Cloud Manufacturing Market Opportunities and Strategies to 2033

This report describes and explains the cloud manufacturing market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global cloud manufacturing market reached a value of nearly $73.7 billion in 2023, having grown at a compound annual growth rate (CAGR) of 15.62% since 2018. The market is expected to grow from $73.7 billion in 2023 to $168.4 billion in 2028 at a rate of 17.97%. The market is then expected to grow at a CAGR of 16.01% from 2028 and reach $353.8 billion in 2033.

Growth in the historic period resulted from the increased adoption of AI in manufacturing, increased internet penetration, rise in 5G technology integration, growth of smart factory initiatives and government initiatives supporting cloud adoption. Factors that negatively affected growth in the historic period include the increase in cost of cloud infrastructure and platform services and economic uncertainties or downturns.

Going forward, the increasing industrialization across various sectors, increasing investments in digital transformation, expansion of global supply chains, growth in small and medium enterprises (SMEs), increasing adoption of industry 4 model, increasing use of IoT in manufacturing and rise in advanced analytics and big data will drive the market. Factors that could hinder the growth of the cloud manufacturing market in the future include the limited availability of skilled personnel and technical expertise and growing concerns about data security.

The cloud manufacturing market is segmented by component into hardware, software and services. The software market was the largest segment of the cloud manufacturing market segmented by component, accounting for 40.90% or $30.1 billion of the total in 2023. Going forward, the services segment is expected to be the fastest growing segment in the cloud manufacturing market segmented by component, at a CAGR of 19.38% during 2023-2028.

The cloud manufacturing market is segmented by deployment model into public cloud, private cloud and hybrid cloud. The hybrid cloud market was the largest segment of the cloud manufacturing market segmented by deployment model, accounting for 45.17% or $33.3 billion of the total in 2023. Going forward, the hybrid cloud segment is expected to be the fastest growing segment in the cloud manufacturing market segmented by deployment model, at a CAGR of 19.61% during 2023-2028.

The cloud manufacturing market is segmented by organization size into small and medium enterprises (SMEs) and large enterprises. The large enterprises market was the largest segment of the cloud manufacturing market segmented by organization size, accounting for 61.04% or $45 billion of the total in 2023. Going forward, the small and medium enterprises (SMEs) segment is expected to be the fastest growing segment in the cloud manufacturing market segmented by organization size, at a CAGR of 19.01% during 2023-2028.

The cloud manufacturing market is segmented by industry vertical into aerospace and defense, healthcare, semiconductor electronics, automotive, metal and machinery manufacturing and other industry verticals. The aerospace and defense market was the largest segment of the cloud manufacturing market segmented by industry vertical, accounting for 23.99% or $17.7 billion of the total in 2023. Going forward, the semiconductor electronics segment is expected to be the fastest growing segment in the cloud manufacturing market segmented by industry vertical, at a CAGR of 22.16% during 2023-2028.

North America was the largest region in the cloud manufacturing market, accounting for 39.80% or $29.3 billion of the total in 2023. It was followed by Asia-Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the cloud manufacturing market will be Asia-Pacific and Western Europe, where growth will be at CAGRs of 23.09% and 17.80% respectively. These will be followed by Africa and the Middle East, where the markets are expected to grow at CAGRs of 17.40% and 17.01% respectively.

The global cloud manufacturing market is fairly fragmented, with a large number of players operating in the market. The top ten competitors in the market made up 22.9% of the total market in 2023. Microsoft Corporation was the largest competitor with a 3.4% share of the market, followed by SAP SE with 3.3%, Alphabet (Google LLC) with 3.1%, Oracle Corporation with 2.9%, Alibaba Group Holding Limited with 2.2%, International Business Machines Corporation with 2.1%, Salesforce Inc. with 1.8%, Tencent Holdings Ltd. with 1.6%, DXC Technology Company with 1.3% and Amazon.com Inc. with 1.2%.

The top opportunities in the cloud manufacturing market segmented by component will arise in the software segment, which will gain $40.1 billion of global annual sales by 2028. The top opportunities in the cloud manufacturing market segmented by deployment model will arise in the hybrid cloud segment, which will gain $48.2 billion of global annual sales by 2028. The top opportunities in the cloud manufacturing market segmented by organization size will arise in the large enterprises segment, which will gain $54.9 billion of global annual sales by 2028. The top opportunities in the cloud manufacturing market segmented by industry vertical will arise in the semiconductor electronics segment, which will gain $21.5 billion of global annual sales by 2028. The cloud manufacturing market size will gain the most in the USA at $26.6 billion.

Market-trend-based strategies for the cloud manufacturing market include focus on advanced analytics and artificial intelligence to drive sustainability and efficiency in manufacturing processes, integration of industrial AI innovations for enhanced productivity and real-time decision-making, strategic partnerships and collaborations among major players to enhance product offerings, centralized platforms for improved transparency and communication in the manufacturing process, establishing a solid data foundation for improved supply chain performance and smart manufacturing initiatives, adoption of OEM (Original Equipment Manufacturer) programs empowering SAAS and cloud providers to offer branded storage services and focus on machine learning in enhancing data utilization across manufacturing applications.

Player-adopted strategies in the cloud manufacturing market include focus on strengthening operational capabilities through strategic partnerships and collaborations and new product solutions.

To take advantage of the opportunities, the analyst recommends the cloud manufacturing companies to focus on advanced analytics and AI integration, focus on integrating industrial AI innovations, focus on adopting centralized cloud platforms, focus on integrated cloud platforms for digital collaboration, focus on the fastest-growing services segment, focus on the hybrid cloud segment, expand in emerging markets, focus on the fastest-growing SMEs segment, focus on strategic partnerships, provide competitively priced offerings, continue to use B2B promotions and focus on semiconductor electronics segment.