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Smart Manufacturing Market Size, Share & COVID-19 Impact Analysis, By Component (Solution and Services), By Deployment (Cloud and On-premise), By Enterprise Size (Small & Medium Enterprise (SMEs) and Large Enterprise), By Industry (Discrete and Process), and Regional Forecast, 2021-2028

Region : Global | Format: PDF | Report ID: FBI103594

 

KEY MARKET INSIGHTS

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The global smart manufacturing market size was USD 225.73 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with smart manufacturing witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of 10.1% in 2020 as compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 249.46 billion in 2021 to USD 576.21 billion in 2028 at a CAGR of 12.7% in the 2021-2028 period. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.


The market growth is driven by the increasing investment in automation products across industries, such as heavy manufacturing, automotive, healthcare, and others. Further, as cloud and computing technologies continue to expand their footprint in the industrial operational areas it is expected to support the market growth. Hence, industries are more likely to realize the potential efficiency and productivity that can be achieved through the applications of Industry 4.0, including the Internet of Things (IoT), which will positively fuel the demand for advanced manufacturing technologies.


COVID Impact


Manufacturers to Invest in Smart Manufacturing Technologies to Address Automation Opportunities


The coronavirus has developed critical gaps between manufacturing and supply chain units. To overcome the pandemic, organizations are reconstructing their business continuity models, investing in advanced manufacturing and supply chain models, and discovering automation opportunities to reduce the impact of COVID-19 on production lines in the upcoming years.



  • For instance, according to Invest India.gov, in May 2020, India's government invested around USD 265 million (20 lakh crore) as an “Economic Package.” The investment was completed for the development of all types of enterprises across industries such as agriculture, manufacturing, healthcare, and others. With this investment, several MSMEs and startups are likely to adopt the automation software in their manufacturing units to expand their productivity and business.


The long-term growth of the smart manufacturing market is likely to depend upon the reshuffling of the manufacturing industry and the global economy between 2021-2028. However, looking at the current economic recovery, the global market is expected to show a higher growth rate than the pre-COVID market projection.


LATEST TRENDS


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Increasing Penetration of Industrial Internet of Things (IIoT) Technology is a Vital Trend


Industrial IoT is one of the prominent trends prevailing in the global market. Industry 4.0 and IIoT promise to reduce expenses and boost production by linking customers with providers, warehouses, and systems to distribute products.


According to GSMA Intelligence, the number of industrial IoT (IIoT) connections will reach up to 13.8 billion units globally by 2025. These increasing number of industrial IoT connections are expected to facilitate digital technologies, such as 3D printing, manufacturing execution systems (MES), and robotic process automation, thereby driving the market growth.


High Demand for Online 3D Printing to Be an Emerging Market Trend


Digitization across the manufacturing industry has led to the introduction of new business models and advanced technologies for market players. The availability of a broad range of 3D printing materials and systems has encouraged companies to invest in in-house additive manufacturing capabilities to drive business growth.


Online 3D printing platforms prove to be a competitive solution to fulfill large-scale production needs, primarily in the smart manufacturing industry. The rapidly increasing digitization and the rising adoption of advanced technologies, such as industry 4.0, smart factories, robotics, machine learning, and others are expected to fuel the demand for online 3D printing for simulation purposes in the manufacturing processes.


DRIVING FACTORS


Industry 4.0 Technologies to Drive the Market towards Higher Growth Trajectory


The increasing adoption of industry 4.0 and IoT-enabled smart technologies is more likely to drive this market towards a higher growth trajectory. Increasing the effectiveness of the production process is the primary driver of the global market. With the advent of 4.0 technologies, developing countries have an opportunity to establish a strong position in advanced manufacturing.


Other variables boosting the market are the increasing adoption of computer-aided systems, manufacturing tools, the internet of things (IoT), and engineering technologies such as artificial intelligence, machine learning, and cloud computing. Ongoing developments in industry 4.0 are expected to propel the adoption of smart factories by opening up new opportunities for manufacturers.


