Home Technology Smart Manufacturing Platform Market Forecast Analysis, 2032.

Smart Manufacturing Platform Market Size, Share & Trends Analysis Report By Deployment (On-Premise, Cloud-based), By Applications (Document Control, Inventory Management, Production Performance Analysis, Asset and Condition Monitoring) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Report Code: SRTE568DR
Last Updated : Feb 20, 2024
Author : Straits Research
Starting From
USD 1850
Buy Now

Market Overview

The global smart manufacturing platform market size was valued at USD 8.59 billion in 2023. It is estimated to reach USD 37.23 billion by 2032, growing at a CAGR of 17.7% during the forecast period (2024–2032). In recent years, the world has transitioned towards digitization, automation has proliferated in almost every field, and the manufacturing industry is no exception. Industrial automation has been booming since the emergence of Industry 4.0, boosting market expansion. Smart manufacturing also helps increase process productivity and efficiency by leveraging advanced technologies like IoT, AI, and big data analytics, augmenting market expansion. Moreover, the prominent stakeholders in the market are involved in various strategies to promote the widespread utilization of smart manufacturing platforms, which is estimated to create opportunities for market growth.

A Smart Manufacturing Platform is a digital platform that integrates diverse technologies and systems to optimize manufacturing procedures, enhance efficiency, and improve decision-making in industrial environments. These platforms commonly utilize cutting-edge technology such as the Internet of Things (IoT), AI, big data analytics, cloud computing, and cyber-physical systems.

The Smart Manufacturing Platform gathers data from several sources, such as sensors, machines, production equipment, and business systems. It offers real-time visibility into manufacturing operations, enabling more effective supervision and management of processes. The Smart Manufacturing Platform enables manufacturers to enhance efficiency, productivity, and agility while cutting costs and enhancing product quality. It acts as a basis for digital transformation projects in the manufacturing sector.

Highlight

Asia-Pacific is estimated to be the largest shareholder in the market


Market Dynamics

Global Smart Manufacturing Platform Market Drivers:

Rising Demand for Industrial Automation

Industrial automation promotes the integration of systems in industrial facilities, establishing a network of devices and equipment that communicate and collaborate effortlessly. Smart manufacturing platforms utilize this interconnected infrastructure to establish a centralized platform for integrating and managing various automation technologies. This integration streamlines processes, improves transparency throughout the manufacturing chain, and fosters collaboration among various departments and stakeholders.

Moreover, in 2021, industries worldwide deployed a record-breaking number of 517,385 new industrial robots, according to data from the International Federation of Robotics (IFR). The annual growth rate of robot installations has reached 31%, exceeding the previous record set in 2018 before the epidemic by 22%. The global count of operational robots has achieved a significant milestone, exceeding around 3.5 million units. Thus, these numbers indicate a rise in the adoption of industrial robots and, ultimately, industrial operations, leading to an overall expansion of the global market.

Increased Efficiency and Productivity

Smart manufacturing platforms utilize advanced technologies such as AI, IoT, and big data analytics to improve and streamline production processes. These technologies optimize operations, reduce downtime, and improve resource usage by providing real-time data insights, predictive maintenance capabilities, and automation. This enhanced efficiency results in heightened production, as producers can attain elevated output levels while utilizing fewer resources and minimizing waste.

Moreover, smart manufacturing platforms facilitate proactive decision-making, allowing for rapid changes to production parameters in response to changing demand or operating circumstances. In the dynamic manufacturing scene, emphasizing efficiency and productivity ultimately leads to cost savings, enhances competitiveness, and guarantees sustainable growth. Therefore, these factors contribute to the expansion of the market.

Global Smart Manufacturing Platform Market Restraint:

Initial Investment Costs 

Deploying smart manufacturing platforms sometimes necessitates significant initial capital expenditure. This includes spending on innovative technologies, infrastructure improvements, and employee training. Smaller manufacturers or those with low financial resources may find these expenses prohibitive, which might delay or prevent them from adopting the technology.

Moreover, the presence of uncertainty regarding the return on investment adds complexity to the process of making decisions. Although the long-term advantages of improved efficiency and production are clear, the immediate cost burden discourages many from adopting these transformative solutions. Therefore, the high initial investment is estimated to restrain the market growth.

Global Smart Manufacturing Platform Market Opportunities:

Strategic Initiatives by the Key Players

The key players in the market are taking several initiatives to enhance the adoption of smart manufacturing platforms. For instance, in April 2023, Snowflake introduced the Manufacturing Data Cloud. This platform allows automotive, technology, energy, and industrial companies to effectively access and utilize their siloed industrial data. It makes use of Snowflake's data platform, as well as solutions provided by Snowflake and its partners, along with industry-specific datasets. Snowflake's Manufacturing Data Cloud enables enterprises to establish a robust data infrastructure for their business, enhance supply chain efficiency, and drive smart manufacturing efforts in the modern digital-industrial landscape.

