Modern manufacturing discussions often focus on AI, IIoT, and autonomous systems.
However, many factories still depend on proven legacy automation components to keep production stable.
When managed correctly, older PLCs, drives, and control systems remain valuable strategic assets rather than technical debt.
The manufacturing sector enters 2026 under pressure from trade volatility, rapid technology adoption, and workforce transformation.
However, these challenges also accelerate industrial automation, factory automation, and smart control systems adoption across the value chain.
Based on current policy signals and industry investment patterns, five trends will shape manufacturing strategies in the year ahead.
The industrial automation and power electronics sectors are poised for significant growth in 2026. With a global industrial automation market expected to reach US$158 billion (AU$346 billion), and power electronics forecast to hit US$40 billion (AU$88 billion), the rapid evolution of these technologies is reshaping industries worldwide. In Australia, key sectors such as mining, manufacturing, and renewable energy are leading this transformation, driven by advancements in AI, power semiconductors like SiC and GaN, and the growing demand for more efficient and sustainable systems.
At CES 2026, Siemens introduced groundbreaking technologies designed to reshape the future of industrial automation. With a deep focus on Artificial Intelligence (AI), digital twins, and advanced robotics, Siemens is leading the way in revolutionizing manufacturing, supply chain management, and design engineering. By leveraging AI across the entire industrial value chain, Siemens is helping businesses increase productivity, improve efficiency, and enable sustainable practices.
As the manufacturing sector continues to evolve, robotics is playing a pivotal role in enhancing industrial automation. Fanuc, a leading robotics manufacturer, has identified key trends set to shape the industry by 2026. From AI-driven solutions to scalable automation systems, these innovations promise to improve efficiency, reduce operational costs, and address labor challenges across industries.
As the automotive industry enters 2026, it faces an urgent dilemma: a significant loss of experienced technicians coupled with the rising demands of electrification and digital transformation. The challenge lies in preserving critical institutional knowledge as veteran workers retire, while simultaneously upskilling the next generation of employees to navigate new technologies. How manufacturers respond to this knowledge capture race will determine their competitive edge in the coming years.
