In 2018, a Zion Market research report found that the global smart manufacturing market was worth USD 152.3 billion in 2017. Due to a high rise in smart manufacturing adoption from 2018 to date, the projections show that the market could reach around USD 479 billion by 2023.
Smart manufacturing is a technology-driven approach that uses internet-connected machinery to monitor production processes. The methodology aims to identify production challenges, that can lead to up to 25% avoidable waste, and automation opportunities using machine learning to generate better quality data and improve overall OEE.
Due to recent and disruptive global events, supply chains are suffering consequences. Fast shifting markets, consumer demands, rising operational costs, fierce competition, and even acquiring raw production materials is a present challenge. As a direct result, manufacturers have been and are sourcing solutions to reduce the cost structure of manufacturing while improving quality and continuing to meet consumer demand.
Government initiatives and their strategic visions are also another driving force for the accelerated pace of smart manufacturing adoption, with R&D funding for technologies like 3D printing and the Industrial Internet of Things (IIoT). Governments are undertaking further initiatives to extend funding for educational institutions, research hubs, and tech organizations for the potential of these technologies, including smart manufacturing.