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Model Based Manufacturing Technologies Market

Model Based Manufacturing Technologies Market By Deployment Type (Cloud, On-premises), Enterprise Size (Small and Medium Enterprises (SMEs), Large Enterprises), Industry (Automotive, Electronics and Semiconductors, Aerospace and Defense) & Region - Forecast to 2021- 2031

Model Based Manufacturing Technologies Market By Deployment Type (Cloud, On-premises), Enterprise Size (Small and Medium Enterprises (SMEs), Large Enterprises), Industry (Automotive, Electronics and Semiconductors, Aerospace and Defense) & Region - Forecast to 2021- 2031

Model Based Manufacturing Technologies Market - Analysis, Outlook, Growth, Trends, Forecasts

Key Highlights from Report

  • Which is the Leading Model Based Manufacturing Technologies Market?

    The U.S. has emerged as a leading market for model based technologies. It is expected to remain dominant in North America through the forecast period, from 2021 to 2031. The U.S. is expected to account for nearly 82% of North America market in 2021.

  • Which is the Top-selling Software in the Model Based Manufacturing Technologies market?

    Manufacturing ERP software is currently the top-selling product in the market. It will account for over 27% of revenue generated by 2021. However, manufacturing execution systems (MES) software is expected to dominate the market share with 26.7% through 2031. This is due to advancement in technologies, for optimum resource utilization.

  • Which are the Leading Companies Offering Model Based Manufacturing Technologies?

    Some of the leading companies in this landscape are Oracle Corporation, SAP SE, Dassault Systèmes, Honeywell International, Inc., and Siemens Digital Industries Software among others. As per FMI analysis, over 75% of the market share is currently covered by the top 15 players.

  • Who is the Leading End User of Model Based Manufacturing Technologies? 

    The automobile sector is expected to dominate the market over the forecast period, generating a revenue of US$ 21.0 Bn by 2031. Automobile manufacturers across the globe are increasingly adopting model-based manufacturing technologies in the development of vehicle electronics, engines, and transmission controllers with battery management modules.

Key Points Covered in Model Based Manufacturing Technologies Market Study

  • Market estimates and forecast 2016-2031
  • Key drivers and restraints impacting market growth
  • Segment-wise, Country-wise, and Region-wise Analysis
  • Competition Mapping and Benchmarking
  • Market Share Analysis
  • Key Product Innovations and Regulatory Climate
  • COVID-19 Impact on Model Based Manufacturing Technologies Market and how to Navigate
  • Recommendation on Key Winning Strategies

2016-2020 Model Based Manufacturing Technologies Market Outlook Compared to 2021-2031 Forecast

The model-based manufacturing technologies market rose at a 6.5% CAGR during 2016-2020. A surge in adoption of advanced technologies across various applications within the manufacturing industry is likely to drive the market over the coming years.

Recently, it has been observed that manufacturing organizations are adopting model-based manufacturing technologies such as manufacturing execution systems (MES), enterprise resource planning (ERP), material requirement planning (MRP), product lifecycle management (PLM) software, CAM/CAD software and others to automate manufacturing processes to reduce operational cost.

Moreover, model-based manufacturing is seen as a trending technology in developed economies such as Germany, the U.S., and the U.K. Overall, the global market for model-based manufacturing technologies is projected to fare even better over the coming years.

The availability of wide-ranging applications of the digital technologies being used in design and manufacturing processes and the rapidly evolving capabilities of the software used are some of the key factors that are expected to boost market growth.

In the coming years, the demand for model-based manufacturing technologies will rise amid expansion of the manufacturing activities globally. According to FMI, the market will rise at 8.2% CAGR between 2021 and 2031.

How is the Rising Demand for Customized ERP Solutions Impacting Market Growth?

The introduction of customized ERP solutions is expected to positively affect model-based manufacturing technologies market in the forecast period. Some of the key features of customized ERP solutions include integrated business management systems, real-time analysis and customization based on business need.

The manufacturing industry is leveraging the strengths of cloud-based ERP solutions by its implementation in various industry verticals such as automotive, aerospace and defense, and oil and gas.

For instance, ePROMIS Solutions Inc. is a leading global enterprise software provider headquartered in Houston, U.S. The company offers customized ERP solutions in multiple verticals including construction, contracting, oil & gas, MEP (mechanical, electrical & plumbing), trading, manufacturing, supply chain, automobile, transportation, logistics, healthcare, and the public sector.

Apart from offering functional benefits including automation in finance, human resources, and procurement, an efficient enterprise resource planning (ERP) software may incorporate the full range of operational transactions including inventory management, product life-cycle management, sales and order management, customer service, manufacturing and distribution facilities.

Thus, functional and value-added services offered by ERP are expected to support the growth of the model-based manufacturing technologies market, over the forecast period.

What is the Impact of the COVID-19 Crisis on Model Based Manufacturing Technologies?

