Data from Control Engineering’s latest research reveals where automation is delivering real ROI, why adoption is growing more cautious, and how manufacturers are balancing efficiency, risk and workforce challenges.
In the modern environment, automation is no longer a nice to have for manufacturers; it’s a requirement. But as budgets tighten and expectations rise, the real question facing engineers, system integrators and manufacturing leaders is no longer if they should invest in automation, but where, why and how those investments can be justified.
That was the central theme of a recent episode of the Ctrl+Alt+Mfg podcast, where hosts Gary Cohen and Stephanie Neil were joined by Mark T. Hoske, editor-in-chief of Control Engineering, to unpack the findings of the 2026 State of Industrial Automation Report. Rather than focusing on vendor hype or speculative trends, the conversation zeroed in on what’s actually happening on plant floors today and what the data says about return on investment, adoption barriers, workforce challenges and emerging technologies.
A research-driven view of automation
Hoske began by grounding the discussion in the intent of the report itself.
“The State of Industrial Automation 2026 from Control Engineering analyzes how this dynamic sector is reshaping industries worldwide,” he said, noting that the new edition expands on the 2025 report by offering year-over-year perspective. “The 2026 report offers survey results, data analysis and actionable insights for manufacturers, technology vendors, system integrators and policy makers who are striving to thrive in this era of rapid technological changes.”
A defining characteristic of Control Engineering research is transparency, and the 2026 State of Automation report is no exception. Hoske emphasized the importance of understanding who responded and how the data was collected. The survey, conducted among Control Engineering subscribers in November and December, received 147 total responses, with 113 fully completed surveys, resulting in a margin of error of plus or minus 8.1%.
“From a practical standpoint, paying attention to margin of error in research, that just means being honest about the findings and not making a big deal about differentiating responses that fall within that margin of error,” Hoske explained.
Respondents closely reflect the publication’s core audience of engineers and system integrators who buy and specify automation technologies, many of whom work at smaller facilities.
“These are really people who buy and specify automation,” Hoske said.
Where automation is delivering ROI
One of the most practical sections of the report focuses on how organizations are evaluating automation investments. According to the survey, the top two methods for assessing return on investment are operational efficiency improvements (61%) and reduced downtime or maintenance costs (47%).
Hoske said he pays particular attention to automation investment justification.
“People have real lives and budgets, and they have to justify the projects they’re using and the technologies that respondents are interested in,” he said.
When respondents were asked which automation technologies are delivering the highest returns today, advanced process controls and control system optimization led the list at 41%. That result was followed by a statistical tie among operations visibility tools such as dashboards and SCADA systems, motion control and robotics and advanced quality control systems.
“That’s not surprising,” Hoske said, pointing out that advanced controls remain foundational to automation success. “That’s our bread and butter.”
What’s driving Automation investment and what’s holding it back
The report also sheds light on why organizations are investing in automation now. Cost reduction and operational efficiency dominate the list, cited by 70% of respondents, followed by enhancing product quality and consistency (48%), increasing workforce productivity (46%) and improving safety (40%).
At the same time, the data highlights familiar barriers to adoption, including high implementation costs, integration challenges, workforce skills gaps and cybersecurity concerns. Hoske emphasized that these challenges often exist alongside ongoing modernization efforts. For more than one-fifth of respondents, automation upgrades — not just new systems — accounted for 21% or more of annual capital expenditures.
“It’s not just new investments in automation that are helping,” Hoske said. “It’s a spread between new automation and upgrades, which is good. That’s important to take care of existing investments, as well.”
A more cautious adoption climate
One of the most notable year-over-year changes in the 2026 report is a shift toward more conservative adoption of leading-edge automation technologies. Hoske pointed to a nine-percentage-point movement away from moderate adoption levels, reflecting broader business uncertainty.
“I understand that the 2026 business environment has additional risks,” he said. At the same time, Hoske noted a paradox in the data. “Many perceived risks fueling that lag in investment often can be addressed with appropriate applications of those same cutting-edge automation technologies.”
Despite the caution, some trends remained steady.
“One metric that remained consistent year over year was 12% of respondents identified as early adopters of leading-edge automation technologies,” Hoske said. “I’m grateful that many of those people share their success stories in the Control Engineering community.”
Automation and the workforce reality
Workforce challenges continue to shape automation strategies, and the report suggests automation is part of the solution. Thirty-five percent of respondents cited the creation of higher-skill roles as important, while 33% said automation helps maintain production by filling skills gaps.
“Automation innovation remains underused,” Hoske said.
This has been a clear message across multiple Control Engineering research efforts. The report recommends addressing skills shortages through upskilling and cross-functional training as automation reduces demand for lower-skill labor.
Emerging technologies that matter most in Manufacturing
Beyond current investments, the research also explored which emerging technologies respondents believe are most critical to future success.
“By a large margin, those technologies are advanced process controls and control system optimization, that includes no- or low-code programming,” Hoske said, citing 52% of responses.
That category was followed by tools for digitalization, efficiency and regulatory compliance. Other technologies — including AI for predictive maintenance, digital twins, advanced robotics, 5G networking and cloud-based control systems — grouped closely together within the survey’s margin of error.
Beyond the State of Automation report
Hoske closed the conversation by emphasizing that the State of Automation report is not a one-time publication, but part of a broader effort to connect the automation community through research, analysis and ongoing coverage.
“Since before I began with Control Engineering in 1994, research has been an important part of our coverage and connection to the control engineering community,” he said. “It’s fun and useful to share what our expert audience and community knows through Control Engineering research.”
For engineers navigating an increasingly complex automation landscape, the 2026 State of Industrial Automation Report reinforces a clear takeaway: Success depends not on chasing hype, but on understanding where automation delivers real, measurable value.
The Ctrl+Alt+Mfg Podcast
Make sure to check out other episodes of the Ctrl+Alt+Mfg podcast, where hosts Gary Cohen and Stephanie Neil discuss a range of digital transformation insights:
Ep. 1: Resetting and Rethinking Manufacturing
Ep. 2: Uniting Disparate Data With John Lee, Matrix Technologies
Ep. 3: Rethinking OT Security With Leah and Jeremy Dodson, Piqued Solutions
Ep. 4: Making Digital Transformation Real With Alicia Lomas, Lomas Manufacturing
Ep. 5: Reducing MES Project Risk With Ryan Crownover, Vertech
Ep. 6: Digital Transformation – Hype, Reality & What’s Next With Mike Ouellette, Engineering.com
