In the tide of the global entering into the era of the digital economy, digital innovation and transformation of the manufacturing industry has become a popular trend, which has become a key development trend to drive the global manufacturing industry to leap forward. Against this background, this paper utilizes the E-G index to accurately calculate the aggregation degree of 18 manufacturing industries in China from 2010 to 2023 and examines the trend of the aggregation degree of China’s manufacturing industry in the past 14 years. China’s macro time-series data is used to examine how each factor affects industrial agglomeration using a panel data regression model. It is found that the overall level of manufacturing aggregation in China has been on an upward trend over the period 2010-2023. Among them, technology intensity (0.00051), number of enterprises (0.95), regional consumer demand (0.13), and average enterprise size (1.05) have positive effects on the increase of industrial agglomeration, while local protectionism (-0.01) and openness to the outside world (-0.01) have negative effects on the increase of industrial agglomeration.