Smart Factory Report 2025: Innovations & Market Data

The 2025 Smart Factory Report highlights how technologies like AI, IoT, robotics, and data analytics are improving manufacturing for efficiency, flexibility, and sustainability. It explores key trends such as robotics, edge computing, and sustainable manufacturing that enable real-time monitoring and optimization. The report also provides insights into major players, startups, and market data, offering a detailed view of the market’s trajectory and growth opportunities.

This report was last updated in January 2025.

Executive Summary: Smart Factory Industry Report 2025

• Industry Growth Overview: The global smart factory market size is exhibited at USD 155.62 billion in 2024 and is predicted to surpass around USD 386.36 billion by 2034, growing at a compound annual growth rate (CAGR) of 9.52% from 2024 to 2034. On a granular level, the smart factory sector has experienced an annual growth rate of 28.51% over the past year as per the Discovery platform’s latest data.
• Manpower & Employment Growth: The industry employs over 187K workers, with 10K+ new employees added in the last year.
• Patents & Grants: The sector holds over 63 440+ patents. The industry has received 80 grants and the patent growth rate is 3.08% yearly.
• Global Footprint: Major hubs for the industry include South Korea, China, Germany, the United States, and India. The database tracks over 1680+ companies globally. Leading city hubs for innovation are Seoul, Shenzhen, Singapore, Bangalore, and Pune.
• Investment Landscape: The funding landscape reveals over 680+ funding rounds with an average investment value of USD 49 million per round. More than 550 investors are actively involved.
• Top Investors: The combined total investment value from Bank of China Group, IDG Capital, SVOLT, and more investors is over USD 1087.40 million.
• Startup Ecosystem: Five innovative startups include Dareto (digital twin platform), Smart Factory (IoT devices for water metering), FactoryPlus (cloud-based factory management), Mobilio (autonomous safety vehicles), and Sensio (AI-based industrial management).

Methodology: How We Created This Smart Factory Report

This report is based on proprietary data from our AI-powered Startus Insights Discovery Platform, which tracks 25 million companies and 20 000 technologies and trends globally, including detailed insights on approximately 5 million startups, scaleups, and tech companies. Leveraging this extensive database, we provide actionable insights on emerging technologies and market trends.

For this report, we focused on the evolution of smart factories over the past 5 years, utilizing our platform’s trend intelligence feature. Key data points analyzed include:

• Total Companies working on the trend
• News Coverage and Annual Growth
• Market Maturity and Patents
• Global Search Volume & Growth
• Funding Activity and Top Countries
• Subtrends within the smart factory

Our data is refreshed regularly, enabling trend comparisons for deeper insights into their relative impact and importance.

Additionally, we reviewed external resources to supplement our findings with broader market data and predictions, ensuring a reliable and comprehensive overview of the smart factory market.

What Data is Used to Create This Smart Factory Industry Report?

Based on the data provided by our Discovery Platform, we observe that the smart factory industry ranks among the top 5% in the following categories relative to all 20K topics in our database.

These categories provide a comprehensive overview of the industry’s key metrics and inform the short-term future direction of the sector.

• News Coverage & Publications: The industry recorded over 2400+ publications in news coverage and academic literature last year.
• Funding Rounds: Our database contains data on more than 680 funding rounds.
• Manpower: The smart factory market comprises over 187K workers, with 10K+ new employees in the last year.
  Patents: The sector holds 63 400+ patents.
• Grants: A total of 80 grants are received which support various initiatives for improving smart factory capabilities.
• Yearly Global Search Growth: The industry experienced a yearly global search growth of 20.18%.

Explore the Data-driven Smart Factory Report for 2025

According to Precedence Research, the global smart factory market size is exhibited at USD 155.62 billion in 2024 and is predicted to surpass around USD 386.36 billion by 2034, growing at a CAGR of 9.52% from 2024 to 2034.

The Smart Factory Industry Report 2025 uses data from the Discovery Platform and encapsulates the key metrics that underline the sector’s dynamic growth and innovation.

