Smart Machines Market - Size, Share, Industry Trends, and Forecasts (2025-2032)

By Component:

Based on the component, the market is trifurcated into hardware, software, and services.

Trends in the Component:

• Growing trend towards the adoption of services by businesses to extract valuable insights from the data generated by smart machines.
• Many companies are providing smart machine related software through the SaaS model.

Hardware accounted for the largest revenue share of 62.51% in 2024.

• Demand for advanced hardware components, fuelled by the complex needs of AI and machine learning, and is directly contributing to the growth of the smart machines market share.
• Additionally, the rise of edge computing necessitates increased hardware capabilities within individual devices.
• Moreover, the functionality of smart machines is dependent on sensors for environmental data acquisition, making advancements in sensor technology, such as improved accuracy and miniaturization, essential.
• For instance, in Oct 2021, ABB introduced the FusionAir Smart Sensor, a touch-free device designed to improve indoor air quality (IAQ). This sensor can monitor temperature, humidity, CO2, and VOCs, offering four sensing options to optimize room conditions and reduce the risk of viral exposure.
• Thus, as per the smart machines market analysis, the aforementioned factors are driving the hardware segment.

Software is predicted to register the fastest CAGR during the forecast period.

• The smart machines market share is expected to grow as businesses outsource smart machines to managed service providers, coupled with the development of AI and machine learning algorithms for data analysis.
• The proliferation of IoT devices requires robust software platforms for data management, device connectivity, and application development, hence driving the smart machines market size.
• The growing integration of smart machines into daily life is driving a heightened emphasis on the user interface and user experience of their software.
• Consequently, the aforementioned factors are driving the software segment growth during the forecast period.

By Machine:

Based on the machine, the market is classified into robots, autonomous cars, drones, wearable devices, and others.

Trends in the Machine:

• Development of AR/VR wearables for industrial applications, training, and entertainment.
• Growing adoption of AI-powered drone navigation to offer improved autonomous navigation and obstacle avoidance using AI and computer vision.

Robots accounted for the largest revenue share in 2024 and are also predicted to witness the fastest growth.

• The ability of robots to perform complex tasks while navigating dynamic environments, achieved by combining AMR mobility and robotic arm dexterity, is a significant smart machines market trend.
• The development of robots with modular components enhances flexibility and reduces the need for application-specific robots by enabling easy reconfiguration and adaptation to various tasks.
• Moreover, flexible material robots, designed to handle delicate objects and navigate confined spaces, are finding applications in food handling, healthcare, and exploration.
• Furthermore, the growing trend towards the adoption of cobot is further driving the smart machines market demand.
• For instance, in Nov 2024, Collaborative Robotics launched Proxie, a highly adaptable cobot designed for demanding material handling tasks.
• Thus, as per the smart machines market analysis, the aforementioned factors are driving the robots segment demand.

By Application:

Based on the application, the market is categorized into manufacturing, transportation & logistics, healthcare, consumer goods and retail, aerospace & defense, and others.

Trends in Application:

• Development and deployment of autonomous trucks, delivery robots, and drones for last-mile delivery.
• Growing trend towards the adoption of robotic surgical systems for minimally invasive procedures with enhanced precision and reduced recovery times.

Manufacturing accounted for the largest revenue share in 2024.

• Widespread adoption of smart factories with integrated automation, AI-powered predictive maintenance, and real-time data analytics is driving the market size.
• Increased use of cobots and autonomous robots for tasks like assembly, welding, and material handling.
• Moreover, the smart machines market growth is being bolstered by the creation of virtual replicas of manufacturing processes and equipment for simulation, optimization, and predictive maintenance.
• In conclusion, the aforementioned benefits are bolstering the smart machines market demand.

Consumer Goods and Retail are predicted to register the fastest CAGR during the forecast period.

• AI-driven vending machines are emerging, offering personalized recommendations, cashless payment options, and real-time inventory management.
• AI and computer vision are enabling checkout-free shopping experiences, alongside personalized shopping recommendations and targeted marketing.
• Use of AI and data analytics for demand forecasting, inventory management, and logistics optimization is also driving the smart machines market expansion.
• Furthermore, the development of smart machines to improve consumer experience by significantly accelerating crafting speeds, enabling faster production of personalized items like stationary is also driving the market trend.
• For instance, in Feb 2025, Cricut launched its Explore 4 and Maker 4 cutting machines, boasting double the cutting speed of previous models. This advancement significantly benefits paper crafters, allowing for faster production of projects like cards, gift tags, and intricate paper designs, thereby enhancing the crafting experience.
• In conclusion, the above-mentioned factors are contributing significantly in propelling the market growth.