The demand within the global market for smart manufacturing has been rising on account of the recent trend of attaining optimal industrial productivity to make businesses lucrative. Smart manufacturing has pervaded across multiple industries and is projected to overhaul the business landscape in the years to come. Smart manufacturing refers to the use of computerised systems and key manufacturing technologies in order to enhance the agility, quality, and speed of manufacturing. Furthermore, smart manufacturing is substantially different from traditional manufacturing in the sense that the former involves workforce training and concept transformation to bring about product transaction. Traditional manufacturing methods involve customary usage of raw materials to develop final products while smart manufacturing is a more customised approach that focuses on the detailing of products. The contemporary scenario has witnessed several digital transformations and solutions come under the spotlight of attention, which has aided the growth of the global market for smart manufacturing. Several research organisations have vindicated the use of smart manufacturing by stating that there is minimal production of waste when digital technologies are used for manufacturing. The growth of manufacturing units within several sectors and industries is projected to bring about positive growth within the global market for smart manufacturing.
Transparency Market Research (TMR) finds that the global market for smart manufacturing would expand at a stellar CAGR of 13.2% over the period between 2016 and 2024. Furthermore, the global market for smart manufacturing is prognosticated to touch a value of US$548.14 bn by 2024, elevating from a total worth of US$159.05 bn in 2015. TMR’s report on global smart manufacturing market elucidates a number of factors that underpin the growth of this market.
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Defense and Aerospace Industry to Contribute to Market Demand
The global market for smart manufacturing can be categorised on the basis of end-use industry into the following: Defense and aerospace, automotive, food and beverages, pharmaceuticals, and consumer electronics. Amongst these key segments, the demand for smart manufacturing has been the highest in the Defense and aerospace sector due to the need for customisable and quality-controlled equipment. Furthermore, the Defense and aerospace sector influences economic growth of nations which also calls for a robust system of smart manufacturing within the industry. On the basis of technology type, the demand for enterprise resource planning and supervisory control and data acquisition has been rising at a robust rate due to the need for connecting industrial processes to a central console. Other key segments within the technology type categorisation are distribution control system, human machine interface, machine vision, manufacturing execution system, programmable logic controller, and other technologies.
North America to Dominate Other Regional Segments
The demand for smart manufacturing in the US and Canada has been scaling new heights due to the sophisticated nature of the industrial sector in these countries. The governments in these regions have been focusing on creating a digital framework for the manufacture of products and equipment across a wide array of industries. Furthermore, the expansive industrial sector and the swift manufacturing in Europe and Asia Pacific are expected to drive demand within these regional markets.
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Some of the key players in the global smart manufacturing market are ABB Ltd., Emerson Electric Company, Johnson Controls, Inc., Honeywell International, Inc, and Siemens AG.
Rising Threat of COVID-19 Pandemic to Bring Profitable Growth for the Smart Manufacturing Market as Manufacturers are Finding Ways to Decrease Frequent Contact between Employees
The advancements in the industrial sector have increased substantially over the years. The application of Industry 4.0 technology and various technologies such as Industrial Internet-of-Things (IIoT), machine learning, artificial intelligence (AI), and augmented reality (AR) are expanding at a rapid rate. Thus, all these factors will bring extensive growth opportunities across the smart manufacturing market during the assessment period of 2016-2024.
- Smart manufacturing is an umbrella term for the varied technologies and solutions that are used collectively in a manufacturing ecosystem. They are integrated and collaborative manufacturing systems that respond in real-time to meet the changing demands across a factory. The rising trend of automation across the industrial sector is helping in increasing the growth prospects of the smart manufacturing market.
- Initiatives regarding smart manufacturing are rapidly increasing. Government and non-government organizations are consistently encouraging various industries to adopt automation. This factor steers the smart manufacturing market toward growth.
- The ongoing research and development activities are helping in expanding the growth prospects of the smart manufacturing market. The players in the smart manufacturing market are increasing their investments across research and development activities. These activities are helping the players to innovate and launch new technologies that are more beneficial and advantageous to the end-users.
- The COVID-19 pandemic restrained the growth prospects of the smart manufacturing market to a certain extent. The strict lockdown restrictions imposed by numerous countries at the advent of the pandemic led to the shutdown of manufacturing sectors and production facilities.
- However, the relaxations in lockdown after a certain period brought immense growth prospects for the smart manufacturing market. The rising transmission of COVID-19 is urging many manufacturers to adopt smart manufacturing technologies. These technologies help in reducing frequent contact between the employees working in the manufacturing units. Thus, this factor will serve as a shining growth opportunity for the smart manufacturing market.
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