Smart Pneumatics Market

Market Definition

The market includes pneumatic systems enhanced with sensors and digital technologies to enable real-time monitoring, data analysis, and automated control. These systems are widely applied in industries such as automotive, food & beverage, pharmaceuticals, and semiconductor manufacturing.

Key applications include controlling robotic movements, regulating valve operations, and optimizing air and liquid flow. Powered by IIoT, smart pneumatics support energy optimization and operational reliability. The report highlights key market drivers, major trends, regulatory frameworks, and the competitive landscape shaping the market's growth.

Smart Pneumatics Market Overview

The global smart pneumatics market size was valued at USD 4.78 billion in 2023 and is projected to grow from USD 5.07 billion in 2024 to USD 7.90 billion by 2031, exhibiting a CAGR of 6.53% during the forecast period.

Innovation in smart pneumatics, driven by Industry 4.0 and AI-based tools, is enhancing industrial efficiency. These advancements enable real-time monitoring, predictive maintenance, and automation, optimizing energy usage, reducing downtime, and improving overall performance across various sectors such as manufacturing, automotive, packaging, robotics, and pharmaceuticals.

Key players operating in the smart pneumatics industry are Bimba LLC., Emerson Electric Co., PARKER HANNIFIN CORP, Metso, Rotork Group, Festo India Private Limited, BASSO, AirTAC International Group, Cypress Envirosystems, NINGBO SMART PNEUMATIC CO., LTD., Bosch Limited, advanced pneumatics pvt. ltd., Chicago Pneumatic, Ingersoll Rand, Hitachi Koki, and SMC Corporation.

The market is registering high demand for integrated electric and pneumatic solutions, due to their ability to enhance operational efficiency. Combining the precision & power of electric actuators with the speed & reliability of pneumatic components, these systems improve performance across applications.

This integration enables process optimization, energy reduction, and higher productivity. The rising focus on automation, cost reduction, and sustainability is driving the adoption of smart pneumatics. 

• In September 2023, Festo launched the CPX-AP-A distributed I/O system at Pack Expo, addressing the growing demand for integrated electric & pneumatic automation solutions. This platform offers flexibility, cost savings, and efficiency, combining electric and pneumatic technologies to optimize machine performance and diagnostics for smart automation.

Key Highlights:

1. The smart pneumatics industry size was valued at USD 4.78 billion in 2023.
2. The market is projected to grow at a CAGR of 6.53%from 2024 to 2031.
3. North America held a market share of 34.09% in 2023, with a valuation of USD 1.63 billion.
4. The software segment garnered USD 1.80 billion in revenue in 2023.
5. The smart pneumatic modules segment is expected to reach USD 3.44 billion by 2031.
6. The water & wastewater segment is anticipated to register the fastest CAGR of 6.68% during the forecast period.
7. The market in Asia Pacific is anticipated to grow at a CAGR of 7.52% during the forecast period.

Market Driver

"Driving Innovation in Smart Pneumatics for Industry 4.0"

Electro-pneumatic manifolds are emerging as a key market driver, due to their ability to combine electrical control with pneumatic systems, enhancing automation and efficiency. These manifolds centralize control, reduce system complexity, and offer significant space & cost savings, aligning with the ongoing shift toward Industry 4.0.

By enabling precise control and faster response times, they contribute to improved performance across various industrial applications, such as robotics, manufacturing automation, automotive assembly lines, and packaging systems.

• In June 2024, SMC Corporation introduced the JSY3000-P Series electro-pneumatic manifold, addressing the growing demand for compact and intelligent pneumatic systems. This development integrates electro-pneumatic regulators and solenoid valves on a single manifold, enabling centralized control, reduced wiring, and scalable automation for smart industrial applications.

 Market Challenge

"Integration Complexity with Legacy Systems"

One of the primary challenges facing the smart pneumatics market is the integration of advanced technologies with existing legacy infrastructure. Several industrial facilities still rely on traditional pneumatic systems that lack digital connectivity, making retrofitting or upgrading a complex and costly process. This technological mismatch can lead to compatibility issues, extended downtime, and increased maintenance efforts.

Companies are offering modular retrofits and integration platforms that enable smooth communication between legacy and smart systems, reducing downtime and easing the transition to automation.

Market Trend

AI-based Smart Pneumatic Tools for Industrial Efficiency

These tools offer real-time monitoring, adaptive control, and predictive maintenance capabilities by integrating AI, which help reduce downtime and energy consumption.

Their data-driven functionality enables improved precision, faster response times, and optimized performance across various industrial applications. This evolution is driving widespread adoption in manufacturing sectors seeking higher productivity and cost savings.

• In January 2025, researchers from Manipal University Jaipur introduced an AI-based smart pneumatic tool, addressing the demand for more efficient and sustainable industrial equipment. This innovative tool integrates smart sensors and adaptive learning algorithms, optimizing energy use and performance while reducing power consumption by up to 30%, targeting industries seeking high-performance, eco-friendly solutions.

