Digital Manufacturing Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, Japan, China, Germany, UK - Size and Forecast 2024-2028

Digital Manufacturing Market Forecast 2024-2028 

The digital manufacturing market size is estimated to grow by USD 69.96 billion at a CAGR of 15.66% between 2023 and 2028. Digital Manufacturing is a transformative technology that streamlines and optimizes the manufacturing process through data-driven insights. Key offerings of digital manufacturing include real-time monitoring, predictive maintenance, and automated production, enhancing traceability and efficiency. Digital manufacturing serves as an essential link in manufacturing, connecting design, production, and supply chain management in a seamless workflow. Adoption of digital manufacturing brings numerous benefits, including reduced production costs, improved product quality, increased flexibility, and accelerated time-to-market. By leveraging digital manufacturing, organizations can gain a competitive edge, meet evolving customer demands, and drive innovation in their industries.

What will be the size of the Digital Manufacturing Market during the Forecast Period?

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Market Segmentation

By End-User

The market share growth by the aerospace and defense segment will be significant during the forecast period. The aerospace and defense industry is facing continuous developments due to rapid innovation in technology. The advent of digitalization has enabled industry 4.0, which has driven DM in the aerospace and defense industry, including original equipment manufacturers, to small suppliers. 

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The aerospace and defense segment was valued at USD 11.07 billion in 2018. The massive shift toward digital manufacturig by the aerospace and defense industry has made manufacturers more agile, leverage their data, produce on-demand, shorten discovery and prototyping times, and ultimately respond to the growing demand for new aircraft. Additionally, the adoption of digital manufacturing in the industry will also provide solutions to recruitment and retention challenges. These new systems will create greater demand for electrical and software engineers. Thus, digital manufacturing will lead to the enforcement of the skilled workforce in the aerospace industry, thereby offering productivity and product quality benefits through different processes involved in digital manufacturing, such as 3D printing. Therefore, such factors will drive the demand for digital manufacturing in the aerospace and defense industry during the forecast period.

Key Region

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North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

The digital manufacturing market in North America is expected to grow at a steady rate during the forecast period, mainly due to a rise in the adoption of advanced control processes. Additionally, the implementation of IoT and cloud platforms are further enhancing digital manufacturing in the region, which will drive market growth during the forecast period. 

The digital manufacturing market in the industrial sector in North America is expected to gain traction as the reshoring of manufacturing from overseas back to the US and Mexico is expected to take place during the forecast period. Another factor that will drive the market is the increased propensity of manufacturers in other markets to establish smart factories in North America, to ensure that they are closer to the end-user market and can undertake better customization of products as per end-user preferences.  Furthermore, the automotive industry is stabilizing in the US, and automotive OEMs are focusing on integrating new features in their EVs, which is increasing the demand for technologies such as AI that are providing flexibility to digital manufacturing in the automotive industry. 

Additionally, governments of countries such as the US and Canada are taking initiatives to increase the adoption of digital manufacturing and investing heavily in research and development (R&D) activities. For instance, in April 2020, the US Department of Energy (DOE) announced that it would invest USD 30 million in advanced research in machine learning (ML) and AI for scientific investigation and complex systems management. Therefore, these factors are expected to grow significantly during the forecast period. 

Market Dynamics and Customer Landscape

Digital manufacturing is the integration of computer systems and manufacturing services to optimize processes and improve the production of final products. Digital manufacturing technologies, including engineering design, servicing, and maintenance requirements, play a crucial role in this transformation. Product managers must consider the entire product life cycle, from design to servicing and disposal, to maximize value and customer satisfaction. The digital manufacturing market is driven by the adoption of smart factories, which leverage smart machines, sensors, and real-time feedback to streamline operations. Value chain management and production lines benefit from digital transformation, enabling efficient resource allocation and reducing downtime. Digital manufacturing technologies also facilitate product innovation by enabling faster prototyping and design iterations. Sourcing and supply chain management are also improved through digital technologies, ensuring timely delivery and quality. Operations technology and information technology work in harmony to optimize factory processes, providing a seamless flow of data and enabling predictive maintenance. The use of digital manufacturing technologies leads to increased efficiency, improved product quality, and enhanced customer satisfaction. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The benefits associated with the adoption of digital manufacturing are notably driving market growth. The adoption of DM (Data Management) is driving significant benefits in the market. These include ensuring the smooth flow of product and plant information during change processes without compromising consistency in product design, machining, and tooling information. Data Management also enables simultaneous viewing of 3D product information, aiding in the validation of robotics and automation programs. It accelerates the factory manufacturing process and facilitates the implementation of Six Sigma and other lean operation management techniques. The adoption of IoT, aerospace, artificial intelligence (AI), asset tracking, augmented reality, automation, and automotive technologies further enhances these benefits. Additionally, digital manufacturing provides real-time access to product lifecycle data, enhances standardization, and creates a safer and ergonomically designed plant environment for the workforce. These factors are expected to have a positive impact on the growth of the global DM market in the forecast period.

