Reading time ( words)
The global market for smart manufacturing is characterized by the presence of numerous companies. This makes the landscape fragmented and highly competitive. The competition is being dictated by the demand for huge investments in infrastructure and development of technologies.
Siemens AG, Johnson Controls, Inc., Honeywell International, Inc., Emerson Electric Company, and ABB Ltd., are to name a few big companies operating in the global market for smart manufacturing. To progress further, a report by Transparency Market Research advices players to look beyond their existing geographical reach and uncover opportunities in underserved developing nations.
As per the research report, the global market for smart manufacturing will likely be worth US$548.14 billion by 2024 after expanding at a healthy 13.2% CAGR between 2015 and 2024. The market was worth US$159.05 billion in 2015.
Thrust on Manufacturing Makes Asia Pacific and North America Dominant Markets
Depending upon the different technologies, the global market for smart manufacturing has been segregated into enterprise resource planning (ERP), programmable logic controller (PLC), manufacturing execution system (MES), distributed control system (DCS), human machine interface (HMI), supervisory controller and data acquisition (SCADA), and machine vision (MV), among others. Enterprise resource and planning segment, among them hold a leading share in the market. Enterprise resource and planning grosses maximum revenue as it finds application in automation, fishing, oil and gas, retail, media and entertainment, and military.
Based upon geography, the global market for smart manufacturing can be classified into North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America. Asia Pacific, among them, held a dominant share of 39.0% vis-à-vis revenue in 2015. North America trailed it closely. Going forward, Asia Pacific and North America will likely continue holding a sway over the smart manufacturing market because increasing focus on manufacturing by governments in the region and the swiftly expanding automotive and consumer electronics industries in the region.
Mandates for Deploying Smart Manufacturing Technologies Bolsters Market
Majorly boosting the market for smart manufacturing worldwide are the strict rules and regulations enforcing the installation of smart manufacturing technologies in different sectors. As per the lead analyst of the report, “This trend is being predominantly seen in North America and Asia Pacific, where economies are recovering and strengthening, thereby fueling the growth of the overall manufacturing sector. The evolution of industrial sector that has persistently had an analytical attitude has also been responsible for the prolific growth of the overall market in the last few years. The market also has lucrative prospects as leading players are offering technologically advanced solution to small and medium-sized businesses. The new solutions are garnering a positive image as they are specifically designed to overcome the modern-day production challenges.”
Smart Manufacturing Technologies Witness Impressive Uptake due to Efficiency
Efficiency and efficient utilization of resources is the unique perceived benefit of smart manufacturing technologies. “Hence, an increasing number of manufacturers are using these technologies for setting standards for effective tradeoff decisions, maintenance, control, logistic, operation, risk assessment, business, and operation. The benefits such as improved productivity and cost-efficiency have resulted have also led a significant adoption of smart manufacturing technologies,” adds the analyst.
A factor posing a roadblock to the global market for smart manufacturing is the steep cost of services and systems and the upfront installation cost. Additionally, need for continued investment in research and development to design more efficient products is also acting as a deterrent for new entrants.