Smart Manufacturing Market Size, Share & Trends Analysis Report By Component, By Technology (Product Lifecycle Management, 3D Printing, Enterprise Resource Planning), By End-use, By Region, And Segment Forecasts, 2023 - 2030

Research Methodology

A three-pronged approach was followed for deducing the smart manufacturing market estimates and forecasts. The process has three steps: information procurement, analysis, and validation. The whole process is cyclical, and steps repeat until the estimates are validated. The three steps are explained in detail below:

Information procurement: Information procurement is one of the most extensive and important stages in our research process, and quality data is critical for accurate analysis. We followed a multi-channel data collection process for smart manufacturing market to gather the most reliable and current information possible.

• We buy access to paid databases such as Hoover’s and Factiva for company financials, industry information, white papers, industry journals, SME journals, and more.
• We tap into Grand View’s proprietary database of data points and insights from active and archived monitoring and reporting.
• We conduct primary research with industry experts through questionnaires and one-on-one phone interviews.
• We pull from reliable secondary sources such as white papers and government statistics, published by organizations like WHO, NGOs, World Bank, etc., Key Opinion Leaders (KoL) publications, company filings, investor documents, and more.
• We purchase and review investor analyst reports, broker reports, academic commentary, government quotes, and wealth management publications for insightful third-party perspectives.

Analysis: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilized different methods of smart manufacturing market data depending on the type of information we’re trying to uncover in our research.

• Market Research Efforts: Bottom-up Approach for estimating and forecasting demand size and opportunity, top-down Approach for new product forecasting and penetration, and combined approach of both Bottom-up and Top-down for full coverage analysis.

• Value-Chain-Based Sizing & Forecasting: Supply-side estimates for understanding potential revenue through competitive benchmarking, forecasting, and penetration modeling.

• Demand-side estimates for identifying parent and ancillary markets, segment modeling, and heuristic forecasting.

• Qualitative Functional Deployment (QFD) Modelling for market share assessment.

Market formulation and validation: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilize different methods of data analysis depending on the type of information we’re trying to uncover in our research.

• Market Formulation: This step involves the finalization of market numbers. This step on an internal level is designed to manage outputs from the Data Analysis step.

• Data Normalization: The final market estimates and forecasts are then aligned and sent to industry experts, in-panel quality control managers for validation.

• This step also entails the finalization of the report scope and data representation pattern.

• Validation: The process entails multiple levels of validation. All these steps run in parallel, and the study is forwarded for publishing only if all three levels render validated results.

Smart Manufacturing Market Categorization:

The smart manufacturing market was categorized into four segments, namely component (Hardware, Software, Services), technology (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 (Automotive, Aerospace & Defense, Chemicals & Materials, Healthcare, Industrial Equipment, Electronics, Food & Agriculture, Oil & Gas), and region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa).

Segment Market Methodology:

The smart manufacturing market was segmented into component, technology, end-use, and region. The demand at a segment level was deduced using a funnel method. Concepts like the TAM, SAM, SOM, etc., were put into practice to understand the demand. We at GVR deploy three methods to deduce market estimates and determine forecasts. These methods are explained below:

Market research approaches: Bottom-up

• Demand estimation of each product across countries/regions summed up to from the total market.

• Variable analysis for demand forecast.

• Demand estimation via analyzing paid database, and company financials either via annual reports or paid database.

• Primary interviews for data revalidation and insight collection.

Market research approaches: Top-down

• Used extensively for new product forecasting or analyzing penetration levels.

• Tool used invoice product flow and penetration models Use of regression multi-variant analysis for forecasting Involves extensive use of paid and public databases.

• Primary interviews and vendor-based primary research for variable impact analysis.

Market research approaches: Combined

• This is the most common method. We apply concepts from both the top-down and bottom-up approaches to arrive at a viable conclusion.

Regional Market Methodology:

The smart manufacturing market was analyzed at a regional level. The globe was divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, keeping in focus variables like consumption patterns, export-import regulations, consumer expectations, etc. These regions were further divided into nine countries, namely, the U.S.; Canada; the UK; Germany; China; Japan; India; Brazil; Mexico.

All three above-mentioned market research methodologies were applied to arrive at regional-level conclusions. The regions were then summed up to form the global market.

Smart manufacturing market companies & financials:

The smart manufacturing market was analyzed via companies operating in the sector. Analyzing these companies and cross-referencing them to the demand equation helped us validate our assumptions and conclusions. Key market players analyzed include:

• ABB - ABB is involved in the manufacture of power transmission and distribution equipment and provides end-to-end solutions in power and automation technologies. The company’s critical operating business segments include electrification products, robotics and motion, industrial automation, and power grids. Its industrial automation division provides products, services, and systems to enhance business processes. ABB’s industrial automation solutions include life cycle services, measurement products, control systems, turnkey engineering, outsourced maintenance, and other products such as pulp testing equipment, turbochargers, mine hoists, and electric propulsion for ships. The company provides its solutions to customers across a wide range of industries, including cement, paper and pulp, marine, metal production, mining, petrochemicals, and oil & gas. Yokogawa Centum, Siemens Teleperm M, and Invensys Foxboro I/A are some of the control systems from other brands that function with ABB’s DCS (Distributed Control System). ABB operates in over 100 countries worldwide.

