Smart Manufacturing Automation Market
Smart Manufacturing Automation Market Forecasts to 2032 – Global Analysis By Component (Hardware, Software and Services), Product Type, Technology, Deployment, Application, End User and By Geography
According to Stratistics MRC, the Global Smart Manufacturing Automation Market is accounted for $393.38 billion in 2025 and is expected to reach $1091.80 billion by 2032 growing at a CAGR of 15.7% during the forecast period. Smart Manufacturing Automation involves the use of intelligent, connected technologies to automate and enhance manufacturing processes. It leverages tools such as AI, industrial robots, IoT-enabled devices, data analytics, and cloud platforms to monitor operations continuously and make informed, real-time decisions. This approach allows factories to adapt quickly to changing demands, predict equipment failures, and optimize resource usage. As a result, it delivers higher efficiency, improved product quality, reduced costs, and greater agility throughout manufacturing operations.
Market Dynamics:
Driver:
Need for operational efficiency
Manufacturers are under constant pressure to reduce downtime, optimize resource utilization, and improve overall productivity. Automation technologies such as AI-driven analytics, robotics, and real-time monitoring systems enable faster decision-making and streamlined production workflows. As global competition intensifies, companies are adopting smart factories to minimize waste and enhance throughput. The integration of predictive maintenance and process optimization tools further supports consistent operational performance. Rising labor costs and skill shortages are also accelerating the shift toward automated production environments. Together, these factors are pushing industries to invest heavily in smart manufacturing solutions.
Restraint:
High initial capital expenditure
Implementing advanced automation systems requires substantial spending on hardware, software, system integration, and workforce training. Small and medium-sized enterprises often struggle to justify these upfront costs despite long-term efficiency gains. The complexity of retrofitting legacy manufacturing infrastructure further increases implementation expenses. Additionally, uncertainty around return on investment can delay purchasing decisions. Ongoing costs related to system upgrades and cybersecurity add to financial concerns. As a result, budget constraints continue to limit widespread adoption across cost-sensitive industries.
Opportunity:
Shift toward smart customization
Consumers increasingly demand personalized products with shorter delivery timelines, compelling manufacturers to adopt flexible production systems. Smart automation enables mass customization by allowing rapid reconfiguration of production lines. Technologies such as digital twins, AI, and IoT facilitate real-time adjustments based on customer preferences. This approach enhances responsiveness while maintaining cost efficiency and quality standards. Industries such as automotive, electronics, and consumer goods are rapidly embracing customizable manufacturing models. As demand for tailored products rises, smart customization is becoming a strategic differentiator for manufacturers.
Threat:
Data privacy & sovereignty
Smart factories rely heavily on data generated from connected machines, sensors, and cloud-based platforms. This increased data flow raises risks related to cyberattacks, data breaches, and unauthorized access. Regulatory requirements governing data localization and cross-border data transfer further complicate deployment strategies. Manufacturers operating across multiple regions must comply with varying data protection laws. Concerns over intellectual property theft also discourage full-scale digital integration.
Covid-19 Impact:
The COVID-19 pandemic significantly influenced the smart manufacturing automation market. Lockdowns and labor shortages disrupted traditional manufacturing operations and exposed vulnerabilities in manual processes. As a result, manufacturers accelerated the adoption of automation to ensure business continuity. Remote monitoring, autonomous systems, and digital supply chains gained prominence during the crisis. The pandemic also highlighted the importance of resilient and flexible production models. Government stimulus programs supported investments in digital manufacturing infrastructure. Post-pandemic strategies increasingly prioritize automation to mitigate future disruptions and improve operational resilience.
The software segment is expected to be the largest during the forecast period
The software segment is expected to account for the largest market share during the forecast period. Software platforms play a critical role in data integration, process optimization, and real-time decision-making. Manufacturing execution systems, analytics tools, and AI-based applications enable end-to-end visibility across production operations. These solutions support predictive maintenance, quality control, and supply chain coordination. As factories become more connected, demand for scalable and interoperable software continues to rise. Cloud-based deployment models are further enhancing accessibility and flexibility.
The pharmaceuticals & healthcare segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the pharmaceuticals & healthcare segment is predicted to witness the highest growth rate. Strict regulatory requirements demand high precision, traceability, and quality assurance in production processes. Automation technologies enable compliance through real-time monitoring and automated documentation. The growing demand for personalized medicines and medical devices is driving flexible manufacturing systems. Smart automation also helps reduce human error and contamination risks. Increased investments in digital health infrastructure are accelerating technology adoption.
Region with largest share:
During the forecast period, the Asia Pacific region is expected to hold the largest market share. Rapid industrialization and expanding manufacturing bases are driving technology adoption across the region. Countries such as China, India, Japan, and South Korea are investing heavily in smart factory initiatives. Government policies supporting Industry 4.0 and digital transformation are strengthening market growth. The presence of large-scale electronics and automotive manufacturing further boosts demand. Cost advantages and a growing skilled workforce support implementation efforts.
