Smart Manufacturing Market Trends

Growth Drivers

Growing Business Automation – Recent adoption of business automation has favored smart manufacturing solutions on the basis of the benefits and opportunities it offers. Many enterprises today that are employing business automation aim to apply smart manufacturing to streamline their processes. About 67% of the organization present in the world were using business automation solutions as of 2022.
High Penetration of Internet of Things (IoT) – The widespread installation of Internet of Things (IoT) devices has led to the deployment of augmented reality, virtual reality, machine learning, artificial intelligence, and other advanced solutions has led to positive growth in smart manufacturing processes. Recent data have revealed that that were almost 13 billion active IoT devices in 2022 and is projected to increase to 25 billion by 2030 around the globe.
Rapid Urbanization – Rapid urbanization and industrialization have led to the generation of favorable opportunities for the expansion of smart manufacturing. As per United Nations, in 2021, 51.61% of the global population were living in urban areas which is going to increase to 68% by 2050.
Increased Manufacturing Production – Latest developments in every spectrum have led to significant growth in manufacturing production. Thus, to monitor and streamline the processes, many businesses are applying smart manufacturing services which is anticipated to create a positive outlook for market expansion during the forecast period.

Challenges

Requirement of High Investments and Costs – The process of setting up smart manufacturing involves a huge amount of money which could hamper the expansion of the market size in the future. Smart manufacturing technologies such as Automated Guided Vehicles (AGVs), Enterprise Manufacturing Intelligence (EMI), HMI, Warehouse Management Systems (WMS), and others require high investment for designing and deploying, which increases the cost of the overall process.
Threats Related to Cybersecurity
Unavailability of Skilled Workforce

Smart Manufacturing Market: Key Insights

Base Year	2024
Forecast Year	2025-2037
CAGR	21.3%
Base Year Market Size (2024)	USD 144.49 billion
Forecast Year Market Size (2037)	USD 1.82 trillion
Regional Scope	North America (U.S., and Canada) Latin America (Mexico, Argentina, Rest of Latin America) Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific) Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

Frequently Asked Questions (FAQ)

In the year 2025, the industry size of smart manufacturing is assessed at USD 169.34 billion.

The smart manufacturing market size was valued at USD 144.49 billion in 2024 and is set to reach USD 1.82 trillion by the end of 2037, expanding at around 21.3% CAGR during the forecast period i.e., between 2025-2037. Increasing adoption of modern technologies such as Internet of Things (IoT) devices, machine learning, artificial intelligence, and others will impel the market growth.

North America region is likely to hold 35% of the revenue share by 2037, due to rapid adoption of advanced technologies such as IoT, and IIoT aid in enhancing productivity and lowering operational and maintenance costs.

The major players in the market include ABB GroupSiemens AktiengesellschaftHoneywell International Inc.General Electric CompanyRockwell Automation, Inc.Schneider Electric SERobert Bosch GmbHMitsubishi Electric CorporationFANUCHP Development Company, L.P.

Smart Manufacturing Market Trends