Smart Manufacturing Market Size, Share & Trends Analysis Report By Component, By Technology (Product Lifecycle Management, 3D Printing, Enterprise Resource Planning, Discrete Control Systems), By End-use, By Region And Segment Forecasts, 2022 - 2030

Report Overview

The global smart manufacturing market size was valued at USD 259.63 billion in 2021 and is anticipated to grow at a compound annual growth rate (CAGR) of 13.4% from 2022 to 2030. The rising growth of the market is a result of the growing implementation and adoption of Industry 4.0. The increase in automation and software-based processes has added to the market share. Smart technologies have been able to provide the global market with real-time analysis and synchronization which help reduce costs and save time. The market is directly proportional to technological developments, where both grow together.

During the COVID-19 pandemic, all the industries and elements involved in industrial automation were affected or shut down. During the initial worldwide lockdown, the global supply chains and operational logistics were suddenly affected. As the demand for non-essential products reduced, the market became more focused on the essential products manufacturing to survive during the pandemic. However, the market was able to grow during the pandemic period as industries needed to provide their products and services safely and quickly. The market grew during this unprecedented event as a direct result of demand and also government financial assistance and technical support.

The information technology and automobile industries are the two industries where industry 4.0 is most prevalent. The market has helped automotive manufacturers build automated assembly lines not only for parts but also to manufacture the entire car. For instance, in 2021, Audi used their Production Lab (P-Lab) department to create real-life use cases for modern technology in everyday manufacturing. Industrial automation has created an in-depth and in-demand market for itself solely based on the benefits and opportunities it offers to the other industries. Now, regardless of industry, every company or manufacturer aims to apply smart manufacturing to their processes, thus increasing the overall market.

Additionally, the information technology industry is at the forefront for the existence of the market and also its development. The market has grown standardized as a result of the recent installation and widespread standardization of the Internet of Things (IoT). The Internet of Things has normalized the entry-level, application, and execution of manufacturing market technology around the world. The information technology industry uses augmented reality, virtual reality, machine learning, artificial intelligence, and many other modern solutions to keep the industry on the front foot to meet modern challenges and demands. For instance, in July 2021, Qualcomm began applying its advanced 5G technology as a means for smart manufacturing by unleashing the power of IoT.

Furthermore, the industry is growing momentum in developing nations like India, Mexico, and Brazil. As the developing countries are undergoing industrialization at an exorbitant rate, companies and industrial plants are seeing this as an opportunity. Along with technological and logistical advancements, governments in developing countries are enacting laws that benefit businesses, allowing the market to thrive.

Component Insights

The software segment accounted for the largest revenue share of 49.3% in 2021 and is likely to dominate the market over the forecast period. As the industry is pushing towards full automation, the software component is the backbone of the industry. Advanced software will help run the robots, drones, and other machines without human interruption thereby reducing the chance of any error. With the help of software, the market can make large strides in development and also in research for newer and more versatile solutions.

The hardware segment is projected to grow at a significant CAGR of 12.3% from 2022 to 2030.  The advanced software requires high-level and compatible hardware to run. For the advanced software to be executed, it requires modern hardware to operate. Manufacturing plants use hardware that consumes less power but is agile and can work without any human touch. Modern hardware also has to be compatible with IoT to assist the market with standardization.

Technology Insights

The discrete control system segment accounted for the largest market share of 16.1% in 2021 and is predicted to lead the market over the forecast period. The discrete control system technology runs in the background and offers control and monitor functions to the administrator. The market offers basic and advanced level technological control and overview over every process. The combination of this technology and industrial automation makes the market accessible even remotely.

The 3D printing segment accounted for a significant market share of 12.9% in 2021 and is expected to witness the fastest CAGR of 16.4% from 2022 to 2030. 3D printing allows smart manufacturers to print any type of small or big part just by drawing it on a 3D software. 3D printing saves time and cost for a smart manufacturing plant by being easy to draw and print then and there. The market is a huge investor and purchaser of 3D printing equipment and software.

End-Use Insights

The automotive industry registered the largest revenue share of 23.5% in 2021 and is forecasted to register the highest CAGR of 15.1% from 2022 to 2030. Many automotive manufacturers are running at very minimal profits, so they turn towards smart manufacturing to reduce waste and cost and to increase their margins. The market also helps automotive companies maintain a high level of standardization of their products. Primarily, industry 4.0 help the automotive industry to run round the clock and reduce labor wages if any.

The aerospace & defense industry segment is predicted to register the highest CAGR of 14.4% from 2022 to 2030. This industry is investing heavily in smart manufacturing as precision in the product is key. For space research, multiple flights are needed for testing which can only be achieved by smart manufacturing rockets at a rapid pace. The defense industry invests significantly in industrial automation to be able to come up with modern defense mechanisms to mitigate any new threats.

Regional Insights

The Asia Pacific region accounted for the largest market share of 36.3% in 2021. The region is also anticipated to be the fastest-growing region over the forecast period. Developing countries like India and China have vast unexplored opportunities and are aiming toward full automation in smart manufacturing. These countries also want to be independent in terms of production and manufacturing so they invest heavily in industry 4.0.

Latin America is expected to grow at a significant CAGR of 13.9% during the forecast period. The Latin American market for innovation and automation is aggressively penetrated, resulting in the normalization of smart manufacturing. Since the modern technological revolution has only recently begun in Latin America, opportunities in smart manufacturing are expanding. The region is also close to and accessible to various raw materials, which aids in smart manufacturing and drives the growth of the market.

Key Companies & Market Share Insights

The global smart manufacturing market has a high number of small and medium-level players who are often operating for the big established manufacturers. The majority of small-level players in the market are in the Asia Pacific region as the market is still developing here. As technology evolves, so does the specification and type of products to be manufactured, with industrial automation the process is streamlined and the market grows alongside the evolution. The North American and European markets are dominated by large and medium-level companies in the market.

The competition in this market is high, although technological advancements are allowing companies to save time and cost while increasing their efficiency and effectiveness. Constant research and development are leading to the industry becoming more common and standard even if it requires some investment. Due to globalization, the smart manufacturing trend is present in global markets over boundaries. Seeing the growth potential, even governments are offering schemes and policies for investors to bring markets to their countries. Some major players operating in the global smart manufacturing market include:

• Siemens

• General Electric

• Rockwell Automation Inc.

• Schneider Electric

• Honeywell International Inc.

• Emerson Electric

• Fanuc UK Limited

Smart Manufacturing Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and analyzes the latest market trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global smart manufacturing market report based on component, technology, end-use, and region:

• Component Outlook (Revenue, USD Billion, 2018 - 2030)

  • Hardware

  • Software

  • Services

• Technology Outlook (Revenue, USD Billion, 2018 - 2030)

  • Machine Execution Systems

  • Programmable Logic Controller

  • Enterprise Resource Planning

  • SCADA

  • Discrete Control Systems

  • Human Machine Interface

  • Machine Vision

  • 3D Printing

  • Product Lifecycle Management

  • Plant Asset Management

• End-Use Outlook (Revenue, USD Billion, 2018 - 2030)

  • Automotive

  • Aerospace & Defense

  • Chemicals & Materials

  • Healthcare

  • Industrial Equipment

  • Electronics

  • Food & Agriculture

  • Oil & Gas

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • Japan

    • India

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa