Smart Manufacturing Market Size & Share, Growth Analysis 2023-2035

Global Market Size, Forecast, and Trend Highlights Over 2023 - 2035

Smart Manufacturing Market size is poised to cross USD 1 Trillion by 2035, observing nearly 21.5% CAGR from 2023 to 2033. In the year 2022, the industry size of smart manufacturing was USD 98.66 Billion. It is further estimated to grow steadily with a robust CAGR of during the forecast period. The rising emphasis on adopting Industry 4.0 solutions and services that helps in using modern technology in everyday manufacturing is estimated to favor the growth of the global smart manufacturing market size during the forecasted timeline. The global industry 4.0 sector is anticipated to grow with 16% CAGR and reach USD 400 Billion by 2035.

In the recent period, the escalation in the government’s engagement in supporting manufacturing processes to strengthen the economies along with the increasing complexities in the supply chain is anticipated to intensify the market value of the global smart manufacturing market. Furthermore, the need to reduce time, cost, and human intervention in order to scale up the various manufacturing processes is also predicted to fuel market growth.

Global Smart Manufacturing Sector: Growth Drivers and Challenges

Growth Drivers

Growing Business Automation – Recent adoption of business automation has favored smart manufacturing solutions on the basis of the benefits and opportunities it offers. Many enterprises today that are employing business automation aim to apply smart manufacturing to streamline their processes. About 67% of the organization present in the world were using business automation solutions as of 2022.
High Penetration of Internet of Things (IoT) – The widespread installation of Internet of Things (IoT) devices has led to the deployment of augmented reality, virtual reality, machine learning, artificial intelligence, and other advanced solutions has led to positive growth in smart manufacturing processes. Recent data have revealed that that were almost 13 billion active IoT devices in 2022 and is projected to increase to 25 billion by 2030 around the globe.
Rapid Urbanization – Rapid urbanization and industrialization have led to the generation of favorable opportunities for the expansion of smart manufacturing. As per United Nations, in 2021, 51.61% of the global population were living in urban areas which is going to increase to 68% by 2050.
Increased Manufacturing Production – Latest developments in every spectrum have led to significant growth in manufacturing production. Thus, to monitor and streamline the processes, many businesses are applying smart manufacturing services which is anticipated to create a positive outlook for market expansion during the forecast period.

Challenges

Requirement of High Investments and Costs – The process of setting up smart manufacturing involves a huge amount of money which could hamper the expansion of the market size in the future. Smart manufacturing technologies such as Automated Guided Vehicles (AGVs), Enterprise Manufacturing Intelligence (EMI), HMI, Warehouse Management Systems (WMS), and others require high investment for designing and deploying, which increases the cost of the overall process.
Threats Related to Cybersecurity
Unavailability of Skilled Workforce

Smart Manufacturing Segmentation

Component (Hardware, Software, Services)

The software segment is slated to dominate the smart manufacturing market and holds the largest revenue share of about 38% by the end of the forecast period. The dominance of the segment is attributed to the rising trend of full automation of processes. Advanced software is set to increase the usage of robots, drones, and other machines which minimizes human interruption. For the smooth functioning of these components, smart manufacturing solutions are required. All these factors have fueled the growth of segment value.

End-Use (Automotive, Aerospace & Defense, Chemicals & Materials, Healthcare, Electronics, Food & Agricultural, Oil & Gas)

The automotive segment is poised to account for 32% share of the global smart manufacturing market by 2035. Smart manufacturing technologies have aided automotive manufacturers to build automated assembly lines for vehicle parts and producing the whole car. Also, the rapid growth of the automotive industry and increased demand for smart technologies such as smart manufacturing meet the expectations of the global population. The global automotive industry generated a revenue of almost USD 3 trillion and is expected to rise with a significant CAGR.

Our in-depth analysis of the market includes the following segments:

Component	Hardware Software Services
Technology	Machine Execution Systems Programmable Logic Controller Enterprise Resource Planning SCADA Discrete Control Systems Human Machine Interface Machine Vision 3D Printing Product Lifecycle Management Plant Asset Management Others
Deployment	Cloud On-premise
Enterprise Size	Large SMEs
End-Use	Automotive Aerospace & Defense Chemicals & Materials Healthcare Electronics Food & Agricultural Oil & Gas Others

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Global Smart Manufacturing Industry - Regional Synopsis

North America Market Forecast

The smart manufacturing sector in the North American region is set to hold the biggest market value with a share of about 35% by the end of 2035. The rapid adoption of advanced technologies such as IoT, and IIoT aid in enhancing productivity and lowering operational and maintenance costs is the major factor driving the market value in the region. Also, the introduction of several favorable initiatives taken by the United States government is estimated to bring lucrative growth opportunities for market growth during the next few years.

Asia Pacific Market Analysis

The Asia Pacific smart manufacturing segment is also poised to hold a significant share by growing steadily over the forecast period. Developing countries like China and India are aiming towards full automation of businesses which generates the demand for smart manufacturing services. Also, the recent increase in investment in advanced technologies by the regulatory bodies for being independent in production and manufacturing is also estimated to attract

Key Questions Answered in the Report

1) What are the major factors driving the growth of the smart manufacturing market?

Ans: Increasing adoption of modern technologies such as Internet of Things (IoT) devices, machine learning, artificial intelligence, and others is propelling the growth of the market expansion.

2) What would be the CAGR of the smart manufacturing market over the forecast period?

Ans: The market size of smart manufacturing is anticipated to attain a CAGR of 21.50% over the forecast period, i.e., 2023 â€“ 2035.

3) Who are the major players dominating the smart manufacturing market?

Ans: The major players in the market are ABB Group, Siemens Aktiengesellschaft, Honeywell International Inc., General Electric Company, Rockwell Automation, Inc., Schneider Electric SE, Robert Bosch GmbH, Mitsubishi Electric Corporation, FANUC, and other key players.

4) How are the company profiles selected?

Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

5) What are the segments in the smart manufacturing market?

Ans: The market is segmented by component, technology, deployment, enterprise size, end-use, and by region.

6) Which segment captures the largest market size in the component segment in the smart manufacturing market?

Ans: The software segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

7) What are the challenges affecting the market growth?

Ans: Rising threats related to cybersecurity along with the requirement of high initial investment and lack of unavailability of skilled professionals are estimated to be the growth hindering factors for the market expansion.

8) Which region will provide more business opportunities for the growth of the smart manufacturing market in the future?

Ans: The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.

Base Year	2022
Forecast Year	2023-2035
CAGR	~21.50%
Base Year Market Size (2022)	~ USD 98.66 Billion
Forecast Year Market Size (2035)	~ USD 1021.07 Billion
Regional Scope	North America (U.S., and Canada) Latin America (Mexico, Argentina, Rest of Latin America) Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific) Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)