Smart Manufacturing Market

[340 Pages Report] The global Smart Manufacturing market 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 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.

Smart Manufacturing Market Forecast to 2028

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Market 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 growth of the market.

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, 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 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.

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.

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Scope of the Report

Smart Manufacturing Market Highlights

This report has segmented the Smart Manufacturing market based on information technology, enabling technology and region.

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.

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