Digital Transformation Market in Manufacturing - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Posted April 22, 2021 by statzyreports

The digital transformation in manufacturing market was valued at USD 263.93 billion in 2020 and is expected to reach USD 767.82 billion by 2026 and work at a CAGR of 19.48% over the forecast period 2021-2026.

With the advent of Industry 4.0 in the manufacturing industry, various plants are fostering digital technologies to enhance, automate, and modernize the whole process.

- Digital transformation and automation reduce processing costs and enhance cost efficiency in the manufacturing industry. Earlier, manufacturing companies used to focus less on the production cost of a product, which led to high-end product costs. However, the rising integration of digital transformation, leading to automation, has helped in reducing unnecessary costs. For instance, digital manufacturing can reduce development cycles and ascend the rate of product innovation; thus, mitigating the manufacturing cost.

- Furthermore, the enhancement of a product through low-cost manufacturing also helps in the quicker launch of the product and high revenue generation. The implementation of IoT in the manufacturing industry helps in detecting any error at an early stage, which further lessens errors and mistakes, which, in turn, mitigates the number of products returned to the company.

- One of the major benefits of integrating digital transformation, such as robotics and IoT, is that the robots can work 24x7, without causing any glitch or error. As a result, it is likely to have a positive impact on market growth over the forecast period. In addition, the on-demand manufacturing trend is expected to rise, and Industry 4.0 is expected to help in making efficient decisions and enhancing supply chain operations.

- The fourth industrial revolution encompasses a wide array of technologies across the value chain and is considered as the information and automation hub. However, the rapid adoption of automation and digital transformation in the manufacturing industry demands high-skilled labors to handle Big Data and operate the required machinery.

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Key Market Trends

Robotics is Expected to Register a Significant Growth

- Improved efficiency and a reduction in production costs, when compared to conventional manufacturing processes, are boosting the adoption of automation technology, which is driving the digital transformation across the manufacturing segment. The application of robots in manufacturing helps in increasing efficiency, from raw material handling to finished product packing. These robots are programmed to operate 24x7 and also can be customized to perform complex functions.

- Highly trainable and collaborative robots, across the manufacturing sector, are being deployed in unsafe working environments. For instance, autonomous dump trucks used at mining sites can be remotely controlled by operators, eliminating the need for human drivers.

- According to Adobe’s 2018 Digital Intelligence briefing, about 15% of businesses use AI today, and 31% plan to add support for it, over the forecast period. Therefore, the increasing adoption of AI is also aiding the adoption of modern robotics, through cobots. Cobots can help eliminate dangerous work, freeing humans for more satisfying jobs, thereby, avoiding the risk of repetitive stress.

- The adoption of robots in manufacturing plants aids the smart machinery in identifying irregularities and can help fix mechanical issues without any human intervention, allowing the company to increase efficiency and minimize delays.

North America is Expected to Hold a Major Share

- Modern manufacturing facilities in the United States rely on new technologies and innovations to produce higher quality products at a significant rate, with lower costs. In order to survive in the current competitive scenario, companies in the region are adopting sophisticated and intelligent solutions.

- Several government initiatives are aiding the transformation of the traditional manufacturing industry. For instance, the previous government proposed the National Network for Manufacturing Innovation (NNMI), which consists of regional hubs that are expected to accelerate the development and adoption of cutting-edge manufacturing technologies, for making new, globally competitive products.

- Furthermore, the IoT-enabled manufacturing plants in the United States allow manufacturing companies to optimize their business operations, product and service innovations, and supply chain and logistics management. Thus, manufacturers from different end-user sectors, such as industrial equipment, defense, healthcare, and electronics, are seeking these IoT solutions.

- Growth in the number of SMEs and increasing digitization in manufacturing by large organizations, like IBM and General Electric, are aiding the growth of the IoT in the regional manufacturing market. SMEs are becoming increasingly flexible in incorporating new technologies with their existing systems, whereas large manufacturers have heavy budgets for digitization.

Competitive Landscape

The digital transformation in manufacturing market is highly competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. The market appears to be moderately concentrated. The major players with a prominent share in the market are focusing on expanding their customer bases across foreign countries. These companies are leveraging on strategic collaborative initiatives to increase their market shares and profitability. The companies operating in the market are also acquiring start-ups working on digital transformation in manufacturing technologies to strengthen their product capabilities.

- Sep 2019 - The company launched an extended version of Cisco Webex Control Hub, which enables the customers to protect data from accidental misuse and malicious attacks. Additionally, this solution protects against Trojans, ransomware, and other malicious attacks – even when users are on personal or unmanaged devices or are collaborating with external users. This product can be deployed to various end-users, such as manufacturing, where data is very critical, to support the inorganic growth of the client.

- Apr 2019 - Siemens acquired Mendix Inc., a low-code software platform provider based in the United States, for EUR 628 million. With the acquisition, Siemens has significantly expanded its software business segment, which is operated by the company’s Digital Factory Division.

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Issued By Statzy Market Research
Country India
Categories Automotive
Tags digital transformation market , digital transformation market forecast , digital transformation market share , digital transformation market size
Last Updated April 22, 2021