• EMERSON ELECTRIC CO. - Emerson Electrical Co. designs and manufactures software, systems, electronic and electrical equipment, and services for the commercial, industrial, and consumer markets. The company’s product offerings for commercial/industrial applications include valves, actuators, solenoids, control equipment, and pneumatic systems. Emerson Electrical Co. operates its business under two segments, namely automation solutions, and commercial and residential solutions. The company offers measurement and analytical instrumentation, actuators and regulators, valves, industrial solutions, and process control systems and solutions through the automation solutions segment. The company serves chemical, oil and gas, power generation, pulp and paper, metal and mining, and life sciences industries. The company is listed on the New York Stock Exchange as NYSE: EMR. The company has its presence across multiple regions, including North America, Europe, Latin America, Asia Pacific, and the Middle East.

• FANUC CORPORATION - Fanuc Corporation is an engineering equipment manufacturing company that provides factory automation products globally. The company operates through four business divisions, namely Robot, FA, Robomachine, and Service. The divisions provide industrial products and solutions to promote smart manufacturing. The company also provides training services such as CNC programming, CNC connection, and CNC maintenance among others. It is publicly traded on the Tokyo stock exchange as Fanuc Corp TYO: 6954. Apart from Asia Pacific, the company has its operating units located in Europe and North America. The company has more than 260 service offices and distributes its products in more than 100 countries.

• GENERAL ELECTRIC CO. - General Electric (GE) is headquartered in Boston, U.S., and was founded in 1892. The company is a major industrial solutions provider and operates 82 manufacturing plants in 28 states across the U.S. and Puerto Rico. The company also has 149 manufacturing plants spread across the globe. General Electric is a publicly traded company and is listed on the New York Stock Exchange as NYSE: GE. The company currently operates through four industrial segments, namely healthcare, aviation, power, and renewable energy, and its financial service segment, capital. GE offers industrial automation solutions to healthcare, oil and gas, mining, renewable energy, power, and healthcare industries. Rockwell Automation, Hitachi, and Johnson Controls are some of the top competitors of the company.

• HONEYWELL INTERNATIONAL, INC. - Honeywell International, Inc. is a consumer & commercial products manufacturing company based in the U.S. It operates through four business segments including aerospace; performance materials and technologies; building technologies; and safety and productivity solutions. The products and solutions provided by the company are used across various industries, such as manufacturing, supply chain & logistics, and warehousing among others. The performance, materials, and technologies segment offers automation solutions, industrial instrumentation equipment, and advanced software that help improve manufacturing efficiency; thereby improving productivity. The software offered by the company, including DynAMo, UniSim, and Honeywell Pulse, enables real-time data management and plant optimization. The company operates widely across North America, Europe, South America, and Asia Pacific.

• MITSUBISHI ELECTRIC CORPORATION - Incorporated in 1921, Mitsubishi Electric Corporation functions its business as a publicly-held module. Headquartered in Tokyo, the company's main business includes designing, developing, and manufacturing electronic components. Mitsubishi Electric Corporation operates its business across six segments, namely energy and electric systems, industrial automation systems; information and communication systems; electronic devices; home appliances; and others. Under the industrial automation system, the company provides motors, short-circuit breakers, electrical discharges, human-machine interference, industrial robots, and automotive electric equipment that are used in industries for promoting smart manufacturing. DB Seiko CO., Ltd; Ryowa Corporation, SETSUYO ENTERPRISE CO., LTD; Setsuyo Asetc Corporation, and Meldas System Engineering Corporation are notable subsidiaries of the company that operate under the industrial automation segment.

• ROBERT BOSCH GMBH - Robert Bosch GmbH is a multinational electronics and engineering company. It is also a global supplier of automotive components such as controls, brakes, generators, fuel systems, steering systems, and starter motors. The company operates its business under four segments - mobility solutions, industrial technology, consumer goods, and energy and building technology. The company offers hydraulics and factory automation components and systems through its subsidiary, Bosch Rexroth AG, under the industrial technology business segment. Robert Bosch GmbH has a global presence in more than 118 locations across North America, South America, the Middle East, and the Asia Pacific regions. These regions are centers for manufacturing and supply units. Robert Bosch GmbH comprises 440 fully consolidated subsidiaries and regional companies in more than 60 countries.

• ROCKWELL AUTOMATION, INC. - Rockwell Automation, Inc. was founded as Allen-Bradley Company in 1903 and is primarily engaged in providing industrial automation solutions. The company’s critical operating segments include architecture & software, and control products & solutions. The company’s control products & solutions segment includes a broad portfolio of industrial control products and intelligent motor control products including motor and circuit protection devices, AC/DC variable frequency drives, low and medium voltage electromechanical and electronic motor starters, signaling devices, relays & timers, and protection devices. The company’s distribution network is a mixture of independent distributors and direct sales force. Rockwell Automation purchases a wide range of components, materials, and finished goods through a broad base of suppliers and sub-contractor. Major competitors of Rockwell Automation, Inc. include ABB Ltd., Siemens AG, Emerson Electric Co., Schneider Electric SA, Mitsubishi Electric Corp., and Honeywell International Inc.

