PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1794018
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1794018
The global smart factory market is projected to grow from USD 104.42 billion in 2025 to USD 169.73 billion by 2030, growing at a CAGR of 10.2%. The market growth is driven by the increasing adoption of Industry 4.0 technologies, rising demand for automation to improve productivity, and growing emphasis on energy efficiency and resource optimization. Industries are investing in smart manufacturing solutions such as industrial sensors, robots, 3D printing, and machine vision systems to improve operational efficiency and reduce downtime.
Scope of the Report | |
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Years Considered for the Study | 2021-2030 |
Base Year | 2024 |
Forecast Period | 2025-2030 |
Units Considered | Value (USD Billion) |
Segments | By Component, Solution, Industry, and Region |
Regions covered | North America, Europe, APAC, RoW |
Advancements in MES, SCADA, and PAM systems are also supporting the digital transformation of factories. Government initiatives and rising labor costs also encourage companies to modernize their manufacturing operations. These factors collectively boost the demand for smart factory solutions across sectors such as automotive, electronics, food & beverages, and pharmaceuticals.
"MES segment accounted for largest share of smart factory market in 2024"
Manufacturing execution systems (MES) are crucial in smart factory setups and are expected to lead the market in terms of share. These systems bridge enterprise-level planning and shop-floor operations, enabling real-time tracking, monitoring, and control of manufacturing activities. Their widespread adoption is driven by the need to improve production efficiency, reduce downtime, and ensure quality compliance. MES solutions help manufacturers make data-driven decisions by offering visibility into performance, inventory, and workflows. They also support seamless integration with ERP and automation systems, making them ideal for managing complex manufacturing environments. As companies aim to adopt Industry 4.0 practices, the role of MES in digital transformation becomes even more critical. Additionally, MES solutions are gaining popularity for their scalability and adaptability across industries such as automotive, electronics, and pharmaceuticals. With increasing focus on operational transparency, production traceability, and real-time analytics, MES platforms are becoming essential tools in evolving smart, connected factories.
"Semiconductor & electronics segment to record a significant CAGR during forecast period"
During the forecast period, the smart factory market is expected to experience strong growth in the semiconductor & electronics segment. This is mainly due to rising demand for advanced automation, real-time monitoring, and precision manufacturing in chip and electronic component production. Semiconductor manufacturing requires extremely high accuracy, cleanroom operations, and efficient use of materials, making it an ideal sector for adopting smart factory technologies such as IoT sensors, robotics, digital twins, and AI-driven analytics. These tools help reduce defects, improve yield, and ensure consistent quality, which is critical in electronics production. Additionally, the need for shorter production cycles, greater customization, and faster time-to-market pushes semiconductor and electronics companies to upgrade legacy systems with smart factory solutions. Ongoing advancements in equipment connectivity and edge computing further support this transition. The smart factory approach is gaining momentum as manufacturers aim for better productivity and energy efficiency. These trends are expected to significantly drive the segment's high CAGR during the forecast period.
"North America to hold a significant share in smart factory market by 2030"
The smart factory market in North America is anticipated to maintain a strong position through 2030, supported by widespread adoption of industrial automation, advanced manufacturing technologies, and strong digital infrastructure. The US is a key contributor, driven by its early investment in Industry 4.0 practices, strong presence of technology providers, and a focus on boosting productivity and reducing operational costs. Demand is growing across sectors such as automotive, aerospace, electronics, and food processing, all actively integrating IoT, robotics, machine learning, and cloud-based solutions to modernize operations. The region also benefits from supportive government initiatives promoting smart manufacturing and digital transformation, including funding programs and industry partnerships. Prominent players such as Rockwell Automation (US), Honeywell International Inc. (US), Emerson Electric Co. (US), and GE Vernova (US) continuously innovate and offer scalable smart factory solutions. Moreover, the increasing emphasis on real-time monitoring, predictive maintenance, and energy efficiency aligns well with North American manufacturers' goals. With a strong foundation in technology adoption and a clear focus on competitiveness, North America is expected to capture a significant share of the smart factory market during the forecast period.
Extensive primary interviews were conducted with key industry experts in the smart factory market space to determine and verify the market size for various segments and subsegments gathered through secondary research. The breakdown of primary participants for the report is shown below.
The smart factory market is dominated by a few globally established players, such as ABB (Switzerland), Emerson Electric Co.(US), Siemens (Germany), Schneider Electric (France), Mitsubishi Electric Corporation (Japan), GE Vernova (US), Rockwell Automation (US), Honeywell International Inc. (US), Yokogawa Electric Corporation (Japan), OMRON Corporation (Japan), WIKA Alexander Wiegand SE & Co. KG (Germany), Endress+Hauser Group Services AG (Switzerland), and FANUC CORPORATION (Japan).
The study includes an in-depth competitive analysis of these key players in the smart factory market, with their company profiles, recent developments, and key market strategies.
The report segments the smart factory market and forecasts its size by component (industrial sensors, industrial robots, industrial 3D printers, machine vision systems), by solution (SCADA, MES, industrial safety, PAM), and by industry [process industries (oil & gas, chemicals, pulp & paper, pharmaceuticals, metals & mining, food & beverages, energy & power, other process industries), discrete industries (automotive, aerospace & defense, semiconductor & electronics, machine manufacturing, medical devices, other discrete industries)]. It also discusses the market's drivers, restraints, opportunities, and challenges. It provides a detailed market analysis across four key regions (North America, Europe, Asia Pacific, and RoW). The report includes a review of the supply chain and competitive landscape of key players operating in the smart factory ecosystem.