Software for Smart Manufacturing Market Report 2025

The software for the smart manufacturing market size has grown rapidly in recent years. It will grow from $109.1 billion in 2024 to $124.94 billion in 2025 at a compound annual growth rate (CAGR) of 14.5%. The growth during the historic period is attributed to the increasing significance of data-driven decision-making, growing demand for customization and personalization, heightened need for advanced human-machine interfaces, greater availability of skilled labor, and rising investments in smart manufacturing startups.

The software for the smart manufacturing market size is expected to see rapid growth in the next few years. It will grow to $212.12 billion in 2029 at a compound annual growth rate (CAGR) of 14.1%. The anticipated growth during the forecast period is driven by increasing demand for real-time production insights, a stronger focus on predictive maintenance, heightened emphasis on energy efficiency and sustainability, expanded implementation of digital twins, and greater adoption of cloud-based solutions. Key trends expected in this period include the integration of Industrial Internet of Things (IIoT) platforms, advancements in artificial intelligence (AI) and machine learning, development of digital twin technologies, progress in robotics and automation, and the incorporation of cloud computing solutions.

The increasing adoption of Industry 4.0 is anticipated to drive the expansion of the smart manufacturing software market in the coming years. Industry 4.0, representing the fourth industrial revolution, integrates digital technologies such as the Internet of Things (IoT), artificial intelligence (AI), robotics, and big data into manufacturing to develop intelligent and efficient production systems. This trend is gaining momentum due to the demand for real-time data-driven decision-making, which aids manufacturers in reducing downtime, optimizing resource use, and improving product quality. Software designed for smart manufacturing facilitates Industry 4.0 adoption by enabling real-time data integration, automation, and predictive analytics, thereby enhancing productivity and efficiency. For example, according to Conexus Indiana, a US nonprofit organization, as of December 2022, Industry 4.0 technology implementations and pilot projects have increased by 35% year-over-year, with one in three companies considering Industry 4.0 a positive investment for growth. Consequently, the rising uptake of Industry 4.0 is fueling growth in the smart manufacturing software market.

Leading companies in the smart manufacturing software space are concentrating on creating sophisticated solutions such as agentic AI-powered platforms to improve operational efficiency, offer better predictive insights, and decrease manual involvement and production downtime. Agentic AI-powered smart manufacturing solutions involve advanced software systems that use autonomous AI agents to independently perform tasks, analyze data, and optimize manufacturing operations in real-time. For instance, in March 2025, India-based IT firm HCL Technologies Limited introduced HCLTech Insight, an agentic AI-driven smart manufacturing platform hosted on Google Cloud. This solution helps manufacturers identify, analyze, and resolve product defects instantly, enhancing production quality and lowering costs. Utilizing Google Cloud’s AI technologies, it provides actionable insights through dashboards and virtual assistants, boosting decision-making and operational efficiency. This scalable, cloud-based AI solution enables manufacturers across various sectors to increase productivity, reduce waste, and uphold high-quality standards.

In August 2024, US software company ECI Software Solutions Inc. acquired ProfitKey International LLC for an undisclosed sum. Through this acquisition, ECI Software Solutions aims to further invest in supporting manufacturing businesses and meeting their evolving industry requirements, delivering enhanced value and securing a promising future for its customers. ProfitKey International LLC, also based in the US, specializes in providing smart manufacturing software solutions.

Major players in the software for smart manufacturing market are Siemens AG, General Electric Company, Cisco Systems Inc., Oracle Corporation, Mitsubishi Electric Corp., Schneider Electric SE, Honeywell International Inc., SAP SE, ABB Ltd, Emerson Electric Co., Robert Bosch GmbH, Rockwell Automation Inc, FANUC Corporation, Dassault Systems SE, Autodesk Inc., Yokogawa Electric Corporation, PTC Inc, AVEVA Group plc, 3D Systems Corp., and Aegis Industrial Software Corporation.

North America was the largest region in the software for smart manufacturing market in 2024. The regions covered in software for the smart manufacturing report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the software for the smart manufacturing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The swift increase in U.S. tariffs and the ensuing trade tensions in spring 2025 are significantly affecting the machinery sector by increasing costs for steel, hydraulic systems, and precision bearings critical components often imported from tariff-affected regions. Manufacturers of construction, agricultural, and industrial machinery now face squeezed margins, as many long-term contracts prevent immediate price adjustments. The uncertainty has also delayed investment in automation and smart machinery technologies, slowing productivity gains. To adapt, firms are accelerating local supplier development, redesigning products to use alternative materials, and leveraging predictive maintenance to extend equipment lifespans amid higher replacement costs.

Software for smart manufacturing consists of digital solutions that incorporate advanced technologies such as the Internet of Things (IoT), artificial intelligence (AI), cloud computing, and big data analytics into manufacturing processes. These solutions aim to optimize production, boost efficiency, improve product quality, and facilitate real-time decision-making throughout the manufacturing value chain.

The primary elements of software for smart manufacturing include software, hardware, and services. Software encompasses programs, instructions, or data that guide a computer or electronic device in executing specific tasks or operations. It is used across various industries such as process and discrete manufacturing, and can be deployed via cloud-based or on-premises platforms. This software serves different enterprise sizes, including large corporations and small to mid-sized enterprises (SMEs). Common applications include digital twin technology, enterprise resource planning (ERP), quality management, supply chain planning, asset performance management, manufacturing execution system automation and orchestration, preventive or predictive maintenance, 3D printing or modeling, product lifecycle management, and more.

The software for the smart manufacturing market research report is one of a series of new reports that provides software for smart manufacturing market statistics, including software for smart manufacturing industry global market size, regional shares, competitors with software for smart manufacturing market share, detailed software for smart manufacturing market segments, market trends and opportunities, and any further data you may need to thrive in the software for the smart manufacturing industry. This software for the 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 software for the smart manufacturing market consists of revenues earned by entities by providing services such as production planning and scheduling, quality management, supply chain optimization, predictive maintenance, real-time monitoring and analytics, inventory management, digital twin simulations, and process automation. The market value includes the value of related goods sold by the service provider or included within the service offering. The software for the smart manufacturing market also includes sales of product lifecycle management (PLM) software, enterprise resource planning (ERP) systems, computer-aided design (CAD), and computer-aided manufacturing (CAM) tools. 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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