Insights

Why 56% of Manufacturers Are Piloting Smart Factories — and Only 20% Have Scaled

The journey from piloting smart factories to scaling them across operations remains a significant hurdle for the manufacturing sector. According to Rockwell Automation’s 2025 Industry Outlook, 56% of manufacturers are currently running pilot smart factory projects, but only 20% have achieved enterprise-wide scale. 

This gap highlights the challenges that often stall Industry 4.0 adoption. Pilots typically focus on isolated improvements, such as predictive maintenance or automated quality inspection, without integrating these initiatives into a cohesive, end-to-end smart factory ecosystem. Fragmentation leads to siloed data and inconsistent results, preventing manufacturers from realizing broader efficiency and innovation benefits. 

The same study shows that 81% of manufacturers cite obstacles like technological complexity, unclear ROI, workforce skills gaps, and organizational resistance as key transformation barriers. Moreover, cultural challenges—such as change fatigue and lack of executive sponsorship—further impede scaling efforts. 

Addressing these challenges requires manufacturers to rethink their approach. A phased scaling strategy that starts with well-defined use cases, clear KPIs, and cross-functional teams can build momentum. For example, beginning with a high-impact production line pilot, measuring outcomes, and iteratively expanding helps reduce risk and build internal capabilities. 

Technology choices also matter. Open architecture platforms that facilitate seamless integration and data sharing across legacy and new systems increase scalability. Cloud-based platforms offer flexibility and faster deployment, enabling manufacturers to scale smart solutions geographically or functionally. 

Finally, leadership commitment to digital transformation and investment in workforce upskilling are critical. Without aligned culture and capabilities, even the most advanced technologies will struggle to achieve scale. 

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