Cloud Manufacturing Market is Projected to Register a CAGR of 16.1% during the Forecast Period: MRFR :

Pune, India, August 2021, MRFR Press Release/Market Research Future has published a Cooked Research Report on the Global Cloud Manufacturing Market.

The Global Cloud Manufacturing Market isestimated to reach USD 133.43 billion by 2027, registering a CAGR of 16.1% during the forecast period, 2021–2027. In this report, Market Research Future (MRFR) includes the segmentation and dynamics of the market to offer a better glimpse of the market in the next few years.

Cloud manufacturing is the method of gathering data and storing it on the cloud utilizing existing industrial tools. It aids producers in the management of the entire manufacturing process, from design to production and maintenance.For activities like inventory management and prototyping, cloud manufacturing makes use of cloud-based applications like Enterprise Resource Planning (ERP). Cloud manufacturing uses various technologies, such as cloud computing, virtualization, and the Internet of Things (IoT). Cloud-based manufacturing minimizes the workload of manufacturing businesses' IT departments by providing services such as technical support.

Segmental Analysis

The global cloud manufacturing market has been segmented based on component, deployment, organization size, vertical, and region.

Based on component, the global cloud manufacturing market has been segmented into Hardware, Software, and Services. Cloud-based manufacturing is transforming every facet of modern manufacturing. The introduction of Industry 4.0 enables manufacturers to use advanced technologies that can add connectivity to the machines and automate some of the manufacturing processes. To some extent, Cloud-based manufacturing helps automate the manufacturing processes by using various hardware components such as sensors, connectors, networking devices, servers, and storage devices in integration with the manufacturing machines. The hardware devices provide a base for the cloud software that helps the machines connect to the cloud.Cloud-based manufacturing software consists of a set of tools that help enterprises visualize and streamline the production process from creation to distribution. These tools are cloud-based, which means they can be accessed anywhere and anytime, making them well-suited for businesses with limited access to hardware such as desktops. Vendors of cloud manufacturing software provide mobile support, letting the employees working on the production floor or on the field access vital information from various locations using internet access on their mobile devices. Cloud-based manufacturing software functions through various features such as manufacturing accounting, production management, transportation & logistics, supply chain management, and asset management. Various industries use cloud-based manufacturing software, including aerospace, semiconductor electronics, and food & beverages.The software segment accounted for the largest market share of 53.6% in 2018, with a market value of USD 20.7 billion; it is expected to register the highest CAGR of 14.3% during the forecast period. The hardware segment was the second-largest market in 2018, valued at USD 10.1 billion; it is projected to exhibit a CAGR of 10.9%.

Based on deployment, the global cloud manufacturing market has been segmented into private cloud, public cloud, and hybrid cloud.Private cloud is a type of cloud computing model that delivers advantages similar to that of public cloud, including scalability and self-service, but through a proprietary architecture. Private cloud service offers a dedicated hardware service that increases the security of the system. The adoption rate of private cloud in manufacturing is around 68% as it offers a high level of security to the clients' systems. Most large enterprises have been the earliest adopters of private cloud as it enables them to store sensitive business data in a secure cloud environment.A public cloud is defined as a cloud computing model in which a service provider makes resources, such as virtual machines (VMs), applications, and storage services, available to the public over the Internet. It is a free or pay-per-usage model service. Enterprises use the public cloud in their manufacturing processes since it is cost-efficient with other benefits such as better control over data, information, assets, and users. The adoption rate of the public cloud for manufacturing is around 66%. Software as a Service (SaaS) is a key driving factor for adopting public cloud solutions since manufacturers are moving their workloads to the cloud for global expansion, collaboration, and better supply chain integration. Leading public cloud providers include Amazon Web Services (AWS) and Microsoft Corporation.

