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The smart manufacturing market size is forecast to increase by USD 20.27 billion at a CAGR of 13.95% between 2022 to 2027. 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 market research and growth report covers market forecast and is segmented into Industry Application (process and discrete), Technology (human-machine interface, manufacturing execution system, plant asset management, and warehouse management system), and Geography (APAC, North America, Europe, South America, and Middle East and Africa). The market size, historical market size (2017-2021), and forecasts are provided on the basis of value (USD million) for all the above segments.
The need for simplification of complex manufacturing activities is a key factor driving the 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 the automotive sector, aerospace sector, pharmaceuticals sector, and electronics sector, 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 the Industrial Internet of Things (IIoT), cloud technology, 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.
Moreover, the aerospace industry, information technology industry, automobile industry, and consumer sector are major adopters of smart manufacturing, leveraging efficiency, Internet of Things (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. In remote locations, managing assets is more challenging due to harsh conditions and connectivity issues. Industrial automation ensures optimal asset maintenance, which is expected to drive market growth.
Process Segment Is Accelerating Rapidly
The process segment showed a gradual increase in the market share of USD 8.53 billion in 2017 and continue to grow by 2021. 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. 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.
Market - Revenue Share by Process Segment, 2017-2027
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APAC Holds a Prominent Position in the Market
APAC is estimated to contribute 38% to the growth of the global 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 forecast period.
Market Size, By Region, Global, 2017-2027
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The market is fragmented in nature. Some significant players include ABB Ltd., Cisco Systems Inc., Dassault Systemes SE, Emerson Electric Co., FANUC Corp., General Electric Co.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
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.
The market growth and forecasting research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 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 |
171 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 13.95% |
Market growth 2023-2027 |
USD 20.27 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
12.87 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 38% |
Key countries |
US, China, Japan, UK, and Germany |
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 growth 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, Market condition analysis for the market 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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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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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