Published on : Nov 07, 2016
Smart manufacturing technologies are making headway into the global market due to the benefits they offer in the manufacture, sales, and shipping of products. They use the information technology and the best operating technologies to help transform the process of manufacturing. Developers of the smart manufacturing technology have integrated technologies such as Big Data, cloud computing, 3D display, and virtual reality with manufacturing processes to create an intelligent assemblage of physical, digital, and business methods. The integration between human ingenuity and information technology has helped in optimizing production processes.
The increasing awareness regarding the benefits achieved from integrating smart manufacturing is projected to accelerate the demand for the same at 13.2% CAGR around the world between 2016 and 2024. The global smart manufacturing market, which had a valuation of US$159.05 bn in 2015, is expected to reach US$548.14 bn by the end of 2024, states Transparency Market Research in its latest report.
Asia Pacific to Provide Lucrative Opportunities to Enterprises Offering Smart Manufacturing Technologies
Regionally, Asia Pacific is projected to emerge as the most lucrative market for smart manufacturing technologies. The growth witnessed in Chinese economy has been boosted by the continued adoption of smart technologies across industries. Recently, leading networks such as China Telecom has decided on providing 40 firms with local service node platforms, and they are likely to extend it to 100 firms before 2016 ends. Besides this, various companies are collaborating with German-based firm Siemens to optimize their production processes.
Vulnerability to Security Breaches Could Stagnate Market’s Growth
Despite registering positive growth, integration to cloud makes smart manufacturing vulnerable to security breaches. This threatens the market’s growth to an extent. Furthermore, the high initial cost required for installation and continuous expenditure incurred on innovation also create bottlenecks for the entry of new players in the market. Besides dissuading industries from investing in smart technologies, these factors also hold risk of stagnating the growth of the global smart manufacturing market. Nonetheless, with research underway, the integration of technologies with cloud is expected to become safer, thus providing scope for the market’s expansion in the forthcoming years.