Smart Manufacturing Market Size, Share & Analysis Report-2030
The global smart manufacturing market is projected to grow at an impressive CAGR of 13.9% during the forecast period 2021 to 2030. The global smart manufacturing market size was valued at USD 201 Billion in 2021 and expected to reach USD 595.10 Billion by 2030.
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
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Report Highlights |
Details |
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Market Size |
USD 595.10 Billion by 2030 |
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Growth Rate |
CAGR of 13.9% From 2021 to 2030 |
|
Base Year |
2021 |
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Historic data |
2017 to 2021 |
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Forecast Period |
20222 to 2030 |
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Segments Covered |
Technology, End Use, Region |
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Regional Scope |
North America, APAC, Europe, Latin America, MEAN, Rest of the World |
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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 2021 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 2022 to 2030. 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 24.0% in 2021 and is anticipated to register the highest CAGR from 2022 to 2030. 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 14.0% from 2021 to 2030. 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 37.0% in 2021. 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 16.0% from 2021 to 2030. 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:
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
By Component
By End-Use
By Geography
North America
Europe
Asia Pacific
Latin America
Middle East & Africa (MEA)
Key Points Covered in Smart Manufacturing Market Study:
Cross-segment Market Size and Analysis for Mentioned Segments
Additional Company Profiles
(Upto 5 With No Cost)
Additional Countries (Apart
From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers