Smart Manufacturing Market Size & Growth Report to 2030

The global smart manufacturing market size was valued at approximately USD 250 billion in 2022, and it was expected to grow at a compound annual growth rate (CAGR) of over 15% from 2023 to 2030. The market is driven by several factors, including the increasing demand for automation and digitization of manufacturing processes to improve efficiency and reduce costs, the rising adoption of Industry 4.0 technologies such as artificial intelligence, the Internet of Things, and big data analytics, and the growing need for agile and flexible manufacturing processes to meet the changing demands of customers. Additionally, the rise in the use of collaborative robots or cobots, which are designed to work alongside humans to improve productivity and safety, is also driving the growth of the smart manufacturing market. Furthermore, the increasing focus on sustainable manufacturing practices and the use of renewable energy sources is expected to drive the adoption of smart manufacturing technologies in the coming years.

Driving Factors:

Advancements in Industry 4.0 Technologies: Industry 4.0 technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), and Big Data Analytics are transforming the manufacturing industry. The integration of these technologies into manufacturing processes is enhancing efficiency, productivity, and quality, driving the adoption of smart manufacturing solutions.

Cost Reduction: Smart manufacturing solutions offer several cost-saving benefits such as reduced production costs, improved resource utilization, and optimized supply chain management. These cost-saving benefits are driving the adoption of smart manufacturing solutions by manufacturers globally.

Increased Automation: Automation is a key feature of smart manufacturing solutions. Automated systems and machines can perform complex manufacturing processes with high precision and accuracy, leading to improved product quality, reduced errors, and increased productivity.

Government Initiatives: Governments worldwide are encouraging the adoption of smart manufacturing solutions through policies, funding, and initiatives. For instance, the US government has launched the Advanced Manufacturing Partnership (AMP) to support the development and adoption of advanced manufacturing technologies.

Rise in Demand for Customization: With the rise in demand for personalized products, manufacturers are adopting smart manufacturing solutions to meet customer demands. Smart manufacturing solutions offer flexibility in manufacturing processes and enable customization of products, leading to increased customer satisfaction.

Market Attributes:

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Market Insights:

Global Smart Manufacturing Market Analysis by Component

The global smart manufacturing market is bifurcated into component, technology, end-use industry, and geography. On the basis of component, the market is further segmented into hardware, software, and services. In terms of market size, the hardware segment tends to be the largest as it includes various types of equipment and devices, such as sensors, controllers, and robots, which are crucial for data collection, automation, and optimization in manufacturing processes. The software and services segments are also significant as they provide necessary tools for data analysis, simulation, and maintenance of smart manufacturing systems.

Global Smart Manufacturing Market Analysis by Technology

On the basis of technology, the global smart manufacturing market is segmented into artificial intelligence (AI) and machine learning (ML), cloud computing, big data analytics, industrial robotics, augmented reality/virtual reality (AR/VR), and others. Among these, the dominant segment is Artificial Intelligence (AI) and Machine Learning (ML) technology. The adoption of AI and ML in smart manufacturing is increasing rapidly due to its ability to analyze data, identify patterns, and provide insights for improving manufacturing processes. AI and ML can automate complex tasks, reduce errors, and optimize production, which ultimately leads to cost savings and increased efficiency. As a result, many companies are investing in AI and ML technology for their manufacturing operations.

Artificial Intelligence (AI) and Machine Learning (ML): This segment includes the use of advanced algorithms and machine learning techniques to analyze manufacturing data and optimize processes. AI and ML can help identify patterns, predict failures, and improve overall efficiency.

Cloud Computing: This segment involves the use of cloud-based services and infrastructure for managing and analyzing manufacturing data. Cloud computing can help improve collaboration, scalability, and accessibility of data across different locations.

Big Data Analytics: This segment involves the use of advanced analytics techniques to extract insights from large volumes of manufacturing data. Big data analytics can help improve decision-making, identify trends, and optimize processes.

Industrial Robotics: This segment includes the use of robots and automation systems to improve manufacturing processes. Industrial robots can help reduce labor costs, increase precision, and improve safety.

Augmented Reality/Virtual Reality (AR/VR): This segment includes the use of AR and VR technologies for training, maintenance, and visualization of manufacturing processes. AR and VR can help improve efficiency, reduce errors, and enhance worker safety.

Others: This segment includes other emerging technologies such as blockchain, IoT, and digital twin, which are being used in smart manufacturing for improved process optimization, security, and visibility.