Region with highest CAGR:
Over the forecast period, the North America region is anticipated to exhibit the highest CAGR, owing to early adoption of advanced technologies such as AI, robotics, and industrial IoT. Strong R&D capabilities and innovation ecosystems support rapid commercialization of smart manufacturing solutions. Manufacturers are increasingly investing in digital twins and advanced analytics to enhance competitiveness. Favorable government initiatives promote reshoring and modernization of manufacturing facilities. The presence of major automation technology providers accelerates deployment.
Key players in the market
Some of the key players in Smart Manufacturing Automation Market include UiPath, WorkFusion, Automation Anywhere, Verint Systems, Microsoft, Kofax Inc., IBM, Infosys Ltd, SS&C Blue Prism, EdgeVerve, SAP, AntWorks, Pegasystems, Appian Corp, NICE Ltd., Siemens AG, Bosch Rexroth, ABB Ltd., Oracle Corporation, Rockwell Automation, SAP SE, Honeywell, Emerson Electric, Schneider Electric, Yokogawa Electric, General Electric, FANUC Corporation, Cisco Systems, Mitsubishi Electric, and IBM Corporation.
Key Developments:
In December 2025, IBM and Confluent, Inc. announced they have entered into a definitive agreement under which IBM will acquire all of the issued and outstanding common shares of Confluent for $31 per share, representing an enterprise value of $11 billion. Confluent provides a leading open-source enterprise data streaming platform that connects, processes and governs reusable and reliable data and events in real time, foundational for the deployment of AI.
In December 2025, Madison Square Garden Entertainment Corp. announced a new, multi-year partnership with Cisco, naming the worldwide leader in networking and security An Official Partner of Madison Square Garden (MSG). Through the partnership, Cisco’s industry-leading technology will help power scalable, future-ready experiences for fans and deliver streamlined, connected solutions for venue operators at The Garden.
Components Covered:
• Hardware
• Software
• Services
Product Types Covered:
• Machine Vision Systems
• Industrial Robotics
• Control Devices & Controllers
• Sensors & Networks
• Communication Technologies
Technologies Covered:
• Industrial Automation Systems
• IIoT Platforms
• Robotics & Machine Vision
• AI & Machine Learning
• Digital Twin & Simulation
• Cybersecurity
• AR/VR Applications
• Predictive Maintenance Platforms
Deployments Covered:
• Direct Sales
• Distributors & System Integrators
• Online Platforms
Applications Covered:
• Predictive Maintenance
• Quality Control & Inspection
• Human-Robot Collaboration
• Supply Chain & Inventory Management
• Asset Management
• Production Planning & Scheduling
• Other Applications
End Users Covered:
• Automotive & Transportation
• Electronics & Semiconductors
• Industrial Equipment & Manufacturing
• Aerospace & Defense
• Energy & Utilities
• Food & Beverages
• Chemicals & Materials
• Pharmaceuticals & Healthcare
Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
Table of Contents
1 Executive Summary
2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions
3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Product Analysis
3.7 Technology Analysis
3.8 Application Analysis
3.9 End User Analysis
3.10 Emerging Markets
3.11 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global Smart Manufacturing Automation Market, By Component
5.1 Introduction
5.2 Hardware
5.2.1 Industrial Sensors
5.2.2 Industrial Robots
5.2.3 PLCs & Controllers
5.2.4 Vision Systems
5.2.5 Smart Conveyors
5.3 Software
5.3.1 Manufacturing Execution Systems (MES)
5.3.2 Enterprise Resource Planning (ERP)
5.3.3 Product Lifecycle Management (PLM)
5.3.4 Supervisory Control & Data Acquisition (SCADA)
5.3.5 Digital Twin & Simulation
5.3.6 AI & Analytics Platforms
5.4 Services
5.4.1 Consulting
5.4.2 Integration & Implementation
5.4.3 Managed Services
5.4.4 Support & Maintenance
6 Global Smart Manufacturing Automation Market, By Product Type
6.1 Introduction
6.2 Machine Vision Systems
6.3 Industrial Robotics
6.4 Control Devices & Controllers
6.5 Sensors & Networks
6.6 Communication Technologies
7 Global Smart Manufacturing Automation Market, By Technology
7.1 Introduction
7.2 Industrial Automation Systems
7.3 IIoT Platforms
7.4 Robotics & Machine Vision
7.5 AI & Machine Learning
7.6 Digital Twin & Simulation
