Smart Manufacturing Market (2024-2031)
The Smart Manufacturing Market was valued at $133.1 billion in 2023. This market is expected to reach $733.4 billion by 2031 from an estimated $157 billion in 2024, at a CAGR of 24.6% during the forecast period from 2024 to 2031. Smart Manufacturing Market Size & Forecast This market’s growth is driven
- Published
- Aug 2024
- Pages
- 280
- Format
- PDF + Excel
- Report ID
- MR-579
- Base year
- 2023
- 2023 · BASELINE
- $133.1B
- 2031
- $733.4B
- CAGR 2024–2031
- 24.6%
2023 baseline · 2024–2031 forecast at 24.6% CAGR · hover a bar for the value
Key highlights
In 2024, the Industrial Internet of Things Segment to Dominate the Smart Manufacturing Market
In 2024, the Surveillance & Safety Segment to Dominate the Smart Manufacturing Market
In 2024, the Automotive Segment to Dominate the Smart Manufacturing Market
Report summary
| Particulars | Details |
|---|---|
| Number of Pages | 280 |
| Format | |
| Forecast Period | 2024–2031 |
| Base Year | 2023 |
| CAGR (Value) | 24.6% |
| Market Size (Value) | USD 733.4 Billion by 2031 |
| Segments Covered | By Technology · Industrial Internet of Things · Cloud Computing & Storage · Robotics & Automation · Robots · Automated Storage and Retrieval Systems (ASRS) and Automatic Guided Vehicles (AGVS) · Automated Assembly Lines · Wearables & Mobile Devices · Industrial Cybersecurity · Additive Manufacturing · Augmented Reality (AR)/Virtual Reality (VR) · Digital Twin · Artificial Intelligence · Blockchain · By Application · Surveillance & Safety · Quality Management · Resource Optimization · Inventory & Warehouse Management · Machine Inspection & Maintenance · Production Planning · Energy Management · Other Applications · By End-use Industry · Automotive · Heavy Machinery & Tools · Aerospace & Defense · Metals & Mining · Electronics & Semiconductors · Medical Devices · Food & Beverage · Pharmaceuticals · Oil & Gas · Fast-Moving Consumer Goods (FMCG) · Paints & Chemicals · Energy & Power · Pulp & Paper · Other End-use Industries |
| Countries Covered | North America (U.S., Canada), Europe (Germany, U.K., France, Italy, Netherlands, Spain, Sweden, and Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Singapore, Australia & New Zealand, Indonesia, and Rest of Asia-Pacific), Latin America (Brazil, Mexico, and Rest of Latin America), and the Middle East & Africa (Saudi Arabia, UAE, Israel, and Rest of the Middle East & Africa) |
| Key Companies | International Business Machines Corporation (U.S.), Siemens AG (Germany), Microsoft Corporation (U.S.), SAP SE (Germany), Capgemini SE (France), ABB Ltd (Switzerland), Deutsche Telekom AG (Germany), Telefónica, S.A. (Spain), Accenture plc (Ireland), TE Connectivity Ltd. (Switzerland), NXP Semiconductors N.V. (Netherlands), Telefonaktiebolaget LM Ericsson (Sweden), Intel Corporation (U.S.), Tata Consultancy Services Limited (India), Cisco Systems, Inc. (U.S.), Honeywell International, Inc. (U.S.), Mitsubishi Electric Corporation (Japan), Robert Bosch GmbH (Germany), Rockwell Automation, Inc (U.S.), and Schneider Electric SE (France) |
Report overview
Segments covered: technology, application, end-use industry. Regions: North America, Europe, Asia-Pacific, Latin America, Middle East & Africa.
This market’s growth is driven by the rising need to reduce operational costs with predictive maintenance, the surge in the integration of AI & ML in smart manufacturing, and the integration of 3D printing for additive manufacturing. Additionally, the advent of 5G connectivity in smart manufacturing and the proliferation of smart manufacturing in developing countries are expected to generate growth opportunities for the players operating in this market. Furthermore, some of the prominent market trends include smart manufacturing-as-a-service and the growing integration of smart technologies that improve supply chain management.
Market dynamics
3 factors across 3 forcesRise in the Integration of AI & ML in Smart Manufacturing
The integration of advanced technologies such as AI & ML aids manufacturing facilities in improving productivity, quality, and operational efficiency. By implementing these technologies, manufacturers gain valuable insights, optimize processes, and make better decisions in real time. In addition, by integrating AI & ML, manufacturers improve failure prediction and maintenance planning by applying AI algorithms to production data. AI assists in identifying patterns and anomalies in data, enabling early detection of equipment malfunctions or breakdowns.
Moreover, the integration of AI & ML helps in utilizing manufacturing processes by identifying errors, optimizing production schedules, and enhancing resource allocations. This leads to streamlined operations, reduced cycle times, improved productivity, and saves on cost. With the increasing advantages of AI and ML in manufacturing, several key players are launching smart manufacturing solutions with AI & ML to automate and optimize key manufacturing workflows.
For instance, in March 2021, SAP SE (Germany) partnered with Plataine Ltd. (U.S.) to integrate IIoT and AI-based software for digital manufacturing. This partnership allows customers to benefit from a holistic smart factory solution that extends across production operations.
Table of contents
11 chapters · 150 sections · 280 pages · click to expandSegmental analysis
| Segment | Largest share (2024) | Fastest growth (2024–2031) |
|---|---|---|
| By Technology | Industrial Internet of Things | Blockchain |
| By Application | Surveillance & Safety | Inventory & warehouse management |
| By End-use Industry | Automotive | Pharmaceuticals |
By Technology
- The industrial Internet of Things segment is expected to account for the largest share of over 33.4% of the smart manufacturing market.
