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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. smart manufacturing market

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. 

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.

Smart Manufacturing Market to Witness Notable Growth Owing to Rising Inclination toward Industry 4.0

The currently accelerating digital transformations in the industrial, residential, and commercial sector is likely to aid in expansion of the global smart manufacturing market. The interest inside the worldwide market for smart manufacturing has been ascending by virtue of the new pattern of achieving ideal mechanical profitability to make organizations worthwhile. Smart manufacturing has invaded across different ventures and is projected to upgrade the business scene in the years to come. Smart manufacturing alludes to the utilization of electronic frameworks and key manufacturing advances to upgrade the dexterity, quality, and speed of manufacturing. Besides, smart manufacturing is significantly not the same as conventional manufacturing as in the previous includes labor force preparing and idea change to achieve item exchange.

Conventional manufacturing strategies include standard use of crude materials to create eventual outcomes while smart manufacturing is a more tweaked approach that centers on the itemizing of items. The contemporary situation has seen a few computerized changes and arrangements go under the spotlight of consideration, which has helped the development of the worldwide market for smart manufacturing. A few examination associations have vindicated the utilization of smart manufacturing by expressing that there is insignificant creation of waste when computerized advancements are utilized for manufacturing. The development of manufacturing units inside a few areas and enterprises is projected to achieve positive development inside the worldwide market for smart manufacturing.

 Smart Manufacture (in the USA) or Industry 4.0 (in Europe), is the latest wave in the Industrial Revolution. The Smart Manufacturing Leadership Coalition (SMLC) in the United States is dealing with the eventual fate of creation. In correlation with the current circumstance, this idea of creation will essentially build the innovative intricacy of the worth added measures. Industry 4.0 permeation is recognized as a key pattern that is probably going to support the worldwide smart creation market.

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

  • Automotive
  • Food and Beverage
  • Pharmaceuticals
  • Aerospace and Defense
  • Consumer Electronics
  • Energy
  • Other Industries

Global Smart Manufacturing Market: By Geography

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • U.K.
    • Germany
    • France
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Rest of Asia Pacific
  • Middle East and Africa
    • UAE
    • Saudi Arabia
    • South Africa
    • Rest of MEA
  • Latin America
    • Brazil
    • Argentina
    • Rest of Latin America 

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