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Smart Manufacturing 2025

Trends Shaping the Digital-First Era and Beyond

We asked 500 CPQ, PLM, and engineering modeling or simulation software professionals about their 2025 priorities, challenges, and expectations for the future. Download our report to see what they said.

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. Data security and software platform integration are top challenges, along with keeping up with rapid technological advancements, managing automation costs, and addressing AI energy consumption.

Reshaping the Manufacturing Landscape with Industry 5.0

Technological advancements like AI, advanced robotics, IoT, and Industry 5.0 are reshaping the manufacturing landscape, boosting productivity, and reducing costs. This transformation enhances supply chain transparency, creates tech-driven job roles, and fosters a connected, sustainable future.

By 2050, AI (28%) and Industry 5.0 technologies (24%) are expected to have significant impacts on manufacturing.

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© 2025