Europe Smart Factory Market

The Europe smart factory market is projected to grow from USD 24.13 billion in 2025 to USD 45.60 billion by 2032, growing at a CAGR of 9.5%. The Europe smart factory market is steadily increasing as manufacturers adopt automation, industrial AI, robotics, and digital factory platforms to improve operational efficiency. Growing investments in automotive, aerospace, electronics, and food and beverage manufacturing are driving this trend. The modernization of outdated facilities, along with a greater focus on energy efficiency, sustainability, and regulatory compliance, also helps expand the market in Europe.

Siemens AG (Germany), Schneider Electric (France), ABB (Switzerland), Emerson Electric Co. (US), and Rockwell Automation Inc. (US) are the key players in the Europe smart factory market. Market participants have diversified their offerings and expanded globally through strategic growth initiatives, including launching new products, collaborations, alliances, and partnerships.

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In December 2025, ABB acquired Gamesa Electric’s power electronics business in Spain from Siemens Gamesa. This move boosted its renewable power conversion range with wind converters, industrial battery energy storage (BESS), and solar inverters. It also expanded its serviceable industrial installed base and supported grid-integrated factory power solutions in Europe.

In October 2025, Siemens AG and Capgemini strengthened their partnership to develop AI-driven digital solutions for manufacturing. They are embedding artificial intelligence into production engineering, operations, and sustainability workflows across European industries.

Siemens

Siemens is a leader in the Europe smart factory market because of its substantial presence in manufacturing, automation, and industrial digitalization. The company offers a range of products, including industrial automation hardware, SCADA systems, programmable logic controllers (PLCs), manufacturing execution systems, industrial software, and digital twin solutions. Siemens plays a key role in Industry 4.0 projects across Europe, especially in the automotive, machinery, electronics, and process industries. By combining automation with data analytics, industrial AI, and edge computing, Siemens helps manufacturers improve productivity, flexibility, and asset performance. Europe is an important market for Siemens, with widespread use of its digital factory and smart infrastructure solutions in new and existing facilities. Ongoing investment in research and development, partnerships, and digital platforms further strengthens its leadership in Europe’s evolving smart manufacturing landscape.

ABB

ABB is a significant player in the Europe smart factory market, leveraging its strong regional presence and extensive knowledge in automation, electrification, robotics, and digital solutions. The company provides integrated products, including industrial control systems, robotics, SCADA systems, and asset management solutions, as well as energy-optimization technologies, for smart manufacturing. ABB assists European manufacturers in improving operational efficiency, reliability, and sustainability, particularly in the automotive, energy, metals, chemicals, and discrete manufacturing sectors. Its solutions support predictive maintenance, real-time monitoring, and flexible automation, catering to the needs of both modern and legacy factories. Europe is a key market for ABB, driven by high levels of automation and stringent sustainability regulations. Continuous innovation, system integration skills, and a focus on digital and low-carbon manufacturing enhance ABB’s competitive position in Europe’s smart factory landscape.

Market Ranking

The smart factory SCADA market in Europe is competitive. The top five players are Siemens AG, Schneider Electric, ABB, Emerson Electric Co., and Rockwell Automation Inc. These companies hold strong positions due to their wide range of SCADA offerings and strong ties with industrial control systems and digital automation platforms. Their solutions serve both discrete and process manufacturing industries. They enable real-time monitoring, control, and data-driven decision-making. A strong regional presence, long-term relationships with European manufacturers, and ongoing investments in software innovation, cybersecurity, and connectivity boost their market positions. Despite increased competition from local and niche vendors, these companies continue to influence the market through platform improvements, system integration expertise, and strategic partnerships as smart factory adoption grows across Europe.

Related Reports:

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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