The global smart manufacturing market size reached US$ 290.7 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 561.5 Billion by 2028, exhibiting a growth rate (CAGR) of 11.6% during 2022-2028. Rapid industrialization, increasing automation across numerous industries, and the proliferation of the internet of things (IoT) technology represent some of the key factors driving the market.
The Increasing Demand for Automation is Facilitating the Market Growth
The smart manufacturing market has been experiencing continuous growth. Automation through smart technologies has been rapidly gaining traction in the manufacturing industry, as it helps achieve enhanced productivity and efficiency. It also aids in minimizing the human error rate and facilitates high productivity, and increases level of focus, low costs, and workplace safety. In addition, it multiplies production as compared to plants that utilize manual labor and assist workers in maintaining their health over time by employing robots in life-threatening processes. It also scales the efficiency on the floor, expands product capabilities and allows labor to engage in more productive tasks.
Competitive analysis such as market structure, market share by key players, player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. The market structure is fragmented due to the presence of several international and regional players in the industry. The volume of new entrants is moderate in the smart manufacturing industry due to moderate product differentiation and a low entry barrier for new players. However, high initial capital investments may deter many players to enter the industry.
What is Smart manufacturing?
Smart manufacturing (SM) involves the integration of digital technologies, such as the internet of things (IoT), artificial intelligence (AI), robotics, and cloud computing, to create intelligent and interconnected manufacturing systems. It also incorporates the use of sensors and data collection devices that help optimize the manufacturing process by providing real-time data, enabling predictive maintenance, reducing downtime, improving quality, and increasing the agility of the systems. It also facilitates a sustainable and eco-friendly production process by reducing waste, energy consumption, and emissions. As a result, it finds application in the automotive, aerospace and defense, chemicals and materials, healthcare, industrial equipment, electronics, food and agriculture, and oil and gas industries across the globe.
The COVID-19 pandemic outbreak has caused a severe problem for the smart manufacturing industry and imposed unprecedented challenges on numerous countries. The world faced considerable difficulties due to the novel coronavirus COVID-19 as the pandemic affected businesses and adversely affected the financial conditions and results of operations. The policies and interventions of the public and private sectors to minimize the transmission of COVID-19, such as the temporary business closures, the imposition of travel limits, and the implementation of remote work, changed the way the company and its customers were work significantly. Moreover, the pandemic significantly reduced the demand for products, changed consumer preferences, and caused disruptions in manufacturing and supply chain operations. It also disrupted restructuring initiatives and posed limitations on the ability of employees to work and travel. Besides this, significant changes in the economic or political conditions in the market limited the growth of the market.
Smart Manufacturing Market Trends:
At present, rapid digitization and the escalating demand for automation across numerous industry verticals represent one of the key factors positively influencing the market. In addition, the increasing need for accessing real-time data for optimizing operations and making data-driven decisions is creating a favorable market outlook. Moreover, consumers are increasingly demanding customized products that require flexible and agile manufacturing processes. This, coupled with the growing concerns about uncertainties in the supply of raw materials and rising operational costs, is catalyzing the demand for SM solutions to boost the productivity and efficiency of enterprises. Additionally, the growing environmental concerns, increasing emphasis on sustainability, and rising demand for a supply chain equipped with sensing, advanced control, modeling, and simulation capabilities, are catalyzing the demand for SM worldwide. Besides this, governments of various countries are funding research and development (R&D) activities for the industrial internet of things (IIoT) and industrial 3D printing projects. This, in confluence with the increasing utilization of 3D printing in the healthcare, construction, defense, retail, and pharma industries, is catalyzing the demand for SM across the globe. Furthermore, the burgeoning food and beverage (F&B) industry and the growing focus on offering high-quality products while keeping production, maintenance, and distribution costs low are impelling food manufacturers to upgrade their conventional manufacturing unites into advanced ones. Therefore, the adoption of SM technology and advanced manufacturing equipment for controlling the operations of machines are resulting in significant development of the F&B industry. Furthermore, the advent of smart devices and increasing penetration of high-speed internet are stimulating the growth of the market across the globe.
Key Market Segmentation:
IMARC Group provides an analysis of the key trends in each sub-segment of the global smart manufacturing market report, along with forecasts at the global, regional and country level from 2023-2028. Our report has categorized the market based on component, technology and end use.
The report has provided a detailed breakup and analysis of the smart manufacturing market based on the component. This includes hardware, software, and services. According to the report, software accounted for the largest market share due to the emergence of hardware-independent software, expansion of software solutions to cater to various industry needs, and introduction to software-supported automation.
Machine Execution Systems
Programmable Logic Controller
Enterprise Resource Planning
Discrete Control Systems
Human Machine Interface
Product Lifecycle Management
Plant Asset Management
The report has provided a detailed breakup and analysis of the smart manufacturing market based on the technology. This includes machine execution systems, programmable logic controller, enterprise resource planning, SCADA, discrete control systems, human machine interface, machine vision, 3D printing, product lifecycle management, and plant asset management. According to the report, discrete control systems accounted for the largest market share due to their increasing adoption in numerous industries, such as petrochemical, nuclear, and oil and gas, on account of their lower operational complexity, greater flexibility, and high integration capabilities that allow greater precision and control.
End Use Insights:
Aerospace and Defense
Chemicals and Materials
Food and Agriculture
Oil and Gas
A detailed breakup and analysis of the smart manufacturing market based on the end use has also been provided in the report. This includes automotive, aerospace and defense, chemicals and materials, healthcare, industrial equipment, electronics, food and agriculture, oil and gas, and others. According to the report, automotive accounted for the largest market share on account of the increasing adoption of advanced technologies, such as artificial intelligence (AI). In addition, escalating demand for value-added vehicles is further encouraging automotive suppliers to leverage smart manufacturing technologies to meet the changing consumer preferences and requirements.
Middle East and Africa
The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others) was the largest market for smart manufacturing. Some of the factors driving the Asia Pacific smart manufacturing market included rapid industrialization, increasing automation, and rising environmental concerns.
The report has also provided a comprehensive analysis of the competitive landscape in the global smart manufacturing market. Some of the companies covered in the report include:
3D Systems Inc.
Emerson Electric Co.
General Electric Company
Honeywell International Inc.
Mitsubishi Electric Corporation
Robert Bosch GmbH
Rockwell Automation Inc.
Schneider Electric SE
Yokogawa Electric Corporation
Please note that this only represents a partial list of companies, and the complete list has been provided in the report.
Key Questions Answered in This Report
1. What was the size of the global smart manufacturing market in 2022?
2. What is the expected growth rate of the global smart manufacturing market during 2023-2028?
3. What are the key factors driving the global smart manufacturing market?
4. What has been the impact of COVID-19 on the global smart manufacturing market?
5. What is the breakup of the global smart manufacturing market based on the component?
6. What is the breakup of the global smart manufacturing market based on the technology?
7. What is the breakup of the global smart manufacturing market based on end use?
8. What are the key regions in the global smart manufacturing market?
9. Who are the key players/companies in the global smart manufacturing market?