The manufacturing industry is considered to be the back bone of any economy as they provide jobs for plentitude of people and produce goods which are in turn consumed by other sectors as well.
In accordance to some economists, Service sector is considered to be wealth – excruciating sector while manufacturing to be wealth – originating.
The COVID-19 pandemic had the greatest impact on global manufacturing in the first half of 2020, resulting in the first global manufacturing decline since the 2008-2009 financial crisis.
However, in early 2021, the developing and emerging industrial economies, as well as the industrialized economies, exceeded their pre-pandemic levels. Further to that, production in the Developing and Emerging Industrial Economies group was more volatile, even falling below pre-pandemic levels in the second quarter of 2021, as the pandemic hit this group at different times.
China leads the world in manufacturing output. The country accounts for 28% of global manufacturing output, which is worth approximately $4tn to the global economy.
What are the challenges faced by manufacturing industries in 2022?
The global supply chain disruption due to the war and the ongoing labor shortage issue in the USA is having a negative impact on the whole sector.
Raw material prices have gone up which is mounting pressure for the manufacturers along with the after-effects of the pandemic, especially on automobile manufacturers where the date of delivery is extended.
The companies are forced to be digitalized for their sustainability in the markets and e-commerce has become a radical factor.
Digital threats are more prevalent than ever before so companies are investing more in cyber security.
What is new in industrial revolution?
Industry 4.0 is revolutionizing the way companies manufacture, improve and distribute their products. Manufacturers are integrating new technologies, including Internet of Things (IoT), cloud computing and analytics, and AI and machine learninginto their production facilities and throughout their operations.
Using high-tech IoT devices in smart factories increases productivity and quality. Using AI-powered visual insights to update manual inspection business models reduce manufacturing errors and saves money and time.
Industry 4.0 relies heavily on automation and has been intimidating workers on factory shop floors. The next big thing—Industry 5.0, which will bring back empowered humans to the shop floor.
In Industry 5.0, customer aspirations will drive the market interests toward hyper customization.
TECHNOLOGIES DRIVING INDUSTRY 5.0
- Internet of Things (IoT)
- Cloud computing
- AI and machine learning
- Edge computing
- Digital twin
The growth of the smart manufacturing market is attributed to factors such as the increasing number of government initiatives to promote industrial automation, the rising number of investments in Industry 4.0, growing demand for safety regulation compliance, and high labor costs in developed economies.
Crispidea anticipate the global smart manufacturing market to reach $220bn by 2026 from $170bn in 2020, with a CAGR of 4.39% during 2020-2026.
For details on Industrial analysis and ML/ AL in manufacturing please feel free to refer to the following Manufacturing Industry report from CrispIdea: