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Digital Transformation in Manufacturing Market Snapshot (2023 to 2033)

The global digital transformation in the manufacturing market was estimated to reach a valuation of US$ 491.09 billion in the year 2022. With a robust CAGR of 21.2% from 2023 to 2033, this market is anticipated to reach US$ 595.2 billion by 2023 and US$ 4.07 trillion by 2033.

Data Points Key Statistics
Expected Market Value in 2023 US$ 595.2 Billion
Expected Market Value in 2033 US$ 4.07 Trillion
Growth Rate (2023 to 2033) 21.2%

Manufacturing has seen a significant effect from digital transformation, which has improved safety, throughput, quality, efficiency, income, and sustainability while lowering costs to stay competitive in the market. The effects are significant, but this change is necessary to keep up with changing customer requirements and fierce rivals. Such benefits have been propelling the growth of digital transformation in the manufacturing market over the forecast period.

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Key Trends Influencing uptake of Digital Transformation in Manufacturing

  • As industry 4.0 enters the industrial sector, numerous facilities are promoting digital technologies to improve, streamline, and modernize the entire process. Additionally, in digital transformation technologies like robotics and IoT, robots can operate around the clock without experiencing hiccups or errors, favorably influencing the development of digital transformation in manufacturing over the forecast period.
  • Industry 4.0 technologies, such as robotization, are becoming more commonplace in businesses. For instance, Vepa, a manufacturer of project and workplace furnishings, employs robotization in its warehouse to increase turnover. Collaborative machines are anticipated to be used more frequently in production.
  • Real-time production data is another result of digital change. These digital processes make it possible to instantly capture data, which corresponds to research for the organization's quicker real-time choices. Not only is it used for reactionary reactions, but also for predictive analytics to enhance upcoming procedures and goods. This normalizes failed approaches and proactive maintenance, which have a direct impact on all facets of the company.
  • The market has grown considerably due to the increasing regional adoption of industrial IoT. For example, the "Made in China 2025" initiative aims to significantly improve the Chinese industry by promoting products that is quality-focused as well as innovation-driven.

Some Key Developments in Digital Transformation in Manufacturing

Companies are launching an advanced platform to hasten the adoption of robotics in factories and stores.

  • At the 2022 International Manufacturing Technology Show in September 2022, HP revealed that its Metal Jet-S100 Solution would be available for purchase in stores.
  • A 3D metal manufacturing tool called the HP Metal Jet S100 was developed to assist businesses in producing 3D metals in large quantities. Additionally, some nations, like South Africa, have jobless rates that are close to 25%, which exacerbates the difficulties in implementing digital transformation in the region's industrial sector.
  • The output and revenue development of businesses will probably be significantly impacted by the absence of skilled staff.

Digital Transformation in Manufacturing: Regional Profile

  • In 2023, North America is anticipated to hold a significant share. New technologies and advances are used by modern production sites in the USA to create goods of considerably better quality at reduced costs. To endure the current competitive environment, regional businesses are implementing complex and clever solutions.
  • Additionally, by implementing cutting-edge technologies with machine learning and artificial intelligence capabilities, manufacturing firms aggressively grasp the chance to improve output efficiency.
  • For instance, the Ottawa-based manufacturer of parts for transportation, infrastructure, and agriculture, Linamar, received a $100 million investment from both the federal and provincial governments of Ontario to implement cutting-edge manufacturing technologies like advanced robotics, prediction, equipment data analysis, vision systems, as well as 3D printing. Such factors are expected to propel the growth in this market during the forecast years of 2023 to 2033.
Sudip Saha
Sudip Saha

Principal Consultant

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Digital Transformation in Manufacturing Market Overview

The digital transformation in the manufacturing market is projected to grow US$ 550 Bn by 2031, at an expected CAGR of more than 17% during the forecast period 2023 to 2033. Due to Covid-19, there is a shift from traditional to new digitalized business models and this has led to the introduction of more technologically advanced products and services.

Digital transformation in manufacturing can reduce processing costs and enhance cost efficiency. Those days are gone when manufacturing companies used to focus less on the production cost of a product and which led to high-end product costs. However, with the help of digital transformation, unnecessary costs can be reduced.

Companies across different sectors are working remotely due to the guidelines of Covid-19 for following social distancing. People are using online services for their essential and non-essential needs. This has resulted in the demand for robust cloud infrastructure. As everyone is working remotely, cloud computing is playing an important role in making manufacturing processes and activities more seamless.

What is Driving Demand for Digital Transformation in Manufacturing?