RESTRAINING FACTORS


High Initial Investment in Smart Manufacturing Solutions to Impede Market Growth


High initial capital investments are observed to be the most significant factor to impede the market growth. Further, factory automation development would be hampered by low investment, inadequate professional accessibility, and insufficient safety knowledge. Globally, across all sectors, the manufacturing paradigm is shifting towards digitization. Tariffs are affecting many products in several nations in the automation industry


SEGMENTATION


By Component Analysis


Smart Manufacturing Solutions Segment to Hold Maximum Share


Based on the component, the market is divided into solutions and services. In our market study, we have considered various smart type of manufacturing solutions and services offered by players such as ABB Ltd., Siemens, Robert Bosch, Honeywell International Inc., Fanuc Corporation, Mitsubishi Electric Corporation, and others operating across the globe and different regions.


Advanced manufacturing solutions facilitate digital and automation processes within the factories and across the entire supply chain. These factors would lead to the increasing demand for advanced manufacturing technologies. The services segment is expected to gain traction in the upcoming years, attributed to the increasing pace of digital transformation across industries.


By Solutions Analysis


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Industrial 3D Printing Sub-segment to Exhibit Highest Growth Rate  


The solution segment is further categorized into industrial 3D printing, programmable logic controller (PLC), product lifecycle management (PLM), manufacturing execution system (MES), robotic process automation (RPA), remote monitoring software, supervisory controller, and data acquisition (SCADA), and others.


In the global market, the 3D printing segment is expected to have high growth opportunities due to the increasing demand for IoT for advanced automation processes in the manufacturing industry. Similarly, the manufacturing execution system (MES) segment is anticipated to contribute to a significant share in the global market during the study period. MES delivers optimized production processes across the enterprise.


By Services Analysis


Market Players to Generate Maximum Revenue from Professional Services


The services segment is further sub-segmented into professional services and managed services. The professional services segment is projected to hold the maximum market share under the services segment. Established players in the market are offering a wide range of professional services to establish a strong customer base. Post COVID-19 outbreak, the managed services segment is forecast to exhibit the fastest growth.


By Deployment Analysis


Cloud to Emerge as the Most Preferred Deployment Type in Upcoming Years


Based on the deployment criterion, the market is categorized into on-premises and cloud. The pandemic has created more challenges for IT teams who need to address remote workforces and support scalable infrastructure for their products and service offerings. As a result, the cloud-based software segment is expected to gain traction in the post-outbreak era of the pandemic. This trend is likely to persist, as the migration to automation & digitization emphasizes the need for reliable, secure, scalable, and off-premise advanced technology services.


By Enterprise Size Analysis


Large Enterprises to be the Prominent Customers of Smart Manufacturing Solutions


By the enterprise size, the market is segmented into large and small & mid-sized enterprises (SMEs). Large enterprises are expected to be the most potential buyers of smart manufacturing solutions and services. SMEs are expected to grow at a higher CAGR during the forecast period. However, small and mid-sized businesses are expected to lower their cloud spending due to a downturn in the capital expenditure attributed to the decreased demand for products and services and budget inflexibility during the pandemic.


By Industry Analysis


Discrete Industry to Dominate the Manufacturing Sector


Based on the industry, the market is bifurcated into discrete industry and process industry. The discrete industry is likely to dominate the market during the forecast period. The discrete automation industry is observed to implement smart manufacturing technologies for process-optimization of production lines, as well as customized product solutions. The process industry is anticipated to demonstrate significant growth in the upcoming years.


By Discrete Industry Analysis


Medical Devices Industry to Drive the Demand for Advanced Manufacturing Technologies


The discrete industry is categorized into automotive, transportation, industrial machinery, medical devices, semiconductor and electronics/high-tech, others (aerospace and defense, etc.). The industrial machinery segment is projected to hold the maximum share in the discrete industry. This growth is owing to the increasing adoption of automation practices for manufacturing processes.


