AI-Driven Automation Revenue to Surpass US$5 Billion by 2035 as Manufacturers Rebuild Control Engineering Around Virtualization

• Agentic AI can reduce code development time by up to 50% and address industrial skills gaps through automated PLC code generation, migration, commissioning, and troubleshooting
• DCS software shows strongest growth at 25% annual CAGR from 2025-2035, followed by AI in IPCs at 20.1%, with process industries expected to lead adoption
• Major vendors including Siemens, SUPCON, Rockwell Automation, and CODESYS are defining the competitive landscape with virtual control systems and industrial foundation models

Market Summary: AI-Driven Industrial Automation

Key Market Projection

ABI Research forecasts AI-driven automation revenue will exceed $5 billion by 2035, driven by the convergence of artificial intelligence and virtualization in industrial manufacturing. This represents a fundamental shift from traditional control systems to software-defined automation platforms.

Growth Drivers and Figures

The strongest growth will occur across several segments (2025-2035 CAGR):

• DCS software: 25.0%
• Industrial PCs (IPCs): 20.1%
• Virtual controllers: 17.9%
• SCADA/HMI software: 15.3%
• PLCs: 14.6%

Agentic AI can reduce code development time by up to 50%, addressing critical industrial skills gaps while supporting PLC code generation, migration, commissioning, and operational optimization.

Key Players and Competitive Landscape

Major vendors shaping the market include:

• Siemens: Investing in industrial foundation models paired with virtual control
• SUPCON: Combining time-series AI with Universal Control System architecture
• Rockwell Automation: Emphasizing software flexibility and AI-enabled engineering tools
• CODESYS: Influencing the market through foundational software-defined automation platforms

Market Implications

Process industries are expected to lead adoption as they modernize operations and expand AI pilots. IPC demand is rising as manufacturers require platforms capable of supporting both virtual controllers and AI workloads. The next innovation wave will center on agent orchestration layers coordinating multiple AI agents across engineering and operations, potentially transforming SCADA systems into AI-powered supervisory hubs. Physical AI applications in humanoids and robotics remain longer-term opportunities pending improvements in dexterity and safety systems.

Release Date: June 24, 2026