NEW YORK, Nov. 8, 2023 /PRNewswire/ — The smart manufacturing market size is estimated to grow by USD 20.26 billion from 2022 to 2027, according to Technavio. The market is estimated to grow at a CAGR of 13.95%. The growth momentum will progress during the forecast period. APAC is estimated to account for 38% of the global market during the forecast period. The growing adoption of IoT, cloud computing, and automation in the manufacturing sector is accountable for the APAC region being the largest regional smart manufacturing market. Specifically, the oil and gas industry, which requires smart solutions for various new chemical and petrochemical projects in the region in the future, is the major factor driving the demand. For instance, the Sunshine Project by Formosa Petrochemical Corp in 2021 involved the construction of an ethane cracker for cracking ethane into approximately 1.2 million tons per annum of ethylene, 600,000 tons per annum of propylene, and 400,000 tons per annum of polyethene. Thus, the rising influence of automation in the industry is likely to have a favorable influence on the demand for the smart manufacturing market, resulting in market growth during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. For more insights on the historic period (2017 to 2021) and forecast market size (2023 to 2027) – Request a sample report
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Smart Manufacturing Market – Segmentation Assessment
Segment Overview
Technavio has segmented the market based on industry application (process and discrete), technology (Human-machine interface, Manufacturing execution system, Plant asset management, and Warehouse management system) and geography (APAC, North America, Europe, South America, and Middle East and Africa).
- The market share growth by the process segment will be significant during the forecast period. In 2022, this segment was the largest and is further subdivided into pharmaceuticals, mining and metals, energy and power, chemicals, pulp and paper, and oil and gas. Industries where the primary production activities occur continuously or on an identical batch of materials are called process industries. The critical factor driving this segment is the advanced equipment and hardware that these industries possess. Benefits given by process manufacturing such as cost savings, increased scalability, improved efficiency, and higher-quality products. In the manufacturing industry, it can cut down on processing costs, save time and improve the ability to continually carry out operations in a sustainable manner. Therefore these factors are expected to drive the growth of the process industry segment of the smart manufacturing market during the forecast period.
Insights on the market contribution of various segments, including country and region wise historic data (2017 to 2021) and forecast market size (2023 to 2027) – Download a Sample Report
Smart Manufacturing Market – Market Dynamics
Key factor driving market growth
The need for simplification of complex manufacturing activities is the major factor notably driving market growth. The interrelated production equipment, inventory, and support systems in different plants have resulted in greater complexity of the industrial process, particularly in industries like oil and gas, food and beverage, and water treatment. Specific industrial solutions include SCADA, distributed control systems (DCS), and programmable logic controllers (PLC), which helps to track complex processes, operations, and systems in industrial plants and streamline operations. Further, operational efficiency and critical asset management can be optimized. They help reduce revenue loss due to the high dependence of the entire operational cycle on these critical assets. Correspondingly, this can even be done remotely, giving the added advantages of decreased exposure to risk and hostile working conditions. Therefore, the multiple benefits of automation are likely to contribute to the growth of the market during the forecast period.
Leading trends influencing the market
The emergence of IIoT is a significant trend shaping market growth. The factors that increased the scope of scaling operations by leveraging these tools are the technological advances like smart devices, wireless, and cloud technology, and the development of the IIoT. For instance, IIoT enables to integration of several smart machines for allowing companies to accomplish their desired goals in the manufacturing industry. Thus, vendors are expanding their market by delivering exceptionally intuitive human-machine interfaces so that even those without technical skills can operate them. As IIoT becomes increasingly adopted, different machines such as expert systems, autonomous robots, and other smart machines are also anticipated to experience growing demand. Therefore such factors are expected to drive the growth of the market during the forecast period.
Major challenges hindering the market growth
Data privacy and security concerns are the major challenges hindering market growth. Despite the several advantages of automation and the adoption of smart manufacturing, it leaves the business system weak to cyberattacks and data breaches. This can have a severe effect on asset-heavy industries like oil and gas, power, water, and wastewater. Data breach issues in the oil and gas industry can lead to the possibility for external parties to use infrastructure data about pipelines, drilling rigs, and refinery processes for unethical purposes. However, with greater integration of multiple systems within a utility, the breach of even one system can compromise all systems, adversely affecting the integrity and privacy of the entire industrial network. Therefore, the existence of a loophole in any part of the network puts the entire interlinked system at risk which can restrain market growth during the forecast period.
Insights on Market Drivers, trends, & Challenges, historic period(2017 to 2021) and forecast period(2023 to 2027)- Request a sample report!
What are the key data covered in this Smart Manufacturing Market report?
- CAGR of the market during the forecast period
- Detailed information on factors that will drive the growth of the smart manufacturing market between 2023 and 2027
- Precise estimation of the smart manufacturing market size and its contribution to the market in focus on the parent market
- Accurate predictions about upcoming trends and changes in consumer behavior
- Growth of the smart manufacturing market across APAC, North America, Europe, South America, and the Middle East and Africa
- A thorough analysis of the market’s competitive landscape and detailed information about vendors
- Comprehensive analysis of factors that will challenge the growth of smart manufacturing market vendors
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Table of contents
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Industrial Application
7 Market Segmentation by Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Company Landscape
12 Company Analysis
13 Appendix
About Us
Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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SOURCE Technavio
