Digital Manufacturing Software Market Expected to Reach $33.7 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Digital Manufacturing Software Market, by Component (Solution, and Service), By Deployment Mode (On-premise, and Cloud), Enterprise Size(Large Enterprise, and Small and Medium Enterprise), and Application (Automotive & Transportation, Aerospace & Defense, Consumer Electronics, Industrial Machinery, and Others): Global Opportunity Analysis and Industry Forecast, 2023-2032." The digital manufacturing software market was valued at $6.9 billion in 2022, and is estimated to reach $33.7 billion by 2032, growing at a CAGR of 17.4% from 2023 to 2032.

Digital manufacturing is the application of computer systems to manufacturing services, supply chains, products, and processes. Digital manufacturing technologies link systems and processes across all areas of production to create an integrated approach to manufacturing, from design to production and on to the servicing of the final products.

Furthermore, the rising use of technological advancements and industry 4.0 and the increase in complexity and globalization of supply chains are boosting the growth of the global digital manufacturing software market. in addition, the growing demand for improved operational efficiency and cost reduction positively impacts the growth of the digital manufacturing software market. However, the high cost of implementation increasing security concerns, and data privacy hamper the digital manufacturing software market growth. On the contrary, increasing priority for sustainable manufacturing techniques is expected to offer remunerative opportunities for the expansion during the digital manufacturing software market forecast period.

Depending on deployment, the on-premise segment holds the largest digital manufacturing software market, as it helps digital manufacturing software to improve efficiency and informatization based on the web kit layout and helps in cost management. However, the cloud segment is expected to grow at the highest rate during the forecast period, due to increase in adoption of cloud technologies and global shift towards digital transformation.

Region-wise, the digital manufacturing software market size was dominated by North America in 2022 and is expected to retain its position during the forecast period, as 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. However, Asia-Pacific is expected to witness significant growth during the forecast period, the growth of the market is attributed to a rise in industrial activities in the region.

The digital manufacturing software market has witnessed stable growth during the COVID-19 pandemic, owing to increase in preference for video-on-demand (VoD) service, which is a key factor driving the growth of the digital manufacturing software market. In addition, the COVID-19 pandemic resulted in changes in model performance, as more continuous monitoring and validation are required to mitigate several types of risks, as compared to static validation and testing methods, which, in turn, drive the development of advanced IP multicasting with internet group management. In addition, with rapid digital transformation, various governments have introduced stringent regulations to protect end users' data such as General Data Protection Regulation (GDPR), Digital Economy Act, and the California Consumer Privacy Act (CCPA). Thus, governments in various countries have taken strict actions toward the Illegal digital manufacturing software users and service providers, real-time messaging protocol and hypertext transfer protocol technology helps to maintains persistent connections and allows low-latency communication to send as much data as feasible while maintaining seamless stream delivery  However, the COVID-19 pandemic has made it harder for larger companies to keep pace, and even more difficult for midsize and smaller industries to adopt technologies, owing to long development timelines and high investment requirements.

Integration of advanced technologies such as service provider-based multicast live streaming, web based unicast only live and VoD streaming, and web-based multicast live and unicast video on demand (VoD) streaming is helping industries to improve various aspects of a company such as perception, information, over-the-top video content, and information about the businesses, which, in turn, is driving the growth of the market. 

Content providers are offering triple-play services, which allow users to experience broadband, telephone, and TV services on a single line. These digital manufacturing software providers are also offering mobility to customers along with triple-play services, to increase the market growth of digital manufacturing software as against satellite TV and cable TV. This, in turn, allows customers to utilize digital manufacturing software services for a multi-viewing experience.  For instance, in July 2020, Orange Romania, a subsidiary of Orange SA, introduced the TV Go box. Therefore, advertisers are carefully aiming to use these services being offered by the digital manufacturing software providers, which, in turn, is expected to provide a lucrative opportunity for the growth of the global digital manufacturing software industry.

Key Findings of The Study

• By component, the solution segment accounted for the largest digital manufacturing software market share in 2022.
• Region-wise, North America generated the highest revenue in 2022.
• Depending on the deployment, the on-premise segment generated the highest revenue in 2022.

The key players that operate in the digital manufacturing software market analysis are Autodesk Inc., Intel Corporation, Microsoft Corporation, Oracle Corporation, Rockwell Automation Inc., SAP SE, Schneider Electric SE, General Electric Co., Siemens AG, and IBM Corporation. These players have adopted various strategies to increase their market penetration and strengthen their position in the digital manufacturing software industry.