Smart Manufacturing Market Size, Share, Forecast Report 2025

Name: Smart Manufacturing Market Size, Share, Forecast Report 2025 – 2030
Creator: Mordor Intelligence
License: https://www.mordorintelligence.com/privacy-policy

Smart Manufacturing Market Size and Share

Market Overview

Study Period	2019 - 2030
Market Size (2025)	USD 339.80 Billion
Market Size (2030)	USD 709.20 Billion
Growth Rate (2025 - 2030)	15.90% CAGR
Fastest Growing Market	Asia Pacific
Largest Market	North America
Market Concentration	Medium
Major Players *Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Smart Manufacturing Market (2025 - 2030) — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Smart Manufacturing Market Analysis by Mordor Intelligence

The smart manufacturing market size is valued at USD 339.80 billion in 2025 and is projected to climb to USD 709.20 billion by 2030, registering a 15.90% CAGR. Real-time analytics, machine connectivity, and AI-powered process control are converging to unlock large efficiency gains, while governments channel incentives toward resilient domestic production capacity. Rising energy costs and carbon-pricing schemes heighten interest in factory-level transparency solutions, and labor shortages intensify demand for collaborative robots and autonomous material-handling systems. Vendors are embedding private 5G and edge analytics in new offerings, enabling micro-second response times for safety-critical processes. Competitive focus is shifting from hardware refresh cycles to software subscription models that monetize predictive insights and energy optimization.

Key Report Takeaways

By technology, Manufacturing Execution Systems led with 22.4% of smart manufacturing market share in 2024; digital-twin platforms post the fastest growth at 18.7% CAGR through 2030.
By component, software accounted for 49.6% share of the smart manufacturing market size in 2024, while industrial robotics expands at 17.5% CAGR to 2030.
By deployment mode, on-premise solutions held 64% revenue share in 2024; cloud deployments are projected to rise at a 19.2% CAGR between 2025-2030.
By end-user industry, automotive captured 24% of smart manufacturing market share in 2024; aerospace & defense is advancing at a 16.8% CAGR through 2030.
By geography, North America commanded 42.3% of 2024 revenue; Asia Pacific is forecast to grow at 15.9% CAGR to 2030.

Global Smart Manufacturing Market Trends and Insights

Drivers Impact Analysis

Driver	(~) % Impact on CAGR Forecast	Geographic Relevance	Impact Timeline
Rising adoption of Industry 4.0 / IIoT for efficiency	+3.20%	Global, led by North America & Europe	Medium term (2-4 years)
Government incentives & policy mandates for digital factories	+2.80%	North America, EU, China, India	Short term (≤ 2 years)
Skilled-labour shortages accelerating automation uptake	+3.50%	North America, Western Europe, Japan	Short term (≤ 2 years)
Carbon Border Adjustment Mechanism spurring energy transparency	+1.90%	EU core, exporters worldwide	Medium term (2-4 years)
Digital-twin-based predictive-maintenance revenues	+2.10%	Global, high-value manufacturing hubs	Long term (≥ 4 years)
Roll-out of private 5G networks enabling ultra-low-latency control	+1.70%	APAC core, North America, select EU	Long term (≥ 4 years)

Source: Mordor Intelligence

Rising adoption of Industry 4.0 / IIoT for efficiency

IIoT deployments now deliver 52% productivity gains and 25% cost reductions as factories integrate sensors, analytics, and cloud dashboards. The U.S. Manufacturing Extension Partnership supported 36,000 firms in 2024, adding USD 16.2 billion in sales through smart manufacturing programs.^{[1]National Institute of Standards and Technology, "Manufacturing Extension Partnership (MEP).", www.nist.gov}As connected assets feed unified data lakes, operators can eliminate line stoppages and dynamically rebalance capacity. Precision-critical sectors such as aerospace embrace digital traceability to reduce scrap and warranty claims, fueling sustained upgrades in connectivity architectures.

