Disruption – Potential opportunity worth USD 200 Bn is opening up in the Smart Manufacturing Space, with digital twin expected to generate new revenue streams as it comes across all the industries, creating an opportunity of more than USD 40 Bn by 2027. The global smart manufacturing market is projected to reach USD 228.2 billion by 2027, owing to the increased adoption of Industry 4.0, rising emphasis on industrial automation in manufacturing processes and regulatory compliances, increasing government involvement in supporting industrial automation, complexities in the supply chain, and surging demand for software systems that reduce time and cost.
According to MarketsandMarkets analysis,
- Potential opportunity worth ~USD 200 Bn is expected to open up within smart manufacturing ecosystem, with digital twin accounting for more than 20% share by 2027. It is expected to be the most talked-about technology in 2022 and in the near future as well.
- Smart manufacturing market is estimated to grow at a CAGR of more than 19% in the next 5-6 years, driven by rising popularity of enabling technologies and positive impact of COVID-19 across various industries.
- Technological innovation and support by the government initiative is expected to create huge opportunity for the adoption of smart manufacturing system across different region and countries.
- Automotive and aerospace are the most lucrative industries in terms of implementation of enabling technology in smart manufacturing market, collectively accounting for an opportunity of more than USD 65 Bn by 2027.
- Increasing emphasis on automation and data-driven manufacturing across various industry is expected to create huge opportunity in the smart manufacturing ecosystem.
Unknowns and Adjacencies
Currently, businesses have low access to primary intelligence to clarify some unknowns and adjacencies in these opportunity areas –
- Adoption levels of newer enabling technologies is low. However, slowly it is being implemented at various industries, both as green and brown field projects. Before COVID-19 implementation of enabling technology was just a pilot project but after that it has become a mandatory technology to be implemented in the factory shop floor.
- Increase focus on monitoring using various technology and equipment is driving the market
- Markets such as Digital Twin, Artificial Intelligence, Robotics, Sensors, and 3D Printing are in huge demand in the ecosystem of smart manufacturing
- Most of the demand for the implementation of newer enabling technologies is expected to APAC region
