The industrial automation industry is entering a new phase in which artificial intelligence is moving beyond software demonstrations and into real manufacturing environments. Recent developments across the United States, Europe and Asia show that manufacturers are increasingly combining industrial AI, robotics, connected automation and digital technologies to improve productivity, flexibility and operational resilience.
At the same time, global manufacturing activity has remained relatively strong. August data showed expansion across several major Asian manufacturing economies, while the eurozone recorded its fastest manufacturing growth in more than four years. Demand related to AI hardware and advanced manufacturing has become an important driver behind new production activity, particularly in Asia.
AI Is Moving From Digital Systems Into Physical Operations
One of the clearest developments in recent weeks is the growing focus on physical AI and intelligent robotics.
Samsung SDS recently reported results from technology validation projects involving general-purpose robots and physical AI technologies at manufacturing sites. The trials included tasks such as parts handling, replacement of consumable components and work in more demanding industrial environments. The company plans to expand these applications through additional field demonstrations.
This reflects a broader change in industrial automation. AI is increasingly expected not only to analyze production data, but also to interact with machines, robots and physical processes.
Similar developments can be seen in other industries. Caterpillar announced a collaboration with FieldAI to advance physical AI, autonomy and robotics, combining real-time observations, digital twins and AI technologies to improve safety and operational decision-making.
For manufacturers, this does not mean that conventional automation hardware is becoming less important. Instead, intelligent systems still depend on a physical automation infrastructure that includes controllers, I/O modules, sensors, drives, motor control equipment and industrial communication devices.
The Growing Role of Connected Automation
Another important trend is the continued convergence of automation hardware, industrial software and operational data.
Mitsubishi Electric is highlighting connected manufacturing at IMTS 2026, bringing together CNC, robotics, automation and digital technologies as manufacturers look for more integrated production environments.
Siemens is also emphasizing the connection between industrial AI, automation and the digital thread. Its recent manufacturing initiatives focus on linking information from design and production with operational intelligence and AI throughout the manufacturing lifecycle.
Meanwhile, Schneider Electric has continued to promote open, software-defined automation, combining industrial AI, electrification and digital technologies. The company argues that manufacturers increasingly need automation architectures that can adapt as production requirements change.
Together, these developments point toward a more connected automation architecture in which traditional control hardware remains part of a larger digital manufacturing environment.
Manufacturing Investment Is Also Creating New Demand for Automation Equipment
The expansion of AI infrastructure is creating another important effect on the automation market: new manufacturing capacity.
Siemens announced more than $200 million in investments in two new U.S. manufacturing facilities, with the projects intended to expand production of electrical infrastructure supporting AI data centers. The company said the investment will also create more than 1,500 jobs.
This is significant for the automation industry because new factories and expanded production capacity require extensive control and electrical infrastructure. At the same time, manufacturers operating existing facilities still need to maintain and modernize installed automation systems.
As a result, the market is developing along two parallel paths.
New facilities are adopting increasingly connected and intelligent automation architectures, while established factories continue to invest in replacement parts, system upgrades, maintenance and expansion of existing control platforms.
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Why Automation Spare Parts Remain Important
The increasing adoption of AI and robotics does not eliminate the need for established PLC and industrial control technologies. In many factories, new digital technologies must coexist with automation equipment installed years earlier.
Production lines may contain multiple generations of PLCs, I/O modules, motor starters, drives, relays, sensors and communication components. When one of these components fails, replacing it quickly can be more practical than redesigning an entire control system.
This makes the availability of industrial automation spare parts an increasingly important part of manufacturing continuity.
For maintenance teams and procurement departments, the challenge is therefore not simply selecting the newest automation technology. It is also maintaining reliable access to the components already operating on the factory floor.
A More Practical Automation Market Is Emerging
Recent industry developments suggest that the next stage of automation will be defined less by isolated technologies and more by how effectively different technologies work together.
Industrial AI, robotics, digital twins, connected controllers and industrial networks are gradually becoming parts of the same manufacturing environment. At the same time, traditional automation hardware remains essential for controlling machines and connecting physical equipment to increasingly intelligent systems.
For manufacturers, this creates a practical balance between modernization and continuity. New automation projects may require advanced digital and robotic capabilities, while existing production assets still depend on reliable PLCs, I/O modules, drives, motor control devices and other industrial automation components.
As factories become more automated and connected, both technology upgrades and dependable spare-parts sourcing will remain important to maintaining production uptime.