Government incentives & policy mandates for digital factories

Federal and state-level funding initiatives are accelerating smart manufacturing adoption through targeted financial support and regulatory frameworks. The State Manufacturing Leadership Program offers USD 50 million to enhance manufacturing capacity through high-performance computing resources and technical assistance for small and medium manufacturers.^{[2]U.S. Department of Energy, "State Manufacturing Leadership Program." Accessed, www.energy.gov}Germany's Industrie 4.0 initiative projects EUR 40 billion annual investment by 2020, supported by Mittelstand 4.0 centers of excellence that provide SMEs with technology adoption guidance.

Skilled-labour shortages accelerating automation uptake

Manufacturing workforce gaps are compelling companies to implement automation solutions at unprecedented rates, with 70% of U.S. manufacturers affected by labor shortages and 49% planning AI implementation within two years.^{[3]Smart Industry. "Manufacturers cite widespread labor shortages, use of automation and AI to help.", www.smartindustry.com} The sector faces a projected need for 3.8 million new workers by 2033, with 1.9 million positions potentially remaining unfilled due to skills gaps. Collaborative robots and autonomous mobile robots are increasingly deployed to perform repetitive tasks while human workers transition to higher-value roles requiring data analysis and system oversight.

Carbon-Border Adjustment Mechanism spurring factory-level energy transparency

The EU's Carbon Border Adjustment Mechanism implementation is driving manufacturers to integrate real-time emissions monitoring and energy transparency systems directly into production operations. Companies importing into the EU must collect embedded carbon emissions data and pay charges based on carbon pricing, compelling global manufacturers to digitize their energy management processes.^{[4]European Comission, "Carbon Border Adjustment Mechanism - European Commission", taxation-customs.ec.europa.eu}The CBAM framework is establishing energy transparency as a competitive differentiator, particularly for manufacturers serving European markets where sustainability credentials directly influence purchasing decisions.

Restraints Impact Analysis

Restraint	(~) % Impact on CAGR Forecast	Geographic Relevance	Impact Timeline
High CAPEX & uncertain SME ROI	-2.1%	Emerging markets most affected	Short term (≤ 2 years)
Cyber-security & data-sovereignty concerns	-1.8%	Global, regulated verticals	Medium term (2-4 years)
Legacy analogue equipment limiting interoperability	-1.5%	Heavy industries in mature regions	Long term (≥ 4 years)
Semiconductor supply-chain volatility delaying hardware	-1.2%	Electronics-dependent sectors	Short term (≤ 2 years)

Source: Mordor Intelligence

High CAPEX & uncertain SME ROI

Small and medium enterprises face significant barriers to smart manufacturing adoption due to substantial upfront capital requirements and unclear return on investment timelines. Implementation costs for comprehensive smart manufacturing systems can range from hundreds of thousands to millions of dollars, creating financial strain for companies with limited resources. The complexity of calculating ROI for interconnected systems makes it difficult for SME decision-makers to justify investments, particularly when benefits may not materialize for 2-3 years.

Cyber-security / data-sovereignty concerns

The integration of operational technology with information technology networks creates new attack vectors that manufacturers struggle to secure effectively. Cybersecurity ranks as the top external challenge for 35% of APAC manufacturers, with cybercriminals targeting manufacturing companies in 46% of regional cyberattack incidents. Data sovereignty concerns are particularly acute in regulated industries where production data contains sensitive intellectual property or compliance-critical information. Companies are investing heavily in zero-trust security architectures and network segmentation strategies, but the complexity and cost of comprehensive cybersecurity measures continue to slow smart manufacturing adoption rates.

Segment Analysis

By Technology: MES Systems Drive Integration

Manufacturing Execution Systems held 22.4% of the smart manufacturing market in 2024, underscoring their role as the digital backbone of plant operations. The smart manufacturing market size for MES is projected to reach USD 41.78 billion by 2032 as manufacturers mandate real-time visibility across global plants. Digital-twin platforms, expanding at an 18.7% CAGR, let engineers simulate equipment behavior under varying loads, trimming commissioning times by 30% . PLCs and SCADA remain foundational, yet vendors embed AI modules that autonomously tune parameters. Edge-analytics software shortens decision loops for high-speed packaging lines, illustrating the shift from centralized servers to shop-floor micro-data centers.

