The Global Smart Manufacturing Market was valued at USD 232.1 Bn in 2020 and is expected to reach USD 529.3 Bn by 2027, with a growing CAGR of 12.5% during the forecast period.
Smart manufacturing is a fully integrated, collaborative manufacturing system that responds in real-time to meet changing demands and conditions in the factory, in the supply network, and in customer needs. The growing adoption of industry 4.0 and IoT-enabled technology in various sectors is projected to propel the growth of the market during the forecast period. These technologies aid the effectiveness of the operation of the manufacturing plants. Moreover, the increasing adoption of computer-aided systems, manufacturing tools, the Internet of Things (IoT), and engineering technologies such as artificial intelligence, machine learning, and cloud computing fuel the growth of the market. The ongoing developments in industry 4.0 are predicted to accelerate the adoption of smart factories by opening up new opportunities for manufacturers.
In addition to this, Advanced technologies and AI have replaced the normal process of manufacturing. Smart manufacturing uses data analytics to ease complex and lengthy processes and also manages the availability chain smoothly. The increasing demand for smooth operations in several industries is fuelling the growth of the smart manufacturing market. Smart machines or robots collect and recognize large data that keeps them informed throughout the manufacturing process. Data is collected, refined, and curated for the aim of computing comfortably by the robots. With the assistance of the stored data, the robots can improve machine performance and predict any bug within the manufacturing processes as they will learn from experience. The predictions offered by smart technologies further help to facilitate better strategies for scheduling production runs. In a smart manufacturing system, manufacturing techniques can routinely generate, transmit, and process statistics without human involvement, consequently propel the growth of the smart manufacturing market.
The Global Smart Manufacturing Industry Segmentation:
By Industry Vertical
The key players operating in the smart manufacturing market are:
Based on components, the software segment held the largest market share of over 50% in 2020 owing to the advent of analytics and AI-driven system
The software segment in the target market is accounted for the largest market share of around 50.0% in 2020 and is expected to show its dominance during the forecast period. The growth in the segment is mainly attributed to the matured as numerous solutions, including product lifecycle management, enterprise resource planning, and manufacturing execution systems, have already been in use for many years. Moreover, the increasing adoption of analytics and AI-driven systems is projected to be a major factor accelerating the segment growth of the market.
Besides, the hardware segment in the target market is expected to be the highest CAGR of over 11.0% during the forecast period. The hardware segment incorporates IIoT-enabling systems and devices such as robots, 3D printers, and virtual reality devices. The different types of traditional and smart sensors are a major aspect of the hardware segment, witnessing high growth potential and growing R&D activities in recent years. Growing technological advancements are allowing manufacturing facilities to set up robots to perform tasks that include material handling, processing operations, and assembly and inspection.
Based on the industry vertical, the automotive industry vertical segment accounted for the largest revenue share of over 23.0% in 2020 owing to the benefits of operational efficiency
The automotive industry in the smart manufacturing market held the largest revenue share of over 23.0% in 2020 and is expected to register the highest CAGR during the forecast period. The factors that influence the growth of these segment is due to benefits such as asset efficiency, cost savings, quality, and sustainability offered by the smart manufacturing solutions. Moreover, the adoption and expenditure in the smart manufacturing facility are expected to offer automotive manufacturers with competitive benefits including higher profitability, elevated speed to market, product quality, and a strong labor force. The automation of complete manufacturing plants, testing and simulation, and customer connectivity are the primary touchpoints for smart manufacturing solutions in the automotive industry.
Based on regions, the Asia-Pacific held the largest market share of over 36.0% in 2020 owing due to increasing growth in the automotive industry
The Asia-Pacific is expected to be the fastest-growing region in the market and capturing the largest market share of 36.0% in 2020. The growth in the region is mainly attributed to the increasing growth in the automotive industry. The countries such as India, Japan, China, and others in the region are continuously focused on automating in-house manufacturing facilities and reducing dependency on other countries. For instance, the government of India introduced an initiative to support domestic production by the “Make in India” program. Smart manufacturing solutions help producers to focus on streamlining their supply chains to increase competitiveness, improve safety in the workplace, and to reduce the cost of operation. Japan also appears 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 report also provides an in-depth analysis of smart manufacturing market dynamics such as drivers, restraints, opportunities, and challenges:
COVID-19 Impact on the Smart Manufacturing Market Analysis:
The COVID-19 pandemic impacted various industries such as oil & gas, manufacturing, and others due to the strict lockdown imposed by the government. The various industries are facing challenges for the manufacturing and the supply chains of the products and services. To overcome the challenges that happened due to the COVID-19 pandemic organizations are reconstructing their business continuity models. The enterprises investing heavily in advanced manufacturing and supply chains models, and discovering the automation opportunity to reduce the impact of COVID-19 on production lines in the future. The future growth of the smart manufacturing market depends on the shuffle of the manufacturing industry. A more detailed analysis of the smart manufacturing market will be provided in the report.
The report also provides an in-depth analysis of key trends in the smart manufacturing market:
The report also provides an in-depth analysis of recent news developments and investments:
The unique insights provided by this report also include the following:
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Market Overview & Competitive Landscape
Market Segmentation (Market Size and Share Analysis)
COVID – 19 Opportunity Mapping
Regional Market Analysis