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Comprehensive 2025 Smart Manufacturing Market Overview: Trends, Forecasts, and Growth Drivers
Stay ahead with our updated market reports featuring the latest on tariffs, trade flows, and supply chain transformations.What Is the Expected CAGR for the Smart Manufacturing Market Through 2025?
The size of the smart manufacturing market has expanded swiftly in the past few years. It is projected to rise from $405.82 billion in 2024 to $459.15 billion in 2025, at a compound annual growth rate (CAGR) of 13.1%. The increase in the previous period is credited to progress in industrialization, upsurge of big data analytics, emphasis on cyber-physical systems, growth of global supply chains, focus on energy efficiency and sustainability, improved quality control strategies, and the transition to smart factories.
What's the Projected Size of the Global Smart Manufacturing Market by 2029?
In the forthcoming years, the smart manufacturing market size is projected to witness swift growth, escalating to $833.96 billion by 2029 with a compound annual growth rate (CAGR) of 16.1%. The vigorous growth during the forecast period is due to increased focus on resilient and flexible manufacturing, transition to servitization models, demand for swift prototyping and additive manufacturing, emphasis on continual improvements, heightened security measures, and the prevalence of circular economy strategies. Key trends within this period consist of integrating industry 4.0, adoption of digital twin, groundbreaking robotics and automation, growth of IoT and sensor presence, edge computing for prompt processing, 5G connectivity for quicker communication, application of artificial intelligence in manufacturing, and collaboration of human-machine.
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Top Growth Drivers in the Smart Manufacturing Industry: What's Accelerating the Market?
The surge in investments towards Industry 4.0 is anticipated to boost the smart manufacturing market in future. Industry 4.0 merges the physical and digital worlds through data, initiating novel developments in manufacturing by enhancing data gathering and analysis at the edge, unlocking extensive analytical insights. The metamorphosis brought about by Industry 4.0 is substantially altering the way companies manufacture, improve, and distribute their products. Advanced technologies such as the Internet of Things (IoT), cloud computing, data analytics, artificial intelligence, and machine learning are being integrated into manufacturing processes. For example, a 2022-conexus-tech-adoption report by Conexus Indiana, an American Non-profit Organization focusing on advanced manufacturing and logistics, has revealed that projects implementing Industry 4.0 technologies have seen a 35% rise year-over-year. Presently, one in three companies recognize Industry 4.0 as a beneficial investment for expansion. Thus, the escalating investments in Industry 4.0 are predicted to bolster the smart manufacturing market.
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What Trends Will Shape the Smart Manufacturing Market Through 2029 and Beyond?
Prominent businesses in the sphere of smart manufacturing are turning their attention to inventions including the industrial internet of things, which enables the gathering and analysis of real-time data. The Industrial Internet of Things (IIoT) represents the inclusion of internet-connected devices and systems within industrial settings with the purpose of boosting operational efficacy, productivity, and decision-making. To illustrate, the Indian Institute of Technology-Madras, a renowned Indian university, inaugurated the Smart Manufacturing & Digital Transformation Centre (SMDTC) in July 2022 to amplify India's manufacturing abilities and encourage self-sufficiency. The new center is aimed at making smart manufacturing and digital transformation more accessible to Indian MSMEs. The endeavor will develop essential systems and software platforms that back Industry 4.0 practices, championing self-sufficiency in manufacturing. The center stresses on education, maturity evaluations, cooperative research, and the facilitation of cutting-edge technologies such as 5G. Its primary goals involve uplifting stakeholder expertise and promoting collaboration between industry and academia to refine manufacturing procedures.
What Are the Main Segments in the Smart Manufacturing Market?
The smart manufacturing market covered in this report is segmented -
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
Subsegments:
1) By Hardware: Sensors, Robotics, Industrial Control Systems, Machine Vision Systems, Connectivity Devices, Actuators
2) By Software: Manufacturing Execution Systems (MES), Enterprise Resource Planning (ERP), Supply Chain Management Software, Product Lifecycle Management (PLM), Quality Management Software, Data Analytics Software
3) By Services: Consulting Services, System Integration Services, Maintenance And Support Services, Training Services, Managed Services
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Which Top Companies are Driving Growth in the Smart Manufacturing Market?
Major companies operating in the smart manufacturing market are Siemens AG, General Electric Company, Rockwell Automation, Schneider Electric SE, Honeywell International Inc., Emerson Electric, ABB India Limited, Amazon Web Services Inc., Robert Bosch Manufacturing Solutions GmbH, Cisco Systems Inc., 3D Systems Corporation, Plex Systems Inc., Cognex Corporation, PTC Inc., Mitsubishi Electric Corporation, HP Development Company L.P., SAP SE, Hitachi Ltd., IBM Corporation, Oracle Corporation, Microsoft Corporation, Intel Corporation, accenture* PLC, Fujitsu Limited, Fanuc Corporation, Kuka AG, Omron Corporation, Panasonic Corporation, Toshiba Corporation, Yokogawa Electric Corporation
Which Regions Will Dominate the Smart Manufacturing Market Through 2029?
North America was the largest region in the smart manufacturing market share in 2024. The regions covered in the smart manufacturing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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