The global model based manufacturing technologies market is estimated at USD 46.4 billion in 2023. The market is projected to reach USD 104.3 billion by 2033, exhibiting a CAGR of 8.4% from 2023 to 2033.
Some of the key factors expected to drive the market's expansion are the accessibility of broad-ranging applications of digital technologies employed in the development and production processes, as well as the rapidly evolving capabilities of the software used.
As end-users focus on integrating automatic technology and instruments to improve efficiency while lowering expenses related to operations, the invention of sophisticated software and tools is assisting a wide range of functions in production.
The emergence of viable model-based manufacturing techniques has encouraged industries like manufacturing to start implementing it into their operations, resulting in faster, more accurate, and less expensive production.
| Attributes | Details |
|---|---|
| Model Based Manufacturing technologies Market Value (2022) | USD 45 billion |
| Model Based Manufacturing technologies Market Value (2023) | USD 46.4 billion |
| Model Based Manufacturing technologies Market Expected Value (2033) | USD 104.3 billion |
| Model Based Manufacturing technologies Market Projected CAGR (2023 to 2033) | 8.4% |
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The market for model-based manufacturing technologies grew at a 6.3% CAGR between 2018 and 2022. FMI has projected the global model based manufacturing technologies market to witness a growth in revenue from USD 46.4 billion in 2023 to USD 104.3 billion by 2033.
The market is expected to be driven by a surge in the adoption of cutting-edge technologies across multiple industries in the production sector in the coming years.
Model-based manufacturing technologies including manufacturing execution systems (MES), enterprise resource planning (ERP), material requirement planning (MRP), product lifecycle management (PLM) software, CAM/CAD software, and others are currently being implemented by industries in order to automate the manufacturing procedure and reduce expenditures on operations.
Furthermore, model-based manufacturing has emerged as a trending technology in industrialized nations including Germany, the United States, and the United Kingdom. Overall, the worldwide market for model-based manufacturing technologies is anticipated to grow in the coming years.
In the time frame projected, the emergence of customized ERP solutions is expected to positively impact the market for model-based manufacturing technologies. Integrated business management systems, real-time analysis, and personalized based on business requirements are some of the key characteristics of customized ERP solutions.
The manufacturing sector is leveraging the features of cloud-based ERP solutions through their implementation in multiple sectors such as automotive, aerospace and defense, and oil and gas.
ePROMIS Solutions Inc. is a leading worldwide enterprise software provider headquartered in Houston, Texas. The company provides customized ERP solutions in a variety of industries, such as construction, contracting, oil and gas, MEP (mechanical, electrical, and plumbing), trading, production, supply chain, automobile, transportation, logistics, medical services, and the public sector.
Principal Consultant
The global model based manufacturing technologies market is also expected to expand as a result of an upsurge in business model transformation, fueled primarily by a spike in the implementation of sophisticated telecommunications services such as 5G.
In accordance to a report by Swedish telecom equipment maker Ericsson, 5G subscriptions in India are anticipated to reach 500 million by the end of 2022, making up 39% of mobile subscribers.
Furthermore, the growing share of shipments of 5 G-permitted smartphones, which is expected to reach close to 70% by the end of 2023, is expected to contribute to market expansion throughout the coming years.
Significant challenges for the industry include increasing demand for personalized items and rich experiences, raising quality standards, and lowering operating costs.
The rising number of competitors in the market is expected to hamper the business growth of many manufacturers. Several market participants are facing a constant obstacle, predominantly to remain fiercely competitive and differentiate themselves to stay ahead of opponents.
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Based on Future Market Insights, the United States is expected to be one of the most appealing markets during the forecast period. By the study, the United States accounted for 19.1% of the global market through 2022.
Despite a slowing growth rate, MRP-based and ERP-based software developments have matured. Nevertheless, due to the growing popularity of MES and CAD software, this country is estimated to take over the overall market.
The costs of time, equipment, and expenditures are being considered and optimized in the production industry. Manufacturers are conducting production simulations to boost effectiveness concerning such factors, which offers a risk-free way to assess simple modifications and even finished redesigns at less expense.
Manufacturing simulation likewise offers a fast and effective approach for adjusting parameters and re-simulating new models, saving time and providing immediate results.
Over the forecast time frame, demand in the United Kingdom market is projected to rise at a CAGR of 9.9%. Modern manufacturing sectors have evolved substantially to meet international rivals as information technology and sophisticated manufacturing techniques have advanced.
Real-time manufacturing execution systems (MES) with RFID features are in high demand. RFID has been implemented in MES to record manufacturing data and real-time synchronization of the physical flow of substances and corresponding information flow to simplify real-time data collection.
RFID (Radio Frequency Identification) technology has come to be known as an information interaction tool and is extensively utilized in the production industries to conduct real-time tracking of large amounts of site data as well as large-scale customization in production procedures.
According to the report, the United Kingdom is recognized as a primary market, with high demand for model-based manufacturing technologies anticipated to continue throughout the forecast time frame.
China has taken various measures to foster a favorable environment for the growth of the country's manufacturing sector. The construction of strong infrastructure, logistics, and utilities has created an advantageous atmosphere for the manufacturing sector. China is a desirable location for foreign manufacturing investments.
A number mobile phone, luxury, and automobile companies, among others, have established or plan to establish manufacturing bases in this nation. The market in China is anticipated to expand at a CAGR of 8.9% over the forecast period.
Manufacturing ERP software is the market leader in terms of software, accounting for 72.9% of the market in 2022. Higher adoption rates have resulted from the expansion of manufacturing activities and the broad scale of operations that a manufacturing company is required to maintain.
The adoption of big data analytics is expected to boost organizational demand for production ERP software. With the increased visibility of critical data, the shift towards customer-centric business has resulted in increased applications of big data analytics, which may assist in supply strategy, output projections, and manufacturing processes.
In the global model-based manufacturing technologies market, the automotive segment is expected to contribute the highest revenue share exceeding 23%. Using historical production data, automotive ERP optimizes the utilization of manufacturing capacity, parts, components, and material resources.
Market participants are constantly challenged to remain competitive and distinguish themselves in order to advance. The market is being driven by automotive manufacturers' ability to adopt technology and improve their business processes.
Recent Developments
To achieve a competitive edge, market participants are concentrating on innovation and strategic collaborations.
| Report Attribute | Details |
|---|---|
| Growth Rate | CAGR of 8.4% from 2023 to 2033 |
| Market Value in 2023 | USD 46.4 billion |
| Market Value in 2033 | USD 104.3 billion |
| Base Year for Estimation | 2022 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD billion and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Key Regions Covered |
North America; Latin America; Europe; East Asia; South Asia; Oceania; Middle East & Africa |
| Key Countries Covered | United States, Canada, Germany, United Kingdom, France, Italy, Spain, China, Japan, South Korea, India,, Malaysia, Singapore, Thailand, Australia, New Zealand, GCC Countries, South Africa, Israel |
| Key Segments Covered |
Solution, Deployment, Enterprise Size, Industry, Region |
| Key Companies Profiled |
Oracle Corporation; SAP SE; Dassault Systèmes; Honeywell International, Inc.; Siemens Digital Industries Software; Rockwell Automation, Inc.; PTC; Autodesk, Inc.; Aspen Technology, Inc.; iBASEt Inc.; Schneider Electric; ABB; General Electric; Sepasoft, Inc.; Hexagon AB |
| Customization & Pricing | Available upon Request |
The United States may witness significant growth in the Model Based Manufacturing Technologies Market.
The increasing demand for customized products, the need to improve efficiency and productivity, and the rising adoption of Industry 4.0 are expected to drive sales of Model Based Manufacturing Technologies.
The increasing adoption of cloud computing, the growing use of artificial intelligence and machine learning, and the rising demand for additive manufacturing are some of the key trends driving the Model Based Manufacturing Technologies Market.
The market recorded a CAGR of 6.3% between 2018 and 2022.
Substantial investment in research and development, the expansion into new markets, and the development of innovative solutions are some of the opportunities that await the market players in the Model Based Manufacturing Technologies Market.
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Model Based Manufacturing Technologies Market
