Smart Manufacturing Market

Smart Manufacturing Market Size:

The global smart manufacturing market size reached US$ 324.4 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 792.9 Billion by 2032, exhibiting a growth rate (CAGR) of 10.1% during 2024-2032. The heightened need for automation in several industries, increasing adoption of advanced solutions to reduce the need for human supervision, and rising utilization of industrial internet of things (IIoT) are some of the factors impelling the market growth.

Smart Manufacturing Market Analysis:

• Major Market Drivers: The market is experiencing strong growth owing to the increasing focus on automation among several industries. Moreover, the heightened need to achieve ultimate efficiency in manufacturing processes is facilitating the market growth.
• Key Market Trends: Major trends comprise advancements in automation and robotic systems and emphasis of sustainability in manufacturing processes.
• Geographical Trends: Asia Pacific represents the largest market due to the rising need for automation in the manufacturing sector to reduce human involvement.
• Competitive Landscape: Some of the major market players in the smart manufacturing industry include 3D Systems Inc., ABB Ltd., Emerson Electric Co., Fanuc Corporation, General Electric Company, Honeywell International Inc., Mitsubishi Electric Corporation, Robert Bosch GmbH, Rockwell Automation Inc., Schneider Electric SE, Siemens AG, Yokogawa Electric Corporation, among many others.
• Challenges and Opportunities: The excessive requirement of costly investments, along with integration complexities, are some of the challenges. However, the increasing demand for solutions to manage manufacturing processes with limited human supervision is expected to overcome these complexities.
   

Smart Manufacturing Market Trends:

Growing Emphasis on Sustainability and Energy Efficiency

The push for smart manufacturing solutions is gaining serious momentum across a variety of industries, driven by a heightened focus on sustainability and energy efficiency, as highlighted in the smart manufacturing industry outlook. Globally, companies are under increasing pressure to adopt sustainable practices amid mounting environmental concerns.

Emerging smart manufacturing technologies, which make energy-efficient production processes a reality, are gaining traction. These innovations do not just cut waste, they also mitigate the environmental impact of manufacturing. With the help of smart sensors and data analytics, manufacturers can meticulously monitor energy consumption and identify areas ripe for improvement.

Technological Advancements in Automation and Robotics

The relentless requirement of automation and robotics is vital for keeping manufacturing processes smoothly running. Businesses are witnessing a systemic shift in production lines across several industries, owing to the addition of cutting edge robotic systems and automatic machinery. This revolution is increasing efficiency and precision, eliminating concerns about human errors, and dramatically accelerating manufacturing cycles. As a result, productivity and substantial cost savings are rising. By enabling seamless real time communication between machines and systems, IIoT ensures constant monitoring and control. Moreover robots powered by artificial intelligence and machine learning are highly capable of tackling complex tasks with minimal supervision, making operations smoother. These technological marvels do not just boost efficiency but also guarantee consistent product quality, which is essential for staying competitive.

In a notable leap forward, Techman Robot unveiled its latest collaborative robot, the TM30S in 2024. This powerhouse is a high-payload robotic arm designed for heavy-duty tasks like palletizing. It's a testament to how far technology has come in blending human ingenuity with robotic precision.

Increasing Adoption of Industrial Internet of Things (IIoT)

The excessive use of industrial Internet of Things (IIoT) is transforming the landscape of smart manufacturing market revenue. By linking numerous industrial devices via the Internet, IIoT facilitates effortless data exchange and communication, presenting a significant upliftment in the market revenue in this sector. This web of connectivity paves the way for sophisticated data analytics, predictive maintenance, and real time monitoring for numerous manufacturing elements. IIoT elevates operational efficiency by providing deeper insights into machine performance and aids in forecasting and preventing equipment failures before they happen. This proactive approach eliminates downtime occurrence and cuts maintenance costs, resulting in a notable uptick in overall productivity. It ensures manufacturers stay ahead of various market trends, maximizing efficiency and minimizing disruptions in their productivity. Furthermore, the integration of IIoT with numerous other technologies enhances its capabilities. As per the prediction made by the IMARC Group, the global industrial IoT market will reach US$ 806.0 Billion by 2032.

Smart Manufacturing Market Segmentation:

IMARC Group provides an analysis of the key smart manufacturing market trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on component, technology and end use.

Breakup by Component:

• Hardware
• Software
• Services
   

Software accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the component. This includes hardware, software, and services. According to the report, software represented the largest segment.

Software holds the maximum share of the market, according to the smart manufacturing market insights for managing and analyzing the massive amounts of British generated by hardware components. This is achieved via real time monitoring, advanced analytics, and improved decision making capabilities. A prime example of this innovation in action was showcased by Renishaw at EMO Hannover 2023, where they presented their new smart manufacturing data platform design for smart factory automation. This platform exemplifies how software is driving the next wave of efficiency and intelligence in manufacturing.

