PREDICTIONS FOR THE ENGINEERING & MANUFACTURING INDUSTRY BY THE YEAR 2023
It is often said that change is the only constant thing, and while there have been significant changes in several aspects of life, the manufacturing and engineering industries may witness a great tsunami of change that has never been seen, in as soon as five years from now.
According to a recent report by Homeland Security Research Corp. (HSRC), titled “Global Industry 4.0 Market & Technologies 2018–2023”, the industry 4.0 market may reach a skyrocketing $214B by 2023, hugely outweighing the projected 2023 cybersecurity market by 30%. The Industry 4.0 market is chiefly dominated by global technology giants and manufacturers including HP, Samsung, IBM, NEC, Microsoft, Alphabet-Google, amongst others, who have already invested several billions of dollars in Industry 4.0 products R&D, M&A, commercialization, and internal use..
The report was collated based on a number of extensive research activities which included: 31 industry 4.0 round table focus groups with 87 top industry executives from 17 countries, 49 Industry 4.0 vendors research, review of 477 reports and papers, cross-check of 188 submarkets via 5 bottom-up research vectors, etc.
The 4-volume report, which has 640 pages, covers 10 technologies, 5 regional markets, 4 revenue sources, 10 industries, and 22 national markets.
After three decades of diminution in the manufacturing sector of the Western economies and several other economies, governments and private establishments have started adopting technologies of the 4th industrial revolution in a bid to restore manufacturing, and generate management jobs in their home countries.
Despite the United States’ long-time dependency on foreign imports, there have been signs of gradual changes, with rapid rises in both domestic and export demand. Efforts to reinvent the U.S. manufacturing have already begun with the creation of smart factories, and this is certain to have a solid impact on economic growth in the U.S.
With over 2 million manufacturing industries, the industrial sector is also vital to the EU economy, which is also responsible for over 80% of the EU’s total exports. As part of its Digital Single Market Strategy, the EU intends to help all industrial sectors take advantage of new technologies and oversee the transition to the Industry 4.0 industrial system. While these changes may add to the already aggravated traditional business pressure on the manufacturers, it is also certain to come with unprecedented opportunities to improve the production and manufacturing processes.
According to the report, the industry will experience a major growth brought about by the following factors:
- Fierce competition in the global manufacturing sector
- The new business opportunities that the Industry 4.0 will open up to suppliers and adaptors
- Government-funded Industry 4.0 projects, tax incentives, and subsidies
- Unprecedented chances to optimize the production process
- Investment in Industry 4.0 by top economies featuring high labor costs, so as to ensure a continued increase to their industrial base and jobs taken by low labor cost countries
- The opportunity Industry 4.0 presents start-ups and SMEs to promote and provide downstream services
- The flexibility Industry 4.0 dynamic business and engineering processes allows in terms of response to disruptions to production or failures on behalf of customers/suppliers.
The change both the engineering and manufacturing industries will soon witness are certain to revolutionize several other related industries. For more information on the Industry 4.0 market trend, download our e-book “The Fourth Industrial Revolution: Positioning Your Firm to Thrive”.