Software-defined upgrades create sticky annual recurring revenue, prompting incumbents to bundle analytics with license renewals. Human-machine interface tools migrate toward augmented reality, giving line technicians guided workflows. Product lifecycle management solutions integrate with supply-chain portals so designers validate manufacturability early. Collectively, these innovations reinforce the smart manufacturing market as the primary conduit for continuous improvement investments.

By Component: Software Dominance Amid Hardware Innovation

Software commanded 49.6% of 2024 revenue, reflecting the pivot toward data-driven workflows. Industrial robotics, projected to post a 17.5% CAGR, responds to chronic labor gaps and the need for flexible batch sizes.Smart sensors and machine-vision units feed high-resolution imagery to AI models that flag defects within milliseconds. Control devices now incorporate on-device inference engines, enabling autonomous adjustments without cloud latency. Service revenues expand as factories outsource integration, training, and managed cybersecurity.

Private 5G networks reshape the communication segment by supporting tens of thousands of end-points on a single floor with deterministic latency. Vendors co-develop spectrum strategies with telecom operators, turning connectivity into a strategic moat. As a result, the smart manufacturing market continues to blur lines between OT hardware and IT software, creating a unified platform for digital value creation.

By Deployment Mode: Cloud Momentum Challenges On-Premise Legacy

On-premise systems still command 64% share in 2024, favored for deterministic control and data sovereignty. Yet cloud subscriptions rise at 19.2% CAGR as CIOs prioritize scalability and faster software refresh cycles. Hybrid architectures that combine edge nodes with cloud analytics cut IT costs by up to 25% while delivering 20-30% productivity gains. Vendors now ship containerized MES modules that deploy across Kubernetes clusters in either environment, giving manufacturers phased migration paths.

Regulated industries such as pharmaceuticals adopt validated private clouds to maintain audit trails. Small and medium manufacturers embrace pay-as-you-go digital twins to avoid multimillion-dollar server upgrades. Consequently, the smart manufacturing market experiences a gradual rebalancing of deployment models, with capital-light strategies gaining traction.

By End-user Industry: Automotive Leadership Faces Aerospace Challenge

Automotive maintained 24% revenue share in 2024, but only 14% of North American automakers currently run AI at scale, pointing to substantial headroom. Aerospace & defense, growing at 16.8% CAGR, leverages digital twins to certify complex systems faster and cut physical prototype costs by 40% . Semiconductor fabs deploy advanced process control to guard yield margins amid geometry shrinks. Oil & gas operators digitize pipelines with IoT sensors that detect corrosion in real time. Food & beverage plants automate palletization to offset seasonal labor swings while meeting stringent safety norms.

These patterns reveal the smart manufacturing market’s elastic demand across verticals, where ROI hinges on quality assurance, compliance, and responsiveness rather than simple labor substitution.

Geography Analysis

North America accounted for 42.3% of 2024 revenue, underpinned by the U.S. Department of Energy’s USD 33 million grant program and the Manufacturing Extension Partnership’s nationwide outreach . Venture capital flows accelerate technology diffusion, and private equity funds pursue platform roll-ups that bundle MES, robotics integration, and cybersecurity services. Regional suppliers adopt private 5G testbeds to validate latency-sensitive use cases such as remote welding.

Asia Pacific is the fastest-growing region with a 15.9% CAGR, propelled by China’s 33 Innovation Centers under the “Made in China 2025” banner and South Korea’s world-leading robot density of 1,012 units per 10,000 employees. India’s Digital Infrastructure Growth Initiative, backed by trilateral partners, lowers entry barriers for smart manufacturing startups, positioning the country as a rising hub for localized MES development.

Europe delivers steady adoption rooted in Germany’s Industrie 4.0, backed by EUR 40 billion (USD 44 billion) annual investment projections and Mittelstand 4.0 competence centers. The Carbon Border Adjustment Mechanism amplifies demand for energy-intensity dashboards, giving European vendors first-mover advantage in carbon accounting modules. Collectively, these dynamics reinforce regional specialization within the smart manufacturing market, shaping vendor go-to-market playbooks.

