Global Smart Manufacturing Market: Snapshot
The global smart manufacturing market is projected to stay gainful on the back of the engagement of the best of both technologies, i.e. information technology (IT) and operating technology (OT). The integration of these technologies forwarded by smart manufacturing developers to produce an intelligent assembling and optimization of digital, business, and physical methods could provide a strong impetus to the market. This is foretold to help ease out the value chain of the manufacturing industry. More optimized results could be achieved with the introduction of intelligent manufacturing created through the utilization of human ingenuity with IT.
At a 13.2% CAGR, the global smart manufacturing market could rise up to a revenue valuation of US$548.14 bn by 2024 from US$159.05 bn in 2015.
Booming Defense and Aerospace Industry Puts ERP under Limelight
The international market for smart manufacturing is anticipated to be bolstered by the demand for a range of technologies, including human machine interface (HMI), machine vision, distributed control system (DCS), enterprise resource planning (ERP), programmable logic controller (PLC), supervisory controller and data acquisition (SCADA), and manufacturing execution system (MES).
However, amongst these first-rate technologies, ERP could make a mark in the smart manufacturing market spread across the globe. The effortless social integration of this popularly used technology and copious economic development in various nations across the world could increase its adoption in the coming years. The rising uptake of the ERP technology is forecasted to be further strengthened by the booming growth of the defense and aerospace industry. As a result, the technology could receive a strong traction during the forecast period 2016–2024 as it finds application in upgrading defense and aerospace manufacturing processes.
According to end use, the international smart manufacturing market is predicted to be classified into several segments, viz. energy, consumer electronics, pharmaceuticals, defense and aerospace, food and beverage, and automotive.
The demand for smart manufacturing in these industries is seeing a towering rise on account of an aggressive growth in the need for connected devices. The smart manufacturing market associated with the energy sector could showcase a rushed consolidation for the reason that giant industrial consortiums are taking over smaller firms at a speedy rate. Among other end-use industries of smart manufacturing, consumer electronics and automotive are foreseen to provide their own resources, for example, warehouse operators.
North America Eyes Lead Secured by Asia Pacific Owing to Emphasis on Manufacturing
As per region, the world smart manufacturing market is prophesied to draw prospects from Latin America, the Middle East and Africa, Asia Pacific, Europe, and North America. However, not all of these regions could equally contribute toward the growth of smart manufacturing.
In 2015, the Asia Pacific smart manufacturing market had secured a king’s share of 39.0% with regard to revenue. Nonetheless, North America had been lurking around the corner to watchfully follow the lead taken by Asia Pacific in the world smart manufacturing market. Vendors looking to establish a commanding position in the market could rely on these two regions expected to continue holding a dominating share until 2024.
Apart from the lucrative prospects offered by developed markets, emerging regions such as Asia Pacific are envisaged to cut loose to provide a strong growth to the overall market for smart manufacturing. Governments in Asia Pacific are making continuous efforts to increase manufacturing activities for the benefit of their emerging economies.
Both of these regions are envisioned to testify a steady uptake of smart manufacturing in their consumer electronics and automotive industries, which are prognosticated to extensively stir the demand in the worldwide market. Some of the leading players that could make a strong impression on the market are Emerson Electric Company, ABB Ltd., Johnson Controls, Inc., Siemens AG, and Honeywell International, Inc.
Global Smart Manufacturing Market: Overview
Smart manufacturing is an enhanced process of production with the objective of optimizing concept generation, product transaction, and manufacturing. It refers to a merger of operation technology and information technology which work together within an integrated process, in real time scenario. The whole technique implied is usually constituted of capturing data, simulation and modeling, analysis of big data, controlling and planning, and cloud computing.
Global Smart Manufacturing Market: Trends and Opportunities
The strong growth in the industrial internet of things technology market is driving the growth of the smart manufacturing market. Furthermore, growing adoption of analytics tools is acting as one of the major drivers of the smart manufacturing market globally. Increase in smart manufacturing is due to increasing access to the Internet and growing focus on cost reduction and commercial process efficiency. In addition, fall in the cost of important components and advancement in technology are supporting the market currently.
Mass scale technical progress across different domains has led the organizations to adopt innovative technologies, and gather competitive edge over their competitors. Smart manufacturing systems help to reduce redundant system costs effectively, while ensuring that producers achieve cost efficient manufacturing plans. Several developed economies have experienced mass scale adoption of the machine-to-machine communication and internet of things technologies in the industrial sector. These technologies have importantly staged a key driver impacting the growth in the global smart manufacturing market.
Global Smart Manufacturing Market: Segmentation
On the basis of various technology types, the smart manufacturing market is segmented into programmable logic controller (PLC), manufacturing execution system (MES), distributed control system (DCS), enterprise resource planning (ERP), human machine interface (HMI), supervisory controller and data acquisition (SCADA), machine vision (MV), and other technologies. In the technologies segment, the enterprise resource and planning segment constituted the biggest market share, followed by the manufacturing execution system segment, in 2015. Enterprise resource and planning is largely used in automation, oil & gas, fishing, retail, media and entertainment, and military. Therefore, the segment generates the largest revenue among all the segments in the smart manufacturing market. In addition, it is ideal for producing digital services. Manufacturing execution system follows enterprise resource planning, and is one of the most widely used smart manufacturing technology to assimilate production operations across several layers comprising maintenance. MES can be particularly significant in structured industries such as food and beverage, and can document and track the evolution of raw materials into finished goods.
Based on end-user industries, the smart manufacturing market is segmented into automotive, food and beverage, aerospace and defense, consumer electronics, energy, and other industries. Rapid growth in demand for connected devices is one of the major factors that are driving the demand for smart manufacturing end-user industries, globally. Automotive and consumer electronics smart manufacturing provide their own resources such as warehouse operators among others. Smart manufacturing in the energy sector has been witnessing an astounding speed of consolidation, due to giant industrial conglomerates taking over smaller organizations rapidly.
Global Smart Manufacturing Market: Regional Outlook
In terms of regions, the smart manufacturing market has been segregated into five geographical zones: North America, Europe, Asia-Pacific (APAC), Middle East and Africa (MEA), and Latin America. Currently, Asia Pacific held the major share of the market, followed by North America, Europe, Middle East and Africa, and Latin America. The Asia Pacific region is anticipated to grow swiftly with rise in trade with North America and Europe. Regional players are focused on partnerships with players in regions such as Africa.
Key Players Mentioned in the Report
Key players profiled in this report are Honeywell International, Inc. (United States), Siemens AG (Germany), Johnson Controls, Inc. (Ireland), ABB Ltd. (Switzerland), Emerson Electric Company (United States), General Electric Company (United States), Rockwell Automation (Germany), Schneider Electric (France), Fanuc Corp. (Japan), Atos SE (Germany).
The segments covered in the Smart Manufacturing market are as follows:
Global Smart Manufacturing Market: By Technology Type
- Manufacturing Execution System (MES)
- Programmable Logic Controller (PLC)
- Supervisory Controller And Data Acquisition (SCADA)
- Distributed Control System (DCS)
- Enterprise Resource Planning (ERP)
- Human Machine Interface (HMI)
- Machine Vision
- Other Technologies
Global Smart Manufacturing Market: By End-User Type
- Food and Beverage
- Aerospace and Defense
- Consumer Electronics
- Other Industries
Global Smart Manufacturing Market: By Geography
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Middle East and Africa
- Saudi Arabia
- South Africa
- Rest of MEA
- Latin America
- Rest of Latin America