Smart Manufacturing Market Trends

Growth Drivers

Growing Business Automation – Recent adoption of business automation has favored smart manufacturing solutions on the basis of the benefits and opportunities it offers. Many enterprises today that are employing business automation aim to apply smart manufacturing to streamline their processes. About 67% of the organization present in the world were using business automation solutions as of 2022.
High Penetration of Internet of Things (IoT) – The widespread installation of Internet of Things (IoT) devices has led to the deployment of augmented reality, virtual reality, machine learning, artificial intelligence, and other advanced solutions has led to positive growth in smart manufacturing processes. Recent data have revealed that that were almost 13 billion active IoT devices in 2022 and is projected to increase to 25 billion by 2030 around the globe.
Rapid Urbanization – Rapid urbanization and industrialization have led to the generation of favorable opportunities for the expansion of smart manufacturing. As per United Nations, in 2021, 51.61% of the global population were living in urban areas which is going to increase to 68% by 2050.
Increased Manufacturing Production – Latest developments in every spectrum have led to significant growth in manufacturing production. Thus, to monitor and streamline the processes, many businesses are applying smart manufacturing services which is anticipated to create a positive outlook for market expansion during the forecast period.

Challenges

Requirement of High Investments and Costs – The process of setting up smart manufacturing involves a huge amount of money which could hamper the expansion of the market size in the future. Smart manufacturing technologies such as Automated Guided Vehicles (AGVs), Enterprise Manufacturing Intelligence (EMI), HMI, Warehouse Management Systems (WMS), and others require high investment for designing and deploying, which increases the cost of the overall process.
Threats Related to Cybersecurity
Unavailability of Skilled Workforce

Smart Manufacturing Market: Key Insights

Base Year	2022
Forecast Year	2023-2035
CAGR	~21.50%
Base Year Market Size (2022)	~ USD 98.66 Billion
Forecast Year Market Size (2035)	~ USD 1021.07 Billion
Regional Scope	North America (U.S., and Canada) Latin America (Mexico, Argentina, Rest of Latin America) Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific) Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

Frequently Asked Questions (FAQ)

Increasing adoption of modern technologies such as Internet of Things (IoT) devices, machine learning, artificial intelligence, and others is propelling the growth of the market expansion.

The market size of smart manufacturing is anticipated to attain a CAGR of 21.50% over the forecast period, i.e., 2023 â€“ 2035.

The major players in the market are ABB Group, Siemens Aktiengesellschaft, Honeywell International Inc., General Electric Company, Rockwell Automation, Inc., Schneider Electric SE, Robert Bosch GmbH, Mitsubishi Electric Corporation, FANUC, and other key players.

The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

The market is segmented by component, technology, deployment, enterprise size, end-use, and by region.

The software segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

Rising threats related to cybersecurity along with the requirement of high initial investment and lack of unavailability of skilled professionals are estimated to be the growth hindering factors for the market expansion.

The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.

Smart Manufacturing Market Trends