Cyber-physical Systems (CPS) Market in Manufacturing to Reach $119.4 Billion by 2032--Exclusive Report by Meticulous Research®

CPS Market Expected to Grow at a CAGR of 13.5% from 2025 to 2032

REDDING, Calif., March 18, 2025 /PRNewswire/ -- According to a new market research report titled, "Cyber-Physical Systems (CPS) Market in Manufacturing Size, Share, Forecast, & Trends Analysis by Product (Edge Computing, Sensors and Actuators, Cyber Security Solutions, Control and Monitoring Software), Services, Application (Smart Factory, Predictive Maintenance), End-user (Aerospace and Defense, Automotive) — Global Forecast to 2032," published by Meticulous Research®, the CPS market in manufacturing is expected to reach $119.4 billion by 2032, at a CAGR of 13.5% from 2025 to 2032.

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The Cyber-Physical Systems (CPS) market in manufacturing is experiencing significant growth, driven by key trends such as the rising adoption of Industry 4.0, the increasing need for real-time data processing, and the growing emphasis on predictive maintenance. Edge computing is emerging as a dominant segment due to its ability to enhance operational efficiency by enabling faster data analysis at the source. Additionally, the shift toward smart factories is accelerating as manufacturers integrate automation, artificial intelligence, and IoT to optimize production processes.

CPS Market in Manufacturing Segmentation Insights

The Cyber-Physical Systems (CPS) market in manufacturing is segmented by component, application, end-use industry, and geography.

By component, the CPS market is categorized into hardware, software, and services. The hardware segment holds the largest share due to the increasing deployment of sensors, actuators, and edge computing devices in smart manufacturing environments. However, the software segment is expected to grow at the highest CAGR, driven by the increasing demand for digital twin technology, predictive analytics, and cybersecurity solutions.

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By end-use industry, the automotive sector holds the largest share of the CPS market in manufacturing, primarily due to the growing integration of automation, robotics, and AI-driven quality control solutions. The electronics & semiconductor industry is expected to witness the fastest growth, fueled by the rising demand for smart devices, semiconductor manufacturing automation, and real-time monitoring solutions.

By application, the smart factory automation holds the largest market share of the overall CPS market in manufacturing. This is mainly attributed to manufacturers' increasing adoption of CPS to enhance automation, efficiency, and flexibility in production processes. Additionally, the predictive maintenance segment is expected to grow at the highest CAGR during the forecast period. This growth is driven by the rising implementation of CPS technologies that leverage AI and machine learning to predict equipment failures, thereby reducing maintenance costs and preventing unplanned outages.

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Geographically, North America accounts for the largest share of the global CPS market in manufacturing, driven by rapid adoption of Industry 4.0, increasing investments in smart factories, and the presence of key market players. However, Asia-Pacific region is expected to grow at the highest CAGR, with countries such as China, Japan, and South Korea leading the adoption of industrial automation and digital transformation initiatives.

The Cyber-Physical Systems (CPS) market in manufacturing is characterized by a highly competitive landscape, with leading players focusing on technological advancements, strategic partnerships, and product innovation to strengthen their market presence. Major companies operating in this space include Siemens AG, Rockwell Automation, General Electric, Schneider Electric, ABB Ltd., and Bosch Rexroth AG, among others. These players are actively investing in AI-driven automation, real-time monitoring solutions, and predictive maintenance technologies to enhance operational efficiency and meet the growing demand for smart manufacturing solutions.

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Scope of the Report:

CPS Market in Manufacturing Assessment—by Component

•         Product Type

o   Hardware Solutions

• Sensors and Actuators
• Embedded Systems
• Robotics and Automation Equipment
• Edge Computing Devices
• Other Solutions

o   Software Solutions

• Control and Monitoring Software
• Data Analytics and AI Software
• Cybersecurity Solutions

o   Services

• Consulting and System Integration Services
• Maintenance and Support Services
• Cloud-based Services
• Training and Education

CPS Market in Manufacturing Assessment—by Application

• Predictive Maintenance
• Smart Factory Automation
• Supply Chain Optimization
• Energy Management
• Quality Control and Inspection
• Human-Robot Collaboration (Cobots)
• Real-time Monitoring and Diagnostics

CPS Market in Manufacturing Assessment—by End-user

• Automotive Manufacturing
• Electronics and Semiconductors
• Aerospace and Defense
• Industrial Machinery
• Food and Beverages
• Pharmaceutical and Healthcare
• Consumer Goods
• Others

CPS Market in Manufacturing Assessment—by Geography

• North America
• U.S.
• Canada
• Europe
• Germany
• U.K.
• France
• Spain
• Italy
• Netherlands
• Rest of Europe
• Asia-Pacific
• China
• Japan
• India
• South Korea
• Australia
• Rest of Asia-Pacific
• Latin America
• Brazil
• Mexico
• Argentina
• RoLATAM
• Middle East & Africa
• Saudi Arabia
• South Africa
• UAE
• RoMEA

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