Europe Smart Factory Market worth $45.60 billion by 2032
The report "Europe Smart Factory Market by Component (Industrial Sensors, Industrial Robots, Industrial 3D Printing, Machine Vision Systems), Solution (SCADA, Manufacturing Execution Systems (MES), Plant Asset Management, Industrial Safety) - Forecast to 2032", The Europe smart factory market is expected to grow from USD 24.13 billion in 2025 to USD 45.60 billion by 2032, at a CAGR of 9.5% from 2025 to 2032. The Europe smart factory market offers strong opportunities as manufacturers in the region invest more in automation, digital transformation, and connected production systems. The growing adoption of industrial AI, edge computing, robotics, and IIoT platforms is driving demand for integrated hardware and software solutions across both discrete and process industries. Upgrading old factories, a stronger focus on energy efficiency and sustainability, and tougher regulations are opening new avenues for smart manufacturing technologies. Additionally, the merging of IT and OT systems and the rising adoption among small and mid-sized manufacturers are expanding market opportunities for solution providers across Europe.
Browse 180 market data Tables and 60 Figures spread through 290 Pages and in-depth TOC on "Europe Smart Factory Market by Component (Industrial Sensors, Industrial Robots, Industrial 3D Printing, Machine Vision Systems), Solution (SCADA, Manufacturing Execution Systems (MES), Plant Asset Management, Industrial Safety) - Forecast to 2032"
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The MES segment dominated Europe smart factory market in 2024.
By solution, the manufacturing execution system (MES) segment led the Europe smart factory market in 2024. This is due to its crucial role in linking shop-floor operations with enterprise-level systems. MES platforms are widely used in European manufacturing facilities to improve production visibility, quality control, traceability, and regulatory compliance. Strong adoption in automotive, food & beverages, pharmaceuticals, and chemicals has strengthened MES' leadership, especially as manufacturers upgrade older plants. The capability of MES solutions to support real-time monitoring, standardized workflows, and data-driven decision-making keeps them at the forefront in Europe.
Process industries to hold the largest market share in 2025.
By industry, process industries are expected to account for the largest share of the Europe smart factory market in 2025. Ongoing investments in automation across chemicals, energy, oil & gas, pharmaceuticals, and food processing fuel this growth. These industries depend on continuous operations and have strict safety and regulatory requirements, which increases demand for control systems, SCADA, asset management, and analytics solutions. Smart factory technologies help process manufacturers boost reliability, cut downtime, and optimize energy use. Continuous digital upgrades and sustainability efforts are further promoting smart factory adoption in Europe’s process industries.
Germany to dominate Europe smart factory market throughout forecast period.
Germany is expected to exhibit the fastest growth rate and hold the largest share of the smart factory market in Europe. This growth is backed by its strong manufacturing base and early use of modern automation technologies. Manufacturers in the automotive, machinery, and electronics sectors are investing heavily in robotics, industrial software, and connected production systems to improve efficiency and production flexibility. Ongoing modernization of older factories and the expansion of high-precision manufacturing are accelerating adoption. Additionally, Germany has a well-developed automation ecosystem, strong engineering skills, and a skilled workforce, all of which support the widespread adoption of smart factory solutions across the country.
Key Players
Key companies operating in the Europe smart factory market include Siemens AG (Germany), Schneider Electric (France), ABB (Switzerland), Emerson Electric Co. (US), Rockwell Automation Inc. (US), GE Vernova (US), Honeywell International Inc. (US), Mitsubishi Electric Corporation (Japan), Endress+Hauser Group Services AG (Switzerland), Yokogawa Electric Corporation (Japan), among others.
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