North America Digital Transformation in Manufacturing Market Analysis Report By Type, By Deployment, By Enterprise Size And Segment Forecasts From 2018 To 2025

Industry Insights

The North American digital transformation in manufacturing market size was accounted for USD 7.30 billion in 2017 and is projected to grow at a CAGR of 17.2% from 2018 to 2025. Growing demand for manufacturing equipment with features like advanced control process and simulation capabilities are expected to boost the market growth. In addition, the increasing trend of IoT-based systems and cloud platforms is projected to support market growth over the next few years.

Internet of Things (IoT) enabled the system to allow manufacturers to improve their business operations and supply chain network. Thus, companies from the healthcare, electronics, defense, and industrial equipment sectors are looking for these innovative solutions to optimize their business process.

Furthermore, the increasing trend of robotics and artificial intelligence in the automation industry is supporting market growth. These solutions offer real-time, smart decision-making options that are useful in industrial operations. Additionally, the IoT enables all devices to be connected at one level and also links with the supply chain.

Furthermore, IoT-enabled devices such as sensors provide a self-diagnostic approach in the manufacturing industry. In addition, growing investment in R&D activities is encouraging manufacturers to develop advanced sensor technologies to optimize and increase the operational efficiency of the plant or manufacturing units. 

Various initiatives by the government authorities regarding promoting IoT-enabled applications are helping in the development of new digitally integrated systems. For instance, the American government has introduced a program for increasing the penetration of advanced technologies in manufacturing.  

However, the cyber-attack threat is expected to restrain the market growth. A large amount of information data is exchanged through a cloud network that is vulnerable to sabotage attacks through the internet. 

Type Insights

Solution type segment led the North American digital transformation in the manufacturing market with the largest share in the overall market. Several benefits like improved productivity, digitalization are boosting the market growth. Analytical solutions are required for pharmaceutical, oil & gas, defense & aerospace, and automotive applications. These solutions are useful in maintenance systems for analyzing predictive decisions by cutting downtime and enhance production. Additionally, these benefits help in increasing the overall profit of the manufacturing unit. Moreover, cloud computing helps in monitoring and controlling plant activities. It also synchronizes data from a single source. Cloud solutions are key to digital transformation. Different factors such as high flexibility, fast deployment, and development are also helping to bolster the need for these solutions. 

Deployment Insights

The hosted deployment segment is projected to grow at a significant CAGR over the forecast period. This allows connection to access machines using mobile or computer from remote locations. This type of deployment is cost-effective and also requires minimum maintenance and update solutions. 

The on-premise type segment is expected to hold its substantial share in the market. This deployment type is highly preferred by medium & small enterprises. SMEs are more resistant to shift to the cloud system due to less awareness among consumers. However, this trend is anticipated to change shortly.

Enterprise Size Insights

An increasing number of small & medium enterprises along with digital solutions for manufacturing process optimization is a key factor driving the North American digital transformation in the manufacturing market. Further, supportive government activities for the deployment of digital solutions are projected to surge the market growth.

In 2017, the large enterprise type segment accounted for USD 4.3 billion in the overall market. Large enterprises spend a huge amount of money on digital solutions to enhance their capabilities and to remain competitive in the market. Moreover, the manufacturers also focus on advanced digital technologies to develop new digital solutions. Further, few players involve in activities such as acquisitions, partnerships to increase their production efficiency and gain a competitive advantage over other players in the market. 

Country Insights

The growing penetration of enterprise resources planning (ERP), big data, and IoT solution in North America are expected to bolster the demand for digital solutions in the market. Moreover, the manufacturers invest in developing digital technologies to improve operational efficiency.

In North America, the government authorities also invest in R&D activities to develop data analytic solutions, advanced networks, and process control to increase productivity and efficiency of manufacturing units. In Canada, the manufacturers focus on robotics, automation, and supply chain processes. This trend is anticipated to propel the growth of the digital manufacturing industry.

Impact of COVID-19

COVID-19 pandemic is projected to accelerate the digital transformation in manufacturing industries. Coronavirus has disrupted the supply chain and production process in manufacturing facilities. Additionally, lockdown is causing a lack of workforce at manufacturing sites.

However, the companies are focusing on improving their productivity and employee engagement through initiatives such as remote working. Thus, manufacturing companies are exploring different ways of translating in-person events into digital experiences. Various digital technology solutions including artificial intelligence (AI), robotic process automation (RPA), virtual reality (VR), and IoT devices are expected to play a key role in digital transformation. 

North America Digital Transformation in Manufacturing Market Share Insights

Leading companies in the market include General Electric Company; Emerson Electric Co.; Dassault Systemes; BB Ltd.; Fanuc Corporation; Mitsubishi Electric Corporation; Schneider Electric SE; Robert Bosch; Siemens AG; Yokogawa Electric Corporation; and Rockwell Automation, Inc.

Key players in the market focus on developing technologically advanced digital solutions. For example, ABB Ltd has launched an automation solution with modular-enabled processes in 2018, which helps in reducing costs.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, Country, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2014 to 2025. For this study, Million Insights has segmented the North America digital transformation in manufacturing market report based on type, deployment, enterprise size, and country:

• Type Outlook (Revenue, USD Billion, 2014 - 2025)
    • Solution
        • Analytics
        • Cloud Computing
        • Mobility
        • Social Media
        • Others
    • Service
        • Implementation and Integration Services
        • Professional and Consulting Services

• Deployment Outlook (Revenue, USD Billion, 2014 - 2025)
    • Hosted
    • On-premise

• Enterprise Size Outlook (Revenue, USD Billion, 2014 - 2025)
    • Large Enterprise
    • Small & Medium Enterprise (SME)

• Country Outlook (Revenue, USD Billion, 2014 - 2025)
    • U.S.
    • Canada