Smart Manufacturing Global Market Report 2024

The global smart manufacturing market has grown rapidly in recent years. It will grow from $362.79 billion in 2023 to $414.75 billion in 2024 at a compound annual growth rate (CAGR) of 14.3%. The growth seen in the historic period can be attributed to several factors such as advancements in industrialization, the increasing integration of big data analytics, emphasis on cyber-physical systems, globalization of supply chains, focus on energy efficiency and sustainability, implementation of enhanced quality control measures, and the transition toward smart factories.

The global smart manufacturing market is expected to see rapid growth in the next few years. It will grow to $713.44 billion in 2028 at a compound annual growth rate (CAGR) of 14.5%. The forecasted growth is expected to be driven by a focus on resilient and adaptive manufacturing practices, a transition toward servitization models, increased demand for rapid prototyping and additive manufacturing techniques, emphasis on continuous improvement strategies, heightened security measures, and a growing prominence of circular economy practices. Major trends anticipated in the forecast period include the integration of Industry 4.0 principles, adoption of digital twin technology, advancements in robotics and automation, proliferation of IoT and sensors, implementation of edge computing for real-time data processing, leveraging 5G connectivity for low-latency communication, integration of artificial intelligence (AI) in manufacturing processes, and an increased focus on human-machine collaboration.

The smart manufacturing market is poised for growth due to a surge in investments in Industry 4.0. The fourth industrial revolution leverages data to seamlessly connect the digital and physical realms, facilitating advancements in manufacturing. Industry 4.0 is reshaping how businesses produce, improve, and distribute goods by enhancing data collection and analysis at the edge. Key technologies driving this transformation include the Internet of Things (IoT), cloud computing, analytics, AI, and machine learning. In 2021, the Internet of Things Infrastructure attracted substantial funding of $28.7 billion from over 1,300 startups, with notable investors such as Plug and Play Tech Center, Qualcomm Ventures, Techstars, Cisco Investments, and Intel. This influx of investments is expected to drive the smart manufacturing market forward.

The smart manufacturing market is experiencing significant growth, propelled by the widespread adoption of robotics across industries. Robotics, an interdisciplinary field involving the design, construction, operation, and use of robots, is being integrated into smart manufacturing to optimize production processes and enhance efficiency. The International Federation of Robotics reported a record-breaking introduction of 517,385 industrial robots into global factories in 2021, reflecting a 31% year-on-year growth. In the USA alone, 50,712 industrial robots were deployed in 2021, showcasing a 31% increase compared to the previous year. The rising adoption of robotics is a key driver fueling the growth of the smart manufacturing market.

Technological advancements emerge as a prominent trend driving the smart manufacturing market, with major companies continually investing in new technologies and research and development. Notably, Rockwell Automation, Inc., a US-based industrial automation provider, introduced the QuickStick Intelligent Conveyor System in January 2021. This system enhances throughput while reducing the total cost of ownership for pallet conveyor systems in assembly and process automation markets. The commitment to advancing technology underscores the efforts of leading players to maintain their standing in the smart manufacturing marketplace.

Major players in the smart manufacturing market are introducing cutting-edge products, including next-generation AI solutions, to propel advancements in smart manufacturing. These AI solutions leverage artificial intelligence (AI) technologies to perform tasks traditionally requiring human intelligence. A notable example is Foxconn Technology Group, a Taiwan-based electronics contract manufacturer, which launched FOXCONN NxVAE in January 2021. This unsupervised learning AI technology enhances defect inspection efficiency and accuracy in smart manufacturing. Initially applied to handheld device production lines in China, it successfully reduced manpower for defect inspection by 50% within eight months. The technology's application is set to expand to textiles and healthcare manufacturing, demonstrating Foxconn's commitment to industry transformation. NxVAE employs unsupervised learning algorithms to autonomously identify defects, streamlining the inspection process and eliminating the need for manual checks, with a remarkable ability to accurately detect the 13 most common types of defects.

In a strategic move, Cognizant, a prominent US-based information technology services and consulting company, acquired TQS Integration in July 2021 for an undisclosed amount. This acquisition positions Cognizant to broaden its smart manufacturing offerings. TQS Integration, based in Ireland, specializes in industrial data and intelligence, complementing Cognizant's portfolio and contributing to its expansion in the dynamic smart manufacturing sector.

Major companies operating in the smart manufacturing market report 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

North America was the largest region in the smart manufacturing market share in 2023. The regions covered in the smart manufacturing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the smart manufacturing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary components of smart manufacturing comprise hardware, software, and services. Smart manufacturing hardware includes devices facilitating real-time reactions, predictive analysis, and preventive measures, fostering enhanced decision-making by providing comprehensive data visibility. Various smart manufacturing technologies encompass machine execution systems (MES), programmable logic controllers (PLC), enterprise resource planning (ERP), SCADA, discrete control systems (DCS), machine vision, 3D printing, and plant lifecycle management. These technologies cater to industries such as automotive, aerospace and defense, chemicals and materials, healthcare, industrial equipment, electronics, food and agriculture, oil and gas, and other sectors.

This report provides smart manufacturing market statistics, including smart manufacturing industry global market size, regional shares, competitors with a smart manufacturing market share, detailed smart manufacturing market segments, market trends and opportunities, and any further data you may need to thrive in the smart manufacturing industry. This smart manufacturing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The smart manufacturing market consists of revenues earned by entities by providing smart manufacturing products and services that enable firms to swiftly and effectively adapt to changes on the production floor and throughout their value chain. The market value includes the value of related goods sold by the service provider or included within the service offering. The smart manufacturing market also includes the sales of internet-connected machinery. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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