Increasing Demand for Smart Manufacturing Technologies Across Businesses to Foster the Growth of the Global Smart Manufacturing Market by 2031

The manufacturing industry has undergone a significant transformation with the advent of smart manufacturing. This revolutionary approach integrates advanced technologies such as artificial intelligence (AI), the Internet of Things (IoT), robotics, and data analytics to optimize production processes, enhance efficiency, and enable proactive decision-making. Smart manufacturing has the potential to reshape industries, offering improved productivity, cost reduction, and better quality control. 

The adoption of smart manufacturing brings forth a myriad of benefits. It enhances productivity by reducing downtime and optimizing equipment utilization through predictive maintenance. By identifying potential failures in advance, companies can schedule maintenance activities at opportune times, minimizing disruptions, and maximizing output. In addition, it improves quality control by leveraging real-time data and analytics to identify anomalies or defects in products, ensuring consistent quality standards. Moreover, smart manufacturing enables flexibility and customization, allowing companies to quickly adapt to changing market demands and offer personalized products. This agility enhances customer satisfaction and fosters a competitive edge. 

Forecast Analysis of the Global Smart Manufacturing Market

According to the report published by Research Dive, the global smart manufacturing market is predicted to generate a revenue of $860.00 billion and grow at a healthy CAGR of 13.7% throughout the estimated timeframe from 2022 to 2031.

The growing demand for smart manufacturing technologies across businesses to enhance their productivity and efficiency is expected to magnify the growth of the smart manufacturing market during the analysis timeframe. Besides, smart manufacturing technologies can automate repetitive and time-consuming tasks that can allow employees to focus more on strategic work and can help reduce downtime by identifying potential issues in advance, which are expected to augment the growth of the market throughout the forecast period. Moreover, the rising integration of IoT devices and Big Data technologies in manufacturing processes is expected to create massive growth opportunities for the smart manufacturing market over the estimated period. However, the high implementation costs associated with smart manufacturing may hamper the growth of the market during the analysis timeframe.

The major players of the smart manufacturing market include Schneider Electric, Honeywell International Inc., Rockwell Automation Inc., Emerson Electric Co., General Electric, Fanuc UK Limited, Siemens, Fujitsu Global, ABB Ltd., IBM, and many more.

Smart Manufacturing Market Key Trends & Developments

The key companies operating in the industry are adopting various growth strategies & business tactics such as partnerships, collaborations, mergers & acquisitions, and launches to maintain a robust position in the overall market, which is subsequently helping the global smart manufacturing market to grow exponentially.

For instance:

• In July 2021, ABB Ltd., a pioneering technology leader that works closely with utility, transportation, and infrastructure industry, announced its acquisition of ASTI Mobile Robotics Group ((ASTI), a leading global autonomous mobile robot (AMR) manufacturer. This acquisition would expand ABB’s robotics and automation offering for the next generation of flexible automation.
   
• In March 2022, Honeywell International Inc., an American publicly traded, multinational conglomerate corporation announced its collaboration with OTTO Motors, a leading provider of autonomous mobile robots (AMRs) for material handling inside manufacturing facilities and warehouses. This collaboration would enable Honeywell customers to boost efficiency, optimize safety features, and reduce errors by implementing AMRs of OTTO Motors into their manufacturing units.
   
• In April 2023, Snowflake Inc., a cloud computing–based data cloud company, announced the launch of the Manufacturing Data Cloud, a data platform, that would help various industries including automotive, energy, technology, and many others to improve their supply chain performance and empower smart manufacturing. 

Most Profitable Region

The North America region of the smart manufacturing market held the largest market share in 2021. This is mainly due to the increasing adoption of advanced technologies such as artificial intelligence (AI), IoT, and big data analytics by the leading manufacturing companies of the region. Moreover, the increasing use of smart manufacturing technologies by leading manufacturers to provide real-time insights into their operations, optimize their processes, and minimize downtime is expected to boost the regional market growth throughout the forecast period. 

Covid-19 Impact on the Smart Manufacturing Market

The outbreak of the Covid-19 pandemic had a mixed impact on the smart manufacturing market. Initially, many businesses have started adopting automation technologies at a faster pace owing to the social distancing guidelines and unavailability of labour. Furthermore, the increased adoption of smart equipment for real-time monitoring and predictive maintenance owing to travel restrictions and safety concerns has increased the demand for smart manufacturing equipment and components. However, disruptions in the supply chains have affected the production and delivery of smart manufacturing components and equipment. In addition, many organizations delayed their investments in smart technologies owing to economic uncertainty and cash flow constraints, which decreased the growth of the smart manufacturing market during the crisis.