The global smart manufacturing market was valued at approximately USD 254.24 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 14.9% from 2023 to 2030. This growth is driven by several key factors, including the rising adoption of Industry 4.0, increased government support for industrial automation, and a greater emphasis on incorporating automation into manufacturing processes. Additionally, there is a growing demand for software systems that enhance efficiency by saving time and costs, as well as increasing complexities within supply chains and a heightened focus on regulatory compliance.

The COVID-19 pandemic significantly impacted the industrial automation sector, leading to the shutdown of various industries and related activities. During the initial global lockdowns, the disruption in global supply chains and operational logistics was acute.

As the pandemic unfolded, the market shifted its focus toward the manufacturing of essential products, while demand for non-essential goods decreased. Despite these challenges, the market experienced growth during this period, driven by the necessity for businesses to provide their services and products swiftly and safely. The growth during the pandemic was also fueled by increased demand, government financial aid, and technical support.

Gather more insights about the market drivers, restrains and growth of the Smart Manufacturing Market

The information technology and automotive industries are among the most prominent sectors embracing Industry 4.0. The smart manufacturing market has enabled automotive manufacturers to establish automated assembly lines, not just for individual components, but also for the complete vehicle manufacturing process. For example, in 2021, Audi utilized its Production Lab (P-Lab) department to develop real-world use cases for cutting-edge technology in everyday manufacturing scenarios.

Industrial automation has fostered a robust market driven by the numerous benefits and opportunities it presents to various industries. Across all sectors, companies and manufacturers are eager to integrate smart manufacturing practices into their operations, contributing to the overall expansion of the market.

Component Segmentation Insights

The global smart manufacturing market was valued at approximately USD 254.24 billion in 2022 and is projected to experience significant growth, with an anticipated compound annual growth rate (CAGR) of 14.9% from 2023 to 2030. This expansion is driven by several key factors, including the increasing adoption of Industry 4.0, greater government involvement in promoting industrial automation, and a heightened focus on integrating automation within manufacturing processes. Additionally, there is a rising demand for software systems that enhance efficiency by saving both time and costs, alongside growing complexities in supply chains and a stronger emphasis on regulatory compliance.

The COVID-19 pandemic had a profound impact on the industrial automation sector, leading to widespread shutdowns of various industries and related components. During the initial global lockdowns, both global supply chains and operational logistics faced significant disruptions.

As the pandemic progressed, the market shifted its focus toward the production of essential products, as demand for non-essential items decreased. Despite these challenges, the market was able to grow during this period, as businesses sought to deliver their services and products safely and promptly. This growth was largely a result of increased demand, government financial assistance, and the provision of technical support.

The information technology and automotive sectors are among the most prominent adopters of Industry 4.0 principles. The smart manufacturing market has enabled automotive manufacturers to establish automated assembly lines for not only individual parts but also for the entire vehicle manufacturing process. For instance, in 2021, Audi leveraged its Production Lab (P-Lab) to develop real-world applications of advanced technology in everyday manufacturing scenarios.

Overall, industrial automation has cultivated a robust and in-demand market that is driven by the numerous benefits and opportunities it presents to various industries. Across all sectors, companies and manufacturers are eager to incorporate smart manufacturing practices into their operations, contributing to the overall growth of the market.

The information technology and automotive sectors are at the forefront of adopting Industry 4.0 innovations. The smart manufacturing market has empowered automotive manufacturers to create automated assembly lines that optimize not only the production of individual parts but also the assembly of entire vehicles. For example, in 2021, Audi's Production Lab (P-Lab) developed practical applications of cutting-edge technology, illustrating how modern advancements can enhance everyday manufacturing processes.

Ultimately, industrial automation has established a dynamic and in-demand market driven by the myriad benefits and opportunities it presents to various industries. Regardless of the sector, companies are eager to implement smart manufacturing practices into their operations, thus contributing to the overarching growth of the market and ensuring a more efficient, productive, and sustainable future for manufacturing.

Order a free sample PDF of the Market Intelligence Study, published by Grand View Research.