Smart Manufacturing Market (By Technology: PLC, Machine Execution Systems, Enterprise Resource Planning, DCS, SCADA, Human Machine Interface, 3D Printing, Machine Vision, Plant Asset Management, and PLM; By Component: Software, Hardware, and Services; By End-use: Aerospace & Defense, Automotive, Chemicals & Materials, Industrial Equipment, Healthcare, Electronics, Oil & Gas, Food & Agriculture, and Others) - Global Market Size, Trends Analysis, Segment Forecasts, Regional Outlook 2021 - 2028

The global smart manufacturing market is projected to grow at an impressive CAGR of 12.9% during the forecast period 2021 to 2028. The global smart manufacturing market size was valued at USD 200 Billion in 2020 and expected to reach USD 590.10 Billion by 2028.

Growth Factors:

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.

Scope of the Smart Manufacturing Market Report

Report Highlights

Details

Market Size

USD 590.10  Billion by 2028

Growth Rate

CAGR of 12.9% From 2021 to 2028

Base Year

2020

Historic data

2017 to 2020

Forecast Period

2021 to 2028

Segments Covered

Technology, End Use, Region

Regional Scope

North America, APAC, Europe, Latin America, MEAN, Rest of the World

Companies Mentioned

Emerson Electric Co., ABB Ltd., Fanuc Corporation, Honeywell International, Inc., General Electric Co., Mitsubishi Electric Corporation, Rockwell Automation, Inc., Robert Bosch GmbH, Schneider Electric SE, Yokogawa Electric Corporation

 

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.

Technology Insights

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. DCS has the advantage of being flexible and simple for processes such as controlling, monitoring, and reporting, which aids its increased prominence in the market. Additionally, DCS offers features such as controlling and redundancy, resulting in enhanced reliability and system availability. The leading market players are anticipated to introduce DCSs for numerous industry verticals, ultimately boosting the segment growth.

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. Additionally, it offers strength, quality, and speed throughout the manufacturing process, catering to a wide range of industries and applications. One of the primary applications of 3D printing in manufacturing is the production of spare parts.

End-use Insights

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. Furthermore, the adoption and investments in the smart factory are expected to offer automotive manufacturers with competitive advantages such as better profitability, increased speed to market, product quality, and a stable labor force. The automation of entire production plants, testing and simulation, and consumer connectivity are some of the major touchpoints for smart manufacturing solutions in the automotive industry.

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. Additionally, the adoption of additive manufacturing for product prototyping, simulation & test environments, and advanced planning and scheduling is expected to be the prime focus of the industry participants in the aerospace and defense sector. The integration of data from various stakeholders in the supply chain is of paramount importance to the defense industry and heavy investments in the same are expected to drive the segment growth in the coming years.

Regional Insights

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. Countries in the region are continuously focusing on automating in-house manufacturing facilities and reducing dependency on other countries, for instance, India’s “Make in India” program. Implementation of smart manufacturing solutions helps manufacturers focus on streamlining their supply chains to enhance competitiveness, improve safety in the workplace, and to reduce cost. Japan is also emerging as the manufacturing hub for the production of factory automation solutions and is supplying them to other countries within the region, making such solutions affordable for developing countries such as India.

The market for smart manufacturing in MEA is expected to register the highest CAGR of over 15.0% from 2021 to 2028. Saudi Arabia is anticipated to emerge as one of the leading countries owing to the increasing government initiatives in new technologies. Vendors in the region are heavily investing in smart manufacturing technologies. For instance, Ducab, a manufacturer of energy cables, deployed smart manufacturing to transform the supply chain completely. The company aimed to collect data from equipment and incorporate it with supplier data to streamline the process, track in-transit inventory, and improve logistics, and subsequently minimize the cost and save time.

Some of the prominent players in the Smart Manufacturing Market include:

  • Emerson Electric Co.
  • ABB Ltd.
  • Fanuc Corporation
  • Honeywell International, Inc.
  • General Electric Co.
  • Mitsubishi Electric Corporation
  • Rockwell Automation, Inc.
  • Robert Bosch GmbH
  • Schneider Electric SE
  • Yokogawa Electric Corporation
  • Siemens AG

Segments Covered in the Report

This research report offers market revenue, sales volume, production assessment and prognoses by classifying it on the basis of various aspects. Further, this research study investigates market size, production, consumption and its development trends at global, regional, and country level for the period of 2017 to 2030 and covers subsequent region in its scope:

By Technology

  • Programmable Logic Controller
  • Machine Execution Systems
  • Enterprise Resource Planning
  • Discrete Control Systems
  • SCADA
  • Human Machine Interface
  • 3D Printing
  • Machine Vision
  • Plant Asset Management
  • Product Lifecycle Management

By Component

  • Software
  • Hardware
  • Services

By End-Use

  • Aerospace & Defense
  • Automotive
  • Chemicals & Materials
  • Industrial Equipment
  • Healthcare
  • Electronics
  • Oil & Gas
  • Food & Agriculture
  • Others

By Geography

North America

  • U.S.
  • Canada

Europe

  • Germany
  • France
  • United Kingdom
  • Rest of Europe

Asia Pacific

  • China
  • Japan
  • India
  • Southeast Asia
  • Rest of Asia Pacific

Latin America

  • Brazil
  • Rest of Latin America

Middle East & Africa (MEA)

  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa

Key Points Covered in Smart Manufacturing Market Study:

  • Growth of Smart Manufacturing in 2022
  • Market Estimates and Forecasts (2017-2030)
  •  Brand Share and Market Share Analysis
  •  Key Drivers and Restraints Shaping Market Growth
  •  Segment-wise, Country-wise, and Region-wise Analysis
  •  Competition Mapping and Benchmarking
  •  Recommendation on Key Winning Strategies
  •  COVID-19 Impact on Demand for Smart Manufacturing and How to Navigate
  •  Key Product Innovations and Regulatory Climate
  •  Smart Manufacturing Consumption Analysis
  •  Smart Manufacturing Production Analysis
  •  Smart Manufacturing and Management