Continuous advancement in technology is adding opportunities for digital transformation in manufacturing. IoT is playing an important role in manufacturing industry for improved efficiency and a reduction in production costs. This has resulted in contributing to the market growth.

Advanced data analytics is one of the major driver, which will also keep the market future robust. There are various components of the Industrial Internet or Industry 4.0 space, which are further driving the digital transformation across the manufacturing sector.

There is an increase in number of industrial robots used by organizations for eliminating the need for human drivers, this too is likely to garner demand in the global digital transformation in manufacturing market. The demand for more developments in robotics, internet of things has further led to the rise global digital transformation in manufacturing industry.  

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What are the Key Trends for Digital Transformation in Manufacturing?

Different industries are moving towards the application of robotics for improved efficiency and a reduction in production costs, which leads the way for growth of digital transformation in manufacturing. Robots can be programmed to operate 24*7 and this is anticipated to be a major trend driving growth of the digital transformation in manufacturing.

Robots can also be customized to perform complex functions. This significant factor is further impelling the need for digital transformation solutions. Industries are using robots for material handling to product packing, this will also keep the market future robust.

There are highly trainable and collaborative robots, which can be remotely controlled by operators. Industries are using them at mining sites and unsafe working environments, as well. This is further impelling many industries for the need of digital transformation.

With the help of robotics technology, industries can help fix mechanical issues and this can minimize the delays. This major trend also contributes to market of digital transformation in manufacturing.  

United States Demand Outlook for Digital Transformation in Manufacturing

United States has majority of the key vendors of digital transformation in manufacturing sector. All the major industries like government, defense, healthcare and others are moving towards the adoption of digital transformation technologies and services, for improved efficiency.

There is an increase in adoption of robotics technology in the country and there is a large implementation for industrial robotics and process automation. This can impel the expansion of the digital transformation in manufacturing, in the United States. Further, United Sates is allowing manufacturing companies optimize their business operations with IoT-enabled manufacturing plants, which will again add growth to the market.

United Kingdom Demand Outlook for Digital Transformation in Manufacturing

A significant rise of digital transformation technologies in the United Kingdom, it will attribute to the availability of more technical solutions in the upcoming years. The country is dependent on new technologies and innovations to produce higher quality products with lower costs and to achieve this goal, companies in the country are adopting intelligent solutions.

The United Kingdom is expected to hold a major share as there are several initiatives taken by the government to aid the transformation of the traditional manufacturing industry. The manufacturing plants with IoT technology in the country are allowing manufacturing companies to optimize their product and service innovations, supply chain and logistics management, and business operations.  

Who are the Key Solution Vendors in Digital Transformation in Manufacturing?

Key players such as

  • Microsoft, SAP
  • Cognizant
  • Adobe
  • Dell EMC
  • IBM
  • Google
  • Marlabs
  • Accenture
  • Broadcom
  • Equinix
  • Oracle
  • HPE
  • HCL Technologies
  • Tibco software
  • Alcor Solutions
  • Smartstream
  • Yash Technologies
  • Happiest Minds
  • Scoro
  • Brillio
  • Aexonic Technologies
  • Others

are actively involved in offering digital transformation solutions and services in the manufacturing sector for different applications.  

The report is a compilation of first-hand information, qualitative and quantitative assessments by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments.

The report also maps the qualitative impact of various market factors on market segments and geographies.

Key Segments of Digital Transformation in Manufacturing Market

By Solution:

  • Cloud-based MES Platform
  • AI-enabled Predictive Maintenance
  • Manufacturing Analytics Solution
  • Threat Intelligence platform
  • IIoT Platform
  • Others

By Deployment:

  • On-premises
  • Cloud

By Organization Size:

  • Large Enterprises
  • Small and Medium-sized Enterprises

By Industry:

  • Food & Beverages
  • Pharma & Medical Devices
  • Chemicals & Materials
  • Paper & Pulp
  • Electronics & Electricals
  • Others

By Region:

  • North America
    • USA
    • Canada
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Europe
    • United Kingdom
    • France
    • Germany
    • Italy
    • Spain
    • BENELUX
    • Russia
    • Rest of Europe
  • East Asia
    • China
    • Japan
    • South Korea
  • South Asia & Pacific
    • India
    • Thailand
    • Indonesia
    • Malaysia
    • Australia & New Zealand
    • Rest of South Asia & Pacific
  • Middle East & Africa
    • GCC Countries
    • Turkey
    • South Africa
    • Rest of Middle East and Africa

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