Smart Manufacturing Market to Reach $730.04B by 2031 Digital Twins, Edge Analytics, and Private 5G Shape Factory Operations

Smart Manufacturing Market Outlook 

According to Mordor Intelligence, the smart manufacturing market size is estimated at USD 387.14 billion in 2026 and is projected to reach USD 730.04 billion by 2031, reflecting a 13.53% CAGR during the forecast period. The smart manufacturing market forecast highlights rising capital investment in digital twins, edge analytics, and private 5G networks as factories transition toward data-driven production models. 

The smart manufacturing market industry is moving beyond pilot projects into full-scale Industrial IoT deployments. Manufacturers are integrating programmable logic controllers, supervisory control and data acquisition systems, and advanced analytics tools to reduce unplanned downtime and improve asset utilization. As digital traceability becomes a requirement across automotive, semiconductor, pharmaceutical, and chemical operations, the smart manufacturing market growth trajectory remains closely tied to compliance, efficiency, and energy transparency.   

Growth Drivers of the Smart Manufacturing Market  

Expansion of Industrial IoT and Predictive Maintenance 

Factories are scaling IIoT rollouts to legacy equipment by adding low-cost edge sensors and connected controllers. This enables predictive alerts that help avoid costly stoppages, particularly in automotive and semiconductor lines. Pharmaceutical manufacturers are extending monitoring systems into cleanrooms to track particulate levels in real time, supporting quality compliance and lowering batch rejection rates. As operational and information technologies integrate more closely, plants are adopting secure segmentation and traffic analytics to reduce cyber risks. These deployments are becoming central to smart manufacturing market share gains among enterprises that prioritize uptime and compliance. 

Government Incentives Supporting Digital Factory Adoption 

Public funding programs are influencing the smart manufacturing market industry. Subsidies tied to advanced manufacturing execution systems, cloud-connected controllers, and digital traceability are compressing payback periods for automation projects. National industrial policies in North America, Europe, and Asia are encouraging adoption of distributed control systems, energy-monitoring platforms, and digital twins. Companies delaying upgrades risk losing access to incentives and export markets that require digital audit trails. This regulatory push is reinforcing long-term smart manufacturing market growth. 

Skilled Labor Shortages Driving Automation Uptake 

Workforce gaps across advanced economies are accelerating the installation of collaborative robots, autonomous mobile robots, and machine-vision systems. Many factories cite labor availability as a primary constraint, prompting automation projects with shorter return horizons. Warehouses and production facilities are deploying robotic systems to manage dynamic layouts and repetitive tasks. As wages increase and apprenticeship pipelines narrow, automation becomes economically viable for a wider range of manufacturers 

Energy Transparency and Carbon Compliance Requirements 

Carbon-border mechanisms and emissions reporting mandates are encouraging factories to install granular energy-monitoring systems. Exporters that cannot document embedded emissions face higher costs, prompting investment in digital twins and sub-process analytics. Chemical, metal, and energy-intensive industries are embedding energy intelligence into enterprise systems. These initiatives support premium positioning for low-carbon output and add momentum to smart manufacturing market trends centered on sustainability. 

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Smart Manufacturing Market Segmentation 

By Technology  

• Programmable Logic Controller (PLC)  
• Supervisory Control and Data Acquisition (SCADA)  
• Enterprise Resource Planning (ERP)  
• Distributed Control System (DCS)  
• Human-Machine Interface (HMI)  
• Product Lifecycle Management (PLM)  
• Manufacturing Execution System (MES)  
• Other Technologies  

By Component  

• Hardware  
• Robotics  
• Sensors  
• Machine-Vision Systems  
• Control Devices  
• Software  
• MES  
• PLM  
• SCADA / ERP Suites  
• Digital-Twin / AI and Analytics  
• Services  
• Integration and Implementation  
• Consulting and Training  
• Managed Services  
• Communication Segment  

By Deployment Mode  

• On-Premise  
• Cloud  
• Hybrid  

By End-User Industry  

• Automotive  
• Semiconductors and Electronics  
• Oil and Gas  
• Chemical and Petrochemical  
• Pharmaceuticals and Life Sciences  
• Food and Beverage  
• Energy and Utilities  
• Logistics and Warehousing  
• Other End-User Industries  

By Geography  

• North America  
• United States  
• Canada  
• Mexico  
• Europe  
• Germany  
• United Kingdom  
• France  
• Italy  
• Spain  
• Russia  
• Rest of Europe  
• Asia Pacific  
• China  
• Japan  
• India  
• South Korea  
• ASEAN  
• Australia and New Zealand  
• Rest of Asia Pacific  
• South America  
• Brazil  
• Argentina  
• Rest of South America  
• Middle East  
• Saudi Arabia  
• United Arab Emirates  
• Turkey  
• Rest of Middle East  
• Africa  
• South Africa  
• Nigeria  
• Rest of Africa 

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Key Players in the Smart Manufacturing Market Industry 

• ABB Ltd. 
• Emerson Electric Co. 
• FANUC Corporation 
• General Electric Co. 
• Honeywell International Inc. 

Explore more insights on smart manufacturing market competitive landscape: https://www.mordorintelligence.com/industry-reports/smart-manufacturing-market/companies?utm_source=industrytoday.co.uk  

Conclusion 

The smart manufacturing market forecast signals continued expansion as factories integrate digital twins, predictive analytics, robotics, and energy monitoring into daily operations. Regulatory mandates, labor shortages, and sustainability targets are reinforcing smart manufacturing market trends across regions. 

Hybrid deployment models, service-driven revenue streams, and compliance-driven traceability requirements are shaping smart manufacturing market size development over the forecast period. As enterprises seek higher asset utilization and operational visibility, the smart manufacturing market industry is positioned for steady growth through 2031, supported by technology integration and policy alignment across major economies. 

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