Smart Manufacturing Market 2023 Product Specification, Growth Drivers, Applications and Forecast to 2030

 Smart Manufacturing Industry Overview

The global smart manufacturing market was valued at USD 254.24 billion in 2022 and is anticipated to grow at a CAGR of 14.9% from 2023 to 2030.

The market is expanding at a faster rate due to factors such as rising Industry 4.0 adoption, more government engagement in supporting industrial automation, increased emphasis on industrial automation in manufacturing processes, surging demand for software systems that save time and cost, increasing supply chain complexities, and increased emphasis on regulatory compliances. COVID-19 pandemic had an impact on or induced the shutdown of all industries and elements involved in industrial automation. The global supply chains and operational logistics were suddenly affected during initial worldwide lockdown.

Gather more insights about the market drivers, restrains and growth of the Smart Manufacturing Market

The market became more focused on manufacturing essential products to survive during the pandemic as demand for non-essential products reduced. However, the market was able to grow during pandemic as enterprises needed to provide their services and products safely and quickly. The market grew during this unusual event as a direct result of demand, government financial assistance, and technical support.

Information technology and automobile industries are two most prevalent industries for industry 4.0. The market has helped automotive manufacturers build automated assembly lines not only for parts but also to manufacture the entire car. For instance, in 2021, Audi used its Production Lab (P-Lab) department to create real-life use cases for modern technology in everyday manufacturing. Industrial automation has developed an in-depth and in-demand market based solely on benefits and opportunities it offers other industries. Regardless of industry, every company or manufacturer aims to apply smart manufacturing to their processes, thus increasing the overall market.

Additionally, information technology industry is at forefront of the existence of the market and also its development. The market has grown standardized due to the widespread standardization and recent installation of internet of things (IoT). Internet of Things has normalized entry-level manufacturing, application, and execution of market technology worldwide. Information technology industry uses augmented reality, virtual reality, machine learning, artificial intelligence, and many other modern solutions to keep industry on the front foot to meet contemporary challenges and demands. For instance, in July 2021, Qualcomm began applying its advanced 5G technology to smart manufacturing by unleashing the power of IoT.

Furthermore, the industry is growing momentum in developing countries like India, Mexico, and Brazil. As developing countries are experiencing industrialization at an excessive rate, companies and industrial plants see this as an opportunity. Along with technological and logistical advancements, governments in developing countries enact laws that benefit businesses, allowing the market to thrive.

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Key Companies & Market Share Insights

The global smart manufacturing market has a high number of small and medium-level players who are often operating for big established manufacturers. Many small-level players in the market are in the Asia Pacific region as the market is still developing here. As technology evolves, so does the specification and type of products to be manufactured, with industrial automation the process is streamlined, and the market grows alongside the evolution. The North American and European markets are dominated by large and medium-level companies in the market.

Competition in this market is high, although technological advancements are allowing companies to save time and cost while increasing their efficiency and effectiveness. Constant research and development are leading to the industry becoming more common and standard even if it requires some investment. Due to globalization, the smart manufacturing trend is present in global markets over boundaries. Seeing the growth potential, even governments are offering schemes and policies for investors to bring markets to their countries.  Some of the prominent players operating in the global smart manufacturing market include:

·         ABB Ltd.

·         Siemens

·         General Electric

·         Rockwell Automation Inc.

·         Schneider Electric

·         Honeywell International Inc.

·         Emerson Electric Co.

·         Fanuc UK Limited

Recent Developments

In April 2023, Honeywell International, Inc. acquired Compressor Controls Corporation (CCC), a provider of turbomachinery control and optimization solutions, for USD 670 million. This acquisition is expected to strengthen their presence in automation, industrial control, and process solutions. The ongoing development is expected to help industry grow exponentially in coming years.

In April 2023, ABB is expected to invest USD 170 million in the U.S. market to create highly skilled jobs in manufacturing, innovation, and distribution operations. This investment is expected to create more demand for electrification and automation products.

In April 2023, Robert Bosch GmbH partnered with Rhenus Automotive and REMONDIS subsidiary TSR Recycling, to develop Europe’s first fully automated battery-discharging plant. The plant will be a fully automated system for disassembling and discharging battery modules, which is expected to augment the industry growth further.

In June 2023, Schneider Electric partnered with ArcelorMittal Nippon Steel India for hi-tech training on smart manufacturing. The partnership also includes smart labs and training labs for NAMTECH, an education initiative by AM/NS India, which will be developed by Schneider Electric.

In May 2023, Rockwell Automation Inc. collaborated with autonox Robotics, for the expansion and invention of robot mechanics. This partnership is expected to bring Kinetix motors and drives of Rockwell along with the autonox’s robot mechanics to achieve new manufacturing possibilities.

In March 2022, Mitsubishi Electric Corporation updated their software iQ Works2 and RT Toolbox3. A new visual editor for SCADA and six-axis industrial robot programming is part of their latest update in the software. The upgrade also includes improved user-friendliness, which is expected to simplify the setup of automated applications

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