North America Smart Manufacturing Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

The North American smart manufacturing market is expected to register a CAGR of 4.8% during the forecast period.

Key Highlights

• Increasing demand for automation to achieve efficiency and quality, the need for compliance and government support for digitization, and the proliferation of the Internet of Things are some of the major driving factors impacting the market growth.
• North American manufacturers across all industries are establishing the advancement foundation by increasingly enhancing their level of automation. In a race to be competitive with global manufacturing hubs like China and Japan, North America aimed to develop and adopt robotic and automation technologies.​ Therefore, to save energy and to gain cost-benefit, the trend of factory automation and industrial control systems is gaining traction in the region.
• The application of big data analytics in smart manufacturing aims to refine complicated processes, manage supply chains, and support new business models, like mass customization and product-as-a-service, which can be made possible by smart manufacturing apart from the traditional operational models like on-demand. Besides, big data analytics allows an enterprise to use smart manufacturing to shift from reactionary practices to predictive ones. This change targets improving the efficiency of the process and performance of the product, which in turn witnessed significant adoption in the region.
• The regional automotive sector has always led the way in implementing robotics in its manufacturing processes. Other industry manufacturers, like John Deere, are also making significant investments to integrate automated technology into their products and processes. The regional manufacturing industry still needs to utilize these benefits fully. Hence, the region's automation adoption and product innovation scope is high.
• The outbreak of COVID-19 triggered the manufacturing sector during its starting phase, where the companies had to re-evaluate their traditional production processes, primarily driving digital transformation and smart manufacturing practices across the production lines. However, as the COVID-19 situation went back to normal after the lockdown, the market went back to stability and is predicted to grow over the forested period.

Key Market Trends

Robotics is Expected to Witness Significant Growth

• Robots have transformed manufacturing, making it easier to move heavy objects and perform delicate tasks through automation. There is a significant increase in the market, and sales for industrial and service robots are expected more over the forecasted period. Thus it will lead to driving the market for smart manufacturing.
• According to the Association for Advancing Automation (AAA), the North American companies, that is, the companies from the United States, Canada, and Mexico, purchased the most robots ever in a single quarter, with 11,595 robots, which showed an increase of 28% over the Q1 of 2021. Moreover, the reported revenue generated from this was USD 664 million, an increase of 43% compared to Q1 of 2021.
• Furthermore, according to the International Federation of Robotics (IFR), around 35,000 industrial robots were reported to be installed in the United States in 2021, which is an increase of about 14% in installations from the previously reported year and is expected to grow more in the future.
• Moreover, in March 2022, Plus One Robotics, a leading manufacturer of 3D and artificial intelligence (AI)-powered vision software, announced a partnership with Tompkins Robotics, a global leader focused on robotic automation of distribution and fulfillment operations. The two companies teamed up to offer an automated picking solution combining Plus One Robotics 3D and artificial intelligence (AI) software with Tompkins Robotics tSort system.

United States is Expected to Grow Significantly

• The United States is on the edge of the fourth industrial revolution, where data is utilized on a big scale for production while integrating the data with various manufacturing systems throughout the supply chain. The country is also one of the largest automotive markets in the world and is home to around 13 major auto manufacturers. Automotive manufacturing is one of the largest revenue generators for the United States in the manufacturing sector.
• Additionally, the country is home to various enterprises increasingly adopting automation to optimize operations. For instance, Schneider Electric launched the first Smart Factory in the United States to demonstrate in real-time how EcoStruxure architecture and related suite of offerings can help enhance operational efficiency and reduce customer costs.​​​
• The US oil and gas industry has been a primary demand driver for programmable logic controller (PLC) systems for automation tasks. Automation has enabled the high production of oil and gas in the country and has also been responsible for the smooth distribution of oil products.​
• Also, the formation of the Advanced Manufacturing Partnership is an initiative undertaken to make the industry and the federal government invest in upcoming technologies, which has substantially helped the country gain a competitive edge in the global economy. The National Network for Manufacturing Innovation comprises developing regional hubs, which will develop advanced manufacturing technologies for implementing innovative products in the sector.​
• According to Datanyze, the top three automation solution providers in the United States, Oracle, Adobe, and Hubspot, account for almost 50% of the market share in the US industry chosen by industrial professionals.

Competitive Landscape

The North American smart manufacturing market is moderately competitive and consists of several major players. The major players with prominent shares in the market are focusing on expanding their customer base across foreign countries. The companies leverage strategic collaborative initiatives to increase their market share and profitability.

In November 2022, Rockwell Automation, Inc. announced that it is delivering an intelligent edge management and orchestration platform with an edge application ecosystem - based on zero trust security and open industry standards - accelerating digital transformation for industrial customers.

In March 2022, Siemens announced it would invest USD 54 million across key US manufacturing facilities that serve critical infrastructure markets. The investment will go toward a new greenfield manufacturing plant for make-ready electric vehicle charging equipment and electrical infrastructure in Pomona, California, and an existing electrical infrastructure manufacturing location in Grand Prairie, Texas.

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