Smart Manufacturing Market

Market Definition

The market comprises advanced production systems that integrate digital technologies, automation, and data analytics to optimize manufacturing processes across industries.

It includes components such as industrial IoT, artificial intelligence, robotics, cloud computing, and digital twins, enabling real-time monitoring, predictive maintenance, and agile production. Covered products and services span smart factory solutions, software platforms, and connected machinery used in automotive, aerospace, electronics, and pharmaceuticals. 

The report examines critical driving factors, industry trends, regional developments, and regulatory frameworks impacting market growth through the forecast period.

Smart Manufacturing Market Overview

The global smart manufacturing market size was valued at USD 17.79 billion in 2024 and is projected to grow from USD 18.39 billion in 2025 to USD 24.38 billion by 2032, exhibiting a CAGR of 4.11% during the forecast period. 

Automation and AI-driven analytics enhance efficiency, accuracy, and predictive insights in manufacturing, optimizing workflows, reducing downtime, and accelerating intelligent automation adoption, thereby driving the market.

Major companies operating in the smart manufacturing industry are 3D Systems, Inc., ABB, Cisco Systems, Inc., General Electric Company, Honeywell International Inc., IBM, Mitsubishi Electric Corporation, Rockwell Automation, Schneider Electric, Siemens, Oracle, SAP SE, Zebra Technologies Corp., Emerson Electric Co., and Yokogawa India Ltd.

Rising implementation of industrial Internet of Things (IIoT) devices in manufacturing is driving the market. IIoT enables real-time data monitoring and seamless machine communication, improving operational efficiency. 

The increasing use of IIoT in supply chain management and production optimization is further expanding market demand. Advancements in edge computing and connected devices are expected to create significant opportunities in the market.

Key Highlights:

1. The smart manufacturing market size was valued at USD 17.79 billion in 2024.
2. The market is projected to grow at a CAGR of 4.11% from 2025 to 2032.
3. Asia Pacific held a market share of 52.53% in 2024, with a valuation of USD 9.35 billion.
4. The services segment garnered USD 13.22 billion in revenue in 2024.
5. The On-premises segment is expected to reach USD 12.81 billion by 2032.
6. The large enterprises segment secured the largest revenue share of 67.73% in 2024.
7. The discrete industry segment is poised for a robust CAGR of 4.46% through the forecast period.
8. The market in North America is anticipated to grow at a CAGR of 4.25% during the forecast period.

Market Driver

Growing Demand for Automation in Manufacturing

Rising demand for automation in manufacturing is driving the market. Automation enhances production efficiency and reduces errors, leading to improved product quality and operational consistency. The growing integration of automated systems across manufacturing processes is further accelerating market adoption. 

Advances in robotics and control technologies are expected to create significant opportunities, enabling manufacturers to streamline workflows and boost overall productivity.

• In June 2024, Invest India reported that digital technologies are projected to account for 40% of total manufacturing expenditure by 2025, up from 20% in 2021. This accelerated adoption of AI and ML is driving smart factory automation, enhancing efficiency, reducing downtime, and optimizing processes in the automotive sector through AI-powered robotics and analytics.

Market Challenge

Data Management and Analytics Challenges

The smart manufacturing market faces challenges related to data management and analytics, as the vast volume of real-time data generated often exceeds the capacity for effective processing and utilization. This limits the ability to derive actionable insights critical for optimizing operations. 

Manufacturers are adopting advanced edge computing and AI-driven analytics platforms to enhance data processing capabilities. Investments in scalable cloud infrastructure also enable more efficient data storage and accessibility. These strategies improve decision-making accuracy, operational responsiveness, and lead to the market growth.

Market Trend

Advancements in AI-powered Manufacturing Analytics

The introduction of AI-powered analytics solutions is a key trend in smart manufacturing. These solutions enable real-time data processing and predictive insights, optimizing production workflows and minimizing downtime. 

Market focus is shifting toward leveraging Artificial Intelligence (AI) to enhance operational efficiency, streamline decision-making, and support advanced automation, reflecting the growing adoption of intelligent analytics within industrial environments.

• In March 2025, HCLTech launched HCLTech Insight, an AI-powered Industry Focused Repeatable Solution built on Google Cloud technologies. It delivers advanced data analytics to detect product defects in real time, enhancing efficiency, productivity, and quality across automotive, aerospace, and electronics industries through interactive dashboards and virtual assistance.

Smart Manufacturing Market Report Snapshot

Segmentation	Details
By Component	Solution (Industrial 3D Printing, Programmable Logic Controller (PLC), Product Lifecycle Management (PLM), Manufacturing Execution System (MES), Robotic Process Automation (RPA), Remote Monitoring software, Supervisory Controller and Data Acquisition (SCADA)), Services (Professional Services, Managed Services)
By Deployment	Cloud, On-premises
By Enterprise Size	Large Enterprises, Small & Medium Enterprises
By Industry	Discrete Industry (Automotive, Transportation, Industrial Machinery, Medical Devices, Semiconductor and Electronics/High-Tech), Process Industry (Pharmaceuticals, Mining and Metals, Chemicals, Pulp and Paper)
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation:

• By Component (Solution, Services): The services segment earned USD 13.22 billion in 2024, due to essential ongoing support, maintenance, and optimization that ensure continuous operational efficiency and adaptability to evolving technologies, driving sustained value for manufacturers.
• By Deployment (Cloud, On-premises): The o segment held 54.42% share of the market in 2024, due to the greater control, enhanced security, and higher customization it provides manufacturers for managing sensitive industrial data and meeting strict regulatory requirements.
• By Enterprise Size (Large Enterprises, Small & Medium Enterprises): The large enterprises segment is projected to reach USD 16.14 billion by 2032, owing to its substantial financial resources and advanced infrastructure, enabling significant investment in cutting-edge technologies and large-scale implementation.
• By Industry (Discrete Industry, Process Industry): The discrete industry segment earned USD 10.95 billion in 2024, due to its high demand for precision, customization, and automation in manufacturing complex products like automotive, electronics, and machinery.

Smart Manufacturing Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

Asia Pacific accounted for 52.53% share of the smart manufacturing market in 2024, with a valuation of USD 9.35 billion. The market dominance is attributed to government initiatives focused on advancing industrial automation and digital transformation. 

Policies encouraging Industry 4.0 adoption such as funding programs, tax benefits, and infrastructure enhancements are driving the integration of smart technologies across manufacturing operations. These measures have significantly improved productivity and innovation capabilities, firmly establishing the region as a key hub for smart manufacturing globally.

• For instance, under the “Made in China 2025” initiative, China has prioritized smart manufacturing by promoting the integration of advanced technologies such as the Internet of Things (IoT), big data, and AI into industrial processes. This strategic focus aims to boost manufacturing efficiency, foster innovation, and enhance global competitiveness through collaborative efforts involving private enterprises, academic institutions, and research organizations.

The smart manufacturing industry in North America is poised for significant growth at a robust CAGR of 4.25% over the forecast period. This growth is attributed to the increasing demand for customized and high-quality products. This demand is pushing manufacturers to adopt flexible and data-driven production systems enabled by smart technologies. 

The region’s strong emphasis on digital transformation, combined with consumer expectations for product personalization and shorter lead times, is accelerating the implementation of advanced manufacturing solutions, thereby driving the market.

Regulatory Frameworks

• In the U.S., the National Institute of Standards and Technology (NIST) serves a critical function in developing and promoting standards for smart manufacturing. NIST provides comprehensive frameworks, including the Cybersecurity Framework and the Smart Manufacturing Systems Design Framework, which enable manufacturers to implement secure, interoperable, and efficient digital infrastructures. These frameworks facilitate the assurance of data integrity, optimize machine-to-machine communication, and enhance system integration throughout the entire manufacturing lifecycle.
• In China, the smart manufacturing industry is governed by a set of national standards known as GB standards, which focus on ensuring product quality, safety, interoperability, and performance. These standards provide essential guidance for the development, implementation, and integration of smart manufacturing technologies across various sectors.
• In Japan, the smart manufacturing sector is regulated by the Japanese Industrial Standards (JIS), which establish quality, safety, and performance requirements for manufacturing equipment and systems. These standards help ensure the reliability and interoperability of smart manufacturing technologies.

Competitive Landscape

The smart manufacturing market is registering significant activity with frequent product launches aimed at enhancing automation, connectivity, and process optimization. Leading companies are introducing advanced solutions that improve production efficiency, reduce downtime, and enable seamless integration across manufacturing operations. 

Strategic investments in research and development, along with collaborations, are accelerating the availability of innovative, scalable technologies. This competitive landscape drives firms to focus on delivering flexible, cost-effective, and industry-specific solutions to meet evolving manufacturing demands.

• In January 2025, Nulogy launched Nulogy Smart Factory, the latest addition to its multi-enterprise platform. The solution provides manufacturers with real-time visibility into production operations, enabling immediate issue resolution through bi-directional machine monitoring and automated data capture, while leveraging data-driven insights to drive continuous improvement and sustainable growth.

List of Key Companies in Smart Manufacturing Market:

• 3D Systems, Inc.
• ABB
• Cisco Systems, Inc.
• General Electric Company
• Honeywell International Inc.
• IBM
• Mitsubishi Electric Corporation
• Rockwell Automation
• Schneider Electric
• Siemens
• Oracle
• SAP SE
• Zebra Technologies Corp.
• Emerson Electric Co.
• Yokogawa India Ltd.

Recent Developments (Product Launches)

• In April 2025, Hexagon’s Manufacturing Intelligence division announced the global rollout of its Digital Factory solution as a service. Leading automotive and aerospace manufacturers utilize this technology to digitally map and model aging brownfield facilities, preparing for increased production and the introduction of new lines amid rapidly evolving competitive markets.
• In October 2024, Ericsson announced the launch of “Ericsson Hackathon 2024” to drive digital transformation in Indonesia using Generative Artificial Intelligence (Gen AI) and 5G technology. The Hackathon focuses on Smart Manufacturing, integrating IoT, big data analytics, robotics, and AI to optimize processes and support data-driven decision-making. Participants develop innovative solutions leveraging AI and 5G to enhance automation, predictive maintenance, quality control, and supply chain management in manufacturing.
• In September 2024, Yokogawa Electric Corporation announced the global release of OpreX Intelligent Manufacturing Hub across all markets except Japan. This data integration solution leverages robotic process automation (RPA) within a low-code/no-code environment or through Yokogawa’s customization to significantly reduce reporting time. Covering key performance indicators (KPIs), workflows, and reporting across all organizational levels from the C-suite to the plant floor, OpreX Intelligent Manufacturing Hub uses a single database to consolidate and display critical data on dashboards, enabling timely and informed decision-making.
• In February 2024, Delta announced participation in ELECRAMA 2025 under the Smart Manufacturing theme, launching the D-Bot series Collaborative Robots (Cobots) in the Indian market. These 6-axis cobots feature payloads up to 30 kg and speeds of 200 degrees per second, enhancing efficiency in electronics assembly, packaging, material handling, and welding. The event includes the unveiling of a 240kW DC Fast EV Charger and an Industrial Power-protect Transformer-based UPS, demonstrating Delta’s commitment to energy conservation and sustainable urban development in India.