The global digital manufacturing market is expected to reach $1,370.3 billion by 2030, from $276.5 billion in 2020, registering a CAGR of 16.5% from 2021 to 2030. Digital manufacturing is an integrated approach to manufacture or construct products using a computer system. It uses computer aided design (CAD), computer aided modeling (CAM), Internet of Things (IoT), and Big data analytics concepts. Digital manufacturing has features such as maximized productivity, improved quality, reduced operating costs, and limited repetitive work.
Efficient safety management on manufacturing sites is a major driving factor for implementation of IoT technologies in the manufacturing industry. The industry is one of the major employers of human resources. These workers are constantly prone to accidents on sites due to falling objects, fatigue, working on dangerous areas, and others.
Major players offer artificial intelligence (AI) based software system to the manufacturing industry. For instance, in November 2020, Autodesk Inc. launched a new set of products for Autodesk manufacturing cloud, which is a cloud connected platform for design manufacturing and construction firms. Three products launched were Autodesk build, Autodesk Takeoff, and Autodesk BIM Collaborate. These products are cloud- and AI-based systems. All such instances are expected to fuel growth of the market.
Trends show that adoption of Industry 4.0 in automotive and transportation industry accelerates automotive production at a faster pace. Digital manufacturing equips interior suppliers and manufacturers of automotive with necessary tools and connected devices in modern area. It provides day-to-day information related to fabrication, construction operations, weak links, equipment downtimes, and upcoming responsibilities, which reduces vehicle downtime and achieves maximum productivity from vehicles in minimum fuel consumption. In addition, rise in spending on research & development in manufacturing industries fuels growth of the market in France. For instance, spending on research & development in France grew by 4.5% from 2018 to 2019. The company uses artificial intelligence (AI), Internet of Things (IoT), and 5G in industrial practices. Rise in awareness regarding digital transformation in manufacturing sectors drives growth of the digital manufacturing market. Robotics technology is largely adopted in medical devices applications, automotive, and defense applications. Rise in spending on information and telecommunication in Italy grew by 21.7% from 2018 to 2020. All such instances drive growth of the market.
Hence, advantages of growing productivity on manufacturing industries drives growth of the digital manufacturing market. However, rise in concerns regarding cyber security hinders adoption of IoT technologies and machine learning in the manufacturing industry. Data-driven decision-making at the planning stage of construction projects is anticipated for better management of resources; thereby, improving project efficiency. However, robotics in manufacturing sites and rise in awareness about use of IoT, big data, and analytics in manufacturing sites, is anticipated to provide lucrative opportunities for growth of the digital manufacturing market.
By Component
Hardware segment holds dominant position in 2020
The digital manufacturing market is segmented on the basis of component, technology, application, and region. By component, the digital manufacturing market is fragmented into hardware, software, and services. Hardware segment sub-divided into RFID tags, sensors, intelligent systems, and others. Software segment is sub-divided into data and operation management software, safety and security systems, connectivity solutions, analytics solutions, remote management & logistics solutions. Services segment sub-divided into support and maintenance, system integration, and consultancy services. By technology, it is categorized into robotics, 3D printing, internet of things (IoT), and others. By application, it is classified into automotive and transportation, aerospace & defense, consumer electronics, industrial machinery, and others.
Regionally, the digital manufacturing market has been analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, the UK, France, Italy, and rest of Europe), Asia-Pacific (China, Japan, India, Australia, and rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa).
By Application
Consumer electronics segment is expected to grow at a significant CAGR
Competition Analysis
Key companies profiled in the report include Dassault Systems, Tata Consultancy Services, Siemens AG, Autodesk Inc, Mentor Graphics Corporation, Parametric Technology Corporation Inc, SAP SE, ARAS Corporation, Cogiscan Inc, and Bestplant.
Major players are adopting acquisition, product launch, and business expansion as key developmental strategies to improve product portfolio of digital manufacturing products. For instance, in May 2021, Siemens EDA acquired Supplyframe, specialized in providing design-to-source platform to electronics value chain. This acquisition would help reduce cost, improve quality of decisions, and increase agility to customers. This is also expected to enhance portfolio by SaaS in the industry including printed circuit board, electronic design automation, and other technological fields
By Region
North America Region is expected to dominate the market during the forecast period.
Key Benefits For Stakeholders
- The report provides an extensive analysis of the current trends and future estimations.
- Extensive analysis of digital manufacturing market is conducted by following key product positioning and monitoring of the top competitors within the market framework.
- A comprehensive analysis of all the regions is provided to determine the prevailing opportunities.
- The digital manufacturing market forecast analysis from 2021 to 2030 is included in the report.
