APAC smart factory market Size was estimated at 71.29 (USD Billion) in 2024. The APAC smart factory market Industry is expected to grow from 77.64 (USD Billion) in 2025 to 167.27 (USD Billion) till 2034, exhibiting a compound annual growth rate (CAGR) of 8.9% during the forecast period (2025 - 2034). The growing demand for predictive maintenance solutions is one of the major market drivers of the smart factory market in Asia Pacific. Predictive maintenance systems leverage advanced analytics and IoT sensors to anticipate machinery failures, increasing productivity and reducing downtime.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Asia Pacific smart factory market CAGR is expanding due to the integration of IoT devices for real-time monitoring. These devices allow seamless communication and data sharing across machines, systems, and workers, resulting in a highly efficient and responsive manufacturing environment. Manufacturers get unprecedented insight into their processes by incorporating IoT sensors and devices in the manufacturing line. Real-time monitoring enables proactive decision-making by enabling immediate modifications to optimize operations, increase quality control, and ensure timely maintenance interventions. This feature improves operating efficiency and minimizes the likelihood of equipment failure and costly downtime. Furthermore, IoT-enabled real-time monitoring promotes data-driven insights and predictive analytics, allowing enterprises to anticipate market trends, consumer requests, and supply chain variations. As a result, businesses can respond swiftly to changing circumstances, reduce production schedules, and increase overall mobility.
Furthermore, in the evolving circumstances of the smart factory market, there has been a noticeable increase in the emphasis on cost-cutting and waste minimization measures. Industries are increasingly realizing the need to optimize resources and simplify processes to remain competitive in a globalized environment. Smart factories provide an integrated approach by combining sophisticated technologies such as artificial intelligence, IoT, and data analytics to increase efficiency and production while lowering costs and waste. This increased emphasis on cost reduction and waste minimization is propelling the market as organizations look for new methods to improve their production processes. Smart factories can detect inefficiencies and possibilities, enabling advancement while using immediate tracking capabilities and predictive analytics. This allows for proactive decision-making aimed at minimizing possible losses and optimizing resource utilization. Furthermore, the deployment of sustainable practices inside smart factories is consistent with larger environmental initiatives, appealing to environmentally concerned customers and regulatory norms, driving the smart factory market revenue.
The Asia Pacific smart factory market segmentation, based on component, includes industrial sensors, industrial robots, industrial 3D printing, and machine vision. The industrial sensors segment dominated the market. These sensors determine real-time data on various parameters, including temperature, pressure, and vibration, allowing predictive maintenance, process optimization, and quality control. Integration of industrial sensors improves visibility and control over production activities, allowing more flexible decision-making and efficiency gains in smart factory environments. Their extensive acceptance demonstrates their vital role in improving the capabilities of modern production processes.
The Asia Pacific Smart Factory market segmentation is based on solution, SCADA, MES, industrial safety, and PAM. The manufacturing execution systems (MES) category generated the most income (40%). MES integrates production processes, data management, and resource allocation, providing real-time information on factory operations. This technology improves efficiency, quality control, and regulatory compliance while maximizing resource utilization. MES enables smooth communication between various components of the smart industrial ecosystem, resulting in coordinated and synchronized processes. Its powerful characteristics make it essential for firms looking to boost productivity and competitiveness in the modern era of smart manufacturing.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Asia Pacific Smart Factory market segmentation is based on industry, process industry, and discrete industry. The discrete industry category generated the most income. With its ability to integrate automation, AI, and IoT, smart factory solutions streamline production processes, enhance quality control, and optimize supply chain management. These advancements cater specifically to the discrete manufacturing sector, offering tailored solutions to improve efficiency, reduce downtime, and minimize waste. As a result, discrete manufacturers are increasingly investing in smart factory technologies to gain a competitive edge and meet the demands of a rapidly evolving market landscape.
In the Asia Pacific region, several significant countries are encouraging the adoption and growth of smart industrial technologies. China, with its strong manufacturing sector, leads the region in employing smart industrial solutions to boost efficiency and competitiveness. The Chinese government's policies are boosting the use of advanced technologies in manufacturing, including AI, IoT, and robots. Japan, recognized for its creative manufacturing practices, is also at the forefront of the adoption of smart industrial technology. Japanese corporations are making significant investments in automation and digitalization to optimize manufacturing processes and retain global leadership in various industries. South Korea is another important participant in the smart industrial environment, with significant conglomerates driving the adoption of Industry 4.0 technology. Overall, these primary source nations in the Asia Pacific region are critical in influencing the trajectory of smart factory technology adoption, generating developments, and driving market expansion in the region.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Leading market players are investing heavily in research and development to expand their product lines, which will help the Smart Factory market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the smart factory industry must offer cost-effective items.
Major players in the Smart Factory market are attempting to increase market demand by investing in research and development operations includes ABB Ltd. (Switzerland), Endress+ Hauser AG (Switzerland), Emerson Electric Co. (US), General Electric Company (US), Rockwell Automation Inc, Inc. (US), Schneider Electric SE (France), Siemens AG (Germany), Mitsubishi Electric Corp. (Japan), Honeywell International Inc. (US), and Yokogawa Electric Corp. (Japan).