Competitive Landscape

The smart manufacturing market remains moderately fragmented. Incumbents pursue vertical integration in software to protect margins as hardware commoditizes. ABB’s pending robotics division spin-off will sharpen its focus on modular cell design and service contracts, while Siemens’ USD 5.1 billion move for Dotmatics advances life-science analytics capabilities. Emerging challengers build composable platforms that interoperate via low-code connectors, forcing legacy vendors to open APIs.

Strategic partnerships, such as CESMII and NIST’s alliance, foster pre-competitive standards that de-risk adoption for SMEs. Hardware players acquire AI startups to embed diagnostics at the edge, while cloud hyperscalers bundle manufacturing data lakes with integrated ML toolchains. M&A valuations prioritize data-rich product portfolios over installed base counts, signaling that ecosystem orchestration has supplanted pure scale as the primary source of competitive advantage.

Smart Manufacturing Industry Leaders

Siemens AG
Schneider Electric SE
Rockwell Automation Inc.
ABB Ltd
Mitsubishi Electric Corp.
*Disclaimer: Major Players sorted in no particular order

Smart Manufacturing Market Concentration — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

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Recent Industry Developments

May 2025: Siemens confirmed Altair integration and announced a USD 5.1 billion Dotmatics acquisition to deepen AI-driven digital-twin capabilities, signaling a pivot toward domain-specific software platforms.
May 2025: ABB bought Siemens’ wiring-accessories unit in China, adding a USD 150 million revenue stream and expanding distribution across 230 cities to cross-sell factory automation hardware.
April 2025: ABB revealed plans to spin off its USD 2.3 billion robotics business by 2026, aiming to unlock valuation multiples aligned with high-growth automation peers.
March 2025: Micron committed USD 3 billion to its Manassas fab, embedding IoT analytics to boost yield and demonstrating how semiconductor makers anchor smart manufacturing investments in advanced data capture.

Table of Contents for Smart Manufacturing Industry Report

1. INTRODUCTION

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

4.1 Market Overview
4.2 Market Drivers
- 4.2.1 Rising adoption of Industry 4.0 / IIoT for efficiency
- 4.2.2 Government incentives and policy mandates for digital factories
- 4.2.3 Skilled-labour shortages accelerating automation uptake
- 4.2.4 Carbon-Border Adjustment Mechanism (CBAM) spurring factory-level energy transparency
- 4.2.5 Digital-twin-based predictive-maintenance service revenues
- 4.2.6 Roll-out of private 5G networks enabling ultra-low-latency control
4.3 Market Restraints
- 4.3.1 High CAPEX and uncertain SME ROI
- 4.3.2 Cyber-security / data-sovereignty concerns
- 4.3.3 Legacy analogue equipment limiting interoperability
- 4.3.4 Semiconductor supply-chain volatility delaying control hardware
4.4 Value / Supply-Chain Analysis
4.5 Regulatory Landscape
4.6 Porters Five Forces
- 4.6.1 Bargaining Power of Suppliers
- 4.6.2 Bargaining Power of Buyers
- 4.6.3 Threat of New Entrants
- 4.6.4 Threat of Substitutes
- 4.6.5 Competitive Rivalry
4.7 Investment Analysis

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

5.1 By Technology
- 5.1.1 Programmable Logic Controller (PLC)
- 5.1.2 Supervisory Control and Data Acquisition (SCADA)
- 5.1.3 Enterprise Resource Planning (ERP)
- 5.1.4 Distributed Control System (DCS)
- 5.1.5 HumanMachine Interface (HMI)
- 5.1.6 Product Lifecycle Management (PLM)
- 5.1.7 Manufacturing Execution System (MES)
- 5.1.8 Digital-Twin Platforms
- 5.1.9 Edge-Analytics Software
- 5.1.10 Other Technologies
5.2 By Component
- 5.2.1 Hardware
- 5.2.1.1 Robotics
- 5.2.1.2 Sensors
- 5.2.1.3 Machine-Vision Systems
- 5.2.1.4 Control Devices
- 5.2.2 Software
- 5.2.2.1 MES
- 5.2.2.2 PLM
- 5.2.2.3 SCADA / ERP Suites
- 5.2.2.4 Digital-Twin / AI and Analytics
- 5.2.3 Services
- 5.2.3.1 Integration and Implementation
- 5.2.3.2 Consulting and Training
- 5.2.3.3 Managed Services
- 5.2.4 Communication Segment
5.3 By Deployment Mode
- 5.3.1 On-Premise
- 5.3.2 Cloud
- 5.3.3 Hybrid
5.4 By End-user Industry
- 5.4.1 Automotive
- 5.4.2 Semiconductors and Electronics
- 5.4.3 Oil and Gas
- 5.4.4 Chemical and Petrochemical
- 5.4.5 Pharmaceuticals and Life Sciences
- 5.4.6 Aerospace and Defense
- 5.4.7 Food and Beverage
- 5.4.8 Metals and Mining
- 5.4.9 Energy and Utilities
- 5.4.10 Logistics and Warehousing
- 5.4.11 Other Industries
5.5 By Geography
- 5.5.1 North America
- 5.5.1.1 United States
- 5.5.1.2 Canada
- 5.5.1.3 Mexico
- 5.5.2 South America
- 5.5.2.1 Brazil
- 5.5.2.2 Argentina
- 5.5.2.3 Chile
- 5.5.2.4 Rest of South America
- 5.5.3 Europe
- 5.5.3.1 Germany
- 5.5.3.2 United Kingdom
- 5.5.3.3 France
- 5.5.3.4 Italy
- 5.5.3.5 Spain
- 5.5.3.6 Netherlands
- 5.5.3.7 Russia
- 5.5.3.8 Rest of Europe
- 5.5.4 APAC
- 5.5.4.1 China
- 5.5.4.2 Japan
- 5.5.4.3 India
- 5.5.4.4 South Korea
- 5.5.4.5 Australia and New Zealand
- 5.5.4.6 ASEAN-5
- 5.5.4.7 Rest of APAC
- 5.5.5 Middle East and Africa
- 5.5.5.1 Middle East
- 5.5.5.2 Africa

6. COMPETITIVE LANDSCAPE

6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share, Products & Services, Recent Developments)
- 6.4.1 ABB Ltd.
- 6.4.2 Emerson Electric Co.
- 6.4.3 FANUC Corporation
- 6.4.4 General Electric Co.
- 6.4.5 Honeywell International Inc.
- 6.4.6 Mitsubishi Electric Corp.
- 6.4.7 Robert Bosch GmbH
- 6.4.8 Rockwell Automation Inc.
- 6.4.9 Schneider Electric SE
- 6.4.10 Siemens AG
- 6.4.11 Texas Instruments Inc.
- 6.4.12 Yokogawa Electric Corp.
- 6.4.13 Cisco Systems Inc.
- 6.4.14 IBM Corp.
- 6.4.15 Oracle Corp.
- 6.4.16 SAP SE
- 6.4.17 Johnson Controls Intl. plc
- 6.4.18 PTC Inc.
- 6.4.19 Dassault Systems SE
- 6.4.20 3D Systems Corp.
- 6.4.21 Stratasys Ltd.
- 6.4.22 Delta Electronics Inc.
- 6.4.23 Capgemini SE

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

7.1 White-space and Unmet-need Assessment

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Global Smart Manufacturing Market Report Scope

Smart manufacturing utilizes Big Data analytics to refine complicated processes and manage supply chains. Big data analytics allows an enterprise to use smart manufacturing to shift from reactionary practices to predictive ones, a change that targets improved efficiency of the process and product performance.

The Global Smart Manufacturing Market is segmented by Technology (Programmable Logic Controller (PLC), Supervisory Controller and Data Acquisition (SCADA), Enterprise Resource and Planning (ERP), Distributed Control System (DCS), Human Machine Interface (HMI), Product Lifecycle Management (PLM), Manufacturing Execution System (MES)), Component (Machine Vision System, Control Devices, Robotics, Communication Segment, Sensor), End-user Industry (Automotive, Semiconductors, Oil and Gas, Chemical and Petrochemical, Pharmaceutical, Aerospace and Defense, Food and Beverage, Metals and Mining), and Geography(North America, Europe, Asia-Pacific, Middle east and Africa and Latin America). The report offers the market size in value terms in USD for all the above mentioned segments.

