Smart manufacturing refers to the use of interconnected technologies and intelligent systems to automate and optimize production processes in manufacturing environments. It integrates advanced hardware, software and services to enable real-time decision-making, efficient operations, predictive maintenance and end-to-end visibility across the manufacturing value chain.
The smart manufacturing market consists of sales, by entities (organizations, sole traders or partnerships) that are used is used by manufacturers in diverse sectors such as automotive, aerospace, healthcare, chemicals, electronics, food processing and industrial equipment to enhance productivity, flexibility and responsiveness to market demands.
The global smart manufacturing market reached a value of nearly $405,817.99 million in 2024, having grown at a compound annual growth rate (CAGR) of 13.72% since 2019. The market is expected to grow from $405,817.99 million in 2024 to $748,351.65 million in 2029 at a rate of 13.02%. The market is then expected to grow at a CAGR of 11.89% from 2029 and reach $1,312,634.05 million in 2034.
Growing Use Of Collaborative Robotics (Cobots)
During the historic period, the smart manufacturing market was mainly driven by the growing use of collaborative robotics (Cobots). Cobots are designed to work alongside human workers without traditional safety barriers, allowing manufacturers to automate complex or repetitive tasks while retaining adaptability in production workflows. As factories adopt more cobots, they gain the ability to execute precision operations, accelerate assembly processes and maintain consistent quality while reducing manual strain and operational errors. For instance, in December 2024, according to International Federation of Robotics (IFR), a Germany-based professional non-profit organization, collaborative robots (cobots) reached a market share of 10.5 % of all industrial robots installed worldwide in 2023. In 2022, the IFR reported that the global share of cobots was approximately 10 % of industrial robot installations. Thus, the historic trend shows cobot adoption rising from ~10 % in 2022 to ~10.5 % in 2023, indicating modest growth in global deployment. Therefore, the smart manufacturing market was mainly driven by the growing use of collaborative robotics (Cobots).
Integration Of AI-Driven Automation To Enhance Real-Time Manufacturing Intelligence
Major companies in the smart manufacturing market are focusing on integrating AI (artificial intelligence)-driven automation across production systems to enable real-time decision-making, adaptive process control and continuous improvement of manufacturing intelligence. These efforts are designed to enable machines and systems to learn from manufacturing data, act autonomously or semi-autonomously, reduce downtime, improve yield and accelerate responsiveness to quality or supply-chain deviations. For example, in March 2025, Hitachi Ltd., a Japan-based multinational conglomerate known for its industrial systems, information technology, launched its new AI Center of Excellence, which in early 2024 began piloting integrated solutions that embed advanced AI across physical production systems including robotics, sensors and automation in its industrial and mobility divisions. The initiative enables predictive controls, real-time analytics from factory floor data and tighter coupling between automation hardware and AI models, with the goal of increasing efficiency, reducing waste and driving smarter manufacturing at scale.
The global smart manufacturing markets is fragmented, with large number of small players operating in the market. The top 10 competitors in the market made up 14.97% of the total market in 2024.
Smart Manufacturing Global Market Opportunities And Strategies To 2034 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global smart manufacturing market as it emerges from the COVID-19 shut down.
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Where is the largest and fastest-growing market for smart manufacturing? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The smart manufacturing market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider smart manufacturing market; and compares it with other markets.
The report covers the following chapters
- Introduction And Market Characteristics- Brief introduction to the segmentations covered in the market, definitions and explanations about the segment by component, by technology and by end-user.
- Key Trends: - Highlights the major trends shaping the global market. This section also highlights likely future developments in the market.
- Growth Analysis And Strategic Analysis Framework: - Analysis on PESTEL, end use industries, market growth rate, global historic (2019-2024) and forecast (2024-2029, 2034F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods, forecast growth contributors and total addressable market (TAM).
- Global Market Size And Growth: - Global historic (2019-2024) and forecast (2024-2029, 2034F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods.
- Regional And Country Analysis: - Historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison by region and country.
- Market Segmentation Contains the market values (2019-2024) (2024-2029, 2034F) and analysis for each segment by component, by technology and by end-user in the market. Historic (2019-2024) and forecast (2024-2029) and (2029-2034) market values and growth and market share comparison by region market.
- Regional Market Size And Growth: - Regional market size (2024), historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region.
- Competitive Landscape: - Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
- Other Major And Innovative Companies: - Details on the company profiles of other major and innovative companies in the market.
- Competitive Benchmarking: - Briefs on the financials comparison between major players in the market.
- Competitive Dashboard: - Briefs on competitive dashboard of major players.
- Key Mergers And Acquisitions: - Information on recent mergers and acquisitions in the market covered in the report. This section gives key financial details of mergers and acquisitions, which have shaped the market in recent years.
- Recent Developments: - Information on recent developments in the market covered in the report
- Market Opportunities And Strategies- Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets.
- Conclusions And Recommendations- This section includes recommendations for smart manufacturing providers in terms of product/service offerings geographic expansion, marketing strategies and target groups.
- Appendix: - This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report.
Markets Covered:
- 1) By Component: Hardware; Software; Services
- 2) By Technology: Machine Execution Systems (MES); Programmable Logic Controller (PLC); Enterprise Resource Planning (ERP); SCADA; Discrete Control Systems (DCS); Machine Vision; 3D Printing; Other Technologies
- 3) By End-User: Automotive; Aerospace And Defense; Chemicals And Materials; Healthcare; Industrial Equipment; Electronics; Food And Agriculture; Oil And Gas; Other End-Users
- Companies Mentioned: Siemens AG; Honeywell International Inc.; Rockwell Automation Inc.; Emerson Electric Co.; Schneider Electric SE
- Countries: China; Australia; India; Indonesia; Japan; South Korea; USA; Canada; Brazil; France; Germany; UK; Italy; Spain; Russia
- Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
- Time-series: Five years historic and ten years forecast.
- Data: Ratios of market size and growth to related markets; GDP proportions; expenditure per capita; smart manufacturing indicators comparison.
- Data segmentations: country and regional historic and forecast data; market share of competitors; market segments.
- Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.