The Global Smart Manufacturing Market is analyzed in this report across component, technology, end use industry, and region, highlighting major trends and growth forecasts for each segment.

Introduction:

Smart manufacturing is redefining industrial production by embedding advanced technologies such as artificial intelligence (AI), the Industrial Internet of Things (IIoT), robotics, and data analytics into traditional operations. This digital evolution enables manufacturers to enhance operational efficiency, reduce downtime, improve product quality, and increase production agility. Applications span from predictive maintenance and real time monitoring to digital twins and supply chain optimization.

The global market is experiencing robust growth and is projected to reach USD 998.5 billion by 2030. Key drivers include the rising demand for mass customization, increasing labor costs, and growing focus on energy efficiency. The surge in connected devices and widespread adoption of cloud infrastructure fueled by the momentum of Industry 4.0 are further accelerating smart manufacturing adoption. Valued at USD 350.2 billion in 2024, the market is expected to expand at a CAGR of 14% over the forecast period.

Market Dynamics:

The smart manufacturing sector is rapidly advancing, shaped by technological convergence and the rising imperative for industrial efficiency. Real time, data driven decision making and cost optimization are central themes driving adoption. Manufacturers are increasingly leveraging AI, IIoT, cloud platforms, and machine learning to automate workflows, anticipate maintenance, and elevate product standards. This integration supports end to end visibility, supply chain transparency, and precision across operations.

Emerging growth avenues are unfolding across predictive maintenance, AI enabled robotics, real time asset tracking, and energy intelligence systems. Digital twin technologies are gaining momentum for production simulation and performance enhancement, while scalable cloud platforms are enabling greater flexibility across manufacturing lines. A parallel shift toward personalized production and additive manufacturing is driving demand for agile, intelligent systems.

Key trends reshaping the industry include the integration of generative AI, edge computing, and heightened cybersecurity focus. Generative AI is being deployed for product design optimization and autonomous simulation, as seen in ABB’s acquisition of Sensorfact in January 2025 boosting its energy management and predictive analytics capabilities. Simultaneously, edge computing is gaining importance for real time machine level data processing. Notably, Intel’s February 2025 partnership with AWS to develop custom AI and edge chips marks a significant step toward enhancing on site intelligence. As smart factories expand, secure data environments and resilient infrastructure have become essential pillars of digital manufacturing ecosystems.

Segment Highlights and Performance Overview:

By Component

Software leads the component segment, accounting for approximately 49% to 50% of the total market. It serves as the foundation of smart manufacturing by enabling automation, real time processing, and system integration. The widespread use of Manufacturing Execution Systems (MES), Product Lifecycle Management (PLM), and Enterprise Resource Planning (ERP) platforms ensures end to end operational visibility and control. The growing integration of AI, predictive analytics, and cloud technologies continues to elevate demand for intelligent software solutions.

By Technology

The Industrial Internet of Things (IIoT) holds the dominant position, contributing roughly 30% to 31% of the technology segment. Acting as the digital nervous system of manufacturing operations, IIoT connects equipment, sensors, and control systems, enabling seamless data capture and analysis. With rising emphasis on predictive maintenance, remote monitoring, and operational efficiency, IIoT has become central to performance optimization and transparency.

By End Use Industry

Automotive emerges as the leading end use industry, comprising around 23% to 24% of global market share. Automotive manufacturers are early adopters of automation and digitalization, using smart manufacturing to streamline assembly, lower production costs, and improve vehicle quality. Technologies such as robotics, AI powered quality control, and digital twin models are enabling scalable customization and agile production in this sector.

Geographical Analysis:

The global smart manufacturing market is examined across key regions, including North America, Europe, Asia Pacific, South & Central America, and the Middle East & Africa.

Asia Pacific commands the largest share approximately 45% to 46% driven by rapid industrial expansion, strong governmental support for Industry 4.0, and widespread automation across nations like China, Japan, South Korea, and India. The region’s deep base of electronics, automotive, and machinery manufacturers is increasingly investing in digital transformation. With an anticipated CAGR of 15.9%, Asia Pacific also represents the fastest growing market, fueled by accelerated adoption of IIoT, AI, and cloud based solutions. These advances, coupled with cost sensitive, high output production demands, are solidifying the region’s leadership in the global smart manufacturing landscape.

Competition Landscape:

The competitive landscape features a mix of established automation giants, technology providers, and high growth innovators. Market leaders are focused on expanding their digital manufacturing portfolios through advances in AI, IIoT, robotics, and cloud integration. Strategic partnerships and acquisitions remain key to enhancing product capabilities and extending global reach.

Major players featured in this report include Siemens AG, ABB Ltd., General Electric (GE), Rockwell Automation, Honeywell International Inc., Schneider Electric, Emerson Electric Co., Mitsubishi Electric Corporation, Yokogawa Electric Corporation, and Intel Corporation.

Key Developments:

• In March 2025, Siemens announced its acquisition of Altair Engineering for USD 10 billion, integrating Altair’s simulation and AI technologies into its Xcelerator platform. This move significantly strengthens Siemens’ digital twin capabilities, supporting more intelligent and efficient product development and manufacturing execution.
• In February 2025, Honeywell partnered with Google Cloud to embed the Gemini AI model into its Honeywell Forge platform. This collaboration aims to deliver real time analytics, autonomous operations, and enhanced IoT efficiency, driving broader adoption of AI across industrial environments.

Segmentation:

By Component

• Hardware

• • • Sensors
    • Industrial Robots
    • Others

• Software

• • • Manufacturing Execution Systems (MES)
    • Product Lifecycle Management (PLM)
    • Enterprise Resource Planning (ERP)
    • Human Machine Interface (HMI)
    • SCADA Systems
    • Predictive Maintenance Software

• Services

• • Consulting
  • Integration & Deployment
  • Support & Maintenance

By Technology:

• Industrial Internet of Things (IIoT)
• Artificial Intelligence (AI) & Machine Learning (ML)
• Digital Twin
• Cloud Computing
• Augmented Reality (AR) & Virtual Reality (VR)
• Others

By End Use Industry:

• Automotive
• Aerospace & Defense
• Electronics & Semiconductors
• Pharmaceuticals
• Chemicals
• Metals & Mining
• Others

Companies included in the report.

• Siemens AG
• ABB Ltd.
• General Electric (GE)
• Rockwell Automation
• Honeywell International Inc.
• Schneider Electric
• Emerson Electric Co.
• Mitsubishi Electric Corporation
• Yokogawa Electric Corporation
• Intel Corporation