Market Challenges And Opportunities

Global Smart Manufacturing Market Drivers:

Rise in demand for automation to augment growth of the market

Automation has become highly accessible to manufacturers due to development of novel technologies, and this is changing the way of operations among several companies. The demand for automation is increasing all over the world in order to gain efficiency and quality. The adoption of automation has increased in manufacturing sector through smart technologies, as it helps achieve enhanced productivity with efficiency to operate in more protective and advanced environment. Thus, increasing demand for automation is expected to propel growth of the global smart manufacturing market over the forecast period.

Growing requirement for compliance and government support for digitization to boost the market pace

Due to digitization in industries, efficiency and optimum resource management has improved in recent years. Digitization of industrial sector is different in every industry depending on whether the focus is on automation or connected systems. Processing and Manufacturing industries are realizing the potential of using advanced technologies and deploying smart and connected systems, as it enables end-to-end visibility of industrial supply chain. Thus, need for digitization has increased in several sectors including manufacturing, and as a result, it is creating need for compliance and support from government. These factors are anticipated to fuel growth of the global smart manufacturing market over the forecast period.

Global Smart Manufacturing Market Opportunities:

Industrial revolution in manufacturing industries is expected to offer several growth opportunities in the global smart manufacturing market over the forecast period. Manufacturing industries around the world are undergoing a revolution, which is also being termed as Industry 4.0 or the fourth industrial revolution. This revolution is being driven by technologies such as IoT, Artificial Intelligence, Cognitive Technologies, Automation, and Machine Learning. Thus, smart factories have now adopted such technologies and have integrated them in their lines of production. These factors thus, are expected to offer multiple opportunities in the market.

Growing industrial automation to create lucrative environment for growth opportunities in the global smart manufacturing market over the forecast period. Along with increasing global inclination towards cost-effective and better quality control, automation of industrial processes is likely to grow significantly in the coming future. In this, machine learning is anticipated to pay a crucial role in the future in regards with automating complicated operations. Thus, the market will several business opportunities in the coming future.

Global Smart Manufacturing Market Restraints:

Data security related concerns to hamper the market pace

The manufacturing firms around the globe are increasingly being exposed to cyberattacks, due to the dependence on process control and systems along with the convergence of IT and operating technologies systems. Control systems of manufacturers for a long were believed to be impenetrable due to their customized and proprietary networks. Now adoption of IoT has created a scope for theft of proprietary information. With increasing digitization and automation of these devices that are built without appropriate security measures, the concerns regarding security of data will increase. This in turn is expected to hamper growth of the global smart manufacturing market over the forecast period. However, the manufacturers of smart manufacturing solutions are developing products with strong security, which is likely to support the market growth.

High cost of installation to impede the market growth

The high costs of automated systems are concerned with efficient software and strong hardware. Automation tools need high capital investment for investing in smart manufacturing. They also required high maintenance compared to manually operated machine. The acquisition and installation cost of a control system for industrial automation is half of the overall cost during its lifetime. These factors in turn prevent enterprises from full-scale adoption of smart manufacturing. This is thus expected to restrain growth of the global smart manufacturing market over the forecast period.