Smart Manufacturing Market Summary

The global smart manufacturing market was valued at USD 349.81 billion in 2024 and is projected to reach USD 790.91 billion by 2030, expanding at a robust CAGR of 14.0% from 2025 to 2030. This notable growth is primarily attributed to the accelerating adoption of Industry 4.0 technologies—including the Internet of Things (IoT), artificial intelligence (AI), machine learning, and cloud computing—which are revolutionizing industrial operations. A growing emphasis on automation, efficiency, and cost reduction further supports the widespread implementation of these technologies across manufacturing environments globally.

Governments across the world are actively promoting smart manufacturing through dedicated initiatives that support research and development in emerging technologies such as digital twins and machine condition monitoring. These government-backed efforts aim to improve industrial competitiveness, foster innovation, and facilitate the integration of advanced manufacturing systems. This policy support significantly drives the global shift toward smart factories. Additionally, the growing deployment of the Industrial Internet of Things (IIoT) is enhancing communication and interoperability across manufacturing ecosystems.

The IIoT enables real-time data sharing between interconnected devices, machinery, and systems. This not only improves visibility and monitoring of production processes but also enables predictive maintenance, reduces downtime, and facilitates resource optimization. The transition toward data-centric decision-making fosters increased productivity and profitability, thereby encouraging companies to invest further in smart technologies and expand their manufacturing capabilities.

Key Market Trends & Insights

• In 2024, the software segment accounted for the largest market share of over 49%. Software plays a pivotal role in enabling the core functionalities of smart manufacturing, such as real-time analytics, operational automation, and system integration. Enterprise resource planning (ERP), manufacturing execution systems (MES), and AI-powered analytics are central to driving efficiency, predictive maintenance, and optimized workflow management. As a result, demand for innovative and scalable software solutions continues to rise in smart manufacturing settings.
• The discrete control system (DCS) segment held the largest share among control technologies in 2024. DCS platforms are widely used in industries such as energy, manufacturing, and utilities to deliver high-level supervision, real-time control, and data acquisition capabilities. These systems contribute significantly to improving operational reliability, safety, and output quality across various industrial processes.
• The automotive industry emerged as the leading end-use segment in 2024, leveraging smart manufacturing to enhance production efficiency, reduce operational costs, and maintain high product quality. Automotive manufacturers are increasingly deploying advanced robotics, artificial intelligence, and IIoT technologies to automate assembly lines, ensure manufacturing precision, and facilitate mass customization. These innovations are transforming how vehicles are designed and produced, leading to faster time-to-market and better customer satisfaction.
• Geographically, North America dominated the global smart manufacturing market in 2024, accounting for a share of over 26%. The region benefits from strong technological infrastructure and rapid adoption of AI, robotics, and automation solutions. In particular, the U.S. has emerged as a major driver of market growth, supported by government initiatives such as “Manufacturing USA,” which promote digital manufacturing and industrial innovation.
• Europe is projected to experience steady growth with a CAGR exceeding 13% from 2025 to 2030. The European Union’s "Industry 4.0" strategy is driving the adoption of smart manufacturing solutions, including AI, IoT, robotics, and digital twin technologies, to enhance industrial productivity and global competitiveness.
• Asia Pacific is expected to record the highest CAGR of over 15% in 2024, driven by increased investment in technology, growing industrial output, and a strong manufacturing base. Countries such as China, Japan, India, and South Korea are at the forefront of implementing automation and digitalization across sectors like electronics, automotive, and consumer goods to streamline production and minimize operational costs.
• China, in particular, is rapidly expanding its smart manufacturing capabilities. With heavy investments in AI, robotics, and IIoT, China’s manufacturing sector is undergoing a transformation. The nation’s focus on improving product quality and global competitiveness is reflected in its integration of digital technologies aimed at reducing costs, enhancing output, and facilitating its transition to high-tech industrial development.

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Market Size & Forecast

• 2024 Market Size: USD 349.81 Billion
• 2030 Projected Market Size: USD 790.91 Billion
• CAGR (2025-2030): 14.0%
• North America: Largest market in 2024
• Asia Pacific: Fastest growing market

Key Companies & Market Share Insights

Several key players dominate the smart manufacturing landscape. ABB Ltd. is recognized for its contribution to digital transformation across manufacturing, utilities, and transport sectors. The company’s portfolio includes AI-driven automation systems, industrial robotics, and IoT-enabled platforms that improve operational efficiency, sustainability, and cost control.

• Siemens AG is another major player, renowned for its expertise in automation, electrification, and digitalization. Siemens provides end-to-end smart manufacturing solutions, including digital twin technology, industrial IoT platforms, and intelligent control systems. These technologies empower manufacturers to manage assets effectively, reduce waste, and improve operational workflows through real-time analytics.
• Emerging companies such as FANUC Corporation and Mitsubishi Electric Corporation are also making significant strides. FANUC is well-known for its CNC systems, robotic automation solutions, and precision machinery under its ROBOSHOT and ROBOCUT brands. The company maintains a global footprint and strong after-sales support network.
• Mitsubishi Electric Corporation delivers advanced industrial automation products such as programmable logic controllers (PLCs), servo motors, and collaborative robots. It actively invests in Industry 4.0 solutions and fosters innovation through partnerships to support the future of digital manufacturing.

Key Players

• ABB Ltd.
• Cisco Systems, Inc.
• Siemens AG
• General Electric
• Rockwell Automation Inc.
• Schneider Electric
• Honeywell International Inc.
• Emerson Electric Co.
• FANUC Corporation
• Mitsubishi Electric Corporation

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Conclusion

The global smart manufacturing market is poised for robust expansion, fueled by technological advancements, increased automation, and supportive government initiatives. With strong contributions from sectors like automotive and key regional markets including North America, Asia Pacific, and Europe, the industry is evolving rapidly. The rising use of IIoT, AI, and real-time analytics enhances efficiency, reduces costs, and enables data-driven decision-making. As software and digital control systems become central to operations, manufacturers are investing heavily in smart technologies. Continued innovation and strategic partnerships among key players will shape the future of the global smart manufacturing ecosystem and sustain its long-term growth trajectory.