Arduino's Limitations

Arduino is a development platform, not a micro controller chip. Sometimes the term "Arduino" is used to define the actual hardware platform that is used - for example "Arduino UNO" is a specific hardware platform that you can deploy to.

So when you say "can I use an Arduino" I think what you really mean is can I use a micro controller the the Arduino IDE can deploy to?

There are multiple micro-controller chips supported, some are more powerful then others, and have more/less I/O pins, and other features... the one you choose depends on your requirements.

The standard Arduino boards are typically designed for hobbyists to use... they won't have the type of robust features that you might expect in an industrial application. That doesn't mean you can't build an Arduino application and deploy that onto a chip used in an industrial setting. In that environment there are a lot of other things to consider, like robustness, failover, scale, electrical protection, safety, etc.