USD 225.99 billion
Smart Manufacturing Market Size, Share, Growth Analysis, By Component(Hardware, Software, Services), By Technology(IoT, AI and ML, 3D Printings, and Others), By Industry Vertical(Food & Beverage, Automotive, Aerospace & Defense, Consumer Electronics), By Region - Industry Forecast 2025-2032
Report ID:
SQMIG45I2185 |
Region:
Global |
Published Date: December, 2024
Pages:
165
|Tables:
94
|Figures:
76
Smart Manufacturing Market Insights
Smart Manufacturing Market size was valued at USD 260.56 Billion in 2023 and is poised to grow from USD 300.43 Billion in 2024 to USD 938.38 Billion by 2032, growing at a CAGR of 15.3% during the forecast period (2025-2032).
The smart manufacturing market is expanding rapidly due to factors like increasing Industry 4.0 adoption, more government engagement in supporting industrial automation. Furthermore, increasing focus on industrial automation in manufacturing processes, and rising demand for software systems that save time and expenses is also positively influencing the growth of the market. Furthermore, COVID-19 pandemic had also immensely impacted every industry and elements involved in industrial automation. The global supply chains and operational logistics were suddenly affected during the initial worldwide lockdown. Therefore, the market started emphasizing more on manufacturing essential products to survive during the pandemic as demand for non-essential products reduced. However, the market was able to grow during the pandemic as enterprises needed to provide their services and products safely and quickly. The growth of the market was evident during this situation as a direct result of demand, government financial assistance, and technical support. Information technology and automobile industries are the two most prevalent industries for industry 4.0. The market has helped automotive manufacturers build automated assembly lines not only for parts but also to manufacture the entire car.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
Software
Fastest Growth
Hardware
Growth Rate
15.3% CAGR
Global Smart Manufacturing Market ($ Bn)
Country Share for North America Region (%)
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Smart Manufacturing Market Segmental Analysis
Global Smart Manufacturing Market is segmented by Component, Technology, Deployment, Enterprise Size, Industry and region. Based on component, the market is segmented into Hardware, Software, Services. Based on Technology, the market is segmented into Machine Execution Systems, Programmable Logic Controller, Enterprise Resource Planning, SCADA, Discrete Control Systems, Human Machine Interface, Machine Vision, 3D Printing, Product Lifecycle Management, Plant Asset Management and Others. Based on Deployment, the market is segmented into Cloud, On-Premises. Based on Enterprise Size, the market is segmented into Large Enterprises, Small & Medium Enterprises. Based on Industry, the market is segmented into Discrete Industry, Automotive, Transportation, Industrial Machinery, Medical Devices, Semiconductor and Electronics/High-Tech, Others (Aerospace and Defence), Process Industry, Pharmaceuticals, Mining and Metals, Chemicals, Pulp and Paper, Others (Cable). Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.
Analysis by Component
By component, the hardware segment is dominating the market. The hardware segment of the smart manufacturing market includes a wide range of devices and equipment. These can be utilized in manufacturing operations, like sensors, controllers, robots, and 3D printers. These hardware components form the structure of the smart manufacturing ecosystem, offering the necessary data collection, automation, and control capabilities. Sensors are a key component of the hardware segment, providing real-time data on everything from temperature and pressure to motion and vibration. This data is utilized to monitor and optimize manufacturing processes, identify inefficiencies, and improve product quality. Controllers, like programmable logic controllers (PLCs) and distributed control systems (DCS), are used for automating and controlling manufacturing processes, ensuring consistent and efficient operation. These are some of the major factors influencing the growth of the smart manufacturing market.
The software segment is witnessing the fastest growth in the market. This growth of software is because of the vital part it plays in arranging and improving manufacturing processes. Smart manufacturing depends heavily on data analytics, automation, and real-time monitoring, all of which are facilitated by software solutions. These software platforms allow smooth incorporation of IoT devices, data analytics, and machine learning algorithms. It enables manufacturers to gain actionable insights and make data-driven decisions. Furthermore, software solutions in smart manufacturing strengthen organizations to adapt quickly to the shifting market demands and customize their operations, leading to increased efficiency, reduced expenses, and increased competitiveness.
