Smart Manufacturing Market Size, Share, Statistics and Industry Growth Analysis Report by Technology (3D printing, Al in Manufacturing, Automated guided vehicle, Condition Monitoring, Cybersecurity, Digital Twin, HMI, Machine Vision, MES, PAM, Robot, Sensor), Industry, Region - Global Forecast to 2028
Updated on : Sep 12, 2024
Smart Manufacturing Market Size & Growth
[340 Pages Report] The global Smart Manufacturing Market Size is expected to grow from USD 108.9 Billion in 2023 to USD 241.0 Billion by 2028, registering a CAGR of 17.2%.
Smart manufacturing is being pushed forward by important factors. New technologies like IoT, AI, and automation are changing how things are made. This makes things more efficient, helps predict when things need fixing, gives useful information from data, and cuts down on how much it costs to run things. Smart manufacturing Industry is liked because it can watch things as they happen, make work smoother, and help make smart decisions, which helps businesses compete and come up with new ideas.
The smart manufacturing market size is expanding rapidly as companies across various industries embrace digital transformation and automation. Smart manufacturing refers to the integration of advanced technologies and processes to optimize production, improve efficiency, and enhance overall operations. With the increasing adoption of Internet of Things (IoT), artificial intelligence (AI), and machine learning (ML), the smart manufacturing industry is poised for substantial growth.
The smart manufacturing industry is witnessing significant growth across various sectors, including automotive, aerospace, food and beverages, pharmaceuticals, and electronics. The automotive sector, in particular, is a major contributor to the smart manufacturing market size. With the rise of electric vehicles (EVs) and autonomous driving technologies, automotive manufacturers are investing heavily in smart manufacturing solutions.
The smart manufacturing market is witnessing a surge in demand due to several factors. Firstly, organizations are realizing the benefits of smart manufacturing, such as reduced costs, increased productivity, and improved quality control. Additionally, the need for real-time data analytics and predictive maintenance is driving the adoption of smart manufacturing solutions. Moreover, government initiatives and incentives to promote industrial automation are further fueling the growth of the smart manufacturing industry.
Smart Manufacturing Market Forecast to 2028
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Smart Manufacturing Market Trends & Dynamics
Driver: Surging demand for software systems that reduce time and cost
Unplanned downtime and production waste severely affect manufacturers. Hence, they are looking for a system that can determine possible defects and failures in advance to avoid future losses. The use of technologies such as Plant Asset Management (PAM), industrial 3D, and digital twin enables reducing excess time and cost required in manufacturing.
PAM solutions enable users to determine possible failures at the production level well in advance and also provide required corrective actions in real-time. The solutions collect necessary data, analyze it, and then determine any failure at the component or process level. They have the capability to implement corrective actions on a real-time basis and offer predictive as well as proactive maintenance approaches that help in predicting failures with high degrees of accuracy.
Additionally, a digital twin is a representation of the data collected based on a physical model, which reflects the replicated operating conditions of a system or process, such as performance, faults, and failure mode, in the real world. By implementing digital twins, engineers can optimize a product’s performance by modifying the physical prototype that changes at every instance during the design phase. Hence, creating a digital prototype with a digital twin can be used to run simulations and can be modified at any instance at a lesser time and with minimal costs.
Restraint: Lack of standardization among equipment manufacturers and in connectivity protocols
A major problem of many industrial devices and equipment is the lack of standardization in the equipment and protocols being used. Due to this, there are cases of mismatch occurring in many of the existing databases. There are many communication protocols being used for industrial communications, and there are a few vendors offering communication modules supporting most of the protocols. On the other hand, many vendors offer customized communication modules supporting a few other communication protocols. Thus, end users may find it difficult to switch to other protocols depending on their requirements. The lack of standardization with respect to technology complicates the integration of systems and hinders the plug-and-play capabilities between communication devices. For example, many vendors offer hardware systems required for industrial wireless sensor networks (IWSN), but end users often need to deploy software from other vendors. In such a scenario, it is essential to develop a complete solution or allow wide compatibility and a higher degree of flexibility in terms of operation and design.
