Market Trends of Smart Manufacturing Industry
Automotive Industry is Expected to Drive the Market Growth
Automotive manufacturing is expected to gain strong impetus from smart technologies, Industry 4.0, IoT, etc. Discrete manufacturing is producing or manufacturing distinct parts that can be individually counted and touched. The pieces are mainly related to assembly lines. Discrete manufacturing includes products, such as cars, automotive parts, etc., that are increasingly connected.
Smart manufacturing is expected to help balance supply and demand, enhance product design, optimize manufacturing efficiency, and significantly reduce waste. Field devices, like robotics, sensors, etc., and ICS offer opportunities to the automotive sector to react faster to market requirements, reduce manufacturing downtimes, enhance supply chain efficiency, and expand productivity.
Smart manufacturing addresses the prime concern of the automotive industry, i.e., the length of a project. Quick return-on-investment projects combined with low-cost automation and cost innovation are helping manufacturers improve competitiveness through productivity improvement.
Further, according to UBS, Europe's projected electric vehicle sales are expected to reach 6.33 million units by 2025, followed by China, with 4.84 million units. As Europe and Asia-Pacific are leading the electric vehicles demand, the regions are anticipated to see an increase in smart automotive factories' implementation.
To cater to the changing landscape of automotive manufacturing, many players in the industry are adopting smart manufacturing solutions. For instance, in January 2022, Huayu Automotive Systems Co., which does business as HASCO, and ABB Group announced that they have created a joint venture building on their existing relationship "to drive the next generation of smart manufacturing." The companies claimed that the joint venture would enable them to further develop HASCO's leading position with automated solutions that benefit customers in China.
For the past 50 years, the automotive industry has used robots in its assembly lines for various manufacturing processes. Currently, automakers are exploring the use of robotics in more procedures. Robots are more efficient, flexible, accurate, and dependable for such production lines. This technology enables the automotive industry to remain one of the most significant robot users and possess one of the most automated supply chains globally.
For instance, in April 2022, an automotive manufacturing company, Fiat, a subsidiary of Stellantis NV, invested EUR 700 million at its Mirafiori factory, intending to produce 500 electric vehicles using state-of-the-art technology, such as collaborative robots. The company aims to automate its complex assembly line operations and quality controls, installing 11 cobots from Universal Robots A/S. Cobots are an essential part of the smart factory since they are compact, light, and built to work alongside humans safely.
Asia Pacific Region to Occupy a Major Market Share
China produces a sizeable portion of the market's demand and has the largest manufacturing sector in the entire world. In addition, despite production and supply chain setbacks brought on by COVID-19 curbs, the nation's industrial output increased by 3.6% in 2022 compared to the previous year, according to the Ministry of Industry and Information Technology (MIIT). The MIIT predicted that the manufacturing sector's output would have increased by 3.1% in 2022, making up 28% of China's GDP.
Traditionally seen as the world's manufacturing factory, China has significantly transformed from (cheap) labor-intensive manufacturing to high-end manufacturing through digitalization and industrialization. According to GSMA, China may account for one-third of the global IIoT market by 2025.
Manufacturing has also emerged as one of the high-growth sectors in India. The 'Make in India' program places India on the world map as a manufacturing hub and globally recognizes the Indian economy.
Government plays an important role in implementing the use of cases of IIoT in the region. Government initiatives, like Digital India and Make in India, are adding impetus to the Indian manufacturing industry. IoT immensely benefits the Make in India campaign by providing innovative ways to sustain manufacturing organizations' sustainable development.
Moreover, India's pharmaceutical sector is comparatively ahead in automation, with the major pharmaceutical companies in the country, such as Zydus Cedilla, Torrent Pharma, and Cipla, focusing on automating their manufacturing processes of drugs, especially in areas where the complete integration of machines and equipment is required.
Additionally, India's government aims for a USD 5 trillion economy by 2025, of which manufacturing may be worth USD 1 trillion. The convergence of flagship programs, such as Make in India with Skill India and Digital India, may be key to achieving this goal, thereby driving the country's market growth.
Furthermore, several leading industry players are investing in smart manufacturing units in India to improve efficiency and gain a competitive edge in the market. For instance, in March 2023, Samsung Electronics announced investing in smart manufacturing capabilities at its second-largest mobile phone plant in Noida to make production more competitive.