By Technology	Programmable Logic Controller (PLC)
	Supervisory Control and Data Acquisition (SCADA)
	Enterprise Resource Planning (ERP)
	Distributed Control System (DCS)
	HumanMachine Interface (HMI)
	Product Lifecycle Management (PLM)
	Manufacturing Execution System (MES)
	Digital-Twin Platforms
	Edge-Analytics Software
	Other Technologies

By Component	Hardware	Robotics
		Sensors
		Machine-Vision Systems
		Control Devices

	Software	MES
		PLM
		SCADA / ERP Suites
		Digital-Twin / AI and Analytics

	Services	Integration and Implementation
		Consulting and Training
		Managed Services
	Communication Segment
By Deployment Mode	On-Premise
	Cloud
	Hybrid
By End-user Industry	Automotive
	Semiconductors and Electronics
	Oil and Gas
	Chemical and Petrochemical
	Pharmaceuticals and Life Sciences
	Aerospace and Defense
	Food and Beverage
	Metals and Mining
	Energy and Utilities
	Logistics and Warehousing
	Other Industries

By Geography	North America	United States
		Canada
		Mexico

	South America	Brazil
		Argentina
		Chile
		Rest of South America

	Europe	Germany
		United Kingdom
		France
		Italy
		Spain
		Netherlands
		Russia
		Rest of Europe

	APAC	China
		Japan
		India
		South Korea
		Australia and New Zealand
		ASEAN-5
		Rest of APAC

	Middle East and Africa	Middle East
		Africa

By Technology

Programmable Logic Controller (PLC)

Supervisory Control and Data Acquisition (SCADA)

Enterprise Resource Planning (ERP)

Distributed Control System (DCS)

HumanMachine Interface (HMI)

Product Lifecycle Management (PLM)

Manufacturing Execution System (MES)

Digital-Twin Platforms

Edge-Analytics Software

Other Technologies

By Component

Hardware	Robotics
	Sensors
	Machine-Vision Systems
	Control Devices
Software	MES
	PLM
	SCADA / ERP Suites
	Digital-Twin / AI and Analytics
Services	Integration and Implementation
	Consulting and Training
	Managed Services
Communication Segment

By Deployment Mode

On-Premise

Cloud

Hybrid

By End-user Industry

Automotive

Semiconductors and Electronics

Oil and Gas

Chemical and Petrochemical

Pharmaceuticals and Life Sciences

Aerospace and Defense

Food and Beverage

Metals and Mining

Energy and Utilities

Logistics and Warehousing

Other Industries

By Geography

North America	United States
	Canada
	Mexico
South America	Brazil
	Argentina
	Chile
	Rest of South America
Europe	Germany
	United Kingdom
	France
	Italy
	Spain
	Netherlands
	Russia
	Rest of Europe
APAC	China
	Japan
	India
	South Korea
	Australia and New Zealand
	ASEAN-5
	Rest of APAC
Middle East and Africa	Middle East
	Africa

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Key Questions Answered in the Report

What is the smart manufacturing market’s size and growth outlook to 2030?

The market stands at USD 339.8 billion in 2025 and is projected to reach USD 709.2 billion by 2030, expanding at a 15.9% CAGR.

Which technology segment shows the fastest expansion?

Digital-twin platforms lead growth with an 18.7% CAGR through 2030, reflecting rising demand for virtual commissioning and predictive maintenance.

Why are private 5G networks gaining traction on factory floors?

They deliver deterministic, ultra-low-latency connectivity that enables real-time robot coordination and safety-critical control applications impossible on Wi-Fi.

How do government incentives influence adoption?

Programs such as the U.S. Department of Energy’s grant initiatives and Germany’s Industrie 4.0 funding lower upfront costs and set technology standards that accelerate investment.

Page last updated on: June 26, 2025