The interoperability and easy exchange of information among connected devices is of utmost importance for the further growth of IIoT. The current technical and market scenarios pertaining to IIoT do not seem to provide a promising architectural solution or a universal standard to solve the interoperability issue. An urgent requirement for a universal standard in either connectivity type, data formatting, or protocol is likely to arise owing to the fact that IIoT is not just a network of internet-connected machines but of machines, and humans, among others. Currently, there are more than ten major players in the IIoT market, and these players have formed an alliance with other players in the market. Each of these alliances wants its technology or communication standard to be established as the only standard for the overall IIoT landscape. Thus, the non-standardization of communication protocols is restricting the Smart Manufacturing Market Growth.
Opportunity: Increase in adoption of IIoT and Cloud technologies
Ilot is like using special factory tools to make things better and faster. It connects machines to work smarter. This is changing how factories work by using devices that can think independently. They help factories become more automatic, which helps the people who own the factories make more money. Ilot also lets people see data from parts of the factory that were hard to reach. This makes things work better and helps the factory run smoothly. Big companies like ABB, Microsoft, Amazon, Bosch, and Hitachi use Ilot to improve their business. When IIoT is used in factories, it creates information. This information needs a special place to be kept, and that’s where Cloud computing comes in. Cloud computing uses the Internet to store and manage information, which saves companies from having to build and take care of their data places. Cloud with IIoT infrastructure offers manufacturers several benefits, such as data monitoring, increasing profit margin, reducing overheads, and enhancing the scalability for discrete manufacturing. Some major public Cloud vendors include Microsoft, Amazon Web Services, and Google Inc.
Challenge: Lack of skilled workforce
The anticipated rise in operational efficiency and reliance on data-driven procedures will necessitate the development of fresh skill sets among employees. This might give rise to a skill disparity between newly hired workers and those who have undergone training. Contemporary businesses actively embrace emerging technologies while grappling with a need for an adept and highly skilled workforce. Also, despite the increasing popularity of digitalization, many organizations need to be aware of the capabilities of digital twin technology due to their complex structure and the lack of process understanding. For example, creating a digital twin of an asset/processor to deploy IIoT demands various technologies, skillsets, and trained workers to handle the latest equipment and software systems. The digital change will lead to a change in the specifications of skills required for employees at different stages of the value chain, starting from development to sales and marketing. For this, existing workers must be trained to operate new systems. For instance, the oil & gas industry in the US is now struggling to find skilled workers to explore the abundant source of gas in shale rocks, thus risking the USD 100 billion invested in planned petrochemical projects. In addition, due to the lack of a skilled workforce, developing countries need help implementing smart manufacturing and next-level industrialization efficiently.
Smart Manufacturing Market Ecosystem
Component suppliers and system integrators have witnessed a decline in production activities. Consequently, OEMs have needed more essential components. The figure below shows the Smart Manufacturing ecosystem.
Manufacturing Execution System to hold largest market share in 2022.
In the smart manufacturing market share, Manufacturing Execution Systems (MES) are becoming increasingly significant. These systems help oversee and manage various manufacturing processes, ensuring smooth operations, quality control, and efficient production. MES integrates data from different parts of the manufacturing process, allowing real-time monitoring, tracking, and optimization. This enhances productivity, reduces errors, and contributes to the overall advancement of smart manufacturing practices.
Industrial Sensors to hold largest market share in 2022.
In smart manufacturing, industrial sensors are important tools. They can measure things like temperature, pressure, and movement. These sensors give us quick information to make smart decisions and improve how things are done. They help things work better, ensure quality, and even predict when they need fixing. These sensors are useful in smart manufacturing to make things run smoothly and stay competitive.
Aerospace Industry is expected to register highest CAGR during the forecast period
The aerospace industry is benefiting greatly from the adoption of smart manufacturing. Using advanced technology, it’s making airplane production smarter and more effective. Robots, computers, and sensors team up to create aircraft and components, improving quality, reducing errors, and saving time. Smart manufacturing is crucial in shaping safer and more creative airplanes, leading to enhanced travel experiences for everyone.