 Smart Pneumatics Market Report Snapshot

Market Segmentation

• By Component (Hardware, Software, Services): The software segment earned USD 1.80 billion in 2023, due to the growing need for real-time data analytics, system optimization, and integration with Industry 4.0 technologies in smart pneumatic systems.
• By Type (Smart Pneumatic Valves, Smart Pneumatic Actuators and Smart Pneumatic Modules): The smart pneumatic modules held 43.42% share of the market in 2023, due to their critical role in ensuring precise airflow control and enhancing automation efficiency in industrial processes.
• By Vertical (Oil & Gas, Energy & Power, Water & Wastewater, Automotive, Semiconductor, Food & Beverages and Others): The oil & gas segment is projected to reach USD 1.92 billion by 2031, owing to the increasing adoption of smart pneumatic systems for enhancing safety, reliability, and remote monitoring in harsh and hazardous environments.

Smart Pneumatics Market Regional Analysis

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

North America smart pneumatics market share stood at around 34.09% in 2023, with a valuation of USD 1.63 billion. This market dominance is attributed to the high level of industrial automation, particularly in key sectors such as automotive, aerospace, and pharmaceuticals, where advanced pneumatic systems are crucial for enhancing precision, efficiency, and operational reliability.

Additionally, the region benefits from a strong foundation in research and development, with leading industry players continuously innovating and integrating emerging technologies like AI and IoT into pneumatic solutions.

The smart pneumatics industry in Asia Pacific is poised for significant growth at a robust CAGR of 7.52% over the forecast period, driven by rapid industrialization and the growing adoption of automation and Industry 4.0 technologies.

The demand for advanced pneumatic systems to enhance efficiency and productivity continues to rise as manufacturing sectors in countries like China, India, and Southeast Asia expand. Additionally, the integration of smart pneumatics across industries such as automotive and electronics is contributing to the regional market growth.

• In February 2025, China-based VPC Pneumatic presented its latest smart and energy-efficient pneumatic products. The company highlighted advanced cylinders, valves, and air preparation units, targeting manufacturers seeking customized and optimized pneumatic solutions for enhanced production efficiency.

Regulatory Frameworks

• In the U.S., the market is governed by the Occupational Safety and Health Administration (OSHA), which enforces safety standards like OSHA 1910.212 (General Duty Clause) and 1910.134 (Respiratory Protection) to protect workers from risks associated with pneumatic systems.
• In Europe, the market is governed by the European Union’s Machinery Directive (2006/42/EC), which ensures that all machinery, including pneumatic systems, meet health and safety requirements before being placed on the market.

Competitive Landscape

Key players in the smart pneumatics industry are focusing on growing their businesses through a variety of strategies such as mergers, acquisitions, collaborations, and investments.

These strategies allow companies to expand their product portfolios, integrate emerging technologies like AI and IoT, and improve the overall functionality and efficiency of their pneumatic systems.

Additionally, partnerships with technology providers and strategic acquisitions enable market players to enter new regions and diversify their offerings, positioning them for continued growth in the market.

• In February 2025, NIDE Tech and SMC (Japan) announced a strategic partnership to advance intelligent and green manufacturing. This collaboration focuses on integrating SMC’s energy-saving pneumatic components with NIDE Tech’s automation expertise to develop smart motor production systems, targeting the rising demand for efficient, low-carbon industrial solutions.

List of Key Companies in Smart Pneumatics Market:

• Bimba LLC
• Emerson Electric Co.
• PARKER HANNIFIN CORP
• Metso
• Rotork plc
• Festo India Private Limited
• BASSO
• Airtac International Group
• Cypress Envirosystems
• Ningbo VPC Pneumatic Co., Ltd.
• Bosch Limited
• advanced pneumatics pvt. ltd.
• Chicago Pneumatic
• Ingersoll Rand
• Hitachi KokiSMC Corporation.

Recent Developments (Product Launches)

• In March 2025, VPC introduced high-speed, high-frequency pneumatic cylinders to the market. These cylinders, designed for high-speed rejection and automated logistics, feature faster piston speeds and enhanced energy efficiency. By integrating solenoid valves and magnetic sensors, they address the needs of industries focused on improved productivity and reduced energy consumption
• In November 2024, Festo launched advanced pneumatic safety solutions, including the Common Industrial Protocol safety module and VTUX valve terminals, catering to the increasing demand for safe and connected pneumatic systems. These innovations integrate smart features like integrated sensors and automation, targeting industries seeking reliable and efficient safety solutions for their pneumatic operations.
• In May 2023, AirTAC International Group showcased its pneumatic components and linear guides at SPS Italia, emphasizing smart automation solutions like the 6D multi-pole solenoid valve with fieldbus, aligning with the growing demand for connected pneumatic technologies.