Analysis by Industry Vertical
Based on the industry vertical, the automotive sector is dominating the market with maximum revenue share. Smart manufacturing technologies meet automotive manufacturing’s stringent demands for precision, efficiency, and advanced technologies. Automotive production relies on smart manufacturing as it can streamline production processes, real-time quality control, predictive maintenance capabilities, and reduced production costs – features that are essential in its complex supply chains. The premium vehicles, but it must meet strict standards while reducing production expense and speeding time-to-market process. Furthermore, with the increasing demand for electric and autonomous vehicles it is increasing the smart manufacturing needs and making the automotive sector an innovator and leader within its market segment.
The aerospace and defense sector are growing rapidly in the smart manufacturing market. This is primarily due to the increasing investment in smart manufacturing. In this industry, precision is crucial, and the market’s advanced technologies can help achieve it. Smart manufacturing can help in manufacturing rockets at a much quicker pace, which is crucial for space research as it needs multiple flights for testing. Furthermore, the defense industry invests massively in industrial automation to develop modern defense mechanisms that can mitigate emerging threats effectively.
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Smart Manufacturing Market Regional Insights
North America is leading the market. Canada and the United States are investing more in modern industrial technologies. The introduction of the smart manufacturing concept has been accelerated by technological advancements, the availability of substitute printing materials, and lower equipment prices. The North American aerospace & defense, health, industrial, and automotive industries are all seeing significant investment efforts expected to grow significantly in the future. Many government facilities like NASA, have identified the importance of 3D Printing R&D investments that can contribute substantially to space applications and produce new technologies to fuel market expansion.
The Asia Pacific market is growing rapidly driven by rapid industrialization, government initiatives, and increasing adoption of advanced technologies. Countries, like China, Japan, and South Korea, are at the forefront, leveraging automation, IIoT, and AI to enhance manufacturing efficiency and productivity. The region's focus on Industry 4.0 and digital transformation is fostering investments in smart factories and innovative manufacturing solutions. Furthermore, the increasing demand for high-quality consumer goods and electronics further propels the market. Strategic collaborations between global tech firms and local manufacturers are also contributing to the region's dynamic smart manufacturing landscape. The rapid industrialization and urbanization in the Asia Pacific have led to increased demand for efficient manufacturing processes. Additionally, favorable government initiatives and investments in Industry 4.0 technologies have further accelerated adoption. Asia Pacific’s robust ecosystem of technology providers and skilled workforce contribute to its leadership in driving innovation and growth in the sector.
Global Smart Manufacturing Market By Geography
- Largest
- Fastest
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Smart Manufacturing Market Dynamics
Drivers
Increasing Demand for Smart Manufacturing Sensor-Rich Applications
- Sensor advancements that consistently provide precise and accurate measurements have been crucial in increasing demand in novel applications, which will further accelerate the growth of the market. The smart manufacturing market are the rising attention on the energy absorption, manufacturing effectiveness, and the growing practice for a developed base for the manufacturing
Rise in Usage of IoT Solutions
- Industry 4.0 and the Industrial internet of things (IoT) have increased demand for diagnostics and mobile-based access, which will propel the industry forward. The existence of the multinational corporations funding in the research and development for industrial technologies, industrial Internet of Things (IoT) and as well as the cloud technology are the factors that will further boost the growth of the smart manufacturing market
Restraints
Workforce Skill Enhancement and Retraining
- The increasing adoption of Smart manufacturing requires companies to invest in retraining and upskilling their workforce to adapt to the changing work environment. Employees need to acquire new skills to collaborate effectively with robots, manage robotic systems, and perform tasks that complement and support robotic operations. Retraining programs and initiatives are crucial to ensure a smooth transition and maximize the benefits of industrial automation while safeguarding employment opportunities
High Initial Investment to Restraint Growth
- The other major restraint in the market is the significant initial investment necessary for the deployment of advanced technologies and infrastructure. Incorporating smart manufacturing solutions requires immense capital expenditure for upgrading current systems. This is done by IoT device sensors and integrating new software. Furthermore, the expenses related to training the workforce for operating and maintaining these systems can be significant. SME’s can find these costs difficult, restricting their potential to adopt smart manufacturing completely.
