The global smart manufacturing market will be surpassing $303.0 billion by 2026, at 6.4% CAGR from $171.5 billion in 2018.
The global smart manufacturing market has witnessed a substantial growth previously, owing to prompt growth in the implementation of automated systems in almost all kinds of manufacturing processes. However, during this unexpected coronavirus pandemic, the market will experience an unpredicted drastic collapse in 2020, due to sudden lock of almost all manufacturing industries. Similarly, the global market will witness a decline in the product availability owing to partial shutdown of production plants globally. But the market will significantly restore the growth owing to wide usage of automated systems in the production units. During this crisis, our analysts have estimated the situation of the global smart manufacturing market in this outbreak and have come to the below conclusions.
|Recovery By||Realtime BPS||*Estimated market Size, 2020,
|**Real Time market Size, 2020,
|14.4%||6.4%||Q2/Q3 2023||802||USD 228.9 Billion||USD 175.0 Billion|
* The numbers are estimated prior to the COVID-19 Pandemic in 2020
** The data will vary depending on upcoming developments announced by the operating players
KEY ASPECTS OF THE INDUSTRY
BOOMERS AND DECLINERS
Smart manufacturing is a kind of computer integrated manufacturing technology that helps to improve the productivity based on the demand level. Due to benefits of smart manufacturing systems, there is wide adoption of these advanced automated system by many of the production units to enhance the effective production and product quality. This factor will drive the growth of the market. In addition, increasing demand for automation of the existing manufacturing processes due to industrialization and modernization, especially in developing countries, is estimated to boost the market growth. Also, increasing government initiatives to support industrial automation to convert batch, discrete, and continuous manufacturing systems into smart manufacturing to eliminate delay and human errors in the production processes will further fuel the market growth. Moreover, growing number of small and medium size enterprises along with increasing popularity of improved industry technology to minimize labor expenditure are also expected to impel the market size.
Huge initial investments and costs involved in the installation of advanced automated processes is estimated to hamper the growth of the market. In addition, dearth of standardization of smart manufacturing systems technical issues associated with automation processes are further expected to hinder the smart manufacturing market growth.
The coronavirus pandemic has negatively impacted the global smart manufacturing market. Due to the extensive spread of COVID-19, the World Health Organization (WHO) has introduced new operational strategies to cut the chain of coronavirus and because of these guidelines approximately 50.0% of global manufacturing industries are in completely lockdown. Also, coronavirus began in China, which is manufacturing hub that delivers raw components to many other production industries across the globe. This factor is majorly affecting the growth of smart manufacturing market and will certainly experience a decline in the growth of the market. For instance, global lockdown has a significant impact on the automotive industry and there is decline in the vehicle sales.
However, many governments are continuously taking initiatives to support the enterprises during this crisis. For example, Bank Negara Malaysia (BNM) has been increasing the current financing facilities for small and medium scale enterprises (SMEs) to support the business growth. Also, SMEs can further benefit themselves to automation and digitization facility to improve the productivity of the manufacturing processes. This will support the enterprises to continue their manufacturing activities during the COVID-19 crisis.
MANAGING SUCCESS AMIDST
THE PANDEMIC STRESS
The expected collapse in the market size was experienced in 2020 and is projected to decline the growth of the market as compared to earlier years. However, according to a study conducted by Research Dive, the global smart manufacturing market will recover by the end of Q3 2023 and is estimated to regain its growth in the market size once the situation is under control.
Moreover, growing trend for integration of internet of things (IoT) and cloud platforms in the automation processes to deliver improved production performance is predicted to generate ample growth opportunities in the global market. Furthermore, increasing incorporation of artificial intelligence (AI) to create safer workplace, to increase supply chain efficiency and other benefits are further estimated to accelerate the growth of the market in the coming years. In addition, most of the significant players are emphasizing on several strategies such as collaborations, partnerships, new product launches and R&D activities to gain highest market size in the global market. For instance, in October 2019, Siemens made a partnership with Advanced Forming Research Centre (AFRC). This partnership aims to enhance the application of digital technologies in the manufacturing industrial processes.
How can we help you?
Our group of skilled analysts provide a solution to help the companies to survive and sustain in this global pandemic. We support companies to make informed decisions based on our findings resulting from the comprehensive study by our qualified team of experts. Our study helps to acquire the following:
- Long-term and Short-term impact of Covid-19 on the market
- Cascading impact of Covid-19 on the Smart Manufacturing Market , due to the impact on its extended ecosystem
- Understanding the market behaviour pre- and post-Covid-19 pandemic
- Strategic suggestions to overcome the negative impact on your business or turn the positive impact into an opportunity