July 07, 2016
Wellesley, Mass., Jul 7, 2016 – Smart manufacturing is an immature market that boasts significant revenue opportunity with global double-digit growth anticipated over the next five years. BCC Research reveals in its new report that the market segment for connected devices is the key driver of the global market.
Smart manufacturing refers to the network of machines containing embedded technology that allows them to communicate with each other. The development of smart manufacturing has been based primarily on the recent growth of the Internet of Things (IoT).
The global market for smart manufacturing should reach $392 billion by 2020, up from $159 billion in 2015, reflecting a five-year compound annual growth rate (CAGR) of 19.8%. As a segment, the smart manufacturing market in the Asia-Pacific region should reach $59 billion and $151 billion in 2015 and 2020, respectively, on a five-year CAGR of 20.7%. In the North American region, the smart manufacturing segment should reach $112 billion by 2020, up from $47 billion in 2015, with a five-year CAGR of 19%.
In Western Europe and the Asia-Pacific region, government mandates coupled with a greater eco-consciousness are driving investments in the IoT. In the Asia-Pacific region, improving efficiencies in manufacturing also is a strong incentive, considering the large manufacturing base in countries such as China. The global investments in smart manufacturing are expected to grow at an average five-year CAGR of 20% to reach $392 billion in 2020, with the Asia-Pacific region representing about 38% of the opportunity.
Initially, the market was more supply-driven, but businesses and the ecosystem are largely expected to benefit from the IoT. One of the earliest applications has been in the area of energy optimization to adjust generation and energy-distribution flows for peak times and downtimes. IoT investments also are projected to yield advantages in retaining and attracting new customers through better customer service and support.
Among industries, high tech and aerospace are forecast to see the strongest growth in smart manufacturing through 2020. Adoption levels will differ, but should be stronger overall in discrete manufacturing where smart manufacturing is expected to ultimately lead to production mass-customization, which is the process of delivering wide-market goods and services that are modified to satisfy a specific customer need.
“The opportunity for smart manufacturing has been driven by the market for connected devices, which is coming to an inflection point with increasing demand, slowly emerging standards, and technological advances, combined with a reduction in the cost of key components,” says BCC Research analyst Nathalie Granato. “Network and semiconductor manufacturers foresee over 50 billion of connected devices by 2020, with half of those possibly used for manufacturing.”
Smart Manufacturing: Technologies and Global Markets (IFT126A) analyzes technologies and applications in an array of IT products and services in five major regions. Analyses of global market drivers and trends, with data from 2014, 2015, and projections of CAGRs through 2020 also are provided.
Editors and reporters who wish to speak with the analyst should contact Steven Cumming at email@example.com.
Smart Manufacturing: Technologies and Global Markets( IFT126A )
Data and analysis extracted from this press release must be accompanied by a statement identifying BCC Research LLC as the source and publisher. For media inquiries, email firstname.lastname@example.org or visit www.bccresearch.com/media to request access to our library of market research.