Digital Manufacturing Market by End-user, Revenue Stream, and Geography - Forecast and Analysis 2023-2027

Digital Manufacturing Market Forecast 2023-2027 

The digital manufacturing market is estimated to grow by USD 60.43 billion at a CAGR of 15.49% between 2022 and 2027. The market's expansion hinges on several factors, such as the increased adoption of data management (DM) to enhance traceability in manufacturing. DM plays a crucial role as a vital link in the manufacturing process, ensuring efficiency and accuracy. The benefits associated with DM adoption, including improved data organization and accessibility, further drive its growth. These factors collectively highlight DM's pivotal role in modern manufacturing environments, fostering greater efficiency and operational effectiveness.

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

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Market Segmentation

This report extensively covers market segmentation by end-user (aerospace and defense, automotive, electrical and electronics, and others), revenue stream (software and services), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

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 9.79 billion in 2017. The massive shift toward DM 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 DM 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, DM 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 DM, such as 3D printing. Therefore, such factors will drive the demand for DM 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 DM 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 DM in the region, which will drive market growth during the forecast period. 

The DM 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 DM in the automotive industry. 

Additionally, governments of countries such as the US and Canada are taking initiatives to increase the adoption of DM 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

The market is experiencing significant growth driven by various technological advancements and trends. The adoption of 5G technologies, IoT, and AI has revolutionized manufacturing processes, enhancing automation and asset tracking. 3D scanning and augmented reality are improving accuracy in project estimation and equipment usage monitoring. In industries like aerospace and automotive, digital manufacturing has led to improved efficiency and quality control. However, with these advancements come challenges, such as cybersecurity concerns and the need for confidentiality. Nonetheless, the digital transformation of manufacturing is expected to continue, driven by the benefits it offers in terms of cost savings, efficiency, and innovation. Our researchers analyzed the data with 2022 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 DM 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, DM 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 DM applications is a major trend in the market. One of the major trends in the DM 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 forecast 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 report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.

• 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

Market Analyst Overview

The market is experiencing significant growth driven by advancements in digital technology and the adoption of building information modeling (BIM) and Internet of Things (IoT) solutions. Manufacturers are increasingly using big data and connected devices to enhance safety management and equipment servicing. Drones are being deployed for inventory and site safety monitoring, while wearable technologies like smart helmets and sensors are improving worker safety. Edge computing and remote monitoring are optimizing manufacturing workflows, leading to a reduction in errors and waste. Despite challenges such as cyber-attacks and reputational damage, the market is poised for further growth with ongoing digitization efforts and government initiatives promoting smart advanced manufacturing.

The market is rapidly evolving, driven by a range of factors, including advancements in BIM software, CCTV cameras, and data collection technologies. These innovations are enhancing construction activities and industrial operations, improving safety and efficiency. The market is also benefiting from the increasing use of RFID tags for material handling and inventory management, as well as smart wearables like safety vests and wearable sensors for worker protection. Despite challenges such as delays and security threats, the market is witnessing growing awareness and government enforcement actions promoting occupational safety. As the industry embraces digital transformation, there's a significant focus on real-time data analytics and smart workflows to drive innovation and growth.

The market is experiencing significant growth, driven by various factors such as advancements in data collection and information technology systems. This is leading to improved workflow efficiencies and preventive maintenance strategies, reducing fatalities and injuries in the workplace. RFID monitoring and fleet management solutions are enhancing inventory and resource management, while robots are automating repetitive tasks and increasing productivity. Despite challenges like scaffold collapse and trench collapses, the industry is witnessing rapid transformation driven by initiatives like the Rapid Transformation Hub (SAMARTH). With a focus on worker safety and waste management, the digital manufacturing sector is poised for further innovation and development.

Market Scope
Report Coverage	Details
Page number	186
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 15.49%
Market growth 2023-2027	USD 60.43 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	14.27
Regional analysis	North America, Europe, APAC, Middle East and Africa, and South America
Performing market contribution	North America at 35%
Key countries	US, Japan, China, Germany, and UK
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	Aras Corp., Autodesk Inc., 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, Siemens AG, Tata Consultancy Services Ltd., TXT eSolutions Spa, and XenonStack
Market dynamics	Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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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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