The increasing demand for software systems that helps in reducing time and cost and the rising emphasis on implementing automation in different industry verticals, mainly in the automotive industry, are the significant factors that are boosting the demand for the smart manufacturing market over the forecast period.
The increasing emphasis on regulatory compliances, accelerating demand for software systems that decrease time and cost, the rising adoption of industry 4.0, and the growing focus on industrial automation in the manufacturing process are the major factors that are surging the demand of the smart manufacturing market. The automation manufacturing has been transforming factory floors, economies of manufacturing sectors, and the nature of manufacturing employment. The rapid advancements in AI, robotics, and IoT are allowing the machines to outperform humans in a wide range of work activities such as cognitive capabilities. Even though manufacturing is one of the most highly automated work processes, there is still a scope of significant automation within manufacturing sites of various industries. In a connected enterprise, numerous manufacturers have perfect visibility into machine performance, bottlenecks, and other operational efficiencies. With such data, manufacturers can easily improve the yield, decrease the amount of waste, and enhance the quality. Furthermore, smart manufacturing can minimize the workforce challenges, offer significant cost reductions, predictive maintenance, and streamline the automated data. The combination of these factors is contributing to the growth of the smart manufacturing market size over the coming years. In addition to this, the growing adoption of automation in manufacturing processes is the latest smart manufacturing market trend and is accelerating market growth. On the other edge, with continuous innovation and debugging in software, there is a requirement for regular upgradation in software. This factor is likely to have a negative impact on the growing demand of the market.
On the basis of the enabling technology, the IIOT segment exhibits substantial growth potential and is projected to gain traction over the forecast period. IIOT is integrated with different technologies, such as sensor data, machine to machine communication, machine learning, and automation, which is used in the functioning of several industrial processes. This technology is used in smart manufacturing to analyze the data collected by several devices and provide effective decision making, which will further surge the demand of the segment.
Based on the industry, the discrete segment is anticipated to witness considerable growth in the next six years. This is due to the strong demand for smart manufacturing, especially in the automotive and aerospace & defense sectors. The major challenge faced in these sectors is the long length of the project. Smart manufacturing helps in reducing the cost automation, and provide a quick return on investment, which enhances the overall productivity. It also helps in improving product design, reducing waste, balancing supply chain, and optimizing manufacturing efficiency, thus boosting the demand of the market in discrete industry.
On the basis of the region, the North American region is expected to be the fastest growing region during the forecast period. The developed countries in the region, such as the U.S., are on the verge of the industrial revolution, where data is used on a large scale for the production while amalgamating data with a wide range of manufacturing systems throughout the supply chain. On the other hand, the Asia-Pacific region is expected to grow at a higher CAGR during the forecast period due to the presence of a large number of manufacturing industries to compete at an international level.
The key players of the smart manufacturing market include Cisco Systems, Inc, Mitsubishi Corporation, Rockwell Automation, Inc, General Electric Company, Emerson Electric Co, ABB Ltd, Honeywell International Inc, IBM Corporation, Schneider Electric, and Oracle Corporation, among others.
The research report on the smart manufacturing market provides an in-depth analysis of the market revenue based on information technology, enabling technology, industry, and region for the forecast period from 2020 to 2027. The report highlights the major market drivers propelling the growth as well as challenges faced by the market participants. The research report also provides market size and forecast for the market. The report also analyses the competitive landscape, major players, and their strategies in 2019. The competitive landscape section of the report captures and highlights the recent developments in the market.