Outside track: Mixed trends shape UK industrial automation market
16 Oct 2026
ERJ's 'outside track' covers developments across the international process and manufacturing industries
London – UK industrial automation (IA) body GAMBICA recorded a 2.2% year-on-year increase in its IA [adoption] index, to 120.7 for the second quarter of 2026.
However, the metric was 7.3% down on the 130.2 recorded in the first quarter: trending in the opposite direction to UK industrial output (+1%) and machinery production (+4.4%).
Indeed, the IA index and machinery output have now moved in opposite directions for five quarters running, noted Nikesh Mistry, GAMBICA sector head, industrial automation.
“Demand is there, but it is uneven,” the GAMBICA analyst told journalists at the First Friday Club meeting held 9 Oct in London, organised by Cadence Industrial & Technical Communications.
Noting that first half demand was 3.8% up on 2025, Mistry said “most of the [IA] market [was running] ahead of last year, but there is a wide gap between the strongest and weakest areas.
“Recovery is selective,” continued the presenter. “Growth is following specific end markets and investment cycles, not lifting everyone.”
And while projects are being “staged, not cancelled,” orders for new project work slowed in Q2, while installation-related demand kept growing
“Delivery capacity, not appetite, is the constraint,” summarised Mistry, citing skills, integrator and commissioning availability as barriers to faster IA adoption.
UK industrial policy, he said, is another factory: “Energy saving upgrades are being deferred while energy prices cloud payback
“Policy certainty on energy costs and capital allowances would unlock the next wave of orders.”
Read the full GAMBICA 'Reading the Signals' report, which also covers issues around AI adoption, smart factories, skills, investment and energy.