Furthermore, in May 2023, Xoriant, a prominent global engineering services company specializing in digital engineering and emerging technologies, partnered with the College of Engineering Pune Technological University and PDF Solutions to assist COEP's Smart Manufacturing Innovation Software Lab. The Lab aims to offer early exposure and hands-on experience with industry-validated solutions centered around digital engineering and smart manufacturing to cultivate a workforce that is more prepared for the future. These factors present an opportunity for market expansion.

Study Period 2020-2032 CAGR 17.7%
Historical Period 2020-2022 Forecast Period 2024-2032
Base Year 2023 Base Year Market Size USD 8.59 billion
Forecast Year 2032 Forecast Year Market Size USD 37.23 billion
Largest Market Asia Pacific Fastest Growing Market North America
Talk to us
If you have a specific query, feel free to ask our experts.

Regional Analysis

Asia-Pacific Dominates the Global Market

Based on region, the global smart manufacturing platform market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Asia-Pacific is the most significant global smart manufacturing platform market shareholder and is expected to expand substantially during the forecast period. The market for smart manufacturing platforms is witnessing substantial expansion in the Asia-Pacific region, primarily driven by rapid industrialization and urbanization. Numerous institutes and organizations are also undertaking initiatives to encourage the implementation of smart manufacturing in this region. For instance, in July 2022, the Indian Institute of Technology Madras (IIT Madras) established the Smart Manufacturing and Digital Transformation Centre (SMDTC) to promote the democratization of smart manufacturing and digital transformation in the country. The collaboration between the Advanced Manufacturing Technology Development Centre (AMTDC), a Center of Excellence at IIT Madras, MESA International (Manufacturing Enterprise Solutions Association), and Cantier Systems has been established. This collaboration seeks to lay the groundwork for achieving world-class manufacturing capabilities and self-sufficiency.

Furthermore, in August 2021, Central Manufacturing Technology Institute (CMTI) Bangalore, a research and development organization dedicated to providing technological solutions to the manufacturing sector and promoting technological advancement in India, organized a webinar called "Expert Talks from Samarth Udyog Centres" as part of the Azadi ka Amrit Mahotsav celebration under the SAMARTH Udyog Bharat 4.0 Platform. The purpose was to receive insights from the experts at the Samarth Udyog Centres regarding advancements in indigenous technology and potential partnerships in the field of Smart Manufacturing and Industry 4.0. CMTI has created the Smart Manufacturing Demo & Development Cell (SMDDC) as a Common Engineering Facility Centre (CEFC) to promote and assist the implementation of Industry 4.0 and smart manufacturing practices in the fast-growing Indian manufacturing industry. All of these factors contribute to the expansion of the regional market.

North America occupies a substantial portion of the market. The market growth is driven by the region's early adoption of innovative technologies, especially in the United States. The industry is strengthened by the participation of prominent market players, including General Electric, Cisco Systems, and IBM. The industry is also propelled by government efforts and financing supporting Industry 4.0 activities. Such efforts include the Advanced Manufacturing Partnership (AMP) and the National Network for Manufacturing Innovation (NNMI) in the United States. These initiatives promote collaboration among business, academia, and government to stimulate innovation in manufacturing technologies. Moreover, the region's strong manufacturing environment, particularly in the automotive, aerospace, and electronics industries, drives the need for intelligent manufacturing platforms.

Furthermore, the market participants in this region are enhancing smart manufacturing platforms, thereby promoting its implementation. For instance, in August 2022, ThinkIQ, a leading provider of digital manufacturing transformation software-as-a-service (SaaS), announced that the Clean Energy Smart Manufacturing Innovation Institute (CESMII), the national institute for Smart Manufacturing in the United States, will now be obtaining a license to use ThinkIQ's technology to operate CESMII's Smart Manufacturing Innovation Platform (SMIP). The CESMII SMIP has a distinct advantage in promoting the widespread use of Smart Manufacturing in the United States. This is achieved through robust open interfaces and accessible information models, which offer a more convenient, efficient, and cost-effective alternative to the conventional closed solutions now offered to the manufacturing industry. Therefore, these factors contribute to the growth of the regional market.

Need a Custom Report?

We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports


Segmental Analysis

Global Smart Manufacturing Platform Market Drivers:

Rising Demand for Industrial Automation

Industrial automation promotes the integration of systems in industrial facilities, establishing a network of devices and equipment that communicate and collaborate effortlessly. Smart manufacturing platforms utilize this interconnected infrastructure to establish a centralized platform for integrating and managing various automation technologies. This integration streamlines processes, improves transparency throughout the manufacturing chain, and fosters collaboration among various departments and stakeholders.

Moreover, in 2021, industries worldwide deployed a record-breaking number of 517,385 new industrial robots, according to data from the International Federation of Robotics (IFR). The annual growth rate of robot installations has reached 31%, exceeding the previous record set in 2018 before the epidemic by 22%. The global count of operational robots has achieved a significant milestone, exceeding around 3.5 million units. Thus, these numbers indicate a rise in the adoption of industrial robots and, ultimately, industrial operations, leading to an overall expansion of the global market.