Our database contains 470+ startups and over 1680+ companies, indicating a vibrant ecosystem. Over the past year, the industry experienced a growth rate of 28.51%.

Credit: Precedence Research

According to Markets and Markets Report, the global smart factory market size is expected to grow from USD 100.6 billion in 2024 to USD 164.0 billion by 2029, registering a CAGR of 10.3%.

Additionally, the sector holds more than 63 440 patents and has received 80 grants. The global workforce stands at 187K+, with an employee increase of 10K+ in the last year.

Another analysis suggests that the global smart factory market is projected to grow to USD 112.56 billion in 2025, eventually reaching USD 234.36 billion by 2033, with a compound annual growth rate (CAGR) of 9.6%.

Key hubs for this industry consist of South Korea, China, Germany, the United States, and India. Notable city hubs include Seoul, Shenzhen, Singapore, Bangalore, and Pune.

Moreover, the Asia Pacific smart factory market size is estimated at USD 54.47 billion in 2024 and is expected to be worth around USD 137.16 billion by 2034, rising at a CAGR of 9.66% from 2024 to 2034.

A Snapshot of the Global Smart Factory Industry

The smart factory industry exhibits metrics that illustrate how dynamic it is. With an annual growth rate of 28.51%, the industry landscape is booming. Of the 470+ startups in the database, more than 85 are classified as early-stage.

Further, the market is actively consolidating and cooperating, as seen by the more than 60 mergers and acquisitions. Regarding intellectual property, the industry has more than 63 440 patents and more than 15 520 applications.

The 3.08% annual patent growth rate indicates continued innovation and advancement. The top two patent issuers, China with 22 270+ and the USA with 13 900+ highlight the contributions to the development of smart industrial technologies.

Explore the Funding Landscape of the Smart Factory Industry

The average investment value per funding round is USD 49 million which indicates major financial commitment to this sector. More than 550 investors actively participate in this market. Over 680+ funding rounds have closed and 180+ companies have received investments.

Who is Investing in Smart Factory?

The smart factory industry attracts investment with the top investors collectively contributing over USD 1087.40 million.

• Bank of China Group has invested 131.3 million in at least 1 company. Saudi Arabia’s public investment fund (PIF) signed USD 50 billion MoUs with six major Chinese financial institutions, including BoC.
• IDG Capital has allocated 124.7 million to 2 companies. IDG Capital led a USD 7 million seed round for Nodepay, an AI platform using unused bandwidth for AI training.
• SVOLT has invested 122.9 million in at least 1 company. SVOLT secured approximately USD 942 million in a B+ funding round.
• BOCG Investment has invested 122.9 million in at least 1 company. BoCG Ventures and EXIM Finance launched a USD 250 million joint venture to transform the UAE seafood industry.
• BOC Investment has invested 122.9 million in at least 1 company.
• Fosun Pharmaceutical has contributed 108.4 million to at least 1 company. Fosun International plans a USD 1.71 billion buyout of Shanghai Henlius Biotech to consolidate biopharma assets.
• STIC Investment has invested 95.7 million in at least 1 company. STIC Investments invested USD 282.8 billion in the financial sector via its 3rd opportunity fund.
• CCB International has contributed 87 million to 2 companies.
• State Development and Investment has invested 85.8 million in at least 1 company
• CMG SDIC has invested 85.8 million in 2 companies. CMG partnered with Spain’s La Liga to broadcast two matches per round in China for the 2024-25 season to improve Spanish football’s presence in the Chinese market.

Moreover, the automotive industry is a major adopter of smart factory solutions as they use robotics and automation to streamline production and improve vehicle quality.

Top Smart Factory Innovations & Trends

Explore the major trends in the smart factory industry are highlighted by firmographic data that shows their workforce dynamics and growth.

