Automation Leaders Face Contrasting Growth Trajectories
Honeywell Technologies (HON) and Emerson Electric (EMR) are prominent players in the industrial automation market, benefiting from growing investments in smart manufacturing, digital transformation, and process automation.
Both companies are expanding their automation portfolios through software, connected technologies, and strategic growth initiatives. HON is gaining strength in its Industrial Automation, Building Automation, and Energy & Sustainability Solutions businesses, while EMR continues to benefit from portfolio optimization and growing demand across process and discrete automation markets.
The industrial automation market is expected to grow due to increasing demand for smart manufacturing and digital transformation. HON's growth potential is threatened by weakness in its Process Automation and Technology segment, which declined 1% year over year in the second quarter of 2026. However, rising demand for liquefied natural gas (LNG) and increased automation projects are expected to support growth.
EMR, on the other hand, has been experiencing healthy demand across most of its end markets. The company's underlying sales increased 6% year over year in the third quarter of fiscal 2026. EMR anticipates its overall underlying sales to grow approximately 3.5% year over year in fiscal 2026.