7.7 Cybersecurity
7.8 AR/VR Applications
7.9 Predictive Maintenance Platforms
8 Global Smart Manufacturing Automation Market, By Deployment
8.1 Introduction
8.2 Direct Sales
8.3 Distributors & System Integrators
8.4 Online Platforms
9 Global Smart Manufacturing Automation Market, By Application
9.1 Introduction
9.2 Predictive Maintenance
9.3 Quality Control & Inspection
9.4 Human-Robot Collaboration
9.5 Supply Chain & Inventory Management
9.6 Asset Management
9.7 Production Planning & Scheduling
9.8 Other Applications
10 Global Smart Manufacturing Automation Market, By End User
10.1 Introduction
10.2 Automotive & Transportation
10.3 Electronics & Semiconductors
10.4 Industrial Equipment & Manufacturing
10.5 Aerospace & Defense
10.6 Energy & Utilities
10.7 Food & Beverages
10.8 Chemicals & Materials
10.9 Pharmaceuticals & Healthcare
11 Global Smart Manufacturing Automation Market, By Geography
11.1 Introduction
11.2 North America
11.2.1 US
11.2.2 Canada
11.2.3 Mexico
11.3 Europe
11.3.1 Germany
11.3.2 UK
11.3.3 Italy
11.3.4 France
11.3.5 Spain
11.3.6 Rest of Europe
11.4 Asia Pacific
11.4.1 Japan
11.4.2 China
11.4.3 India
11.4.4 Australia
11.4.5 New Zealand
11.4.6 South Korea
11.4.7 Rest of Asia Pacific
11.5 South America
11.5.1 Argentina
11.5.2 Brazil
11.5.3 Chile
11.5.4 Rest of South America
11.6 Middle East & Africa
11.6.1 Saudi Arabia
11.6.2 UAE
11.6.3 Qatar
11.6.4 South Africa
11.6.5 Rest of Middle East & Africa
12 Key Developments
12.1 Agreements, Partnerships, Collaborations and Joint Ventures
12.2 Acquisitions & Mergers
12.3 New Product Launch
12.4 Expansions
12.5 Other Key Strategies
13 Company Profiling
13.1 Siemens AG
13.2 Bosch Rexroth AG
13.3 ABB Ltd.
13.4 Oracle Corporation
13.5 Rockwell Automation, Inc.
13.6 SAP SE
13.7 Honeywell International Inc.
13.8 Emerson Electric Co.
13.9 Schneider Electric SE
13.10 Yokogawa Electric Corporation
13.11 General Electric Company
13.12 FANUC Corporation
13.13 Cisco Systems, Inc.
13.14 Mitsubishi Electric Corporation
13.15 IBM Corporation
List of Tables
1 Global Smart Manufacturing Automation Market Outlook, By Region (2024-2032) ($MN)
2 Global Smart Manufacturing Automation Market Outlook, By Component (2024-2032) ($MN)
3 Global Smart Manufacturing Automation Market Outlook, By Hardware (2024-2032) ($MN)
4 Global Smart Manufacturing Automation Market Outlook, By Industrial Sensors (2024-2032) ($MN)
5 Global Smart Manufacturing Automation Market Outlook, By Industrial Robots (2024-2032) ($MN)
6 Global Smart Manufacturing Automation Market Outlook, By PLCs & Controllers (2024-2032) ($MN)
7 Global Smart Manufacturing Automation Market Outlook, By Vision Systems (2024-2032) ($MN)
8 Global Smart Manufacturing Automation Market Outlook, By Smart Conveyors (2024-2032) ($MN)
9 Global Smart Manufacturing Automation Market Outlook, By Software (2024-2032) ($MN)
10 Global Smart Manufacturing Automation Market Outlook, By Manufacturing Execution Systems (MES) (2024-2032) ($MN)
11 Global Smart Manufacturing Automation Market Outlook, By Enterprise Resource Planning (ERP) (2024-2032) ($MN)
12 Global Smart Manufacturing Automation Market Outlook, By Product Lifecycle Management (PLM) (2024-2032) ($MN)
13 Global Smart Manufacturing Automation Market Outlook, By Supervisory Control & Data Acquisition (SCADA) (2024-2032) ($MN)
14 Global Smart Manufacturing Automation Market Outlook, By Digital Twin & Simulation (2024-2032) ($MN)
15 Global Smart Manufacturing Automation Market Outlook, By AI & Analytics Platforms (2024-2032) ($MN)
16 Global Smart Manufacturing Automation Market Outlook, By Services (2024-2032) ($MN)
17 Global Smart Manufacturing Automation Market Outlook, By Consulting (2024-2032) ($MN)
18 Global Smart Manufacturing Automation Market Outlook, By Integration & Implementation (2024-2032) ($MN)
19 Global Smart Manufacturing Automation Market Outlook, By Managed Services (2024-2032) ($MN)
20 Global Smart Manufacturing Automation Market Outlook, By Support & Maintenance (2024-2032) ($MN)
21 Global Smart Manufacturing Automation Market Outlook, By Product Type (2024-2032) ($MN)
22 Global Smart Manufacturing Automation Market Outlook, By Machine Vision Systems (2024-2032) ($MN)
23 Global Smart Manufacturing Automation Market Outlook, By Industrial Robotics (2024-2032) ($MN)
24 Global Smart Manufacturing Automation Market Outlook, By Control Devices & Controllers (2024-2032) ($MN)
