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The North America digital transformation in manufacturing market size is expected to reach $25.70 billion by 2025, according to a new report by Grand View Research, Inc., rising at a CAGR of 17.2% during the forecast period. The manufacturing industry is inclined towards deploying digital manufacturing solutions that offer greater efficiency and productivity and minimize manufacturing costs.
Artificial intelligence (AI) is the driving factor behind modernization of manufacturing procedures, which is being undertaken to help make smarter real-time production decisions. Integration of AI and robotics to improve productivity of manufacturing processes is a major trend that is being currently observed in the market.
Manufacturing companies in the region are shifting their focus from large-scale manufacturing to customized manufacturing. Since customers are increasingly demanding tailor-made products, manufacturing companies are making efforts to fulfill these demands in real time. In response to the growing trend, manufacturing companies are adopting Industry 4.0 standards that include cyber-physical systems to monitor processes in factories and make decentralized decisions.
Moreover, use of drones for product delivery is an emerging trend in the region. Drones are considered to be the future of last-mile delivery for consumer goods as they are cost effective and also assist in reducing delivery time. For instance, in December 2016, Amazon.com, Inc. launched the Amazon Prime Air project in the U.S., which involved use of drones for delivering products within 30 minutes.
Further key findings from the report suggest:
- The presence of a large number of key providers of digital transformation in the region is one of the key factors supporting the growth of the market
- The solution segment is expected to account for the largest market share over the forecast period. On the other hand, the service segment is anticipated to register a CAGR of 18.3% from 2018 to 2025 owing to increasing demand for managed and professional services that offer information on new technologies introduced for production processes
- The hosted deployment segment is expected to witness the highest growth over the forecast period. It is estimated to register a CAGR of 20.2% during the forecast period as it facilitates a virtual presence that enables organizations to access data across connected devices at any point of time
- The large enterprise segment is expected to account for the largest market share over the forecast period and is anticipated to progress at a CAGR of 16.0% from 2018 to 2025 owing to huge investments of such enterprises in advanced technologies to cope with changing industry dynamics
- The U.S. is anticipated to continue to dominate the market over the forecast period and is estimated to reach USD 19.53 billion by 2025 owing to increasing government initiatives for deploying digital manufacturing process in SMEs to increase production efficiency and gain a competitive edge
- Key industry participants include ABB Ltd.; Dassault Systemes; Emerson Electric Co.; Fanuc Corporation; General Electric Company; Honeywell International, Inc.; Mitsubishi Electric Corporation; Rockwell Automation, Inc.; Robert Bosch GmbH; Schneider Electric SE; Siemens AG; and Yokogawa Electric Corporation.