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The smart manufacturing market size is estimated to grow by USD 29.21 billion at a CAGR of 16.83% between 2023 and 2028. The market is fueled by the imperative for simplifying complex manufacturing activities, driving the adoption of Industry 4.0 technologies. As industries seek to streamline operations and enhance efficiency, there's a growing emphasis on integrating advanced technologies to optimize processes. The increasing adoption of Industry 4.0 principles facilitates the convergence of digital and physical systems, enabling real-time monitoring, predictive maintenance, and data-driven decision-making. However, this transition is accompanied by challenges, particularly the increasing supply chain complexities inherent in globalized manufacturing environments. Addressing these challenges requires innovative solutions that leverage smart manufacturing technologies to enhance agility, resilience, and competitiveness across the supply chain, driving the market's evolution towards a more efficient and responsive manufacturing landscape.
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The global Smart Manufacturing market is witnessing significant growth due to automation, digital transformation, and the integration of advanced technologies such as Industrial 3D printing, Predictive maintenance, and Industrial sensors. These innovations are revolutionizing the Automobile industry, Aerospace industry, and the Information Technology industry, leading to increased productivity and improved quality control. Communication protocols and Interoperability are crucial elements in ensuring seamless integration of various systems and devices in a Smart Manufacturing environment. The Industrial Internet of Things (IIoT) and Cloud computing are driving the adoption of these advanced technologies, enabling real-time data collection, analysis, and actionable insights. The Workforce is also undergoing a digital transformation, with the increasing use of software and automation in production labs. The Pharmaceuticals sector and Electronics sector are also embracing Smart Manufacturing to enhance their operations and remain competitive in the global market. In conclusion, the Smart Manufacturing market is poised for continued growth, with significant opportunities in various sectors, including Automotive, Aerospace, Pharmaceuticals, and Electronics. The integration of advanced technologies, such as Industrial 3D printing, Predictive maintenance, and Industrial sensors, is transforming the manufacturing landscape and driving productivity and quality improvements. 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.
The need for simplification of complex manufacturing activities is notably driving market growth. In the context of industrial manufacturing, smart manufacturing has emerged as a key trend driven by digital transformation. Automation plays a crucial role in various sectors, including automotive, aerospace, pharmaceuticals, and electronics, to enhance productivity, ensure quality control, and facilitate predictive maintenance. Industrial automation tools like SCADA, DCS, and PLC enable real-time monitoring and control of complex processes. Smart manufacturing incorporates Industrial IoT (IIoT), cloud computing, and communication protocols for interoperability. Industrial sensors, software, and hardware form the backbone of this digitization, with discrete control systems and 3D printing playing essential roles. The aerospace industry, information technology industry, automobile industry, and consumer sector are major adopters of smart manufacturing, leveraging efficiency, IoT connections, and industrial analytics for supply chain optimization and modeling. However, challenges such as cyberattacks and workforce adaptation to new technologies persist. The construction sector is also exploring smart manufacturing to streamline processes and improve efficiency. Overall, smart manufacturing represents a significant shift towards digitization and optimization in industrial production. Thus, such factors are driving the growth of the market during the forecast period.
The emergence of IIoT is the key trend in the market. The market is experiencing significant growth due to automation and digital transformation in various sectors, including automotive, aerospace, pharmaceuticals, and electronics. Smart manufacturing enables increased productivity, quality control, predictive maintenance, and industrial 3D printing through the use of communication protocols, interoperability, IIoT, and cloud computing. Vendors offer services and control modules remotely via smart devices and Wi-Fi technology, allowing a single operator to manage multiple machines simultaneously. Key sectors, such as the aerospace industry, information technology industry, automobile industry, and production labs, benefit from software, hardware, and discrete control systems. Industrial analytics, modeling, sensing, control, simulation, and efficiency gains are driving the market, with IoT connections increasing in the consumer sector, particularly among smartphone users and the construction sector. However, cyberattacks pose a significant challenge to the market's growth. Thus, such trends will shape the growth of the market during the forecast period.
Data privacy and security concerns is the major challenge that affects the growth of the market. Smart manufacturing, driven by automation and digital transformation, is revolutionizing industries such as automotive, aerospace, pharmaceuticals, and electronics. Productivity and quality control are enhanced through predictive maintenance, industrial 3D printing, and communication protocols ensuring interoperability and IIoT integration. Industrial IoT, cloud computing, software, and hardware enable real-time data analysis and control in sectors like aerospace, automobile, and production labs. However, with increased connectivity comes cybersecurity risks. Data breaches and alteration in critical infrastructure sectors like oil and gas, power, and water and wastewater can lead to operational failures and unethical use of data. Cyberattacks on pipelines, drilling rigs, and refinery processes can halt production and compromise sensitive information in the information technology and automobile industries. Industrial sensors and IoT connections in the consumer sector, including smartphone users and construction, are also at risk. Cybersecurity is crucial to ensure efficiency and secure data in the era of digitization, cloud technology, and industrial analytics. Hence, the above factors will impede the growth of the market during the forecast period.
