Smart Manufacturing Market Size Projected to Generate a Revenue of $860.00 Million by 2031

Download Sample   Reports Overview

The Global Smart Manufacturing Market is predicted to be valued at $860.00 billion by 2031, surging from $249.5 billion in 2021, at a noteworthy CAGR of 13.7%.

Impact Analysis of COVID-19 on the Smart Manufacturing Market

The COVID-19 pandemic has had a mixed impact on the smart manufacturing market. The pandemic has highlighted the importance of digitalization and automation in manufacturing processes, leading to an increased demand for smart manufacturing technologies. On the other hand, the pandemic has also disrupted global supply chains and caused significant economic uncertainty, which has led to a slowdown in some areas of the smart manufacturing market. During the pandemic there was an adoption of remote monitoring and control technologies. With many factories and production facilities operating at reduced capacity or shutting down completely, remote monitoring and control technologies allowed manufacturers to keep a close eye on their operations and adjust as necessary. This has led to an increased demand for technologies such as industrial IoT (IIoT) and machine-to-machine (M2M) communication, which enable real-time monitoring and data analysis. With many employees working from home, cloud-based solutions have become an increasingly important tool for managing production processes and accessing critical data. Cloud-based solutions also enable manufacturers to quickly and easily scale their operations up or down in response to changing market conditions. All these have affected the smart manufacturing market growth during the pandemic.

Global Smart Manufacturing Market Analysis

Smart manufacturing involves the integration of advanced technologies and data analytics to optimize manufacturing processes and improve product quality. As manufacturing processes become more complex and automated, they generate vast amounts of data. This data can include information on machine performance, production output, energy usage, and more. By analyzing this data, manufacturers can gain insights into their processes and identify areas for improvement. For example, data analytics can be used to identify bottlenecks in production processes, optimize machine settings, and improve product quality. Manufacturers can also use predictive analytics to anticipate equipment failures and schedule maintenance before a breakdown occurs. These are the major factors anticipated to boost the smart manufacturing market share during the analysis timeframe.

However, the lack of a skilled workforce is a significant constraint on the growth of the smart manufacturing market. The implementation of smart manufacturing technologies requires a diverse range of skills, including expertise in data analytics, automation, robotics, and cybersecurity. However, many companies are struggling to find workers with the necessary skills to operate these complex systems. As new technologies and processes are introduced, workers need to be trained and upskilled to keep up with the latest developments. However, many companies have been slow to invest in training programs for their employees, which has led to a shortage of skilled workers that can hamper the market demand.

The increased adoption of Industry 4.0 technologies has significantly increased efficiency, productivity, and quality in the manufacturing industry, which is driving the growth of the smart manufacturing market. Smart manufacturing involves the use of advanced technologies such as IoT, Artificial Intelligence, Robotics, and Big Data to create intelligent and interconnected manufacturing processes. These technologies help manufacturers to optimize production processes, improve product quality, reduce costs, and increase productivity. Moreover, manufacturers can automate operations, improve supply chains, decrease downtime, and improve product quality with the help of these advanced technologies. As a result, there is now more competition, costs are down, and customers are satisfied. Additionally, the increasing adoption of cloud computing and the Internet of Things (IoT) is enabling manufacturers to collect and analyze vast amounts of data in real-time, providing insights that can be used to optimize production processes and improve product quality. These factors are driving the growth of the smart manufacturing market, creating vast opportunities for companies that provide smart manufacturing solutions.

Global Smart Manufacturing Market, Segmentation

The global smart manufacturing market is segmented based on component, application, end-user, and region.

Component:

The component segment is further classified into hardware, software, and services. Among these, the hardware sub-segment accounted for the highest market share in 2021. The hardware sub-segment includes a variety of tools, machines, sensors, controllers, and other technologies that are used to collect data and automate processes. Smart manufacturing involves the integration of advanced technologies such as IoT (Internet of Things), AI (Artificial Intelligence), and robotics to optimize manufacturing processes, increase efficiency, and reduce costs. The demand for smart manufacturing hardware is being driven by the need for greater efficiency, productivity, and flexibility in the manufacturing industry. The adoption of smart manufacturing is expected to increase as manufacturers seek to remain competitive in an increasingly globalized and fast-paced market. The hardware segment of the smart manufacturing market is expected to continue to grow as manufacturers increasingly adopt smart manufacturing practices to improve their operations and remain competitive in the global marketplace.

Application:

The application segment is further classified into machine execution system, programmable logic controller, enterprise resource planning, SCADA, discrete control systems, human machine interface, machine vision, 3d printing, product lifecycle management, plant asset management and others. Among these, the product lifecycle management sub-segment accounted for the highest market share in 2021. Product lifecycle management (PLM) is an essential component of the smart manufacturing market. PLM software solutions are used to manage the entire lifecycle of a product, from concept and design to production, maintenance, and disposal. As consumers demand more personalized products, manufacturers need to be able to quickly design and produce new products to meet these demands. PLM software can help manufacturers streamline their design and production processes, allowing them to bring new products to market faster and more efficiently.

End-user:

The end-user segment is further classified into automotive, aerospace & defense, chemicals & materials, healthcare, industrial equipment, electronics, food & agriculture, oil & gas, and others. Among these, the automotive sub-segment accounted for the highest market share in 2021. Smart manufacturing technologies such as automation, robotics, artificial intelligence, and the Internet of Things (IoT) are revolutionizing the way vehicles are manufactured. These technologies allow automotive manufacturers to optimize their production processes, reduce manufacturing costs, and improve product quality. For example, robots can perform repetitive tasks with greater accuracy and speed than humans, reducing the risk of errors and increasing production efficiency. IoT enables manufacturers to collect and analyze data from various sensors in real-time, allowing them to monitor and optimize their production processes.

Region:

The smart manufacturing market in the Asia-Pacific region is projected to show the fastest growth. Many countries in the Asia-Pacific region have implemented policies and initiatives to promote smart manufacturing. For example, China's "Made in China 2025" initiative aims to transform the country into a global manufacturing powerhouse by promoting the use of smart manufacturing technologies. The Asia-Pacific region is home to some of the world's largest and most skilled workforces. This has enabled companies to adopt smart manufacturing technologies more easily and efficiently. Labor costs in the Asia-Pacific region are increasing, prompting companies to adopt smart manufacturing technologies to reduce their dependence on labor. With the rise of e-commerce, consumers in the Asia-Pacific region are increasingly demanding customized products. Smart manufacturing technologies enable companies to produce custom products efficiently and cost-effectively. The Asia-Pacific region's strong manufacturing base, availability of skilled labor, and government support for smart manufacturing initiatives make it a significant growth factor of the global smart manufacturing market.

Key Players in the Global Smart Manufacturing Market

Some of the leading smart manufacturing market players are

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

In March 2021, to close the manufacturing skills gap, FANUC and Rockwell Automation joined together to develop apprenticeship programs in robotics and automation that would upskill current and future employees for careers in advanced manufacturing, robotics, and automation. The partnership has created new apprenticeship programs that provide people the chance to earn credentials in areas like automation and foundational robotics (Robot Operator) (PLC Operator). Robot and PLC Technicians can get second-level certificates through the curriculum.