Global Smart Manufacturing Market Analysis by End-Use Industry

On the basis of end-use industry, the global smart manufacturing market is bifurcated into automotive, aerospace and defense, chemicals and materials, healthcare, semiconductor and electronics, food and beverage, and others. The automotive industry has traditionally been one of the early adopters of smart manufacturing technologies, and is expected to continue to be a major end-use industry driving the growth of the smart manufacturing market. The aerospace and defense industry is also expected to be a significant contributor to the smart manufacturing market, as these industries require advanced manufacturing processes to meet strict quality and safety standards. The semiconductor and electronics industry is another major end-use industry for smart manufacturing, given the increasing demand for miniaturization and high-precision manufacturing processes in the production of electronic components.

The smart manufacturing market research report presents the analysis of each segment from 2020 to 2030 considering 2022 as the base year for the research. The compounded annual growth rate (CAGR) for each respective segment is calculated for the forecast period from 2023 to 2030.

Historical & Forecast Period

• 2020-21 – Historical Year
• 2022 – Base Year
• 2023-2030 – Forecast Period

Market Segmentation:

By Component:

• Hardware
• Software
• Services

By Technology:

• Artificial Intelligence (AI) and Machine Learning (ML)
• Cloud Computing
• Big Data Analytics
• Industrial Robotics
• Augmented Reality/Virtual Reality (AR/VR)
• Others

By End-Use Industry:

• Automotive
• Aerospace and Defense
• Chemicals and Materials
• Healthcare
• Semiconductor and Electronics
• Food and Beverage
• Others

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Geographic Coverage:

Geographically, North America is expected to be the dominant region in the smart manufacturing market due to the early adoption of smart manufacturing technologies and the presence of major market players in the region. Additionally, the increasing demand for smart manufacturing solutions in industries such as automotive, aerospace and defense, and electronics in the region is further driving the growth of the market. The Asia-Pacific region is also expected to witness significant growth in the smart manufacturing market, owing to the increasing adoption of advanced manufacturing technologies and the rise in government initiatives to promote smart manufacturing in countries such as China, India, Japan, and South Korea.

Competitive Assessment:

Some of the major market players operating in the global smart manufacturing market are Siemens AG, ABB Ltd., Schneider Electric SE, Honeywell International Inc., and General Electric Company. Companies are exploring markets through expansion, new investment, the introduction of new services, and collaboration as their preferred strategies. For instance:

• In March 2022, Siemens announced the launch of its new Industrial Edge ecosystem, which provides customers with a range of hardware, software, and services to enable edge computing in manufacturing environments.
• In January 2022, Rockwell Automation announced that it had acquired Plex Systems, a leading provider of cloud-based manufacturing management software. The acquisition is expected to enhance Rockwell Automation’s portfolio of smart manufacturing solutions.
• In October 2021, Schneider Electric announced the launch of its EcoStruxure Automation Expert, a new software platform that enables real-time control and monitoring of industrial processes. The platform is designed to improve operational efficiency and reduce downtime in manufacturing facilities.
• In September 2021, ABB announced the launch of its new ABB Ability Manufacturing Operations Management (MOM) solution, which enables manufacturers to optimize their production processes using real-time data analytics and machine learning.
• In August 2021, Honeywell announced the launch of its Forge Energy Optimization solution, which uses artificial intelligence and machine learning to optimize energy consumption in manufacturing facilities. The solution is expected to help manufacturers reduce energy costs and improve sustainability.

Key Companies:

• Siemens AG
• ABB Ltd.
• Schneider Electric SE
• Honeywell International Inc.
• General Electric Company
• Rockwell Automation, Inc.
• Emerson Electric Co.
• Mitsubishi Electric Corporation
• Yokogawa Electric Corporation
• Fanuc Corporation
• IBM Corporation
• Cisco Systems, Inc.
• Oracle Corporation
• PTC Inc.
• SAP SE

Key Questions Answered by Smart Manufacturing Market Report

• Global smart manufacturing market forecasts from 2023-2030
• Regional market forecasts from 2023-2030 covering Asia-Pacific, North America, Europe, Middle East & Africa, and Latin America
• Country-level forecasts from 2023-2030 covering 15 major countries from the regions as mentioned above
• Smart manufacturing submarket forecasts from 2023-2030 covering the market by component, technology, end-use industry, and geography
• Various industry models such as SWOT analysis, Value Chain Analysis about the market
• Analysis of the key factors driving and restraining the growth of the global, regional, and country-level smart manufacturing markets from 2023-2030
• Competitive Landscape and market positioning of the top 10 players operating in the market