Smart Manufacturing Market Outlook:
Smart Manufacturing Market size was over USD 329.93 billion in 2025 and is projected to reach USD 1.31 trillion by 2035, witnessing around 14.8% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of smart manufacturing is evaluated at USD 373.88 billion.
The surging focus on production uptime, operational agility, and manufacturing precision is boosting the adoption of advanced analytics as well as industrial automation. To fulfil market requirements, companies are improving their ability to deploy edge AI. In September 2024, Edge Impulse and STMicroelectronics formed a strategic alliance to strengthen AI applications running in edge computing systems. This partnership allows edge machines to carry out real-time machine learning operations while generating quick processing and data insights without cloud-dependent infrastructure. The transition allows manufacturers to execute anomaly detection procedures as well as failure predictions and workflow optimization on factory floors, leading to enhanced automated system efficiency.
The emphasis on intelligent manufacturing is evident through the adoption of advanced analytics and digital simulation technologies. Organizations prefer to use digital twin platforms, their cloud-based simulation environments, and AI-driven insights to optimize operational improvements and reduce implementation risks, and accelerate their continuous improvement activations. Manufacturers benefit from these technologies, which allow them to virtually optimize their processes for better resilience and efficiency. Digital twins and cloud simulations allow businesses to make future-oriented decisions due to their ability to virtualize operational outcomes using different scenario models before actual implementation steps. These tools are shifting from pilot projects into standardized deployment across industries, owing to the increasing accessibility of digital infrastructure.