Similarly, the medical devices industry is anticipated to embrace advanced manufacturing technologies, such as robotic process automation, 3D printing, and others in the upcoming years. Automotive is likely to be the most attractive industry for market players attributed to developments in the electrification of automobiles and driverless cars.


By Process Industry Analysis


Chemical Industry to Leverage Automation Technologies on Large Scale


The process industry is further segmented into pharmaceuticals, mining, and metals, chemicals, pulp and paper, others (cable, etc.). The chemical industry is highly focused on research and development and is observed to invest more in advanced automation processes to drive innovation materials. Hence, the chemical segment is likely to hold a major share in the process automation industry. Similarly, the pharmaceuticals and pulp and paper industries are expected to hold significant market shares in upcoming years attributed to increasing pace of digital transformation across the industries.


REGIONAL INSIGHTS


Asia Pacific Smart Manufacturing Market Size, 2020 (USD Billion)

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Geographically, the market is fragmented into five major regions, such as North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. They are further categorized into countries.


Asia Pacific is expected to hold the maximum revenue share during the forecast period. The market in this region is expected to display an impressive growth trajectory owing to the increasing spending and investments in the intelligent manufacturing industry by manufacturers.


Vibrant startup ecosystems in the manufacturing sector across countries such as Japan, India, and Australia SMEs are expected to drive the adoption of smart type of manufacturing solutions. However, large enterprises operating in discrete industries are projected to generate the highest revenue in the market.


Technical advances, availability of substitute printing material, along with reduced equipment costs have further fueled the adoption of 3D printing across North America. The area is also witnessing a set of investment initiatives in the North American health, aerospace and defense, manufacturing, and automotive sectors, which are projected to expand the smart manufacturing market growth in the future.


In Europe, the European Union (EU) member states announced to collaborate on AI technology across borders. Also, the EU announced an investment of USD 24 billion in AI research by 2020. These factors are likely to support the market growth across the region.


In the Middle East and Africa, Gulf Cooperation Council (GCC) countries would lead the way towards technology adoption and digital transformation across the region. For instance, Saudi Arabia’s 2030 progress roadmap, the Strategy and National Transformation Program (NTP) 2020 is prioritizing digital transformation to strengthen the private sector, employment, and embrace partnership. Such a rapidly developing economy is expected to hold unprecedented market opportunities in the near future.


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In Latin America, smart manufacturing methods are expected to gain traction post-COVID-19 outbreak due to several measures adopted by the government and organizations to mitigate the impact of the pandemic on manufacturing operations. With the increasing focus of companies on industrial technology, connectivity is likely to fuel advancements in manufacturing processes.


KEY INDUSTRY PLAYERS


Market Players to Prioritize Introducing Comprehensive Advanced Manufacturing Solutions    


Key manufacturers such as ABB Ltd., Emerson Electric Co, Bosch, Siemens AG, General Electric, and others are proactively strengthening their market positions by introducing new advanced manufacturing solutions or upgrading their existing product lines to cater to the different manufacturing and industrial applications. The robust and comprehensive product portfolio of key market players is expected to increase the market competition. For instance,


March 2021 – General Electric Company announced the launch of intuitive software applications and expert services called Connectix. These services are designed for smart manufacturing applications. They would help to take the advantage of data analytics to increase energy efficiency to make faster decisions and enhance daily operations in manufacturing.  


January 2020 – Emerson Electric Co. launched a portfolio of RXi industrial display panel PC products. These solutions are deployed in applications, such as industrial monitoring, visualizing, and augmenting routine manufacturing procedures in sectors including metals and mining, life sciences, manufacturing and machinery, power, and water.


LIST OF KEY COMPANIES PROFILED:



  • ABB Ltd. (Zürich, Switzerland)

  • Siemens AG (Munich, Germany)

  • General Electric (Massachusetts, U.S.)

  • Mitsubishi Electric Corporation (Tokyo, Japan)

  • Robert Bosch GmBH (Gerlingen, Germany)

  • Rockwell Automation Inc. (Wisconsin, U.S.)