- The key market players within the digital manufacturing market are profiled in this report and their strategies are analyzed thoroughly, which help understand the competitive outlook of the digital manufacturing market.
Digtial Manufacturing Market Segments
By Component
- Hardware
- RFID Tags
- Sensor
- Intelligent System
- Others
- Software
- Data and Operation Management Software
- Safety and Security Systems
- Connectivity solutions
- Analytics Solutions
- Remote Management & logistic solutions
- Asset Management Solutions
- Services
- Support and maintenance
- System Integration
- Consulting Services
By Technology
- Robotics
- 3D Printing
- Internet of Things (IoT)
- Others
By Application
- Automotive and Transportation
- Aerospace and Defense
- Consumer Electronics
- Industrial Machinery
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Italy
- Rest of Europe
- Asia-Pacific
- China
- India
- Japan
- Australia
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Players
- Dassault Systemes
- Tata Consultancy Services
- Siemens AG
- Autodesk Inc
- Hexagon AB
- Parametric Technology Corporation Inc
- SAP SE
- ARAS Corporation
- Cogiscan Inc
- Bestplant
Digital Manufacturing Market Report Highlights
| Aspects | Details |
 By COMPONENT |
|
 By Technology |
|
 By Application |
|
 By Region |
|
 Key Market Players | Siemens AG (Mentor Graphics Corporation), HEXAGON AB, Autodesk Inc., DURR Group (Cogiscan), Dassault Systèmes, Bestplant, TATA Consultancy Services, ARAS Corporation, SAP SE, Parametric Technology Corporation |
Analyst Review
According to insights of CXOs of leading companies, the digital manufacturing market has a significant scope in Asia-Pacific. North America is the largest shareholder of the digital manufacturing industry, owing to large manufacturing and connectivity infrastructure and a strong foothold in the manufacturing industry. In addition, the government of South Korea is also promoting inclusion of smart manufacturing technologies in industries such as automotive and consumer packaged goods to operate production smoothly and effectively.
Increase in use of mobiles, smart phones, and connected devices technologies across business processes and manufacturing departments fuels growth of the digital manufacturing market. Shifting from traditional manufacturing processes to digital manufacturing processes across various industries and sectors fuels growth of the digital manufacturing market.
Moreover, inclusion of IoT, machine learning, and robotics in production companies with use of smart wearables such as smart glasses, wearable sensors, safety vests, wearable exoskeletons, and smart helmets enable real-time safety management on sites. In addition, active monitoring of data with such wearable technologies allows measurement of breathing rate, heart rate, as well as active monitoring of worker's body response to certain work environment.
Moreover, around 83% contractors are convinced that wearable technologies can boost site safety; thereby, reducing fatal injuries on jobsites including fall prevention, which account for around 30% of all manufacturing injuries.
Many competitors in the digital manufacturing market adopted product launch as their key developmental strategy to expand their geographical foothold and upgrade their product technologies. For instance, in December 2018, Dassault Systemes acquired IQMS. IQMS is a California-based manufacturer of ERP software and solutions. By acquiring IQMS, Dassault Systemes expanded its business to midsized and small manufacturing companies that are seeking to transform their business digitally.
The IS version is available as Spot-r network and Proximity Trace hardware products, which offer contact tracing and social distancing technologies on manufacturing sites during the COVID-19 pandemic. Similarly, in September 2017, Autodesk, Inc. based in the U.S. launched Fusion 360 software platform, which combines data from CAM, CAD, and CAE on cloud. The product is especially designed for streamlining service operations and enabling predictive maintenance in industrial applications.
The Digital manufacturing market size was $276.5 billion in 2020 and is projected to reach $1,370.3 billion in 2028, growing at a CAGR of 16.5% from 2021 to 2030.
The forecast period considered for the Digital manufacturing market is 2021 to 2030, wherein, 2020 is the base year, 2021 is the estimated year, and 2030 is the forecast year.
The base year considered in the Digital manufacturing market is 2021.
The report for Digital manufacturing market doesn’t provides Value Chain Analysis, but if there is a requirement for the same, it could be added as an additional customization.
On the basis of application, the industrial machinery segment is expected to be the most influencing segment growing in the Digital manufacturing market report.
Based on component, hardware segment generated the highest revenue, accounting for 42.10% of the market share, and is projected to grow at a CAGR of 16.0% from 2021 to 2030.
The report contains an exclusive company profile section, where the leading 10 companies in the market are profiled. These profiles typically cover company overview, geographical presence, and market dominance (in terms of revenue and volume sales).
North America is expected to provide more business opportunities for digital manufacturing market in the future.
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