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The paper is focused on identifying the main requirements for developing a CPPS demonstrator prototype. This research aims to categorize the main components and interactions within a new manufacturing system which are required to accommodate a CPPS. The proposed CPPS demonstrator also includes the preliminary requirements identified from the discussions with the regional industry, so that the prototype of the production system could be easily understood and also be the basis for further collaborations. The identified requirements were structured according to the top-down principle focusing on accomplishing the major objectives to be achieved through the prototype of the production system but also on the detailed concepts of the product and the production stations, thus preparing the choice for a concrete technical solution.