- The expanding use of industrial IoT in smart manufacturing to make data-driven choices about all aspects of manufacturing, help businesses cut down on asset downtime, and enhance overall equipment effectiveness is responsible for this segment's significant market share.
- However, the blockchain segment is expected to register the highest CAGR during the forecast period.
- This segment's growth is attributed to the increasing integration of blockchain in the manufacturing process, which enhances inventory management, better traceability, and transparency and enables real-time data analysis and detection of high-value equipment movement.
By Application
- The surveillance & safety segment is expected to account for the largest share of over 21.1% of the smart manufacturing market.
- The segment's significant market share is due to the expanding need for dependable safety systems to guarantee asset and personal security, as well as the growing use of video surveillance technology, which enables manufacturers to actively monitor locations and take prompt action in response to real-time data.
- Moreover, a number of businesses are concentrating on establishing a 5G network in diverse industrial facilities in order to offer fast and low-latency security solutions.
- For instance, in May 2021, Capgemini SE (France) collaborated with Telefonaktiebolaget LM Ericsson (Sweden) to accelerate the deployment of 5G solutions for various industries, including autonomous intralogistics AIV (autonomous intelligent vehicle), smart health, and smart surveillance for worker safety.
- However, the inventory & warehouse management segment is expected to register the highest CAGR during the forecast period.
- The increasing use of smart technologies to streamline inventory, labeling, packing, stocking, and storing procedures in manufacturing facilities as well as the growing incorporation of RFID, robotics, and IoT into inventory warehouse management to track material movements in real-time from planning to production are the main factors contributing to the market growth.
By End-use Industry
- The Automotive Segment to Dominate the Smart Manufacturing Market
- The automotive segment is expected to account for the largest share of over 14.3% of the smart manufacturing market.
- This segment's large market share is due to the growing adoption of smart manufacturing in automotive, which allows manufacturers to predict events in the manufacturing process and plan ahead of time, as well as the increasing integration of digital twins in automotive manufacturing for product testing and predictive maintenance.
- Automotive manufacturers are increasingly implementing robot-human collaboration for complex tasks to improve workplace safety and efficiency.
- However, the pharmaceuticals segment is expected to register the highest CAGR during the forecast period.
- This segment’s growth is attributed to the growing use of smart technologies in pharmaceutical manufacturing, reduced downtime between batches and streamlined operations, increased productivity, and reduced costs, and increasing adoption of industrial IoT in pharmaceutical manufacturing for real-time tracking of inventory levels to ensure optimal stock management, reduce waste, and ensure availability.
Geographic analysis
Asia-Pacific
Largest shareIn 2024, Asia-Pacific is expected to account for the largest share of over 37.3% of the smart manufacturing market. Asia-Pacific's substantial share of the market can be attributed to the region's expanding government initiatives for Industry 4.0 and to technology advancements such as digital twin integration and human-robot collaboration in manufacturing facilities. The region's top firms are investing more in industrial automation and predictive maintenance. For instance, in August 2021, Hexagon AB (Sweden) partnered with Central Manufacturing Technology Institute (CMTI) (India) to establish a Smart Manufacturing Development and Demonstration Cell (SMDDC), an Industry 4.0 Centre of Excellence and Experience Centre. Moreover, Asia-Pacific is expected to register the highest CAGR of over 26.5% during the forecast period. In 2024, Asia-Pacific Region to Dominate the Smart Manufacturing Market
Competitive landscape
- January 2024
Delta Electronics, Inc. (U.S.) launched smart manufacturing solutions at SEMICON SEA 2024. These solutions converge Operational Technology, Edge, and Information Technology layers and integrate self-developed automated equipment, machine networking, a visualization platform, and a Manufacturing Execution System.
- April 2023
Snowflake Inc. (U.S.) launched a manufacturing data cloud to improve supply chain performance and power smart manufacturing. The Cloud empowers manufacturers to collaborate with partners, suppliers, and customers in a secure and scalable way, driving greater agility and visibility across the entire value chain.
- January 2022
Hyundai Motor Company and Unity Technologies (U.S.), the world’s leading platform for creating and operating real-time 3D (RT3D) content, announced a partnership to jointly design and build a new metaverse roadmap and platform for Meta-Factory.
- International Business Machines Corporation (U.S.)
- Siemens AG · Germany
- Microsoft Corporation (U.S.)
- SAP SE · Germany
- Capgemini SE · France
- ABB Ltd · Switzerland
- Deutsche Telekom AG · Germany
- Telefónica, S.A. · Spain
- Accenture plc · Ireland
- TE Connectivity Ltd. · Switzerland
- NXP Semiconductors N.V. · Netherlands
- Telefonaktiebolaget LM Ericsson · Sweden
- Intel Corporation (U.S.)
- Tata Consultancy Services Limited · India
- Cisco Systems, Inc. (U.S.)
- Honeywell International, Inc. (U.S.)
- Mitsubishi Electric Corporation · Japan
- Robert Bosch GmbH · Germany
- Rockwell Automation, Inc (U.S.)
- Schneider Electric SE · France
Frequently asked questions
The Smart Manufacturing Market encompasses technologies and solutions that integrate automation, artificial intelligence (AI), the Internet of Things (IoT), and advanced analytics to improve manufacturing processes. This includes optimizing production efficiency, reducing operational costs, and enhancing product quality through smart technologies.
Cite this report
Meticulous Research. (2024). Smart Manufacturing Market - Global Opportunity Analysis and Industry Forecast (2024-2031) (Report No. MR-579). Meticulous Market Research Pvt. Ltd. https://www.meticulousresearch.com/product/smart-manufacturing-market-5265