Smart Factory Market 2030: Cybersecurity Challenges Ahead

The global smart factory market was valued at USD 154.89 billion in 2024 and is anticipated to reach USD 272.64 billion by 2030, expanding at a CAGR of 10.0% from 2025 to 2030. This growth is largely driven by rising demand for automation and digital transformation, which help manufacturers improve operational efficiency and reduce overall costs.

Increasing emphasis on sustainability and energy efficiency, along with technological progress in IoT, AI, and robotics, is accelerating the adoption of smart factory solutions across multiple industries. The incorporation of artificial intelligence (AI) and machine learning (ML) is enabling more advanced decision-making and predictive maintenance capabilities, thereby opening significant opportunities for the smart factory sector in the near future.

Companies across various industries are prioritizing automation and digital transformation to streamline processes and cut costs. Global government initiatives promoting Industry 4.0 technologies—such as advanced manufacturing systems, robotics, and IoT—are further supporting market expansion. Rising energy costs and stricter environmental regulations are also pushing manufacturers toward sustainable production practices, enhancing the focus on resource optimization within smart factory environments.

The ongoing rise of Industry 4.0 remains a key trend, encouraging the deployment of interconnected systems that utilize real-time data to improve efficiency. The adoption of Industrial Internet of Things (IIoT) solutions is increasing, enabling manufacturers to collect and analyze large volumes of operational data. Additionally, advancements in 5G technology are improving factory connectivity, supporting faster and more reliable communication between machines and systems. Another prominent trend is the growing use of collaborative robots (cobots), which work safely alongside human operators to increase productivity.

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

Key Market Trends & Insights

• Regional Outlook: The Asia Pacific smart factory market is projected to grow at the highest CAGR of over 11% from 2025 to 2030, driven by rapid industrial development and strong government backing for smart manufacturing initiatives. Growing demand for high-quality products and efficient production processes is prompting significant investment in smart factory technologies across the region.
• By Technology: The distributed control systems (DCS) segment held the largest revenue share of over 16% in 2024, supported by its essential role in improving process control and operational performance across industries. Increased adoption of automation and the need for sophisticated controls in complex manufacturing settings continue to fuel segment growth. The rising focus on sustainability and energy efficiency also boosts the demand for DCS, as these systems help industries transition toward cleaner energy sources and better resource management.
• By Field Devices: Industrial robots accounted for the highest revenue share in 2024, supported by increasing automation across multiple sectors. With a projected market value of approximately USD 16.89 billion, the robotics segment is benefitting from advancements in AI and digital automation, which improve productivity and efficiency. Growing adoption in industries such as automotive, electronics, and healthcare further contributes to revenue expansion as companies aim to optimize production and reduce labor-related expenses.
• By Application: The automotive sector held the largest revenue share in 2024, driven by rapid adoption of automation and advanced manufacturing technologies. Automakers are integrating smart factory systems to improve efficiency, cut costs, and elevate product quality. The shift toward electric vehicles (EVs) and increased focus on sustainable manufacturing further encourages investment in smart production technologies.

Market Size & Forecast

• 2024 Market Size: USD 154.89 Billion
• 2030 Projected Market Size: USD 272.64 Billion
• CAGR (2025-2030): 10.0%
• Asia Pacific: Largest market in 2024

Key Companies & Market Share Insights

Leading players in the smart factory market include Rockwell Automation, Inc. and General Electric Company (GE).

• Rockwell Automation, Inc.: Rockwell Automation is a leading American provider of industrial automation and digital transformation solutions, serving industries such as aerospace, automotive, food and beverage, and life sciences. Its product offerings include connected components, control systems, and advanced software like FactoryTalk. The company is recognized for its strong position in manufacturing execution systems (MES) and its efforts in integrating AI and IIoT technologies into smart manufacturing operations.
• General Electric Company (GE): GE, through its Digital Industries division, focuses heavily on industrial automation, leveraging its strengths in connectivity and data analytics. The company supports industries such as aviation, healthcare, and renewable energy, using advanced technologies including AI and ML to optimize manufacturing processes.

Emerging players such as Danfoss and Fanuc Corporation are also shaping the market:

• Danfoss: Danfoss develops energy-efficient, climate-friendly technologies and is integrating smart manufacturing solutions to boost operational efficiency while minimizing environmental impact. The company invests heavily in R&D to develop automation- and data-driven innovations.
• Fanuc Corporation: Fanuc specializes in robotics and automation technologies and emphasizes continuous innovation in advanced robotics and AI-integrated systems. Its focus on improving production efficiency and developing cutting-edge automation tools positions it as a rising competitor in the smart factory landscape.

Key Players

• Siemens AG
• GE Vernova (General Electric Company)
• Rockwell Automation, Inc.
• Schiender Electric
• Honeywell International, Inc.
• ABB Ltd.
• Mitsubishi Electric Corporation
• Fanuc Corporation
• Danfoss

Explore Horizon Databook – The world's most expansive market intelligence platform developed by Grand View Research.

Conclusion

The smart factory market is experiencing steady and sustained growth, supported by widespread adoption of automation, increasing digital transformation efforts, and global commitments to Industry 4.0. With technologies such as AI, IoT, robotics, and 5G playing a crucial role in enhancing productivity and decision-making, manufacturers are rapidly modernizing their operations. While the Asia Pacific region leads in growth, strong contributions from established players and emerging innovators continue to shape the competitive landscape. As the market expands from USD 154.89 billion in 2024 to USD 272.64 billion by 2030, smart factory solutions will remain integral to the future of efficient, sustainable, and intelligent manufacturing worldwide.