Increased Efficiency and Productivity

Smart manufacturing platforms utilize advanced technologies such as AI, IoT, and big data analytics to improve and streamline production processes. These technologies optimize operations, reduce downtime, and improve resource usage by providing real-time data insights, predictive maintenance capabilities, and automation. This enhanced efficiency results in heightened production, as producers can attain elevated output levels while utilizing fewer resources and minimizing waste.

Moreover, smart manufacturing platforms facilitate proactive decision-making, allowing for rapid changes to production parameters in response to changing demand or operating circumstances. In the dynamic manufacturing scene, emphasizing efficiency and productivity ultimately leads to cost savings, enhances competitiveness, and guarantees sustainable growth. Therefore, these factors contribute to the expansion of the market.

Global Smart Manufacturing Platform Market Restraint:

Initial Investment Costs 

Deploying smart manufacturing platforms sometimes necessitates significant initial capital expenditure. This includes spending on innovative technologies, infrastructure improvements, and employee training. Smaller manufacturers or those with low financial resources may find these expenses prohibitive, which might delay or prevent them from adopting the technology.

Moreover, the presence of uncertainty regarding the return on investment adds complexity to the process of making decisions. Although the long-term advantages of improved efficiency and production are clear, the immediate cost burden discourages many from adopting these transformative solutions. Therefore, the high initial investment is estimated to restrain the market growth.

Global Smart Manufacturing Platform Market Opportunities:

Strategic Initiatives by the Key Players

The key players in the market are taking several initiatives to enhance the adoption of smart manufacturing platforms. For instance, in April 2023, Snowflake introduced the Manufacturing Data Cloud. This platform allows automotive, technology, energy, and industrial companies to effectively access and utilize their siloed industrial data. It makes use of Snowflake's data platform, as well as solutions provided by Snowflake and its partners, along with industry-specific datasets. Snowflake's Manufacturing Data Cloud enables enterprises to establish a robust data infrastructure for their business, enhance supply chain efficiency, and drive smart manufacturing efforts in the modern digital-industrial landscape.

Furthermore, in May 2023, Xoriant, a prominent global engineering services company specializing in digital engineering and emerging technologies, partnered with the College of Engineering Pune Technological University and PDF Solutions to assist COEP's Smart Manufacturing Innovation Software Lab. The Lab aims to offer early exposure and hands-on experience with industry-validated solutions centered around digital engineering and smart manufacturing to cultivate a workforce that is more prepared for the future. These factors present an opportunity for market expansion.

 

Market Size By Deployment

Market Size By Deployment
  • On-Premise
  • Cloud-based

  • Impact of covid-19

    People's lives and companies were affected by the COVID-19 outbreak worldwide. During the COVID-19 outbreak, delivery service companies confront several obstacles. Due to the tight restrictions, more people are purchasing online. In response, e-commerce and online retail & grocery enterprises faced a big issue in delivering groceries on time. By assigning delivery executives optimal routes, route optimization software helped to reduce vehicle idling time and enhance delivery executive productivity, therefore promoting the route optimization software business during the pandemic crisis.


    List of key players in Smart Manufacturing Platform Market

    1. Microsoft
    2. IBM
    3. PTC Inc.
    4. SAP SE
    5. Hitachi
    6. ABB
    7. Amazon
    8. Bosch
    9. Emerson
    10. Fujitsu Ltd.
    11. General Electronics
    12. Rockwell Automation
    13. Schneider Electric
    14. Siemens Electric Telit

    Smart Manufacturing Platform Market Share of Key Players

    Smart Manufacturing Platform Market Share of Key Players

    Recent Developments

    • May 2023- L&T Technology Services Limited, a prominent international firm specializing in engineering services, announced its collaboration with Critical Manufacturing, a developer of advanced Manufacturing Execution Systems (MES) designed for future applications. The enterprises are collaborating with the multinational engineering group, Danfoss, to assist in its Smart Manufacturing Journey.
    • January 2024- Renishaw, a business specializing in precision engineering and manufacturing technology, will showcase a wide array of smart manufacturing solutions at the MACH expo in Birmingham, UK, from April 15 to 19.

    Smart Manufacturing Platform Market Segmentations

    By Deployment (2020-2032)

    • On-Premise
    • Cloud-based

    By Applications (2020-2032)

    • Document Control
    • Inventory Management
    • Production Performance Analysis
    • Asset and Condition Monitoring

    Frequently Asked Questions (FAQs)

    What is the growth rate for the smart manufacturing platform market?
    smart manufacturing platform market size will grow at approx. CAGR of 17.7% during the forecast period.
    Some of the top industry players in the smart manufacturing platform market are, Microsoft, IBM, PTC Inc., SAP SE, Hitachi, ABB, Amazon, Bosch, Emerson, Fujitsu Ltd., General Electronics, Rockwell Automation, Schneider Electric, Siemens Electric, Telit, etc.
    Asia Pacifichas held a dominant position in the smart manufacturing platform market, with the largest market share.
    The North America region has experienced the highest growth rate in the smart manufacturing platform market.
    The global smart manufacturing platform market report is segmented as follows: By Deployment, By Application


    We are featured on :