The global smart manufacturing market is projected to grow at an impressive CAGR of 12% during the forecast period 2021 to 2027. The global smart manufacturing market size was valued at USD 200 Billion in 2020 and expected to reach USD 489.66 Billion by 2027.
The growth of market is driven by increasing demand for connected supply chains and knowledge-based manufacturing that are equipped with advanced modeling, sensing, control, and simulation capabilities. With the advent of Internet of Things (IoT) revolution, there has been significant transformation in the manufacturing sector in form of automation and digitization. Further, cloud technology, Industrial Internet of Things (IIoT), and industrial analytics anticipated to play an important role towards prosper growth of the market.
The industrial sector worldwide has been significantly impacted by numerous factors over the years that include uncertainties in supply chain, intense competition, and exponential operational costs. As a result, market players are actively searching a way that reduces cost and transform enterprises into efficient, accelerated, agile, and compliant with the product quality. Hence, smart industrial solutions estimated to boost the efficiency and productivity in years to come. As per GSMA intelligence report, the industrial IoT connections expected to reach around 13.8 Billion by the end of 2025 along with increase in number of IoT connections in the consumer sector. Growth in the number of IoT connections will stimulate the digitization and connectivity among enterprises. Moreover, different aspects of smart manufacturing predicted to offer additional benefits that include dynamic production and real-time optimization that in turn bolster the need for smart manufacturing at a rapid pace.
Some of the smart manufacturing technologies have been in use in the industries for quite some time; however, segments such as 3D printing have been gaining prominent traction in the recent times. Implementation of machine learning and Artificial Intelligence (AI) as an additive manufacturing technology, design aid, or 3D printing is shifting the manufacturing sector towards automation. Additionally, 3D printing segment projected to witness the fastest growth rate over the analysis period because of its escalating adoption in agile product iterations and design process.
On the contrary, Machine Execution System (MES) holds the leading market position in terms of revenue on account of rising demand for streamlined workflow along with reduced lead time. The application of MES offers strong ground for the manufacturers to implement the IoT in their manufacturing facilities. Rising demand for industrial automation along with growing importance of regulatory compliance is likely to drive the market growth. For example, Microsoft Corporation along with Google, IBM, and Amazon has become one of the prominent contributors of Industrial IoT offerings that provide PaaS + IaaS platform offerings for smart manufacturing vendors.
The aerospace & defense and automotive segments are estimated to be the prominent contributors towards the industry growth. The automotive segment led the market in 2019 and further anticipated to grow impressively over the forecast period. This is majorly due to the introduction of autonomous vehicles and other advanced driver assistance systems.
An unusual trend in the industry can be seen for the active adoption of smart manufacturing technologies at two different levels that are connected supply chains and connected products. Process manufacturer invests in the connected supply chain while discrete manufacturers invest significantly in connected products. Automotive leaders forecast that nearly 25% of their manufacturing sites will be transformed into smart factories over the upcoming timeframe. Hence, the rising level of awareness among automotive manufacturers pertaining to the implementation of smart manufacturing technologies to boot their production is likely to impel the market growth for automotive segment.
The Asia Pacific region hold the largest market share of around 37% in 2020 and is also predicted to hit as the fastest-growing region over the forecast period 2021 to 2027.
Every region is now investing predominantly in the smart manufacturing technologies, yet the level of maturity varies as per the region. Developed countries such as Germany, the U.S., and Japan have numerous on-going projects in support of the penetration of smart manufacturing or industrial IoT, whereas emerging countries for example China and India are struggling with the technological developments and advancements. For instance, in 2018, Alibaba cloud and Siemens form a partnership to bolster the adoption of industrial IoT in China. The partnership will offer innovative solutions for Chinese manufacturers to implement industrial IoT into their existing system.
Key Companies & Market Share Insights
The global smart manufacturing market is highly diverse and competitive in nature. This is predominantly because of rising penetration of large number of market players in the product offerings. Further, significant number of partnerships, collaborations, and joint ventures between end-use industry players and smart manufacturing solution providers is likely to impart high rate of competition in the global market.
Some of the prominent players in the smart manufacturing market include:
Scope of the Smart Manufacturing Market Report
|Market Size||USD 489.66 Billion by 2027|
|Growth Rate||CAGR of 12% From 2021 to 2027|
|Historic data||2017 to 2020|
|Forecast Period||2021 to 2027|
|Segments Covered||Technology, End Use, Region|
|Regional Scope||North America, APAC, Europe, Latin America, MEAN, Rest of the World|
|Companies Mentioned||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|
Segments Covered in the Report
This research study comprises complete assessment of the market by means of far-reaching qualitative and quantitative perceptions, and predictions regarding the market. This report delivers classification of marketplace into impending and niche sectors. Further, this research study calculates market size and its development drift at global, regional, and country from 2016 to 2027. This report contains market breakdown and its revenue estimation by classifying it on the basis of technology, component, end-use, and region:
By Regional Outlook
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