North America to grow at highest CAGR during the forecast period.
Smart Manufacturing Market Statistics by Region
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North America is a well-established hub for industrial automation, boasting advanced technology and innovative manufacturing methods. This prowess fuels the expansion of the smart manufacturing market in the region. A positive business climate in the US, accompanied by government initiatives like tax code reforms, substantial support packages for manufacturing and infrastructure, and major tech players’ presence, further accelerates the adoption of smart manufacturing. Factors such as prioritizing efficient asset use, stricter workplace safety regulations, and heightened awareness about ensuring product quality in industries like oil & gas, chemicals, and food & beverages drive the demand for machine condition monitoring systems and plant asset management solutions across North America.
Top Companies Smart Manufacturing - Key Market Players
The Smart Manufacturing companies players have implemented various organic and inorganic growth strategies, such as product launches, partnerships, acquisitions, and collaborations, to strengthen their offerings in the market. The major players in the market are 3D System, Inc. (US), ABB (Switzerland), Cisco System, Inc. (US), Emerson Electric Co. (US), General Electric (US), Honeywell International Inc. (US), IBM (US), Mitsubishi Electric Corporation (Japan), Rockwell Automation (US), Schneider Electric (France), Siemens (Germany), Oracle (US), SAP (Germany), Stratasys (US), Yokogawa Electric Corporation(Japan).
The study includes an in-depth competitive analysis of these key players in the Smart Manufacturing market with their company profiles, recent developments, and key market strategies.
Smart Manufacturing Market Report Scope
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Report Metric |
Details |
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Estimated Market Size in 2023 |
USD 108.9 Billion |
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Projected Market Size in 2028 |
USD 241.0 Billion |
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Growth Rate |
CAGR of 17.2% |
|
Market size available for years |
2019—2028 |
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Base year |
2022 |
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Forecast period |
2023—2028 |
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Forecast Units |
USD Millions/USD Billions and Million Units |
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Segments Covered |
By Information Technology, By Enabling Technology, By Industry, and by Region |
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Geographic regions covered |
North America, Asia Pacific, Europe, and the Rest of the World |
|
Companies covered |
3D System, Inc. (US), ABB (Switzerland), Cisco System, Inc. (US), Emerson Electric Co. (US), General Electric (US), Honeywell International Inc. (US), IBM (US), Mitsubishi Electric Corporation (Japan), Rockwell Automation (US), Schneider Electric (France), Siemens (Germany), Oracle (US), SAP (Germany), Stratasys (US), Yokogawa Electric Corporation(Japan) and total of 25 players covered |
Smart Manufacturing Market Highlights
This report has segmented the Smart Manufacturing market based on information technology, enabling technology and region.
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Segment |
Subsegment |
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By Information Technology |
|
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By Enabling Technology |
|
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By Industry |
|
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By Region |
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Recent Developments:
- In June 2023, Honeywell unveiled its latest innovation, the Honeywell Digital Prime solution—a cloud-based digital twin designed to streamline the monitoring, management, and testing of process control changes and system modifications. This cost-effective tool empowers users to conduct frequent testing, leading to heightened precision in results and a notable reduction in the need for reactive maintenance.
- In April 2023, Siemens Digital Industries launched Industrial Operations X, an open and interoperable portfolio designed to automate and manage industrial production. It is part of Siemens Xcelerator, an open digital business platform with software, connected hardware, a partner ecosystem, and a marketplace.
- In April 2023, Stratasys, a leading company in polymer 3D printing, introduced its latest offering, GrabCAD Print Pro software, which includes integrated quality assurance features from Riven, a recent Stratasys acquisition. This advanced software manages the print preparation process for Stratasys 3D printers, catering to manufacturers seeking efficient production of end-use parts at scale. It focuses on enhancing printed-part accuracy, minimizing waste, and reducing time to production.
Frequently Asked Questions (FAQ):
What will be the Smart Manufacturing market size in 2023?
The Smart Manufacturing market will be valued at USD 108.9 billion in 2023.