• Edge Computing, with more than 41K businesses identified, has become a prominent trend. It employs about 2.8 million people, with 233K recruits in the last year. With an annual growth rate of 12.58%, edge computing is expected to continue on a steady upward trajectory as businesses look to improve their data processing capabilities.
• Robotics, with almost 1480 businesses identified, employs over 85K people, with 7K new hires in the last year. With a yearly growth rate of 9.92%, robotics continues to rise as automation and production efficiency drive its expansion.
• Sustainable Manufacturing, with more than 2640 businesses recognized, has become a critical trend in the context of smart factories. It employs about 258K people, with 14K recruits in the last year. Growing at an annual rate of 3.28%, sustainable manufacturing continues to gain traction in resource optimization and eco-friendly practices.

5 Top Examples from 450+ Innovative Smart Factory Startups

The five innovative startups showcased below are picked based on data including the trend they operate within and their relevance, founding year, funding status, and more. Book a demo to find promising startups, emerging trends, or industry data specific to your company’s needs and objectives.

Dareto delivers Digital Twin Platform

Dareto is a German startup that improves manufacturing with its Dareto Device Bridge platform, which links the physical shop floor to digital cloud applications.

This platform provides a central management layer for devices, applications, and configurations. It enables secure access to edge-level data and maintains an up-to-date digital twin of connected devices.

Further, the digital twin automatically reflects infrastructure changes for detailed insights into devices and applications while facilitating cross-system analyses that drive process improvement.

Dareto’s platform supports over-the-air updates for continuous software improvements and employs zero-touch integration for easy device connectivity.

Smart Factory offers IoT Devices for Water Metering

Bulgarian startup Smart Factory manufactures IoT devices for water metering. It produces smart meters and electronic heads compatible with various hydraulic systems.

The startup’s products include the Smart Single Jet Water Meter Jeto and the Smart Ultrasonic Water Meter Jeto S. These devices feature built-in LPWAN communication modules that enable automatic wireless data transfer to utility accounts.

With a focus on quality, Smart Factory’s devices are MID and ‘Sigfox Ready’ certified for compliance with European standards.

FactoryPlus delivers Cloud-based Factory Management 

FactoryPlus is an Indian startup that simplifies factory management by offering a platform for MSME factories.

It allows factory owners and supervisors to manage production and inventory through a mobile app and web dashboard for real-time tracking of stock levels.

The platform features automatic data backup with cloud storage and encryption to protect user information. Its user-friendly interface enables even semi-skilled workers to navigate the app.

Further, this platform records user actions, which prevents theft and increases accountability. 

Mobilio specializes in Autonomous Safety Vehicle and Delivery Robot

Mobilio is a South Korean startup that offers industrial applications of quadruped robots that perform repetitive and hazardous tasks.

Its technology improves workplace safety by addressing physical and psychological factors that lead to accidents.

The startup’s solutions include delivery robots, quadruped robots, educational robots, LiDAR and measurement sensors, and AI-enabled CCTV systems.

These products replace traditional human supervision with efficient, technology-driven monitoring to prevent safety incidents.

Sensio advances AI-based Industrial Management

Brazilian startup Sensio offers an AI-powered ERP platform to optimize production and inventory management in sectors like food, textiles, and manufacturing.

The platform uses real-time data analysis and advanced AI algorithms to handle critical tasks like demand forecasting, inventory tracking, and production scheduling.

The startup allows companies to control stock levels by providing predictive insights and automating the flow of materials and finished goods.

It offers features such as a Kanban-style visual production order, automated inventory adjustments, and AI-driven recommendations for purchasing and restocking to reduce waste and minimize shortages.

Sensio’s cloud-based ERP system supports decision-making with customizable reports and a visual dashboard, allowing businesses to monitor performance metrics like order timelines, profit margins, and inventory health.

Gain Comprehensive Insights into Smart Factory Trends, Startups, or Technologies

In 2025, the smart factory landscape will experience both challenges and opportunities, primarily influenced by advancements in edge computing, robotics, and sustainable manufacturing. Although overall growth may be gradual, emerging trends promise major transformations within the industry. Investing in technology is essential to thrive in these changes to meet market demands and sustainability goals.

Get in touch to explore all 450+ startups and scaleups, as well as all industry trends impacting smart factory companies.