Thursday, August 5, 2021

What Is the Impact of COVID-19 on Smart Manufacturing Market During Projected Period of 2020-2027?

 The wide spread of COVID-19 has negatively influenced the global smart manufacturing market. According to World Health Organization (WHO) suggestions, maintaining social distance will help to cut the chain of the virus spread. Due to this, more than 50.0% of global industries are in partial lockdown. Thereby, manufacturing plants such as those of automotive, electronics and other industries are significantly affecting the production lines. Also, delay in resumption of production industrial activities due to lockdown will cause manufacturing loss and supply risk. This factor is hampering the growth of the smart manufacturing market in the COVID-19 outbreak. However, increasing government initiatives are in place to help the organizations during the coronavirus pandemic. For example, U.S. government has announced the extension of federal tax dates from April 15 to July 15 to help the businesses in the coronavirus outbreak. During this COVID-19 pandemic, we are helping our clients in understanding the effect of COVID-19 on the global smart manufacturing market.

According to a study conducted by Research Dive, the global smart manufacturing market is predicted to generate a revenue of $303.0 billion by 2026 and grow at a rate of 6.4% CAGR during the projected period from 2019 to 2026. The global market segmentation is done based on component, end use and region. This study further discusses detailed information about drivers, opportunities, restraints, segmental analysis and competitive players of the market.

Factors impacting the market growth

As per our analysts, growing demand for automated system from manufacturing industries across the globe is significantly boosting the smart manufacturing market growth. Nonetheless, huge initial investments are required for installation of automated systems, which is anticipated to hinder the market growth.

Services component will be the most lucrative in the coming years

On the basis of component, the global market has been classified into hardware, software and services. In these, software component held the global market size in 2018 and is estimated to reach up to $139.9 billion in 2026. Software component will play a key role in the advanced automation processes and active application of technology with suitable software leads to enhance the productivity and higher quality products. This factor will boost the market growth in the coming years. Services segment accounted for second highest market size and is expected to grow at a faster CAGR of 6.8% during the forecast time. Services component will play major role in effective maintenance and control of the automation process; this aspect will drive the market size.

Automotive end use industry accounted for dominant market size in the global market

Based on end use, the global market is classified into aerospace & defense, automotive, chemicals, electrical & electronics, healthcare, petroleum and others. Among these, automotive end use accounted for highest smart manufacturing market share, which was over 23.5% in 2018 and is anticipated to continue its growth in the forecast years. The extensive usage of advanced technical procedures in the automotive sector to reduce manufacturing costs and enhance the efficiency is expected to fuel the market growth in the forecast period. Electronics end use will witness to grow at a significant CAGR of 7.4% and is expected to produce a revenue of $40.6 billion till 2026. This projected growth in the market is attributed to increasing demand for robots in handling & assembling applications of electrical components, which will accelerate the growth of the market.

Regional overview

The global market share has been dominated by Asia-Pacific in the previous years and projected to generate a revenue of $114.8 billion by 2026. Growing investments for the automation of the existing manufacturing processes due to increasing labor expenditure is projected to enhance the market size in the Asia-Pacific region. Europe accounted for subsequent position in the global market; it is estimated to grow at a high CAGR of 7.3% and is projected to create ample growth opportunities in terms of revenue throughout the forecast period. Increasing demand for technologically advanced production methods across several industry verticals such as automotive, consumer electronics, manufacturing and other industries will boost the growth of the market.

Top gaining manufacturers-

The top gaining manufacturers in the global smart manufacturing market include –

  1. GENERAL ELECTRIC
  2. Siemens
  3. Schneider Electric
  4. Honeywell International Inc.
  5. Emerson Electric Co.
  6. FANUC CORPORATION
  7. Rockwell Automation, Inc.

Reference: https://www.researchdive.com/press-release/global-smart-manufacturing-market.html

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Mr. Abhishek Paliwal
Research Dive
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