What CAGR will be recorded for the Smart Manufacturing market from 2023 to 2028?
The global Smart Manufacturing market is expected to record a CAGR of 17.2% from 2023–2028.
Who are the top players in the Smart Manufacturing market?
The significant vendors operating in the Smart Manufacturing market include 3D System, Inc. (US), ABB (Switzerland), Cisco System, Inc. (US), Emerson Electric Co. (US), General Electric (US), Honeywell International Inc. (US), IBM (US), Mitsubishi Electric Corporation (Japan), Rockwell Automation (US), Schneider Electric (France), Siemens (Germany), Oracle (US), SAP (Germany), Stratasys (US), Yokogawa Electric Corporation(Japan).
Which significant countries are considered in the Asia Pacific region?
The report includes an analysis of the US, Canada, and Mexico.
Which Information Technology segment has been considered in the Smart Manufacturing market?
Human Machine Interface, Plant Asset Management, Warehouse Management System, and Manufacturing Execution Systemare considered in the market study.
To speak to our analyst for a discussion on the above findings, click Speak to Analyst
The study involves four significant activities for estimating the size of the Smart Manufacturing market. Exhaustive secondary research has been conducted to collect information related to the market. The next step is to validate these findings and assumptions related to the market size with industry experts across the value chain through primary research. Both top-down and bottom-up approaches have been employed to estimate the overall size of the Smart Manufacturing market. After that, market breakdown and data triangulation procedures were used to determine the extent of different segments and subsegments of the market.
Secondary Research
Secondary sources for this research study included corporate filings (such as annual reports, investor presentations, and financial statements); trade, business, and professional associations; white papers; certified publications; articles by recognized authors; directories; and databases. The secondary data has been collected and analyzed to determine the overall market size, further validated through primary research.
Primary Research
Extensive primary research has been conducted after gaining knowledge about the current scenario of the Smart Manufacturing market through secondary research. Several primary interviews have been conducted with experts from the demand and supply sides across four major regions—North America, Europe, Asia Pacific, and RoW. This primary data has been collected through questionnaires, emails, and telephonic interviews.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
In the complete market engineering process, top-down and bottom-up approaches and several data triangulation methods have been implemented to estimate and validate the size of the Smart Manufacturing market and other dependent submarkets listed in this report.
- The key players in the industry and markets have been identified through extensive secondary research.
- The supply chain of the industry and the market size, in terms of value, have been determined through primary and secondary research.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Smart Manufacturing Market: Top-Down Approach
- In the top-down approach, the overall market size has been used to estimate the size of the individual markets (mentioned in the market segmentation) through percentage splits obtained from secondary and primary research.
- For calculating the Smart Manufacturing market segments, the market size obtained by implementing the bottom-up approach has been used to implement the top-down approach, which was later confirmed with the primary respondents across different regions.
- The bottom-up approach has also been implemented for the data extracted from secondary research to validate the market size of various segments.
- Each company’s market share has been estimated to verify the revenue shares used earlier in the bottom-up approach. With the help of data triangulation and validation of data through primaries, the size of the overall Smart Manufacturing and each market have been determined and confirmed in this study.
Smart Manufacturing Market: Bottom-Up Approach
- Identifying various industries using or expected to deploy Smart manufacturing by its IT & ET components at their facilities.
- Analyzing the use cases across different regions and companies.
- Estimating the size of the Smart manufacturing market on the basis of the demand from these industries and companies
- Tracking the ongoing and upcoming installation contracts, acquisitions, expansions, and product launches by various companies, and forecasting the market based on these developments and other critical parameters.
- Conducting multiple discussions with key opinion leaders to understand Smart manufacturing components by companies in these industries to analyze the break-up of the scope of work carried out by each major company providing Smart manufacturing components.
- Arriving at the market estimates by analyzing the country-wise sales of Smart manufacturing solutions companies and combining this data to get the regional market estimates.
