Smart Manufacturing Industry Is Expanding at 9.53% CAGR Through 2032

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16 Sep 2024

Table of Content

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:

Report Highlights:

• By technology, During the forecast period, the 3D printing segment is predicted to be the largest owing to the increasing adoption of rapid product cycles and the design process. 3D printing is driving automation in the manufacturing sector. 3D printers will provide manufacturers with the capacity to manufacture innovative products at a low cost.
• By Component, the software segment is expected to expand at a robust growth rate during the forecast period. The software component has become the backbone of the industry. The software helps in running drones, robots, and other machines, reducing the chance of error.
• By End-Use, the automotive industry segment is projected to register a considerable CAGR during the forecast period owing to the introduction of self-driving cars and advanced driver support technologies. Smart technologies such as Industry 4.0, the Industrial Internet of Things (IIoT), and other emerging technologies are projected to boost the automotive sector significantly.

Regional Snapshot:

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.

Market Dynamics:

Drivers:

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.

Restraint:

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.

Opportunities

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.

Recent Developments: 

• In June 2021, Rockwell Automation, Inc., one of the largest companies dedicated to industrial automation and digital transformation, announced the acquisition of Plex Systems, the pioneer in leading cloud-native smart manufacturing platform for USD 2.22 billion in cash in order to expand industrial cloud software offering.
• In July 2020, ABB India has launched a new robotics center to help India's digital industrial transformation. The new ABB Robotics solutions delivery facility will allow Indian customers to realize the benefits of Industry 4.0, including cutting-edge robotics and digitalization technologies, and will play a key role in assisting India in becoming the world's most resilient high-tech manufacturing economy.
• In December 2021, LG Energy Solution, a pioneer in global battery making announced its collaboration with Siemens Aktiengesellschaft (Siemens AG), a German-based technology company for the advancement in the field of battery manufacturing, especially the digitization of the production process.
• In February 2021, FANUC and Rockwell Automation created an alliance to launch accelerated work and learn apprenticeship programs to prepare current and future employees for positions in advanced manufacturing, robotics, and automation. The projects are intended to aid in the development of a skilled labor pipeline.

Major Key Players:

• Emerson Electric Co.
• ABB Ltd.
• Fanuc Corporation
• Honeywell International, Inc.
• General Electric Co.
• Mitsubishi Electric Corporation
• Rockwell Automation, Inc.
• Robert Bosch GmbH
• Schneider Electric SE
• Yokogawa Electric Corporation
• Siemens AG

Market Segmentation:

By Technology

• Programmable Logic Controller
• Machine Execution Systems
• Enterprise Resource Planning
• Discrete Control Systems
• SCADA
• Human Machine Interface
• 3D Printing
• Machine Vision
• Plant Asset Management
• Product Lifecycle Management

By Component

• Software
• Hardware
• Services

By End-Use

• Aerospace & Defense
• Automotive
• Chemicals & Materials
• Industrial Equipment
• Healthcare
• Electronics
• Oil & Gas
• Food & Agriculture
• Others

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