Smart Manufacturing Market Awareness Regarding Improved Manufacturing Technologies amongst Producers Accelerates Growth
The research report indicates that the global Smart Manufacturing Market is expected to be worth US$548.14 bn by the end of 2024, rising up from US$159.05 bn in 2015. During the forecast period of 2016 to 2024, the global market is anticipated to surge at a CAGR of 13.2%. The mammoth amount of manufacturing activities in the past few years has made it incredibly difficult for multinational organizations to effectively manage their value chain. Therefore, companies are outsourcing their manufacturing operations to third parties, who offer smart manufacturing services, which, in turn, has boosted the overall market.
Smart manufacturing technologies use the best of operating technologies (OT) and information technology (IT). The developers of smart manufacturing technologies have integrated both the processes to create an intelligent optimization and assembling of physical, business, and digital methods for ironing out the creases in the value chain of manufacturing. These processes also utilize human ingenuity with information technology to create manufacturing intelligence for achieving optimum results. Adoption of these technologies has completely transformed ways of manufacturing, selling products, and shipping.
Furthermore, regional expansion is a key strategy for many organizations. In order to achieve this, MNCs have invested in distribution centers at strategic locations around the world. These centers need effective smart manufacturing services, thus fueling the demand generated for smart manufacturing. The market is also thriving due to the application of innovative digitization in developing smart manufacturing technologies such as the programmable logic controller, supervisory controller, and data acquisition.
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On the basis of technology, the global smart manufacturing market is segmented into manufacturing execution system (MES), supervisory controller and data acquisition (SCADA), programmable logic controller (PLC), enterprise resource planning (ERP), distributed control system (DCS), machine vision, and human machine interface (HMI). Of these, the enterprise resource planning is the popularly used smart manufacturing technology across the globe. The prolific economic development of several countries across the globe and easy social integration of this technology have boosted its adoption rate in the past few years. The booming defense and aerospace sector is also anticipated to take up enterprise planning solutions for upgrading its manufacturing processes, thereby lending a magnificent impetus to the technology segment.
Stress on Manufacturing Activities in Asia Pacific Fuels Region’s Growth
In terms of regions, the global smart manufacturing market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. Among all the regions, Asia Pacific held a lion’s share of 39% in the overall market in terms of revenue in 2015. North America closely followed this lead in the same year. The research indicates, that North America and Asia Pacific will continue to hold a dominating stance in the overall market as both these regions will offer lucrative opportunities to the smart manufacturing players. The increasing stress by governments of developing economies to focus on manufacturing activities is anticipated to build a strong case for the growth of smart manufacturing market in Asia Pacific.
The regions are poised to witness a steady uptake of smart manufacturing in the automotive industry and in the production of consumer electronics, which are anticipated to stir the demand for these technologies in the near future.