25 Global Smart Manufacturing Automation Market Outlook, By Sensors & Networks (2024-2032) ($MN)
26 Global Smart Manufacturing Automation Market Outlook, By Communication Technologies (2024-2032) ($MN)
27 Global Smart Manufacturing Automation Market Outlook, By Technology (2024-2032) ($MN)
28 Global Smart Manufacturing Automation Market Outlook, By Industrial Automation Systems (2024-2032) ($MN)
29 Global Smart Manufacturing Automation Market Outlook, By IIoT Platforms (2024-2032) ($MN)
30 Global Smart Manufacturing Automation Market Outlook, By Robotics & Machine Vision (2024-2032) ($MN)
31 Global Smart Manufacturing Automation Market Outlook, By AI & Machine Learning (2024-2032) ($MN)
32 Global Smart Manufacturing Automation Market Outlook, By Digital Twin & Simulation (2024-2032) ($MN)
33 Global Smart Manufacturing Automation Market Outlook, By Cybersecurity (2024-2032) ($MN)
34 Global Smart Manufacturing Automation Market Outlook, By AR/VR Applications (2024-2032) ($MN)
35 Global Smart Manufacturing Automation Market Outlook, By Predictive Maintenance Platforms (2024-2032) ($MN)
36 Global Smart Manufacturing Automation Market Outlook, By Deployment (2024-2032) ($MN)
37 Global Smart Manufacturing Automation Market Outlook, By Direct Sales (2024-2032) ($MN)
38 Global Smart Manufacturing Automation Market Outlook, By Distributors & System Integrators (2024-2032) ($MN)
39 Global Smart Manufacturing Automation Market Outlook, By Online Platforms (2024-2032) ($MN)
40 Global Smart Manufacturing Automation Market Outlook, By Application (2024-2032) ($MN)
41 Global Smart Manufacturing Automation Market Outlook, By Predictive Maintenance (2024-2032) ($MN)
42 Global Smart Manufacturing Automation Market Outlook, By Quality Control & Inspection (2024-2032) ($MN)
43 Global Smart Manufacturing Automation Market Outlook, By Human-Robot Collaboration (2024-2032) ($MN)
44 Global Smart Manufacturing Automation Market Outlook, By Supply Chain & Inventory Management (2024-2032) ($MN)
45 Global Smart Manufacturing Automation Market Outlook, By Asset Management (2024-2032) ($MN)
46 Global Smart Manufacturing Automation Market Outlook, By Production Planning & Scheduling (2024-2032) ($MN)
47 Global Smart Manufacturing Automation Market Outlook, By Other Applications (2024-2032) ($MN)
48 Global Smart Manufacturing Automation Market Outlook, By End User (2024-2032) ($MN)
49 Global Smart Manufacturing Automation Market Outlook, By Automotive & Transportation (2024-2032) ($MN)
50 Global Smart Manufacturing Automation Market Outlook, By Electronics & Semiconductors (2024-2032) ($MN)
51 Global Smart Manufacturing Automation Market Outlook, By Industrial Equipment & Manufacturing (2024-2032) ($MN)
52 Global Smart Manufacturing Automation Market Outlook, By Aerospace & Defense (2024-2032) ($MN)
53 Global Smart Manufacturing Automation Market Outlook, By Energy & Utilities (2024-2032) ($MN)
54 Global Smart Manufacturing Automation Market Outlook, By Food & Beverages (2024-2032) ($MN)
55 Global Smart Manufacturing Automation Market Outlook, By Chemicals & Materials (2024-2032) ($MN)
56 Global Smart Manufacturing Automation Market Outlook, By Pharmaceuticals & Healthcare (2024-2032) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
List of Figures
RESEARCH METHODOLOGY
We at ‘Stratistics’ opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.
Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.
Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.
Data Mining
The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.
Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.
Data Analysis
From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:
- Product Lifecycle Analysis
- Competitor analysis
- Risk analysis
- Porters Analysis
- PESTEL Analysis
- SWOT Analysis
The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.
Data Validation
The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.
We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.
The data validation involves the primary research from the industry experts belonging to:
- Leading Companies
- Suppliers & Distributors
- Manufacturers
- Consumers
- Industry/Strategic Consultants
Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.
For more details about research methodology, kindly write to us at info@strategymrc.com
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