Breakup by 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
   

Discrete control systems hold the largest share of the industry

A detailed breakup and analysis of the market based on the technology have also been provided in the report. This includes machine execution systems, programmable logic controller, enterprise resource planning, SCADA, discrete control systems, human machine interface, machine vision, 3D printing, product lifecycle management, and plant asset management. According to the report, discrete control systems accounted for the largest smart manufacturing market share.

The market is dominated by discrete control systems, mainly because of their wide usage to automate and optimize various production processes. These systems are crucial for sectors where accuracy and dependability are important such as automotive, electronics, and aerospace industries. They are made to handle separate production units and discrete manufacturing procedures. They are also essential for maintaining efficiency and seamless production operations. Discrete control systems uplift operational efficiency, eliminates concerns regarding downtime, and improved product quality by enabling real time monitoring and management of industrial operations, thereby propelling the smart manufacturing market growth. This street control is becoming more popular going to the increased emphasis on industry 4.0. As per the information presented by the IMARC Group, the global industry 4.0 market is expected to reach USD 547.1 billion in 2032.

Breakup by End Use:

• Automotive
• Aerospace and Defense
• Chemicals and Materials
• Healthcare
• Industrial Equipment
• Electronics
• Food and Agriculture
• Oil and Gas
• Others
   

Automotive represents the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the end use. This includes automotive, aerospace and defense, chemicals and materials, healthcare, industrial equipment, electronics, food and agriculture, oil and gas, and others. According to the report, automotive represented the largest segment.

The automotive sector dominates the market owing to the need for precise, effective, and adaptable production aspects. Car making companies often use smart manufacturing technology to enhance the production of vehicles via the utilization of automation, robotics, and advanced data analytics, offering a favorable smart manufacturing market outlook. These technologies lower production downtime and present consistent quality by allowing realtime monitoring and management of manufacturing steps. The addition of IIoT devices enabled predictive maintenance, lowering the chances of unexpected equipment failure and making operational aspects better.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific leads the market, accounting for the largest market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific represents the largest regional market for smart manufacturing.

The Asia Pacific market is driven by rapid industrialization, government initiatives, and increasing adoption of advanced technologies. Countries, such as China, Japan, and South Korea, are at the forefront, leveraging automation, IIoT, and AI to enhance manufacturing efficiency and productivity. The region's emphasis on Industry 4.0 and digital transformation is fostering investments in smart factories and innovative manufacturing solutions. Additionally, the rising demand for high-quality consumer goods and electronics further propels the market. Strategic collaborations between global tech firms and local manufacturers are also contributing to the region's dynamic smart manufacturing landscape. According to the 9^th State of Smart Manufacturing Report presented by Rockwell Automation in 2024, in India the warehouse and fulfilment industry experience the highest acceleration of digital transformation. Additionally, 91% of Indian manufacturers recognized the urgent need of digitizing their operations.

Competitive Landscape:

• The smart manufacturing market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the smart manufacturing industry include 3D Systems Inc., ABB Ltd., Emerson Electric Co., Fanuc Corporation, General Electric Company, Honeywell International Inc., Mitsubishi Electric Corporation, Robert Bosch GmbH, Rockwell Automation Inc., Schneider Electric SE, Siemens AG, Yokogawa Electric Corporation, etc.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• Smart manufacturing companies are employing a variety of strategies to enhance their business operations and maintain competitive advantages in the evolving industrial landscape. One key approach is the integration of advanced technologies, such as artificial intelligence (AI), ML, and the Industrial Internet of Things (IIoT). These technologies enable real-time data analytics, predictive maintenance, and enhanced decision-making capabilities, which collectively improve operational efficiency and reduce downtime. Additionally, companies are focusing on automation and robotics to streamline production processes, minimize human error, and increase productivity. The adoption of digital twins and simulation models is another significant trend, allowing manufacturers to create virtual replicas of physical assets to optimize performance and predict potential issues before they occur. As per the smart manufacturing industry report, companies are also expanding their operations to improve their business conditions. For instance, ABB Ltd., officially opened its expanded manufacturing and training center at the North American Headquarters in 2024.

Smart Manufacturing Market News:

• October 2023: ABB Ltd. announced that it will launch its new measurement services with Ethernet-APL technology, digital electrification products and smart manufacturing solutions in process sectors in the 6^th China International Import Expo (CIIE).
• February 2024: General Electric Company declared about the investment of UDS 11 million to change its Singapore aircraft engine repair facility into an improvised smart factory with new technologies.

Smart Manufacturing Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, smart manufacturing market forecasts, and dynamics of the market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the smart manufacturing industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.