BCC Research has revealed results from a new report finding smart manufacturing is an immature market that boasts significant revenue opportunity with global double-digit growth anticipated over the next five years, the company said.
BCC said in its new report that the market segment for connected devices is the key driver of the global market.
Smart manufacturing refers to the network of machines containing embedded technology that allows them to communicate with each other. The development of smart manufacturing has been based on the recent growth of the Internet of Things (IoT).
The company said the global market for smart manufacturing is expected to reach USD392 billion by 2020, up from USD159 billion in 2015, reflecting a five-year compound annual growth rate (CAGR) of 19.8 percent. As a segment, the smart manufacturing market in the Asia-Pacific region should reach USD59 billion and USD151 billion in 2015 and 2020, respectively, on a five-year CAGR of 20.7 percent. In the North American region, the smart manufacturing segment should reach USD112 billion by 2020, up from USD47 billion in 2015, with a five-year CAGR of 19 percent.
In Western Europe and the Asia-Pacific region, government mandates coupled with a greater eco-consciousness are driving investments in the IoT. In the Asia-Pacific region, improving efficiencies in manufacturing also is a strong incentive, considering the large manufacturing base in countries such as China. The global investments in smart manufacturing are expected to grow at an average five-year CAGR of 20 percent to reach USD392 billion in 2020, with the Asia-Pacific region representing about 38 percent of the opportunity.
Among industries, the company forecasts high tech and aerospace will see the strongest growth in smart manufacturing through 2020.
BCC Research is a publisher of market research reports that provide organizations with intelligence to drive smart business decisions. By partnering with industry experts worldwide, BCC Research provides assessments of global markets covering industrial and technology sectors, including emerging markets. Founded in 1971, BCC Research is a unit of Eli Global, LLC.