Market Overview
The Latin America smart manufacturing market reached USD 25.10 Billion in 2024 and is expected to grow to USD 59.90 Billion by 2033. This growth reflects a CAGR of 9.10% during the forecast period from 2025 to 2033. The expanding adoption of artificial intelligence (AI), increased collaborations with global tech providers, and rising investments in advanced smart factory infrastructure are key drivers accelerating market growth.
Study Assumption Years
- Base Year: 2024
- Historical Year/Period: 2019-2024
- Forecast Year/Period: 2025-2033
Latin America Smart Manufacturing Market Key Takeaways
- Current Market Size: USD 25.10 Billion in 2024
- CAGR: 9.10%
- Forecast Period: 2025-2033
- Adoption of AI enhances efficiency, predictive maintenance, and quality control in Latin American manufacturing.
- Local companies are collaborating with global technology firms focusing on automation, AI, robotics, and IoT.
- Increased investment in IoT devices, robotics, and automated production lines is driving smart factory development.
- The Brazilian multinational Jacto deployed a 5G smart factory encompassing advanced automation and training facilities.
- Important sectors include automotive, aerospace and defense, chemicals and materials, healthcare, industrial equipment, electronics, food and agriculture, and oil and gas.
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Market Growth Factors
Growing Adoption of Artificial Intelligence (AI)
Artificial intelligence drives and factors into the region’s smart manufacturing market growth. In September 2024, Chile’s National Center for Artificial Intelligence (CENIA) and the Economic Commission for Latin America and the Caribbean (ECLAC) reported about it. They ranked Chile first within 19 Latin American countries. Chile scored 73.07 of 100. Brazil scored 69.30. Uruguay scored 64.98 among 100. In manufacturing, AI can maintain equipment with predictions that prevent failure, detect defects for quality products, and forecast demand for increased product demands. The Latin American region is likely to witness a continued increase in artificial intelligence usage.
Collaboration with Global Technology Providers
Local companies form partnerships with international tech companies. These tech companies focus on automation AI robotics and Internet of Things (IoT). This allows Latin American factories to implement the best solutions. These factories do not have to invest in research and development of their own solutions. Critical Manufacturing continued to operate within Mexico in 2023, covering advanced MES solutions for global multi-site operations. These solutions let sites rapidly adopt smart manufacturing technologies plus they support industrial modernization along with global competitiveness.
Increasing Investment in Smart Factory Infrastructure
Manufacturers invest a lot into IoT-enabled devices, automated production lines and advanced robots to increase productivity, and use connected devices to monitor KPIs, reduce inefficiencies, and make real-time decisions. Upgraded infrastructure leads also to reduced operating costs and greater flexibility. In 2023, Jacto installed the first industrial private wireless 4.9G/LTE and 5G network in Latin America for agricultural machines, including a Jacto automated painting system, a self-driving vehicle management system, an automated storage system and a training center in its manufacturing unit in Pompeia, Brazil, to improve its digital connectivity, enabling the development of Brazilian manufacturing.
Market Segmentation
Component Insights:
- Hardware: Physical devices and equipment used in smart manufacturing systems.
- Software: Programs and applications facilitating smart manufacturing processes.
- Services: Support functions including consulting, implementation, and maintenance.
Technology Insights:
- Machine Execution Systems: Software for managing production processes.
- Programmable Logic Controller: Hardware controlling automation operations.
- Enterprise Resource Planning: Systems integrating core business processes.
- SCADA: Supervisory control and data acquisition systems for process control.
- Discrete Control Systems: Digital controllers for manufacturing equipment.
- Human Machine Interface: Interfaces allowing operator interaction with machines.
- Machine Vision: Technology to automate inspection and quality control.
- 3D Printing: Additive manufacturing technology producing objects layer by layer.
- Product Lifecycle Management: Systems managing product data and processes.
- Plant Asset Management: Managing physical assets of manufacturing plants.
End Use Insights:
- Automotive: Manufacturing related to vehicle production.
- Aerospace and Defense: Manufacturing for aircraft and defense equipment.
- Chemicals and Materials: Production of chemical products and raw materials.
- Healthcare: Manufacturing of medical products and devices.
- Industrial Equipment: Production of machinery and industrial tools.
- Electronics: Manufacturing of electronic devices and components.
- Food and Agriculture: Processing and production in the food and agriculture sectors.
- Oil and Gas: Equipment and infrastructure manufacturing for energy extraction.
- Others: Additional sectors not specifically listed.
Regional Insights
Brazil is highlighted prominently in the report as a leading country with smart manufacturing initiatives such as the 5G smart factory deployed by Jacto in Pompeia, Sao Paulo. Other regional markets analyzed include Mexico, Argentina, Colombia, Chile, Peru, and others. The report indicates Brazil’s role in advancing smart manufacturing infrastructure, digital adoption, and industrial modernization in Latin America, playing a critical role in driving regional growth.
Recent Developments & News
In December 2024, Petrobras inaugurated LABi3D at its CENPES research facility in Rio de Janeiro focused on polymeric 3D printing for the oil and gas sector. Backed by Siemens and Formlabs, it aims to enhance Petrobras’s production and logistics. In November 2024, the China-CELAC Forum celebrated its 10th anniversary, highlighting cooperation advancements in aerospace, healthcare, agriculture, green energy, and smart manufacturing between China and Latin America. These initiatives include satellite creation and renewable energy development.
Key Players
- Critical Manufacturing
- Petrobras
- Siemens
- Formlabs
- Nokia
- Jacto
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IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provides a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.
