Published Date : 25 Apr 2023
The smart manufacturing industry size is expected to reach USD 332.26 billion by 2032, exhibiting a CAGR of 9.53% during the forecast period of 2023 to 2032, up from USD 129.74 billion in 2022.
The smart manufacturing industry growth is driven by favorable government initiatives for smart manufacturing, increasing surging demand for software systems to reduce time and cost, a rapid rise in industrialization in developing nations, and an increasing focus on industrial automation in manufacturing processes.
With the introduction of Industry 4.0 has changed the way of the manufacturing process. Smart manufacturing is generally referred to as the digitization of manufacturing at all levels Smart manufacturing uses advanced technologies to increase the efficiency of manufacturing processes. Manufacturers can remain flexible and make rapid adjustments to their company models. Artificial intelligence (AI) and Robotics play a vital role in the growth of smart manufacturing.
Artificial intelligence (AI) enables firms to implement next-generation automation into their workflows. Big Data analytics and automated controls save expenses while increasing production. It enables manufacturers to respond quickly and efficiently to changes on the manufacturing floor and across their value chain by merging data from IT systems and operational systems such as ERP systems and product lifecycle management. Machine learning-enabled self-monitoring minimizes downtime and maintenance costs. Real-time awareness of the status of manufacturing equipment and raw materials facilitates meeting changing customer demand and the development of new products and services.
Smart manufacturing is the integration of numerous technologies implemented in a manufacturing ecosystem to optimize manufacturing processes, such as connected robotics, the Industrial Internet of Things (IIoT), blockchain, condition monitoring cybersecurity, artificial intelligence (AI), and others into a manufacturing environment to enhance manufacturing processes. Thus, enhancement of the entire manufacturing process helps in increasing the overall profits. Smart manufacturing technologies also help in the identification of areas of concern, resulting in a network of connected production equipment that provides competence and lucrative operations.
Additionally, the industry has grown as a result growing demand for seamless supply chains and knowledge-based manufacturing with enhanced modeling, sensors, automation, and simulation capabilities. Furthermore, the rapid rise of Industry 4.0 and the Industrial Internet of Things (IIoT) has made the industry more accessible and it has enabled to turn of machines in the manufacturing industry into connected and smart forms.
Smart Manufacturing Industry Report Scope:
|Market Size in 2022||USD 129.74 Billion|
|Projected Forecast Value in 2032||USD 322.26 Billion|
|Growth Rate from 2023 to 2032||CAGR of 9.53%|
|Largest Market||Asia Pacific|
|Forecast Period||2023 to 2032|
|Regions Covered||North America, Europe, Asia-Pacific, Latin America and Middle East & Africa|
Asia Pacific industry has registered the largest industry share of more than 38% in 2022 owing to favorable government initiatives. Manufacturing has emerged as one of the fastest-growing industries in the region. Developing countries such as China and India have tremendous untapped opportunities in smart manufacturing and are aiming for automatization. Made in China 2025 initiative with the aim of enhancing the country's manufacturing capabilities.
The 'Make in India' initiative positions India on the global map as a manufacturing center and offers the Indian economy global respect. In addition, India's government aims to reach USD 5 trillion economy by 2025, of which the manufacturing sector is expected to be worth USD 1 trillion. On the other hand, Latin America is due to the increase expected to register a rapid CAGR during the forecast.
Increasing government support for smart manufacturing
Governments across the globe are becoming aware of the potential of smart manufacturing technologies. Governments are largely funding Research & Development for smart manufacturing technologies such as 3D printing, the Industrial Internet of Things (IIoT), and others. Several governments are focusing on innovation in the Industrial Internet of Things (IIoT) in order to become the potential consumer of the technology. The government is also investing in new IoT to develop smart cities in the coming years.
Advancements in digital technologies
In the modern era, digital transformation plays a crucial role in the manufacturing sector. Digitalization immensely supports smart manufacturing and digital engineering functions. Digital transformation helps with end-to-end visibility and real-time insights. Smart manufacturing is a combination of several technologies such as artificial intelligence (AI), cybersecurity, blockchain, the Industrial Internet of Things (IIoT), and others, that are integrated into a manufacturing ecosystem to optimize manufacturing processes. Robots with Artificial intelligence (AI) capabilities are implemented in several manufacturing ecosystems.
Intelligent robots on the factory floor are linked with implanted sensors to collect data and adapt their behavior accordingly. Smart manufacturing also includes digital twins, which include making a virtual copy of an asset, system, and process utilizing data from system and asset sensors as well as algorithms to produce data-based process forecasts.
High investment costs and cyber attacks
The high investment required in the implementation of smart manufacturing technologies is projected to hamper the growth of the industry. In addition, Cyber-attacks are likely to limit the expansion of the global smart manufacturing industry during the forecast period. The increasing dependence on advanced technologies and solutions has significantly exposed manufacturing businesses to cyber-attacks.
Rapid Industrialization in emerging economies
Businesses from emerging economies are expanding their operations due to low labor costs and less real estate prices. Increasing industrialization in emerging countries such as India, Indonesia, Brazil, China, and others has resulted in significant infrastructure investments, attracting multinational firms to establish manufacturing operations in these regions. Therefore, rising industrialization in developing nations around the world is projected to provide lucrative growth opportunities for the major players in the industry.
Major Key Players:
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