How Has the Cloud Manufacturing Market Evolved Historically and What is its Current Size?
The cloud manufacturing market has seen considerable growth due to a variety of factors.
• The scale of the cloud manufacturing market has seen a fast growth in recent years. It's projected to expand from a market size of $86.2 billion in 2024 to $101.24 billion in 2025, signifying a compound annual growth rate (CAGR) of 17.4%.
Factors such as initiatives to reduce costs, evolving globalization and supply chain refinement, need for enhanced scalability and flexibility, as well as compliance and regulatory mandates, and the need for business continuity and disaster recovery have been instrumental in driving the growth in the past.
What Is The Projected Growth Of The Cloud Manufacturing Template Market?
The cloud manufacturing market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the market size of cloud manufacturing is anticipated to experience robust expansion. Predictions project a sizeable increase to $190.84 billion by 2029, with a Compound Annual Growth Rate (CAGR) of 17.2%.
Contributive factors for this surge during the forecast period include eco-friendliness, demand for real-time data analysis, market dynamics and competitive pressure, the move towards sterilization and outcome-based models, as well as regulatory and compliance evolution. Prevailing trends for the forecast period comprise greater adoption of hybrid cloud solutions, the amalgamation of edge computing with cloud manufacturing, AI and machine learning-based optimization, concentration on sustainability and circular economy, and the proliferation of industry-specific cloud manufacturing solutions.
What Are The Key Drivers Fueling Growth In The Cloud Manufacturing Market?
The cloud manufacturing market is predicted to grow due to the escalating use of artificial intelligence (AI) in the manufacturing industry. AI denotes the advancement of computer systems and algorithms capable of executing tasks that demand human intelligence, including interpreting data, predicting outcomes, and resolving complicated issues. The implementation of AI in manufacturing is on the rise because of its potential to streamline processes, boost productivity, and facilitate proactive maintenance. In cloud manufacturing, AI is employed to assess large quantities of production data, streamline processes, foretell equipment breakdowns and refine decision-making for better efficiency and productivity. For example, a survey conducted by Rockwell Automation Inc., an American industrial automation and digital transformation technology provider, in May 2022 among 321 manufacturers, unveiled a notable 50% annual growth in the implementation of smart factory technologies. Furthermore, 74% of manufacturers in the survey are either currently using or planning to incorporate AI into their manufacturing processes. In addition, 83% of manufacturing professionals plan to transform their modernization processes into smart factories. Consequently, the surging implementation of artificial intelligence (AI) in manufacturing is propelling the growth of the cloud manufacturing market.
What Are The Principal Market Segments In The Global Cloud Manufacturing Industry?
The cloud manufacturing market covered in this report is segmented –
1) By Component: Hardware, Software, Services
2) By Deployment Model: Public Cloud, Private Cloud, Hybrid Cloud
3) By Organization Size: Small And Medium Enterprises (SMEs), Large Enterprises
4) By Industry Vertical: Aerospace And Defense, Healthcare, Semiconductor Electronics, Automotive, Metal And Machinery Manufacturing, Other Industry Verticals
Subsegments:
1) By Hardware: Industrial IoT (Internet of Things) Devices, Sensors and Actuators, Robots and Automated Machinery, Smart Manufacturing Equipment, Edge Computing Devices, Embedded Systems and Controllers, Wearables and AR/VR Devices for Manufacturing
2) By Software: Cloud-Based Manufacturing Execution Systems (MES), Enterprise Resource Planning (ERP) Solutions for Manufacturing, Cloud-Based Product Lifecycle Management (PLM) Software, Supply Chain Management (SCM) Software, Manufacturing Analytics and Reporting Tools, Cloud-Based Computer-Aided Design (CAD) and Simulation Tools, Digital Twin Software, Cloud-Based Quality Management Software, Predictive Maintenance Software
3) By Services: Cloud Integration Services, Cloud Migration Services for Manufacturing, Consulting and Advisory Services for Cloud Manufacturing Solutions, Customization and Personalization Services, Data Security and Compliance Services, Training and Support Services, Managed Services for Cloud-Based Manufacturing Solutions, Remote Monitoring and Management Services
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What Trends Are Shaping The Cloud Manufacturing Market?
Leading enterprises in the cloud manufacturing market are creating manufacturing-specific cloud platforms like Manufacturing Data Engine and Manufacturing Connect to strengthen their competitive positioning. These platforms, which are specifically designed for the manufacturing sector, offer a comprehensive suite of features tailored to meet the specific requirements and tackle the challenges of manufacturers, including data integration, analytics, process optimization, and supply chain management. For example, Google LLC, an American tech firm, launched Manufacturing Data Engine and Manufacturing Connect in May 2022 to assist manufacturers in consolidating their data and upgrading their operations with analytics and AI functionalities. These solutions not only allow manufacturers to link formerly disjointed assets and standardize data, but also improve visibility from the production floor to the cloud. Furthermore, these solutions facilitate key AI and analytics-driven use cases, such as manufacturing analytics and insights, predictive maintenance, and machine-level anomaly detection by centralizing and synchronizing data.
Who Are the Key Players In The Cloud Manufacturing Market?
Major companies operating in the cloud manufacturing market are:
• Amazon.com Inc.
• Google LLC
• Microsoft Corporation
• Dell Technologies Inc.
• Siemens AG
• International Business Machines Corporation
• General Electric Company
• Cisco Systems Inc.
• Oracle Corporation
• NetSuite Inc.
• SAP SE
• Salesforce.com Inc.
• Hewlett Packard Enterprise Company
• DXC Technology Company
• VMware Inc.
• Rockwell Automation Inc.
• Citrix Systems Inc.
• Jelastic Inc.
• Hitachi Vantara
• PTC Inc.
• Cloudera Inc.
• Box Inc.
• Rootstock Software
What Are The Regional Insights Into The Cloud Manufacturing Market?
North America was the largest region in the cloud manufacturing market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the cloud manufacturing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
