New research from RobCo’s 2025 US Automation Index shows a sweeping shift in how American industrial companies are planning their technology roadmaps — and that shift represents a noteworthy market opportunity for distributors to watch closely. 

According to the survey of 400 senior business leaders across sectors including manufacturing, construction, engineering and healthcare, a striking 95% of U.S. industrial firms plan to introduce new automation over the next three years, with more than half currently testing or planning to use robots in production and back-office processes. 

The findings point to automation as a strategic response to labor shortages, supply-chain pressures and reshoring initiatives, with federal incentives cited by 73% of respondents as a driver of adoption and 61% noting reshoring boosts their automation plans. While only about one-third of companies are using robots today, the broader trend toward digitally integrated systems — with nearly all respondents linking physical machines to software platforms — suggests the future of industrial operations will be deeply hybrid: combining physical automation equipment with software-enabled process controls. 

Here’s a glance at Robo’s survey findings

• 95% of U.S. industrial companies plan to introduce new automation within the next three years
• About one-third of surveyed companies currently use robots
• More than 50% are testing or planning robotic deployments
• 73% cite federal incentives as a driver of automation investment
• 61% say reshoring initiatives are accelerating automation adoption
• Nearly all respondents report integrating physical machines with software platforms
• High upfront costs and skills shortages remain key barriers, though leasing and robots-as-a-service models are gaining traction

Elsewhere, ABI Research from October estimates that the global robotics market size is nearly $50 billion in 2025 — up 11% from a year ago — and growing at a CAGR of 14%. That has it on pace to reach $111 billion by 2030. Mobile robots dominate hardware and software sales, set to generate 50-60% of total revenue through the rest of the 2020s.

What this Means for Distributors

From a distributor perspective, these statistics signal strong and widening demand for physical automation products — from robotic arms and modular systems to sensors, controls and integration hardware — that can help manufacturers boost productivity, cut waste and address workforce gaps. Even though high upfront costs and skills shortages remain barriers for many buyers, businesses are experimenting with leasing and “robots-as-a-service” models that could accelerate adoption curves. 

For electrical supplies distributors in particular, the continued blending of automation hardware and smart software platforms underscores a chance to expand beyond commodity components into automation-ready products, connectivity solutions and integrated controls, and to partner with customers as they navigate installation, configuration and scaling. As industrial customers increasingly plan automation projects, being positioned as a trusted supplier of both physical automation components and the enabling infrastructure could yield new revenue streams and deepen customer relationships.

Distributors Expanding in Automation

Here’s a glance at just a handful of distributors that have positioned themselves for growth with automation in their product mix:

• Birmingham, AL-based Motion — long known best as an MRO supplies distributor — has leaned into automation heavily over the last few years, standing up its Motion Automation Intelligence brand, MotionAi, back in early 2022 and has significantly expanded it since via acquisitions and greenfield facilities
• Motion & Control Enterprises has likewise added numerous automation bolt-ons, including 16 transactions across 2023-2024
• Parker Hannifin distributors like Exotic Automation & Supply are expanding as well, while electrical supply stalwarts Graybar and Sonepar are also poised for growth in that vertical. Graybar just appointed a new leader for its Industrial Automation unit who will begin in early January.