The global smart manufacturing market size is estimated to reach USD 514.3 billion by 2027, registering a CAGR of 11.8% over the forecast period, according to a new study by Grand View Research, Inc. The growing adoption of digital technologies such as industrial IoT, autonomous robots, and big data analytics, to enable the fourth industrial revolution are the prime driving factors for the market growth. Moreover, growing emphasis on increasing production efficiency and gaining visibility across the entire value chain will also boost the prospects of smart manufacturing. In addition, availability of advanced technologies such as 3D printing, manufacturing execution systems (MES), and plant asset management solutions to small and medium enterprises is further accelerating the market growth.
The positive impact of government initiatives and investments to promote smart manufacturing adoption has been one of the most influential factors driving the market. The fact that both industrialized countries and developing economies are aggressively pursuing this avenue is expected to further propel the growth. For example, China is reportedly investing over USD 3 billion for advanced manufacturing under the Made in China 2025 program. Similarly, SAMARTH Udyog Bharat, Industry 4.0, initiative is being promoted by Indian government to transform the manufacturing industry in the country.
Automotive and aerospace and defense industries are the leading growth avenues for solution providers with industries such as oil and gas and industrial equipment manufacturing rapidly scaling their digitalization efforts. Moreover, by implementing smart technologies such as 3D printing, American auto manufacturer General Motors (GM) claims to save more than USD 300,000 in 2019. To drive this technology, GM has entered into a partnership with Autodesk Inc. to produce economical and lighter vehicle parts using 3D printers. With the proliferation of 3D printing, simulation, and modeling in manufacturing and design, these industries are expected to continue to maintain a significant growth rate over the forecast period. Though numerous solutions are available in the market, digital twin and real-time analytics are anticipated to spearhead the penetration of digitalization in these industries.
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Further key findings from the report suggest:
- The software segment is likely to emerge as the fastest growing segment over the forecast period. Increasing demand for factory automation software for varied uses such as factory control, connectivity, quality check, and testing and inspection will foster the segment growth
- The MES, 3D printing, and machine vision technology segments are likely to grow rapidly owing to production of industrial goods with high speed, increased precision, and improved quality. Companies that offer consumer products, automotive components, and medical devices are likely to benefit from the utility of 3D printing with machine vision and Artificial Intelligence
- The automotive end-use segment is expected to emerge as the fastest growing segment over the coming years
- The Asia Pacific regional market is likely to grow at a substantial rate during the forecast period owing to rapid industrial growth, increasing foreign direct investments, and establishment of large multinational companies in the sector
- Smart manufacturing is supported by various organizations and consortiums including Industrial Internet Consortium (IIC), Smart Manufacturing Leadership Coalition (SMLC), Industrie 4.0, and MESA International
- Key players in the smart manufacturing market include General Electric; Siemens AG; Rockwell Automation Inc.; Honeywell International Inc.; Schneider Electric; Emerson Electric Co.; and Fanuc Corporation
- Major companies such as John Deere, Harley Davidson, and General Motors have successfully implemented smart manufacturing in a bid to achieve greater efficiency and effectiveness.