The market forecasting 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 market growth analysis strategies.
Customer Landscape
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.
ABB Ltd. - The company offers smart manufacturing soutions such as discrete manufacturing, cement manufacturing, and battery manufacuting.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
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.
The process segment showed a gradual increase in the market share of USD 9.05 billion in 2018. The market encompasses the implementation of automation and digital transformation in various industries, including automotive, aerospace, pharmaceuticals, electronics, and more. Process industries, such as chemicals, energy, and mining, hold a significant market share due to advanced hardware and the benefits of process manufacturing, including productivity, quality control, predictive maintenance, and industrial 3D printing. Industrial communication protocols and interoperability are crucial for the integration of Industrial IoT (IIoT), cloud computing, workforce training, and industrial sensors.
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The aerospace industry, information technology industry, and automobile industry are major adopters of smart manufacturing, utilizing software, hardware, and discrete control systems for simulation, modeling, sensing, control, and efficiency gains. The consumer sector, including smartphone users, and the construction sector are also embracing smart manufacturing for improved efficiency and quality. However, cyberattacks pose a significant challenge to the adoption and growth of the market. Hence, these factors are expected to boost the growth of the process industry segment of the market.
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APAC is estimated to contribute 40% 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 market in APAC is experiencing significant growth, driven by the implementation of Industry 4.0 technologies such as IoT, cloud computing, and automation in the industrial sector. Infrastructure limitations are being addressed through the adoption of these advanced technologies, enabling supply chain optimization and increased efficiency. Large corporations in sectors like aerospace and defense, as well as small scale industries, are investing in machine learning and artificial intelligence (AI) to enhance their manufacturing processes. The oil and gas industry, specifically in APAC, is expected to see increased demand for smart manufacturing solutions due to the commencement of new chemical and petrochemical projects.
For instance, Formosa Petrochemical Corp.'s Sunshine Project in Louisiana includes the construction of an ethane cracker and associated plants, which will utilize smart manufacturing technologies to optimize production. Additionally, the rise of autonomous vehicles is also expected to create new opportunities in the market. Additionally, the adoption of IoT, robotics, and wearables in manufacturing and the increasing demand for smart solutions like sensors and robots will further drive the regional market during the market forecast period.
The market report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
Smart Manufacturing is a transformative technology that is gaining significant traction in various industries. This technology integrates various advanced technologies such as Artificial Intelligence (AI), IoT (Internet of Things), and Big Data Analytics to optimize manufacturing processes. The market is expected to grow at an impressive rate due to the increasing demand for efficiency, productivity, and quality in manufacturing processes. The implementation of such systems enables real-time monitoring and control of manufacturing processes, leading to improved product quality and reduced downtime. Furthermore, these systems enable predictive maintenance, reducing the need for unscheduled maintenance and minimizing production disruptions.
Additionally, the market for Smart Manufacturing is driven by several factors, including the increasing adoption of Industry 4.0, the growing trend towards automation, and the need for customized and flexible manufacturing solutions. Additionally, the availability of government incentives and subsidies for the adoption of Smart Manufacturing systems is also expected to boost market growth. The future of manufacturing lies in the integration of advanced technologies to create intelligent and connected manufacturing systems. Smart Manufacturing is poised to revolutionize the manufacturing industry by providing real-time insights, enabling predictive maintenance, and optimizing production processes. The market is expected to continue its growth trajectory in the coming years, driven by the increasing demand for efficient and productive manufacturing solutions.
Further, in the market, the food and beverages sector embraces advanced technologies like real-time data analytics and Plant Asset Management (PAM) to enhance efficiency and productivity. With the integration of Production Lab and Discrete Control System, manufacturers optimize processes and ensure high-quality outputs. However, infrastructural limitations pose challenges, which are addressed through the implementation of a Machine Execution System (MES). Additionally, the adoption of Advanced Driver Assistance Systems further enhances safety and precision in manufacturing operations. As industries navigate towards smarter manufacturing practices, the synergy between these technologies drives innovation and competitiveness, revolutionizing production processes and laying the foundation for a more efficient and responsive manufacturing ecosystem.
Market Scope |
|
Report Coverage |
Details |
Page number |
182 |
Base year |
2023 |
Historic period |
2018- 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 16.83% |
Market growth 2024-2028 |
USD 29.21 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
14.01 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 40% |
Key countries |
US, China, UK, Germany, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Cisco Systems Inc., Dassault Systemes SE, Emerson Electric Co., FANUC Corp., General Electric Co., Hewlett Packard Enterprise Co., Honeywell International Inc., International Business Machines Corp., Microsoft Corp., Mitsubishi Electric Corp., Oracle Corp., PTC Inc., Robert Bosch GmbH, Rockwell Automation Inc., SAP SE, Schneider Electric SE, Siemens AG, Texas Instruments Inc., and Yokogawa Electric Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Industry Application
7 Market Segmentation by Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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