eastern European cohesion fund projects introduce cloud-coupled SCADA into historically manual operations, although skills shortages slow momentum.