Smart Manufacturing Industry Overview
The global smart manufacturing market size was valued at USD 236.12 billion in 2020, and is estimated to reach USD 589.98 billion by 2028, registering a CAGR of 12.4% over the forecast period. The industry is focusing on integrating innovation and efficiency, as manufacturing processes are maturing at a rapid pace. The industry is set to adopt smart manufacturing practices across various domains. The need to increase productivity and enhance visualization of the entire system is the two major factors driving the market growth. Smart manufacturing has increased the adoption of digitization in various attributes of the entire supply chain of manufacturing companies. Major technological advancements have been witnessed in data analytics, predictive maintenance, and industrial networking. Numerous manufacturing units have adopted one or the other form of software systems. The systems are expected to be consolidated and streamlined over a single platform for providing real-time information and insights in the forthcoming years.
The proliferation of the Industrial Internet of Things (IIoT) is expected to create challenges in handling vast amounts of data and gaining actionable insights from the data. The stakeholders are likely to prefer self-learning systems and Artificial Intelligence (AI) technology to curb the challenges. However, with the growing dependency on data, the industry aims to secure connectivity and processes for preventing intentional and unintentional malfunctions. An important aspect of the industry is the need for convergence of different technologies such as artificial intelligence, smart sensors, the internet of things, robotics, and cloud computing. Digital manufacturing has created an opportunity to utilize integrated technologies for obtaining quantifiable results. The simulation, 3D printing, and networking technology advancements have made the market a promising investment center for technology builders and users.
Gather more insights about the market drivers, restrains and growth of the Global Smart Manufacturing Market
While established vendors are aggressively pushing their technology into newer roles and use cases, barriers to entry and commercialization for new entrants are reducing at a rapid rate. These conditions have led to increased competition among the vendors, thus, leading to the introduction of innovative business models as the prime byproducts. The buyers are experiencing a paradigm shift and are focusing on manufacturing-for-order than manufacturing-for-stocking. All these scenarios are expected to result in a complete restructuring of the manufacturing business models.
The stringent lockdowns imposed by several countries worldwide to avoid the communal spread of the novel coronavirus are being relaxed with strong restrictions and precautionary measures. The prominent smart manufacturing companies are adopting approaches such as leveraging IoT, analytics, and AI-based digital platforms to minimize the need for human interaction. Furthermore, the reduced activities in production lines due to social distancing norms are also being stabilized with the help of automation solutions, thereby reducing the involvement of laborers in the manufacturing processes.
Smart Manufacturing Market Segmentation
Based on the Component Insights, the market is segmented into Hardware, Software, and Services.
- The software segment accounted for the largest share of almost 50.0% in 2020 and is expected to continue its dominance over the forecast period.
- The hardware segment is anticipated to register a CAGR of over 11.0% from 2021 to 2028. The hardware segment includes IIoT-enabling systems and devices, robots, 3D printers, and augmented and virtual reality devices.
Based on the Technology Insights, the market is segmented into Machine Execution Systems, Programmable Logic Controller, Enterprise Resource Planning, SCADA, Discrete Control Systems, Human Machine Interface, Machine Vision, 3D Printing, Product Lifecycle Management, Plant Asset Management.
- The Distributed Control System (DCS) segment dominated the market in 2020 and accounted for over 16.0% of the revenue share. It is expected to retain its dominance over the forecast period.
- The 3D printing segment is expected to register the highest CAGR of over 15.0% from 2021 to 2028. The 3D printing technology assists in manufacturing complex components with controllable functional and physical properties at every point.
Based on the End-use Insights, the market is segmented into Automotive, Aerospace & Defense, Chemicals & Materials, Healthcare, Industrial Equipment, Electronics, Food & Agriculture, Oil & Gas, Others.
- The automotive industry accounted for the largest revenue share of around 23.0% in 2020 and is anticipated to register the highest CAGR from 2021 to 2028. The major factors contributing to the segment growth include benefits such as asset efficiency, cost savings, quality, and sustainability offered by the smart factory solutions.
- The aerospace and defense industry segment is anticipated to register a considerable CAGR of more than 13.0% from 2021 to 2028. The sector is expected to invest heavily in smart manufacturing solutions, focusing on product prototyping and supply chain visibility and optimization.
Based on the Smart Manufacturing Regional Insights, the market is segmented into North America, Europe, Asia Pacific, Latin America, and MEA.
- The Asia Pacific region accounted for the largest market share of almost 36.0% in 2020. The region is also expected to emerge as the fastest-growing region over the forecast period.
- The market for smart manufacturing in MEA is expected to register the highest CAGR of over 15.0% from 2021 to 2028.
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- Industrial Internet Of Things Market – The global industrial internet of things market size was valued at USD 216.13 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 22.8% from 2021 to 2028. The aggressive rate of IIoT adoption in line with the advances in technology and the easing availability of affordable sensors and processors, which can facilitate real-time access to information, is expected to drive the growth of the industrial internet of things (IIoT) market over the forecast period.
- Artificial Intelligence Market – The global artificial intelligence market size was valued at USD 93.5 billion in 2021 and is projected to expand at a compound annual growth rate (CAGR) of 38.1% from 2022 to 2030. The continuous research and innovation directed by the tech giants are driving the adoption of advanced technologies in industry verticals, such as automotive, healthcare, retail, finance, and manufacturing.
Market Share Insights:
- June 2021: Stratasys Ltd. announced two new PolyJet 3D printers, the Stratasys J35 Pro and the Stratasys J55 Prime, along with new software solutions for research and packaging prototyping. Also, it introduced a medical 3D printer that sets a new standard for healthcare providers and medical device companies by combining multiple applications in one system.
- February 2021: ABB launched a cobots portfolio in GoFa and SWIFTI cobot families. These cobots will offer higher payloads capacity and speed in movement of robots that will complement YuMi and Single Arm YuMi in ABB’s cobot lineup.
Key Companies Profile:
The market is highly competitive and is characterized by the presence of a large number of players from North America and Europe. Industry players are expected to indulge in expansion initiatives to gain regional market share and penetrate developing industries.
Some prominent players in the global smart manufacturing market include,
- General Electric
- Rockwell Automation, Inc.
- Schneider Electric
- Honeywell International Inc.
- Emerson Electric
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