• SCHNEIDER ELECTRIC - Schneider Electric is involved in the provision of energy management & automation solutions spanning hardware, software, and services. The company has segregated its products under four business segments-building, infrastructure, industry, and IT. The company’s key product offerings include building automation & control, medium voltage distribution & grid automation, industrial automation & control, solar & energy storage, critical power, cooling & racks, and others. The energy and infrastructure division includes numerous product lines such as medium and low voltage, renewable energy, and installation systems and control. Furthermore, the segment also caters to customers (individual/retail) from the residential, utilities, oil & gas, and marine sectors. The company has an extensive sales network of 97 distribution centers in 190 countries and operations in over 100 countries worldwide.

• SIEMENS - Established in 1847, Siemens is headquartered in Germany. The company operates in industrial engineering, electrification, automation, and digitization verticals. The company is listed on Frankfurt Stock Exchange as SIE and caters to seven segments, namely Digital Factory (DF); Power & Gas (PG); Wind Power & Renewables (WP); Building Technologies (BT); Mobility (MO); Energy Management (EM); and Process industries & Drives (PD). Siemens AG also maintains an extensive product portfolio for the smart manufacturing industry of industrial software and automation platform (COMOS, SIMATIC, SIMIT, and XHQ), industrial communication solutions, industrial security, and industrial databased services (MindSphere). Some of the major industries the company caters to include oil & gas, glass, cranes, water management, mining, cement, food & beverage, marine, pharmaceutical, fiber, chemical, and discrete manufacturing

Value chain-based sizing & forecasting

Supply Side Estimates

• Company revenue estimation via referring to annual reports, investor presentations, and Hoover’s.

• Segment revenue determination via variable analysis and penetration modeling.

• Competitive benchmarking to identify market leaders and their collective revenue shares.

• Forecasting via analyzing commercialization rates, pipelines, market initiatives, distribution networks, etc.

Demand side estimates

• Identifying parent markets and ancillary markets

• Segment penetration analysis to obtain pertinent

• revenue/volume

• Heuristic forecasting with the help of subject matter experts

• Forecasting via variable analysis

Smart Manufacturing Market Report Objectives:

• Understanding market dynamics (in terms of drivers, restraints, & opportunities) in the countries.

• Understanding trends & variables in the individual countries & their impact on growth and using analytical tools to provide high-level insights into the market dynamics and the associated growth pattern.

• Understanding market estimates and forecasts (with the base year as 2022, historic information from 2018 to 2021, and forecast from 2023 to 2030). Regional estimates & forecasts for each category are available and are summed up to form the global market estimates.

Smart Manufacturing Market Report Assumptions:

• The report provides market value for the base year 2022 and a yearly forecast till 2030 in terms of revenue/volume or both. The market for each of the segment outlooks has been provided on region & country basis for the above-mentioned forecast period.

• The key industry dynamics, major technological trends, and application markets are evaluated to understand their impact on the demand for the forecast period. The growth rates were estimated using correlation, regression, and time-series analysis.

• We have used the bottom-up approach for market sizing, analyzing key regional markets, dynamics, & trends for various products and end-users. The total market has been estimated by integrating the country markets.

• All market estimates and forecasts have been validated through primary interviews with the key industry participants.

• Inflation has not been accounted for to estimate and forecast the market.

• Numbers may not add up due to rounding off.

• Europe consists of EU-8, Central & Eastern Europe, along with the Commonwealth of Independent States (CIS).

• Asia Pacific includes South Asia, East Asia, Southeast Asia, and Oceania (Australia & New Zealand).

• Latin America includes Central American countries and the South American continent

• Middle East includes Western Asia (as assigned by the UN Statistics Division) and the African continent.

Primary Research

GVR strives to procure the latest and unique information for reports directly from industry experts, which gives it a competitive edge. Quality is of utmost importance to us, therefore every year we focus on increasing our experts’ panel. Primary interviews are one of the critical steps in identifying recent market trends and scenarios. This process enables us to justify and validate our market estimates and forecasts to our clients. With more than 8,000 reports in our database, we have connected with some key opinion leaders across various domains, including healthcare, technology, consumer goods, and the chemical sector. Our process starts with identifying the right platform for a particular type of report, i.e., emails, LinkedIn, seminars, or telephonic conversation, as every report is unique and requires a differentiated approach.

We send out questionnaires to different experts from various regions/ countries, which is dependent on the following factors:

• Report/Market scope: If the market study is global, we send questionnaires to industry experts across various regions, including North America, Europe, Asia Pacific, Latin America, and MEA.

• Market Penetration: If the market is driven by technological advancements, population density, disease prevalence, or other factors, we identify experts and send out questionnaires based on region or country dominance.

The time to start receiving responses from industry experts varies based on how niche or well-penetrated the market is. Our reports include a detailed chapter on the KoL opinion section, which helps our clients understand the perspective of experts already in the market space.