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Smart Manufacturing Market Competitive Landscape
The global smart manufacturing market is highly competitive, with a significant number of small and medium-sized players vying for market share against established manufacturers. The majority of small-scale players are located in the Asia Pacific region, where the market is still developing. With the evolution of technology, products that are being manufactured are also becoming more innovative. Industrial automation is streamlining the process, allowing the market to grow alongside these advancements. The North American and European markets are dominated by large and medium-sized companies. Despite high competition, technological advancements are enabling companies to save time and costs while increasing efficiency and effectiveness.
Top Player’s Company Profile
- ABB Ltd (Switzerland)
- Emerson Electric Co. (USA)
- FANUC Corporation (Japan)
- General Electric (USA)
- Honeywell International Inc. (USA)
- Mitsubishi Electric Corporation (Japan)
- Robert Bosch GmbH (Germany)
- Rockwell Automation (USA)
- Schneider Electric SE (France)
- Siemens AG (Germany)
- Texas Instruments Incorporated (USA)
- Yokogawa Electric Corporation (Japan)
- 3D Systems, Inc. (USA)
- Oracle Corporation (USA)
- SAP SE (Germany)
- IBM Corporation (USA)
- Cisco Systems, Inc. (USA)
- Stratasys Ltd. (USA)
- Dassault Systèmes (France)
- PTC Inc. (USA)
Recent Developments
- In April 2023, Compressor Controls Corporation was acquired by Honeywell International Inc. for USD 670 Million. The objective of this acquisition was to increase the strength of their presence in automation, industrial control, and process solutions.
- In April 2023, ABB has invested USD 170 million in the U.S. market to create highly skilled jobs in manufacturing, innovation, and distribution operations. The objective of the investment is to create more demand for electrification and automation products.
- In April 2023, Robert Bosch GmbH partnered with Rhenus Automotive and REMONDIS subsidiary TSR Recycling, to develop Europe’s first fully automated battery-discharging plant. The plant will be a fully automated system for disassembling and discharging battery modules, which is expected to augment the industry growth further.
Smart Manufacturing Key Market Trends
Technological Advancements and Innovation
- The continuous advancements in robotics technology, including developments in artificial intelligence, machine learning, and sensor technologies, present significant opportunities for the global smart manufacturing market. These innovations enable robots to become more intelligent, versatile, and capable of handling complex tasks, expanding their application possibilities across various industries
Cyber-Physical Systems
- The rise of cyber-physical systems, where software interfaces directly with physical processes, is transforming manufacturing. These systems improve automation by using real-time data to adjust operations, enhancing the adaptability and efficiency of manufacturing processes.
Smart Manufacturing Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the global smart manufacturing market is increasing due to adoption of Industry 4.0 technologies, such as the Internet of Things (IoT), artificial intelligence (AI), and big data analytics. These technologies are helping manufacturers to enhance efficiency, reduce costs, and enhance product quality by connecting and analyzing data from machines, sensors, and other devices. IoT sensors, automation, and big data analytics are examples of smart manufacturing technologies that demand hefty infrastructure, software, and hardware investments. The future of the smart manufacturing market looks promising, as businesses continue to invest in new technologies and processes to improve efficiency, reduce costs, and enhance product quality for key players to maintain the pace of the smart manufacturing market in the upcoming years.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 260.56 Billion |
| Market size value in 2032 | USD 938.38 Billion |
| Growth Rate | 15.3% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Smart Manufacturing Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Smart Manufacturing Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Smart Manufacturing Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Smart Manufacturing Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Smart Manufacturing Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Smart Manufacturing Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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