Significant Market Trend

Increased use of mobile digital manufacturing applications is a major trend in the market. One of the major trends in the digital manufacturing market is the increased focus on mobile applications. Some of the major DM-specific mobile applications and their manufacturers include Manufacturing 360 (the software includes demo videos, case studies, and blog posts; and helps in assembly manufacturing and part manufacturing), Tecnomatix 360 (the software includes demo videos, case studies, and blog posts; and helps in assembly manufacturing, planning and validation, plant design optimization, and manufacturing process management). 

Furthermore, PLM manufacturers, such as PTC, have applications such as Windchill mobile. These types of applications increase the mobility and ease of use of DM software from different locations. It is expected that most of the major players in the PLM industry will be providing DM-specific mobile applications during the forecast period, which in turn will drive the growth of the global DM market during the forecast period.

Major Market Challenge

The high cost of implementation and complexity of processes are major challenges impeding the market. The electronics industry is rapidly adopting and integrating modern technologies to increase operational efficiency and reduce overall development costs. DM has become an integral part of the overall design and development system, starting from product and process design to customer feedback. However, the high initial investment needed for infrastructure for DM and connectivity is posing a challenge to the companies.

The deployment of DM software is an expensive process, which involves defining a clear set of business requirements. The software implementation may take months or even years in some cases. This makes the entire process critical, as any single change can be extremely expensive for the end user after the system deployment. Moreover, the growing use of multiple technologies has increased the complexity of the implementation process. This, in turn, has increased the requirement for additional infrastructure, IT professionals, and extra finances to ensure efficient data integration.  Thus, the high cost of implementation and complexity of processes will negatively impact the growth of the global market during the market forecasting period.

Key Market Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Who are the Major Digital Manufacturing Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Autodesk Inc. - The company operates under one segment. The company under this segment offers customers with productive business solutions through powerful technology products and services. The key offerings of the company include digital manufacturing. 

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Aras Corp.
• AVEVA Group Plc
• Bentley Systems Inc.
• Capgemini Service SAS
• Cisco Systems Inc.
• Dassault Systemes SE
• DREAMZTECH SOLUTIONS INC.
• Durr AG
• Hewlett Packard Enterprise Co.
• Intel Corp.
• Microsoft Corp.
• Oracle Corp.
• PTC Inc.
• QAD Inc.
• SAP SE

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments

• End-user Outlook 
  • Aerospace and defense
  • Automotive
  • Electrical and electronics
  • Others

• Revenue Stream Outlook 
  • Software
  • Services

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

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Market Analyst Overview

Digital manufacturing is revolutionizing the way products are designed, produced, and serviced by integrating computer systems and manufacturing services. Digital manufacturing technologies, such as modelling and simulating processes, play a crucial role in manufacturing decision-making by providing real-time feedback and optimization capabilities. These technologies enable cost savings, faster time to market, and improved performance by streamlining manufacturing processes and reducing resources. Digital tools are transforming the manufacturing value chain, from design to final products, by providing smart factories with the ability to manage resources, maintenance requirements, and product innovation more effectively. Customer data and product managers can leverage these insights to enhance customer satisfaction and improve the service life of their products. Smart machines, sensors, and real-time feedback systems are essential components of digital manufacturing. They enable operations technology and information technology to work in harmony, allowing for better control, optimization, and performance. Digital transformation in manufacturing processes is leading to the integration of digital tools into production lines, enabling more efficient use of resources and reducing waste. In conclusion, digital manufacturing is a game-changer for the manufacturing industry, offering significant benefits in terms of cost savings, time to market, and improved performance. By leveraging digital tools and technologies, manufacturers can optimize their manufacturing processes, enhance customer satisfaction, and stay competitive in today's market.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market's competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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