- Verifying and crosschecking the estimates at every level through discussions with key opinion leaders, including CEOs, directors, operations managers, and domain experts at MarketsandMarkets
- Studying various paid and unpaid information sources, such as annual reports, press releases, and white papers
Data Triangulation
After arriving at the overall market size, the total market has been split into several segments. The market breakdown and data triangulation procedures have been employed wherever applicable to complete the overall market engineering process and arrive at exact statistics for all segments. The data was then triangulated by studying various factors and trends from both the demand and supply sides. The market has also been validated using both top-down and bottom-up approaches.
Market Definition
Smart manufacturing is the combination of systems that integrate with each other to provide real-time data to ascertain the changing demands and requirements of the manufacturing sector. It is capable of solving the current and future problems of manufacturing through an open infrastructure, which encompasses various information from enabling technology solutions. It also fosters flexibility in manufacturing processes and provides cost-effectiveness and agility. The smart manufacturing market comprises players that offer solutions based on different smart manufacturing technologies. The market is diversified, with many companies competing across the value chain to sustain their position in the market and increase their market shares. The smart manufacturing market is likely to witness significant growth in the near future, primarily due to the increasing use of industrial automation in the manufacturing sector. The oil & gas, energy & power, and pharmaceutical industries are at the forefront of implementing smart manufacturing solutions and together account for a major share of the revenue share of the global smart manufacturing market in the process industry. The major players in the smart manufacturing market include 3D System, Inc. (US), ABB (Switzerland), Cisco System, Inc. (US), Emerson Electric Co. (US), General Electric (US), Honeywell International Inc. (US), IBM (US), Mitsubishi Electric Corporation (Japan), Rockwell Automation (US), Schneider Electric (France), Siemens (Germany), Oracle (US), SAP (Germany), Stratasys (US), Yokogawa Electric Corporation(Japan).
Key Stakeholders
- Original equipment manufacturers (OEMs)
- Providers of technology solutions
- Research institutes
- Market research and consulting firms
- Forums, alliances, and associations related to Smart Manufacturing
- Technology investors
- Governments and financial institutions
- Analysts and strategic business planners
- Existing end users and prospective ones
Report Objectives:
- To describe and forecast the Smart Manufacturing market in terms of value based on information technology, enabling technology, and Industry
- To describe and forecast the Smart Manufacturing market size in terms of value for four main regions, namely, North America, Europe, Asia Pacific, and the Rest of the World (RoW)
- To provide detailed information regarding the drivers, restraints, opportunities, and challenges influencing the growth of the Smart Manufacturing market
- To provide a detailed overview of the supply chain of the ecosystem
- To analyze opportunities in the market for various stakeholders by identifying the high-growth segments of the market
- To analyze the probable impact of the recession on the market in future
- To benchmark the market players using the proprietary company evaluation matrix framework, which analyzes the market players on various parameters within the broad categories of market ranking/share and product portfolio.
- To analyze competitive developments such as acquisitions, product launches, partnerships, expansions, and collaborations undertaken in the Smart Manufacturing market
Available Customization:
With the given market data, MarketsandMarkets offers customizations according to the company’s specific needs. The following customization options are available for this report:
Company Information:
- Detailed analysis and profiling of additional five market players
Generating Response ...
Growth opportunities and latent adjacency in Smart Manufacturing Market
Smart manufacturing is a powerful disruptive force with the potential to restructure the current competitive landscape and produce a new set of market leaders. It is a combination of various technologies and solutions, which, if implemented in a manufacturing ecosystem, is termed smart manufacturing.This B2B Market study assists in understanding the market potential, Industry Trends, market size of each of the sub segments, and geographies with country level breakdown, Key players operating with their business and product overview and strategic development and a detailed competitor analysis along with a competitive intelligence in this industry.
The report provides the global(regional/country level) market size, trends and future growth potential statistics of Smart Manufacturing Market based on the different enabling technologies, information technologies and industries. These detailed 4 segmentations which covers all the offerings of ADLINK within the smart manufacturing space would give multi-dimensional analysis of the market space along with 25 key player insights, to validate the market understanding, estimates and trends to fulfil research and marketing strategies.