  • Schneider Electric (Rueil-Malmaison, France)

  • Honeywell International Inc. (North Carolina, U.S.)

  • Emerson Electric Co. (Missouri, U.S.)

  • Fanuc Corporation (Yamanashi, Japan)

  • Yokogawa Electric Corporation (Tokyo, Japan)

  • Telefonaktiebolaget LM Ericsson (Stockholm, Sweden)


KEY INDUSTRY DEVELOPMENTS:



  • February 2020 – Schneider Electric SA and Nexans S.A., a company operating in the cable and optical fiber industry headquartered in Paris, France, partnered together on digital transformation program. Through this partnership, these companies aim to accelerate the smart manufacturing and digital transformation in the Nexans.

  • December 2020 – Omron Corporation launched a 1S Series AC-Servo System with an additional safety functionality that increases productivity and offers smart manufacturing atmospheres to the food, digital, cosmetics, pharmaceutical, and other industries.


REPORT COVERAGE


An Infographic Representation of Smart Manufacturing Market

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The global smart manufacturing market research report provides a detailed analysis of the industry and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market in recent years.


REPORT SCOPE & SEGMENTATION






















































 ATTRIBUTE



  DETAILS



Study Period



  2017-2028



Base Year



  2020



Forecast Period



  2021-2028



Historical Period



  2017-2019



Unit



   Value (USD Billion)



Segmentation



   Component; Deployment; Enterprise Size; Industry and    Geography



By Component




  • Solution

    • Industrial 3D Printing

    • Programmable Logic Controller (PLC)

    • Product Lifecycle Management (PLM)

    • Manufacturing Execution System (MES)

    • Robotic Process Automation (RPA)

    • Remote Monitoring software

    • Supervisory Controller and Data Acquisition (SCADA)

    • Others (Energy Management Systems, Fleet Management Solutions, etc.)



  • Services

    • Professional Services






    • Managed Services




By Deployment




  • Cloud

  • On-premise



By Enterprise Size




  • Small & Medium Enterprise (SMEs)

  • Large Enterprise



By Industry




  • Discrete Industry


    • Automotive

    • Transportation

    • Industrial machinery

    • Medical devices

    • Semiconductor and Electronics/High-Tech

    • Others (Aerospace and Defense, etc.)


  • Process Industry


    • Pharmaceuticals

    • Mining and Metals

    • Chemicals

    • Pulp and Paper

    • Others (Cable, etc.)




By Region




  • North America (Component; Deployment; Enterprise Size; Industry and Country)

    • United States (By Solutions)

    • Canada (By Solutions)



  • Europe (Component; Deployment; Enterprise Size; Industry and Country)

    • U.K. (By Solutions)

    • Germany (By Solutions)

    • France (By Solutions)

    • Italy (By Solutions)

    • Spain (By Solutions)

    • Rest of Europe





  • Asia Pacific (Component; Deployment; Enterprise Size; Industry and Country)


    • China (By Solutions)

    • Japan (By Solutions)

    • India (By Solutions)

    • Southeast Asia (By Solutions)

    • Rest of Asia Pacific




  • The Middle East & Africa (Component; Deployment; Enterprise Size; Industry and Country)

    • GCC (By Solutions)

    • South Africa (By Solutions)

    • Rest of the Middle East & Africa



  • Latin America (Component; Deployment; Enterprise Size; Industry and Country)

    • Brazil (By Solutions)

    • Mexico (By Solutions)

    • Rest of Latin America





Frequently Asked Questions

The market is projected to reach USD 576.21 billion by 2028.

In 2020, the market stood at USD 225.73 billion.

The market is projected to grow at a CAGR of 12.7% in the forecast period.

The smart manufacturing solution segment is likely to lead the market.

The emergence of industry 4.0 technologies is the key factor driving the market growth.

ABB Ltd., Siemens AG, General Electric, Mitsubishi Electric Corporation, and Robert Bosch GMBH are some of the top companies in the market.

Asia Pacific is expected to hold the highest market share.

The 3D printing segment is expected to grow with the highest CAGR.

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