Global Smart Manufacturing Market 2024–2033

Reports Description

As per the current market research conducted by Custom Market Insight Team, the global smart manufacturing market is expected to record a CAGR of 14.10% from 2023 to 2030. In 2023, the market size is projected to reach a valuation of US$ 299.67 billion. By 2030, the valuation is anticipated to reach US$ 788.87 billion.

Smart Manufacturing refers to the use of advanced technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), and Big Data analytics to optimize manufacturing processes and improve operational efficiency. It involves the integration of various technologies, software systems, and sensors to create a connected and intelligent ecosystem that can monitor, analyze, and automate manufacturing operations in real time.

The goal of Smart Manufacturing is to improve productivity, reduce costs, and enhance product quality while ensuring regulatory compliance and sustainability. The Smart Manufacturing market includes various solutions and services such as hardware, software, and consulting services.

Smart Manufacturing Market – Mergers and Acquisitions

There have been several mergers and acquisitions in the Smart Manufacturing Market over the years. Here are a few notable ones:

• In 2019, PTC, a leading software solutions provider, acquired Onshape, a cloud-based CAD software company. This acquisition enabled PTC to expand its portfolio of software solutions for smart manufacturing.
• In 2020, Schneider Electric, a leading provider of digital transformation solutions, acquired ProLeiT AG, a provider of industrial automation and process control systems. This acquisition helped Schneider Electric to expand its offerings in the smart manufacturing space.
• In 2021, Siemens AG, a global technology company, acquired Supplyframe, a provider of design-to-source intelligence solutions. This acquisition helped Siemens to expand its capabilities in the areas of design, engineering, and supply chain management.
• In 2021, Rockwell Automation, a leading provider of industrial automation and digital solutions, acquired Plex Systems, a provider of cloud-based manufacturing execution systems (MES) and enterprise resource planning (ERP) software. This acquisition helped Rockwell Automation to enhance its smart manufacturing capabilities and offer end-to-end solutions to its customers.

These mergers and acquisitions are expected to drive growth in the Smart Manufacturing Market by bringing together the expertise and capabilities of different companies to offer comprehensive solutions to customers.

Smart Manufacturing Market – Significant Opportunities

The Smart Manufacturing market presents several significant opportunities for growth and innovation. One of the major opportunities is the integration of advanced technologies such as the Industrial Internet of Things (IIoT), artificial intelligence (AI), and machine learning (ML) into manufacturing processes. This integration can help manufacturers achieve improved efficiency, reduce costs, and enhance overall product quality.

Another opportunity is the adoption of Industry 4.0, which involves the use of smart technologies, including cyber-physical systems, the Internet of Things (IoT), cloud computing, and cognitive computing. This approach can help manufacturers develop intelligent, connected, and flexible manufacturing systems that are capable of responding to changing customer demands and market conditions.

The increasing demand for regulatory compliance in various industries is another significant opportunity for the Smart Manufacturing market. Manufacturers are required to comply with various regulations and standards to ensure product quality, safety, and traceability. The adoption of smart technologies can help manufacturers improve their compliance with these regulations and standards, thereby improving their overall product quality and customer satisfaction.

Overall, the Smart Manufacturing market presents significant opportunities for manufacturers to enhance their manufacturing processes, improve their product quality, and gain a competitive edge in the market.

Smart Manufacturing Market – Significant Threats

Some significant threats to the smart manufacturing market include:

• Cybersecurity threats: The use of internet-connected devices and systems in smart manufacturing creates potential vulnerabilities for cyberattacks, which can result in significant data breaches, production downtime, and financial losses.
• Lack of standardization: The absence of a common set of standards for smart manufacturing technologies can create interoperability challenges and limit their widespread adoption.
• High implementation costs: The implementation of smart manufacturing technologies can be expensive, especially for small and medium-sized enterprises (SMEs) with limited resources.
• Workforce adaptation: The adoption of smart manufacturing technologies requires a workforce that is skilled and trained in their use, which can create challenges for companies in terms of workforce management and training.
• Data privacy concerns: Smart manufacturing technologies generate and collect a significant amount of data, which can raise concerns over data privacy and ownership rights.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

Smart Manufacturing Market – Market Trends

Some of the significant market trends in the smart manufacturing industry are:

Industrial Internet of Things (IIoT):

The integration of IIoT with smart manufacturing technologies helps in real-time data analytics, predictive maintenance, and remote monitoring, enabling a more efficient and productive manufacturing process.

Advanced Robotics:

The use of advanced robotics in smart manufacturing helps in automating repetitive and dangerous tasks, increasing production speed, reducing labor costs, and improving product quality.

Digital Twins:

Digital twins are virtual models that simulate the physical process and systems of a manufacturing plant, providing insights into the manufacturing process, reducing downtime, and improving product quality.

Cloud Computing:

Cloud-based smart manufacturing solutions offer benefits such as real-time data access, easy collaboration between stakeholders, and scalability.

Artificial Intelligence (AI):

AI-based solutions in smart manufacturing help in predictive maintenance, quality control, and production optimization.

Augmented Reality (AR):

AR technology helps in improving worker safety, reducing errors, and increasing productivity by providing real-time information and guidance to workers.

Cybersecurity:

As smart manufacturing processes are becoming more connected and data-driven, cybersecurity threats are increasing. Ensuring proper cybersecurity measures are in place is a critical trend in the smart manufacturing market.

Report Scope

Major Facts about Smart Manufacturing Market:

During the pandemic, the Smart Manufacturing market witnessed a shift in focus toward the production of essential products, while the demand for non-essential products declined. Nevertheless, the market continued to grow as businesses required safe and efficient delivery of their products and services. This growth was supported by increasing demand, government financial aid, and technological advancements.

The Information Technology and Automotive sectors are the leading adopters of Industry 4.0. Smart Manufacturing has enabled the automotive industry to automate its assembly lines, including the production of entire vehicles. For instance, Audi’s Production Lab (P-Lab) department utilized modern technology to create practical use cases for everyday manufacturing in 2021. The benefits and opportunities offered by industrial automation have created a significant demand across various industries. As a result, companies across industries aim to incorporate smart manufacturing into their processes, contributing to the overall growth of the market.

The information technology industry plays a pivotal role in the existence and development of the smart manufacturing market. Standardization has contributed to the market’s growth, facilitated by the widespread adoption of the Internet of Things (IoT). The IoT has made market technology easily accessible for entry-level manufacturing, application, and execution worldwide.

The information technology industry leverages modern solutions such as augmented reality, virtual reality, machine learning, and artificial intelligence to keep pace with contemporary challenges and demands. For example, in July 2021, Qualcomm applied its advanced 5G technology to smart manufacturing to unleash the power of IoT.

Category-Wise Insights

Component Insights

In 2022, the software segment held the largest revenue share of 49.6% and is expected to maintain its dominance in the market throughout the forecast period. The software component is vital to the industry’s move towards full automation. With advanced software, machines such as robots and drones can operate without human intervention, reducing the risk of errors. The market can make significant advancements in the research and development of new and versatile solutions with the aid of software.

The hardware segment is expected to register the highest CAGR of 13.8% from 2023 to 2030. Advanced software requires high-level and compatible hardware to operate. To execute advanced software, modern hardware is required. Manufacturing plants use hardware that is energy-efficient, agile, and can operate without human intervention. Modern hardware must also be compatible with IoT to assist the market in achieving standardization.

Technology Insights:

In 2022, the discrete control system segment had the largest market share of 16.1% and is expected to remain dominant during the forecast period. This technology operates in the background, providing control and monitoring functions to the administrator. The market offers both basic and advanced technological control and an overview of every process, making it accessible remotely.

On the other hand, the 3D printing segment is expected to grow at the highest CAGR of 17.8% during the forecast period. Smart manufacturers can draw and print any small or big part using 3D software, which saves time and cost. The market is a significant investor and purchaser of 3D printing equipment and software, and its use is becoming increasingly widespread.

End-Use Insights

In 2022, the automotive industry accounted for the largest market share of over 24%, and it is projected to have the highest compound annual growth rate (CAGR) of 15.6% over the forecast period. Due to minimal profits, many automotive manufacturers are adopting smart manufacturing to reduce waste and cost while increasing their profit margins. Additionally, the market offers automotive companies a way to maintain a high level of standardization of their products. With the help of Industry 4.0, the automotive industry can run non-stop and minimize labor costs, if any.

The aerospace and defense industry is expected to witness a substantial CAGR of 16.6% from 2023 to 2030, reflecting its growing investment in smart manufacturing. In this industry, precision is crucial, and the market’s advanced technologies can help achieve it. For instance, smart manufacturing can help manufacture rockets at a rapid pace, which is essential for space research that requires multiple flights for testing. Additionally, the defense industry invests heavily in industrial automation to develop modern defense mechanisms that can mitigate emerging threats effectively.

Region-Wise Insights

The global smart manufacturing market is expected to grow significantly in the coming years, and the growth will be driven by a number of factors including the increasing adoption of automation and the rise of Industry 4.0. Here are some region-wise insights on the global smart manufacturing market:

North America: North America is expected to dominate the global smart manufacturing market, with the United States being the largest contributor to the growth. The region has a highly developed manufacturing sector and a large number of smart manufacturing solutions providers.

Europe: Europe is another key market for smart manufacturing, with countries such as Germany, France, and the United Kingdom leading the way. The region has a strong focus on innovation and technology, which has led to the development of advanced manufacturing solutions.

Asia Pacific: The Asia Pacific region is expected to see significant growth in the smart manufacturing market, driven by countries such as China, Japan, and South Korea. The region has a large manufacturing base and is home to some of the world’s largest manufacturers.

Middle East and Africa: The Middle East and Africa region is expected to see moderate growth in the smart manufacturing market. The region has a growing manufacturing sector, and the adoption of smart manufacturing solutions is expected to increase in the coming years.

Latin America: Latin America is expected to see moderate growth in the smart manufacturing market, with Brazil being the largest contributor to the growth. The region has a growing manufacturing sector, and the adoption of smart manufacturing solutions is expected to increase in the coming years.

Overall, the global smart manufacturing market is expected to see significant growth in the coming years, driven by the increasing adoption of automation and the rise of Industry 4.0.

Key Companies & Market Share Insights

The global smart manufacturing market is highly competitive, with a significant number of small and medium-sized players vying for market share against established manufacturers. The majority of small-scale players are located in the Asia Pacific region, where the market is still developing. With the evolution of technology, the types of products being manufactured are also changing, and industrial automation is streamlining the process, allowing the market to grow alongside these advancements. In contrast, the North American and European markets are dominated by large and medium-sized companies.

Despite high competition, technological advancements are enabling companies to save time and costs while increasing efficiency and effectiveness. Continuous research and development are also making smart manufacturing more common and standardized, even though it requires some investment. The trend towards smart manufacturing is global, with markets crossing borders. Governments are also recognizing the growth potential of the market and offering schemes and policies to attract investors to bring the market to their countries.

Some of the Prominent Players in the Market are:

• ABB Ltd.
• Siemens
• General Electric
• Rockwell Automation Inc.
• Schneider Electric
• Honeywell International Inc.
• Emerson Electric Co.
• Fanuc UK Limited
• Others

The Smart Manufacturing Market is segmented as follows:

By Component

• Hardware
• Software
• Services

By Technology

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

By End-use

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

By Region

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America