UK Automation Industry Insights Report 2024–2025: Trends, Challenges, and Opportunities

Executive Summary: Automation Trends in UK Industry

The 2024 report is designed to support UK businesses in understanding key automation trends, operational barriers, and growth opportunities. Amid ongoing economic and political uncertainty, automation is increasingly seen as essential to long-term productivity and resilience.

Despite rising costs and talent shortages, UK manufacturers remain committed to digital transformation. However, progress is often hindered by financial constraints, inconsistent policy support, and limited internal capability. This report outlines how Automate UK will work alongside industry partners to unlock future growth through innovation and collaboration.

Key Automation Insights for 2024–2025

1. Automation Adoption Is Rising, but Barriers Persist
83% of respondents believe automation is increasing across UK manufacturing. Yet smaller companies often hesitate due to financial risk and a lack of internal expertise.

2. Cost, Skills, and Awareness Are Core Challenges
The leading obstacles to automation are:

• Investment cost (60%)
• Lack of awareness (51%)
• Fear of failure (26%)

3. Innovation Remains a Strategic Priority
80% of businesses view innovation as central to their operations, but many struggle with:

• Short-term customer contracts
• Recruitment of skilled workers
• Limited access to funding

4. Sustainability is Now a Business Imperative
65% of firms prioritise sustainability in their strategy. However, 74% report instability following the 2024 general election, leading to:

• Increased operating costs
• Delayed capital investments
• Paused recruitment efforts

5. 2025 Outlook: Confidence Mixed with Caution
Despite ongoing challenges, businesses are preparing for growth:

• 74% expect increased sales
• 59% plan to expand their customer base
• 50% will prioritise workforce development