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The global smart manufacturing market is set to gain traction from the increasing adoption of industrial IoT and industry 4.0. These are capable of lowering expenses and enhancing production by swiftly connecting customers with systems, warehouses, and providers for product distribution.
For instance, GSMA Intelligence mentioned in a survey that by 2025, industrial IoT connections are estimated to reach up to 13.8 billion units across the globe. This information is published by Fortune Business Insights in a report, titled, “Smart Manufacturing Market Share, 2021-2028.” As per the report, the market size was USD 225.73 billion in 2020. It 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 forecast period.
The Covid-19 pandemic has created vital gaps between supply chain and manufacturing units worldwide. Several companies are striving to reconstruct their business continuity models to overcome such a crisis. At the same time, they are also discovering automation opportunities and investing huge sums in novel supply chain models. As per Invest India.gov, for instance, the Government of India invested USD 265 million in May 2020 as part of an ‘Economic Package.’ Such initiatives by regulatory bodies would propel the demand for smart manufacturing amid the pandemic.
Geographically, Asia Pacific held USD 79.09 billion in terms of revenue in 2020. This growth is attributable to the increasing investments by companies in the intelligent manufacturing industry. At the same time, in India, Japan, and Australia, several small and medium enterprises are gradually trying to spend more on smart manufacturing solutions. North America, on the other hand, is anticipated to grow steadily because of the rising adoption of 3D printing. This is due to the low cost of equipment and availability of substitute printing materials in the region.
Industrial 3D printing generated 10.2% share in 2020
Based on the component, the smart manufacturing market is bifurcated into solutions and services. The services segment is further sub-segment into managed services and professional services.
The solution segment is classified 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. Out of these, the industrial 3D printing sub-segment earned 10.2% in terms of the smart manufacturing market share in 2020. This growth is attributable to the high demand for IoT for advanced automation processes, especially from the manufacturing industry.
The increasing demand for IoT and industry 4.0-enabled technologies is set to accelerate the smart manufacturing market growth in the upcoming years. The surging effectiveness of production processes is also another growth driver. Various emerging economies have started establishing a robust position in terms of smart type of manufacturing. However, the requirement of high capital investments may act as a hindrance for the smart manufacturing market.