Market Research Report
Digital Transformation Market in Manufacturing - Growth, Trends, and Forecast (2019 - 2024)
|Published by||Mordor Intelligence LLP||Product code||546838|
|Published||Content info||100 Pages
Delivery time: 2-3 business days
|Digital Transformation Market in Manufacturing - Growth, Trends, and Forecast (2019 - 2024)|
|Published: April 1, 2019||Content info: 100 Pages||
The Digital Transformation In Manufacturing Market is expected to register a CAGR of over 15.59% during the forecast period 2019 - 2024. 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 cost and enhances the 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 cost. However, with the rising integration of digital transformation, leading to automation has helped in reducing unnecessary cost. 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 IoTs, is that the robots can work 24x7, wherein it can work without having any glitch or error. As a result, it is likely to have a positive impact on market growth over the forecast period. In addition, on-demand manufacturing trend is expected to grow and the industry 4.0 is expected to help in making efficient decisions and enhance supply chain operations.
The fourth industrial revolution encompasses a wide array of technologies across the value chain, wherein it is considered as the information and automation hub. However, the rapid adoption of automation and digital transformation in the manufacturing industry is demanding high skilled labors to handle big data and operate required machinery.
Particularly in low-cost manufacturing countries, such as BRICS, the concentration of skilled workforce is less. For instance, in India, only 2% of the labors are skilled and poses expertise in the required field. As a result, it increases the requirement for up-skilling or re-skilling, especially in developing countries, which in turn increases the cost for the company
In addition, a few countries, such as South Africa, have an unemployment rate close to 25%, which propel the challenges associated with the adoption of digital transformation in the manufacturing industry in the region. Furthermore, the lack of skilled workforce may have a huge impact on business growth, in terms of revenue and production.
The Scope of the Report
Digital transformation in the manufacturing industry addresses various global issues within the manufacturing industry, including the manufacturing companies modernizing their supply chain through big data and GPS tracking, which not only helps in data-driven planning but also provide a competitive advantage over counterparts and stay ahead in the market.
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 increases efficiencies from raw material handling, to finished product packing. These robots are programmed to operate 24/7, 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, and 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 Major Share
Modern manufacturing facilities in the United States rely on new technologies and innovations, in order 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 consist of regional hubs that are expected to accelerate the development and adoption of cutting-edge manufacturing technologies, for making new, globally competitive products. The formation of the Advanced Manufacturing Partnership (AMP) is an initiative undertaken to make the industry, universities, and the federal government invests in emerging technologies.
Furthermore, the IoT-enabled manufacturing plants in the United States allow manufacturing companies to optimize their business operations, product and services 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. For instance, in July 2016, Boeing partnered with Microsoft to build a cloud-based platform, for its portfolio of commercial aviation analytics tools. This is expected to help Boeing take advantage of more robust data intelligence. As a result, data in the cloud will help Boeing manage inventory and optimize the maintenance costs involved in the production.
According to RIA estimates, about 250,000 robots are being used in the United States, behind only Japan and China. In the United States, manufacturing accounts for USD 2.17 trillion in annual economic activity, and more than 98% of US manufacturers qualify as small businesses. There have been a series of mergers, collaborations, and acquisitions, in the United States, aimed at taking advantage of the increasing adoption of digital solutions. The primary driver behind these investments has been the continuous evolution of new technologies applications, to unlock enormous volumes that were previously considered non-commercial. For instance, 7.ai partnered with Blue Prism, to deliver new AI-enabled automation capabilities, for virtual agents in digital process automation.
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. These major players with a prominent share in the market are focusing on expanding their customer base across foreign countries. These companies are leveraging on strategic collaborative initiatives to increase their market share and increase their profitability.
The companies operating in the market are also acquiring start-ups working on digital transformation in manufacturing technologies to strengthen their product capabilities. In February 2018, Fanuc Corporation acquired Life Robotics Incorporation. The acquired firm specializes in collaborative robots. The valuation of the acquired company was USD 14 million in stocks. The move is expected to assist the Company to expand its addressable market.