ABB Ltd. (Switzerland)
Endress+ Hauser AG (Switzerland)
Emerson Electric Co. (US)
General Electric Company (US)
Rockwell Automation Inc, Inc. (US)
Schneider Electric SE (France)
Siemens AG (Germany)
Mitsubishi Electric Corp. (Japan)
Honeywell International Inc. (US)
Yokogawa Electric Corp. (Japan)
In August 2024, the expansion of Smart Factory Solutions in China Siemens the company introduced a new digital factory hub in Shanghai, noting an expansion of its smart factory solutions in China. This hub will focus on the development and operation of Industry 4.0 solutions of the Siemens Corp, including smart factories, smart devices, and smart analytics. The funding is also intended to help local manufacturers modernize their production and implement smart factory concepts.
In August 2024, a new smart factory initiative in Japan Mitsubishi Electric Corporation launched a new smart factory initiative, this time based in Nagoya, Japan recognizable by its AI and robotics integration in the manufacturing sector. The project refers to advanced robotic facilities and a project management system with the use of AI. It is expected that efficiency in production processes and operational flexibility will improve the company’s position in the smart manufacturing sector under Mitsubishi Electric.
In July 2024, India Bosch Smart Factory Solutions in India witnessed a launch of a new multiple range of smart factory solutions bespoke for the Indian market. The company has set up a new smart manufacturing unit in Pune, which will be dedicated to developing solutions for efficient automation, data analytics and predictive maintenance. This initiative is a part of Bosch’s plan to promote the growth of the manufacturing sector in India by bringing in advanced technologies that will help in optimizing the manufacturing processes.
In July 2024, Hyundai Motor Group, an automobile manufacturer group, J(serializers usage), highlights samurai Misanen works and expanded activity investing smart factory with all technological facilities in South Korea Iconnect centric house sci B. Including 10 upgraded smart factories toward integrating recent advancing robotics & AI technologies. The integration includes deploying autonomous robots for assembly line work and advanced results systems for watching and improving assembly in real time. These modifications are designed to improve production efficiency as well as reduce the costs of overhead costs in the manufacturing facilities of Hyundai.
In July of 2024, Smart Factory Collaboration in Singapore. In Singapore, ABB has partnered with local industrial companies to initiate a smart factory pilot project. This partnership is directed at the application of ABB’s Internet powered solutions, such as analytics as well as automation solutions, towards improving the overall manufacturing efficiency. The objective of this pilot program is to promote smart factory technologies among manufacturers based in Singapore.
January 2023: Siemens Digital Industries Software opened eXplore Live at The Smart Factory @ Wichita, a Deloitte-led center demonstrating Industry 4.0. Located at Wichita State University's Innovation Campus, it featured a fully operational production line and labs for developing smart manufacturing innovations.
Industrial Sensors
Industrial Robots
Industrial 3D Printing
Machine Vision
SCADA
MES
Industrial Safety
PAM
Process Industry
Discrete Industry
Asia Pacific
China
Japan
India
Australia
South Korea
Indonesia
Thailand
Vietnam
Malaysia
Singapore
Rest of Asia-Pacific
| Report Attribute/Metric | Details |
| Market Size 2024 | USD 71.29 Billion |
| Market Size 2025 | USD 77.64 Billion |
| Market Size 2034 | USD 167.27 Billion |
| Compound Annual Growth Rate (CAGR) | 8.9% (2025-2034) |
| Base Year | 2024 |
| Market Forecast Period | 2025-2034 |
| Historical Data | 2020-2023 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Component, Solution, Industry, and Region |
| Region Covered | Asia Pacific |
| Countries Covered | China, Japan, India, Australia, South Korea, Indonesia, Thailand, Vietnam, Malaysia, Singapore, and Rest of Asia-Pacific |
| Key Companies Profiled | ABB Ltd. (Switzerland), Endress+ Hauser AG (Switzerland), Emerson Electric Co. (US), General Electric Company (US), Rockwell Automation Inc, Inc. (US), Schneider Electric SE (France), Siemens AG (Germany), Mitsubishi Electric Corp. (Japan), Honeywell International Inc. (US), and Yokogawa Electric Corp. (Japan). |
| Key Market Opportunities | Automated supply chain management to reduce costs and increase efficiency. |
| Key Market Dynamics | Rising demand for predictive maintenance solutions. Emphasis on cost reduction and integration of IoT devices for real-time monitoring. |
Frequently Asked Questions (FAQ) :
The Asia Pacific smart factory market size was valued at USD 71.29 Billion in 2024.
The market is projected to grow at a CAGR of 8.9% during the forecast period, 2025-2034.
The key players in the market are ABB Ltd. (Switzerland), Endress+ Hauser AG (Switzerland), Emerson Electric Co. (US), General Electric Company (US), Rockwell Automation Inc. (US), Schneider Electric SE (France), Siemens AG (Germany), Mitsubishi Electric Corp. (Japan), Honeywell International Inc. (US), and Yokogawa Electric Corp. (Japan).
The industrial sensors category dominated the market in 2023.
The MES category had the largest share of the market.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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