3 ASX Industrial Automation Stocks Worth Tracking

Industrial automation is no longer a future theme — it is a present necessity. Rising labour costs, productivity pressures, energy transition demands, and digital integration are pushing companies across mining, defence, manufacturing, and energy to adopt smarter, technology-enabled systems. From remote monitoring and data analytics to automated engineering processes and laboratory robotics, automation is becoming deeply embedded within industrial operations.

For investors seeking exposure to this structural trend, select ASX automation stocks offer diversified entry points into the evolving industrial technology landscape.

Three companies positioned within this theme are:

• Codan Ltd (ASX: CDA)
• Worley Ltd (ASX: WOR)
• ALS Ltd (ASX: ALQ)

Each company engages with automation from a different angle — electronics integration, digital engineering design, and laboratory process automation.

Why ASX Automation Stocks Are Gaining Attention

Automation reduces operational costs, enhances safety, and improves efficiency. Across industries such as mining, defence, chemicals, environmental testing, and energy infrastructure, companies are integrating digital controls and automated workflows to remain competitive.

The broader drivers supporting ASX automation stocks include:

• Labour shortages in technical fields
• Increasing safety and compliance standards
• Digital transformation in industrial sectors
• Growth in remote and autonomous operations
• Infrastructure modernisation

Industrial companies investing in smarter systems often seek long-term productivity gains, which creates steady demand for providers of automated technologies and services.

Codan Ltd (ASX: CDA)

Codan designs and manufactures advanced communications systems and electronic equipment used in defence, mining, and security sectors. Many of its solutions integrate automated signal processing, secure communication networks, and portable field technologies.

Among ASX automation stocks, Codan represents exposure to automation in mission-critical environments.

Automation and Defence Integration

Defence and industrial operations increasingly rely on automated data capture, encrypted communications, and remote-controlled systems. Codan’s products help enable:

• Automated communication networks in remote environments
• Data processing and signal automation
• Portable, high-reliability electronic systems
• Integration with unmanned or remote operations

As defence and mining operations become more automated and digitally integrated, secure communication infrastructure becomes essential. Automation in these environments improves both efficiency and operator safety.

Codan also benefits from strong global demand for secure communications equipment. Its exposure to specialised electronics gives it a niche advantage within the broader field of ASX automation stocks.

Worley Ltd (ASX: WOR)

Worley operates as an engineering and project services provider across energy, chemicals, mining, and infrastructure industries. Automation plays a crucial role in modern engineering design and industrial facility optimisation.

Within ASX automation stocks, Worley represents large-scale industrial process automation and digital engineering.

Digital Engineering and Process Optimisation

Modern industrial facilities rely on:

• Automated control systems
• Process optimisation software
• Real-time operational data integration
• Digital twins and simulation models

Worley integrates these technologies into the infrastructure it designs and manages. As industries seek greater efficiency, digital control and automation systems are increasingly embedded into project specifications from the outset.

Energy transition initiatives also require sophisticated automation systems to manage renewable assets, hydrogen facilities, and advanced processing plants. Automation enhances reliability and enables better monitoring across distributed energy systems.

Because Worley participates in large-scale capital projects, its exposure to industrial automation scales alongside infrastructure investment cycles.

ALS Ltd (ASX: ALQ)

ALS operates testing, inspection, and certification laboratories globally, servicing mining, environmental, food, pharmaceutical, and industrial clients.

Among ASX automation stocks, ALS provides exposure to laboratory automation and digital analytical workflows.

Automation in Testing and Compliance

Laboratory environments increasingly adopt:

• Automated sample handling
• Robotics-assisted testing
• Digital reporting systems
• Advanced data analytics platforms

Automation enhances processing speed, improves accuracy, and ensures regulatory compliance.

As global environmental standards tighten and quality control requirements increase, testing volumes continue rising. Automated systems allow ALS to handle higher throughput efficiently while maintaining margins.

Its diversified exposure across multiple end markets reduces cyclicality relative to single-industry operators.

Automation in laboratories is often less visible than in manufacturing, but it is equally critical to productivity. ALS benefits from long-term demand for scientific testing combined with ongoing operational efficiency improvements.

Comparing the Three ASX Automation Stocks

Although each company operates in different sectors, they share exposure to industrial automation themes.

Codan:

• Mission-critical electronics and communications
• Automation in defence and field operations

Worley:

• Industrial engineering and process automation
• Digital integration in large infrastructure projects

ALS:

• Laboratory automation and testing services
• Data-driven compliance systems

This diversity provides broad exposure across electronics manufacturing, engineering integration, and analytical services.

Risks to Consider

Despite strong structural tailwinds, ASX automation stocks face certain risks:

• Cyclical capital expenditure trends
• Government procurement variability (for defence exposure)
• Commodity demand fluctuations
• Technology integration costs

Automation adoption is often tied to broader investment cycles. During downturns, companies may delay capital-intensive upgrades.

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