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Digital Solutions for Smarter Manufacturing

Smart Manufacturing 2025

Trends Shaping the Digital-First Era and Beyond

Download our report to learn why 64% of organizations surveyed are spending more on product lifecycle management (PLM) software than they did a year ago.

The future of manufacturing is crucial to the global economy, employing over 13.6% of the global workforce and contributing 16% to the global GDP. To understand the priorities and challenges of manufacturing organizations in 2025, we surveyed 500 CPQ, PLM, and engineering modeling or simulation software professionals in the US and Germany.

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New technologies, managing labor and skill shortages, and continuous innovation are top of mind for these professionals.

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Key Priorities for 2025 Include:

Adopting new

technologies
Developing new
products
Improving security
and data protection
Notably, 70% of manufacturing professionals report increased software budgets, and nearly all businesses plan to invest in Industrial IoT (IIoT) platforms, sustainable technologies, and cloud-based manufacturing in the coming year.

Addressing the Challenges Ahead

Over the next year and beyond, manufacturers will encounter skilled labor shortages, supply chain disruptions, and pressures for innovation and sustainability. Overcoming these hurdles requires a strategic approach that includes user-friendly platforms, robust data integration, and a clear return-on-investment (ROI). By addressing these challenges, organizations can unlock the full potential of PLM to streamline processes and drive innovation. 

Reshaping the Manufacturing Landscape with Industry 5.0

Industry 5.0 combines AI, IoT, big data, robotics, and automation, revolutionizing manufacturing with smart factories that optimize processes autonomously. This transformation enhances supply chain transparency, creates tech-driven job roles, and fosters a connected, sustainable future.

By 2050, engineering and manufacturing professionals think that advanced analytics (40%) within PLM software and cloud-based PLM solutions (39%) will have the greatest impact on their industry. About two in five businesses are already using these features of PLM software. 

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© 2025