Lockdown imposed across various countries have negatively impacted the market. Limited production and transportation-related delays owing to travel restriction created obstacles amid the pandemic. With consecutive waves of the novel coronavirus tightening its noose, the treatment of other ailments has been delayed. This also had a negative impact on the market.

The challenges posed by the COVID-19 pandemic accelerated several key trends more than a shift to digital connectivity and automation, as industries sought ways to maintain operations with fewer people on site.

The COVID-19 pandemic is expected to adversely impact the demand in the manufacturing industry as manufacturers rethink their spending strategies with dampened global demand and disrupted supply chains.

Despite the difficult situation, economies are steadily recovering from the effect. Manufacturing activities have begun to grow at a slow and steady pace as supply and distribution networks recover. Against this backdrop, the pandemic is unlikely to have a long-term effect on the model based manufacturing technologies market.

Country-wise Insights

How Big is the Opportunity for Model Based Manufacturing Technologies in the U.S.?

North America is predicted to remain one of the most attractive markets during the forecast period, according to Future Market Insights. According to the study, the U.S. is expected to account for over 83% of the North America market through 2031.

The MRP based software and ERP based software technologies have reached a stage of maturity, even as the growth rate has been decreasing. However, this country will dominate the overall market due to increasing adoption of MES based and CAD based software. 

The costs associated with time, equipment, and investments are being considered and optimized in the manufacturing sector. To increase efficiency related to such factors, companies are conducting manufacturing simulations, which provides a risk-free way to test simple revisions and even complete redesigns at a lower cost.

Manufacturing simulation also offers a quick and efficient method to adjust parameters and re-simulate new models, which saves time and provides quick results.

In North America, Flexisim Software Products, Inc. offers manufacturing simulation models that provide 3D objects for realistic simulations. This software includes user-friendly tools, which helps to build and test models in a shorter period of time.

Why is the Demand for Model Based Manufacturing Technologies Increasing in the U.K.?

Demand in the U.K. market is expected to rise at around 10% CAGR over the forecast period. Currently, with the development of information technology and advanced manufacturing technology, modern manufacturing industries have changed significantly to match global competition.

RFID-enabled real-time manufacturing execution systems (MES) are in great demand. In order to simplify real-time data collection, RFID has been introduced in MES to capture manufacturing data and real-time synchronization of physical flow of materials and associated information flow.

RFID (Radio Frequency Identification) technology has been increasingly recognized as an information interaction tool and is widely used in manufacturing industries to conduct real-time monitoring of large amount of site data and in mass-customization in production processes.

As per the report, the U.K. is recognized as a primary market, and it is expected to continue exhibiting high demand for model based manufacturing technologies through the forecast period.

What are the Prospects of the South Africa Model Based Manufacturing Technologies Market?

The market in South Africa is expected to reflect a noteworthy growth rate of 10.8% CAGR for model-based manufacturing technologies within Middle East & Africa (MEA) region. Increasing plant productivity and reduced inventory costs is another factor which is fueling the growth of the model-based manufacturing technologies in the MEA.

To overcome inherent quality challenges, automatic manufacturing equipment and technologies help in production process by reducing inventory costs as the inventory will be tracked using automated information technology systems. This will subsequently lead to decreasing capital costs due to decreased inventory levels and optimal use of production resources that will aid growth in this emerging economy.

How are Government Initiatives Boosting Model Based Manufacturing Technology Sales in India?

By 2031, India will account for over 39% sales in the South Asia and Pacific region. The Government of India has taken several initiatives to promote a healthy environment for the growth of manufacturing sector in the country. The Union Budget 2021-22 is expected to enhance India’s domestic growth in manufacturing, trade and other sectors.

Development of robust infrastructure, logistics and utilities has created a conducive environment for the manufacturing sector. India is an attractive hub for foreign investments in the manufacturing sector. Several mobile phone, luxury and automobile brands, among others, have set up or are looking to establish their manufacturing bases in the country.

The manufacturing sector of India has the potential to reach US$ 1 trillion by 2025, according to FMI analysis. With impetus on developing industrial corridors and smart cities, the government aims to ensure holistic development of the nation.

The corridors would further assist in integrating, monitoring, and developing a conducive environment for industrial development which will promote advance practices in manufacturing for the foreseeable future.

Category-wise Insights

How are Manufacturing ERP Software Offerings Set to Fare?

Based on software, manufacturing ERP software is the leading segment, accounting for nearly 27% of the market in 2021. The growth of manufacturing activities and the broad scale of operations that an organization operating in the manufacturing sector is required to maintain has led to higher adoption rates.

Moreover, the penetration of big data analytics is expected to generate organizational demand for the manufacturing ERP software. The shift toward customer-centric business has led to rising applications of big data analytics, which can aid in supply planning, output forecasting, and manufacturing processes, with increased visibility of critical data.

Why is Cloud Deployment Preferred in the Manufacturing Sector?

