Smart Manufacturing Market Report

Smart Manufacturing Market Analysis By Component, By Technology, By End-use (Automotive, Aerospace, Chemicals, Healthcare, Electronics, Agriculture, Oil & Gas), By Region, And Segment Forecasts, 2014 - 2025

  • Published Date: Nov, 2017
  • Base Year for Estimate: 2016
  • Report ID: GVR-2-68038-028-6
  • Format: Electronic (PDF)
  • Historical Data: 2014-2016
  • Number of Pages: 136

Industry Insights

The global smart manufacturing market size was valued at USD 172.34 billion in 2016 and is expected to witness significant growth over the forecast period. The growing demand for knowledge-based manufacturing and connected supply chains, which are equipped with advanced control, sensing, modeling, and simulation capabilities, are driving the growth of smart manufacturing.

The global manufacturing sector has been plagued by numerous concerns including intense competition, uncertainties in the supply of raw materials and energy, and exponential operational costs. As a result, industry players are actively looking for ways to reduce costs and make manufacturing agile, accelerated, efficient, and compliant with consumer product quality. Smart manufacturing not only fulfills these demands but also offers additional benefits such as real-time optimization and dynamic production, in turn boosting the demand for smart manufacturing at a rapid rate.

North America smart manufacturing market

In addition, the need for upgrades and modernization of legacy control systems has become necessary to compete at international standards, which has also boosted efforts for digitization and IT & OT convergence. Hence, digital plants and advanced manufacturing technologies are set to transform factories, production centers, companies, and entire value chains, thereby driving the fourth industrial revolution.

An important aspect of the manufacturing industry is the growing interest and investments in smart infrastructure from batch, continuous, and discrete manufacturers. Though their area of interest and immediate attention may differ for the next couple of years, from technological point of view, they revolve around networked sensors, data interoperability, intelligent automation, and dynamic modeling and simulation.

While cost reduction and manufacturing intelligence are the primary targets of industry players, product quality, sustainability, and compliance are gaining prominence in the industry. The return on investments in smart manufacturing is one of the key promoters of the market with numerous manufacturers having reported quantifiable benefits including energy efficiency, reduction in safety incidents, reduction in cycle times, and lower maintenance costs.

Technology Insights

Smart manufacturing includes an extensive range of technologies from Product Lifecycle Management (PLM) to 3D Printing. While some of these technologies have been in use for quite some time, segments such as additive manufacturing have been gaining traction in the recent years. The 3D printing segment is expected to witness the highest growth over the forecast period owing to its large-scale adoption in design process and agile product iterations.

However, the Manufacturing Execution Systems (MES) segment holds the largest market share in terms of revenue generated as a result of a higher demand for streamlining workflows and reducing lead times. An increasing demand for industrial automation coupled with the growing importance of legal and regulatory compliance is also driving the market growth.

Component Insights

The smart manufacturing infrastructure includes both hardware and software. The hardware segment includes robots, 3D printers, Industrial Internet of Things (IIoT) enabling equipment and devices, and augmented and virtual reality devices. While these devices are utilized at the edge of networks, their demand has been increasing in the recent years. Different types of conventional and smart sensors are an important aspect of the hardware segment, which has been exhibiting not only rapid demand growth but also increased research and development activities.

China smart manufacturing market

The software segment is quite matured as numerous solutions have already been in use for many years. The solutions include manufacturing execution systems, product lifecycle management, and enterprise resource planning. However, the modernization of these systems and growth of analytics and AI-enabled systems are expected to be the driving factors for the segment’s growth. The need for technological implementation expertise is anticipated to aid the growth of services segment over the forecast period.

End-use Insights

Smart manufacturing has found applications in almost all manufacturing industries. While some industries have been leading the adoption of advanced manufacturing, others have been relatively slower. Among these, the automotive and aerospace & defense segments are expected to be the largest contributors to the industry growth. While the automotive segment currently holds a considerable market share in the smart manufacturing industry, it is further expected to grow at a CAGR of 12.0% over the forecast period.

A peculiar trend in the industry is the proactive adoption of smart manufacturing at two different levels, connected products, and connected supply chains. Process manufacturers are observed capitalizing on the connected supply chain whereas discrete manufacturers have been increasingly investing in connected products.

Regional Insights

Though regions have started investing in smart manufacturing, they vary considerably in terms of market maturity. With numerous ongoing projects, developed countries such as the U.S., Germany, and Japan are witnessing high penetration of smart manufacturing or Industries 4.0, whereas developing countries such as China are catching up with the technological advancements. However, the Asia Pacific region holds a dominant position in the market owing to the presence of a large number of manufacturing companies stimulated by the need to compete at international levels.

An important distinction among the regional markets is that the developing countries are investing in smart technologies to keep abreast with international manufacturing standards and trends, whereas, developed economies are supporting digitalization to bring back industrialization to their own turfs. Hence, trends such as on-shoring are expected to have a profound effect on the market developments.

Competitive Insights

Key players operating in the industry include Siemens, General Electric, Rockwell Automation, Schneider, Honeywell International Inc., Emerson Electric, and Fanuc, among others. These vendors operate at different stages of the smart manufacturing value chain and cater to a host of industries and customers. Major strategies adopted by vendors include collaborations, new product developments, investments related to expanding capabilities, mergers & acquisitions, partnerships & agreements, and investments in research & development, among others.

Report Scope

Attribute

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2015

Forecast period

2017 - 2025

Market representation

Revenue in USD Billion & CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America, and MEA

Country scope

U.S., Canada, Mexico, UK, Germany, China, India, Japan, and Brazil

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and analyzes the market trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global smart manufacturing market based on components, technologies, end uses, and regions.

  • Component Scope (Revenue, USD Billion; 2014 - 2025)

    • Hardware

    • Software

    • Services

  • Technology Scope (Revenue, USD Billion; 2014 - 2025)

    • 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 Scope (Revenue, USD Billion; 2014 - 2025)

    • Automotive

    • Aerospace & Defense

    • Chemicals & Materials

    • Healthcare

    • Industrial Equipment

    • Electronics

    • Food & Agriculture

    • Oil & Gas

    • Others

  • Regional Scope (Revenue, USD Billion; 2014 - 2025)

    • North America

      • U.S.

      • Canada

    • Europe

      • UK

      • Germany

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • MEA

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