Smart Manufacturing Market Size, Share, Market Research and Industry Forecast Report, 2025 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: Smart Manufacturing Market


The global smart manufacturing market size was valued at USD 198.21 billion in 2018 and is expected to witness a growth rate of 10.7% from 2019 to 2025. The growing demand for knowledge-based manufacturing and connected supply chains, which are equipped with advanced control, sensing, modeling, and simulation capabilities, are driving the growth of smart manufacturing.

The global manufacturing sector has been plagued by numerous concerns including intense competition, uncertainties in the supply of raw materials and energy, and exponential operational costs. As a result, industry players are actively looking for ways to reduce costs and make manufacturing agile, accelerated, efficient, and compliant with consumer product quality. Smart manufacturing not only fulfills these demands but also offers additional benefits such as real-time optimization and dynamic production, in turn boosting the demand for smart manufacturing at a rapid rate.

In addition, the need for upgrades and modernization of legacy control systems has become necessary to compete at international standards, which has also boosted efforts for digitization and IT & OT convergence. Hence, digital plants and advanced manufacturing technologies are set to transform factories, production centers, companies, and entire value chains, thereby driving the fourth industrial revolution.

An important aspect of the manufacturing industry is the growing interest and investments in smart infrastructure from batch, continuous, and discrete manufacturers. Though their area of interest and immediate attention may differ for the next couple of years, from technological point of view, they revolve around networked sensors, data interoperability, intelligent automation, and dynamic modeling and simulation.

While cost reduction and manufacturing intelligence are the primary targets of industry players, product quality, sustainability, and compliance are gaining prominence in the industry. The return on investments in smart manufacturing is one of the key promoters of the market with numerous manufacturers having reported quantifiable benefits including energy efficiency, reduction in safety incidents, reduction in cycle times, and lower maintenance costs.

Component Insights of Smart Manufacturing Market

The smart manufacturing infrastructure includes both hardware and software. The hardware segment includes robots, 3D printers, Industrial Internet of Things (IIoT) enabling equipment and devices, and augmented and virtual reality devices. While these devices are utilized at the edge of networks, their demand has been increasing in the recent years. Different types of conventional and smart sensors are an important aspect of the hardware segment, which has been exhibiting not only rapid demand growth but also increased research and development activities.

The software segment is quite matured as numerous solutions have already been in use for many years. The solutions include manufacturing execution systems, product lifecycle management, and enterprise resource planning. However, the modernization of these systems and growth of analytics and AI-enabled systems are expected to be the driving factors for the segments growth. The need for technological implementation expertise is anticipated to aid the growth of services segment over the forecast period.

Technology Insights of Smart Manufacturing Market

Smart manufacturing includes an extensive range of technologies from Product Lifecycle Management (PLM) to 3D Printing. While some of these technologies have been in use for quite some time, segments such as additive manufacturing have been gaining traction in the recent years. The 3D printing segment is expected to witness the highest growth over the forecast period owing to its large-scale adoption in design process and agile product iterations.

However, the Manufacturing Execution Systems (MES) segment holds the largest market share in terms of revenue generated as a result of a higher demand for streamlining workflows and reducing lead times. An increasing demand for industrial automation coupled with the growing importance of legal and regulatory compliance is also driving the smart manufacturing market growth.

End-use Insights

Smart manufacturing has found applications in almost all manufacturing industries. While some industries have been leading the adoption of advanced manufacturing, others have been relatively slower. Among these, the automotive and aerospace & defense segments are expected to be the largest contributors to the industry growth. While the automotive segment currently holds a considerable market share in the smart manufacturing industry, it is further expected to grow at a CAGR of 12.0% over the forecast period.

A peculiar trend in the industry is the proactive adoption of smart manufacturing at two different levels, connected products, and connected supply chains. Process manufacturers are observed capitalizing on the connected supply chain whereas discrete manufacturers have been increasingly investing in connected products.

Regional Insights of Smart Manufacturing Market

Though regions have started investing in smart manufacturing, they vary considerably in terms of market maturity. With numerous ongoing projects, developed countries such as the U.S., Germany, and Japan are witnessing high penetration of smart manufacturing or Industrie 4.0, whereas developing countries such as China are catching up with the technological advancements.. However, the Asia Pacific region holds a dominant position in the market owing to the presence of a large number of manufacturing companies stimulated by the need to compete at international levels.

An important distinction among the regional markets is that the developing countries are investing in smart technologies to keep abreast with international manufacturing standards and trends, whereas, developed economies are supporting digitalization to bring back industrialization to their own turfs. Hence, trends such as onshoring are expected to have a profound effect on the market developments.

Market Share Insights of Smart Manufacturing Market

Key players operating in the industry include Siemens, General Electric, Rockwell Automation, Schneider, Honeywell International Inc., Emerson Electric, and Fanuc, among others. These vendors operate at different stages of the smart manufacturing value chain and cater to a host of industries and customers. Major strategies adopted by vendors include collaborations, new product developments, investments related to expanding capabilities, mergers & acquisitions, partnerships & agreements, and investments in research & development, among others.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Smart Manufacturing Market Research Report

This report forecasts revenue growth at the global, regional, and country levels and analyzes the market trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, this market research report has segmented the global smart manufacturing market report based on components, technologies, end uses, and regions.

Component Outlook (Revenue, USD Billion, 2014 - 2025)

  
Hardware
  
Software
  
Services

Technology Outlook (Revenue, USD Billion, 2014 - 2025)

  
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

End-use Outlook (Revenue, USD Billion, 2014 - 2025)

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