Cloud based deployment of model based manufacturing technologies is estimated to account for a growth of 8.7% CAGR through 2031. The information technology industry has benefited considerably from cloud computing, which allows organizations to shed some of their expensive information technology infrastructure.

The cloud-based manufacturing model is gaining popularity as it has the capability to improve performance, provide security, reliability, and high data protection. This model has no IT hassles, is low-cost, and offers on-demand business services for enterprises. Likewise, it interconnects all stakeholders together.

How are Large Enterprises Likely to Influence Demand?

The large enterprises segment is estimated to hold a leading revenue share of more than 59% in 2021. The increasing preference among enterprises for efficient networking solutions and automation capabilities is expected to drive the demand.

Furthermore, the growing emphasis on strategic decision-making and resource allocation is expected to further drive the growth of the large enterprise segment in the market.

Why Does the Automotive Industry Hold Leading Market Share?

The automotive segment is expected to contribute maximum revenue share of more than 23% in the global model-based manufacturing technologies market. Automotive ERP optimizes the utilization of manufacturing capacity, parts, components and material resources using historical production data in the automobile industry.

The players in the market are facing an ongoing challenge primarily to remain competitive and to set themselves apart in order to move ahead. Automotive manufacturers currently have an opportunity to adopt technology and improve their business processes, which is driving the market.

Competitive Landscape

Companies operating in model-based manufacturing technologies market are aiming for strategic collaborations and partnerships with other technology vendors, to expand their product manufacturing capabilities and address the demand of an expanding customer pool.

  • For instance, in March 2021, SAP SE acquired Signavio, a leader in the enterprise business process intelligence and process management space. Signavio’s products became part of SAP’s business process intelligence portfolio and complemented SAP’s holistic process transformation portfolio.
  • In April 2021, SAP and Siemens Digital Industries Software announced an expansion of their partnership that will enable both companies to deliver new solutions for the service and asset lifecycle. With an initial focus on discrete manufacturing, Siemens will offer the SAP Asset Intelligence Network, the SAP asset strategy and performance management application, and the SAP enterprise portfolio and project management package.

Solution vendors are also focusing on the expansion of technology delivery centers globally to maintain a larger geographical presence.

  • For instance, in May 2021, Oracle announced the opening of the Vinhedo Cloud region in Brazil. This follows the launch of its São Paulo Cloud region last year, making Brazil Oracle’s latest country which offers dual cloud regions. The digital transformation efforts in Brazil have been accelerated by the global pandemic and Oracle is working with organizations across Brazil to help them move to the cloud securely and in compliance with data sovereignty regulations.

Some of the leading companies operating in the market are:

  • Oracle Corporation
  • SAP SE
  • Dassault Systèmes
  • Honeywell International, Inc.
  • Siemens Digital Industries Software
  • Rockwell Automation, Inc.
  • PTC
  • Autodesk, Inc.
  • Aspen Technology, Inc.
  • iBASEt Inc.
  • Schneider Electric
  • ABB
  • General Electric
  • Sepasoft, Inc.
  • Hexagon AB

*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.

Scope of Report

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

USD Million for Value

Key Regions Covered

North America, Latin America, Europe, East Asia, South Asia & Pacific, and the Middle East & Africa

Key Countries Covered

US, Canada, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, ASEAN, Australia & New Zealand, GCC Countries, Turkey, and South Africa

Key Segments Covered

Solution, Deployment, Enterprise Size, Industry, and Region

Key Companies Profiled

Report Coverage

Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Enquiry before Buying

  • Is this research conducted by Future Market Insights?

    Yes, the research has been conducted by expert analysts of Future Market Insights, through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to a research analyst.

  • What research methodology is followed by Future Market Insights?

    Future Market Insights follows a methodology that encompasses the demand-side assessment of the market and triangulates the same through supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions. Request a detailed methodology.

  • Who are the respondents for primary research?

    Future Market Insights speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, and industry experts. For a full list of primary respondents, please reach out to us.

  • What are the sources of secondary research?

    Future Market Insights conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.

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Model Based Manufacturing Technologies Market by Category

By Solution:

  • Software
    • Manufacturing Execution Systems (MES) Software
    • Material Requirements Planning (MRP) Software
    • Product Lifecycle Management (PLM) Software
    • CAD/CAM Software
    • Manufacturing ERP Software
    • Others
  • Services
    • Professional Services
      • System Integration & Implementation
      • Security Consulting
      • Support & Maintenance
    • Managed Services

By Deployment:

  • Cloud
  • On-premises

By Enterprise Size:

  • Small and Medium Enterprises (SMEs)
  • Large Enterprises

By Industry:

  • Automotive
  • Electronics and Semiconductors
  • Aerospace and Defense
  • Oil & Gas
  • Healthcare & Pharmaceuticals
  • Food & Beverages
  • Others

By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Pacific
  • Middle East and Africa (MEA)

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