By organization size, the cloud manufacturing market has been segmented into large enterprises and small & medium enterprises. According to MRFR analysis, large enterprises are the early adopters of cloud technology in the manufacturing processes. The advantages of cloud technology, such as providing digital manufacturing and supply chain solutions to meet the growing customer demand, drive the adoption of cloud across various large enterprises. Such enterprises mainly use the public cloud for their manufacturing processes. According to MRFR, in 2017, around 56% of the large enterprises have migrated around 12% of their workloads to the public cloud. Countries such as Germany, the US, Italy, and China, having a high number of large manufacturing players, are witnessing increased cloud adoption to enhance their manufacturing processes.Factors such as CRM management, omnipresent resource mapping, nearly 0% downtime, efficient resource optimization, data security, and the advent of Industry 4.0 are driving the adoption of cloud technology across the manufacturing processes of small- and medium-sized enterprises (SMEs). With the help of cloud technologies, small &medium-sized businesses automate their manufacturing processes by reducing operational and capital expenditures. The biggest challenge for small &medium-sized manufacturers is tracking and monitoring the production of manual processes. Cloud technology enables automation and ensures accuracy in tracking and monitoring the production processes. With the right cloud technology, small &medium-sized manufacturers are expected to increase operational efficiency, speed up innovation, reduce costs and cycle times of new products, streamline the collaboration process, and accelerate the time to market, increasing the adoption of cloud technology in this segment.

Based on vertical, the cloud manufacturingmarket has been segmented into Aerospace & Defense, Healthcare, Semiconductor Electronics, Automotive, Metal &Machinery Manufacturing, and others. Small enterprises are organizations that have up to USD 50 million annual turnovers with up to 100 employees. Mid-size enterprises are organizations that have between USD 50 million and USD 1 billion in annual revenues. Mid-sized enterprises also have 100 to 1,000 employees. SMEs have different automation needs than large businesses. Small and medium-sized organizations often have fewer employees performing the same functions that are needed for businesses of any size. SMEs have shown significant interest from the last few years in the deployment of automation software to increase business productivity, reduce manual processes, and increase efficiency. The IT budget has also surged,especially among the medium-sized enterprises, which are further augmenting the market's growth. Moreover, SMEs are expected to grow with ahigher CAGR rate during the projected period.The large enterprises segment accounted for the larger market share of 67.6% in 2019, with a market value of USD 11,758.1 million; it is expected to register a CAGR of 18.5% during the forecast period. The SMEs segment was valued at USD 5,639.0 million; it is projected to exhibit a CAGR of 22.3%.

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Competitive Analysis

The key players of the cloud manufacturing market include Oracle Corporation (US), Microsoft Corporation (US), (US), Cisco Systems Inc. (US), Amazon Web Services, Inc.(AWS) (US), VMware Inc.(US), Google LLC (US), Hewlett Packard Enterprise Company (US), Citrix System Inc. (US), Jelastic Inc. (US), Plex Systems Inc. (US), Rootstock Software (US), and DXC Technology Company(US).

Regional Analysis

The regional analysis for the cloud manufacturing market has been done for North America, Europe, Asia-Pacific, the Middle East & Africa, and South America. North America accounted for a significant share in the cloud-based manufacturing market due to the presence of major manufacturing industries, higher adoption of cloud computing solutions, increasing digitization, and automation in the manufacturing sector. Manufacturers across all industries in North America are laying the groundwork for development by raising their automation levels. North America aims to be more aggressive in developing and adopting robotic and automation technologies to compete with global manufacturing hubs such as China and Japan.The expansion of cloud-based manufacturing in the US is being fueled by the increasing digitization and the adoption of smart manufacturing. In terms of the adoption of significant technological advancements, the country has traditionally been a trailblazer. In addition, it is home to several businesses that are increasingly relying on automation and cloud-based solutions to improve their production processes. The market in the US is growing due to manufacturers' increasing investments in the adoption of the Internet of things and cloud penetration. Manufacturing output in the country climbed by 9.8% year-on-year in June 2021, following a revised 17.9% gain the month before, owing to a low base year and continued economic recovery. This increase in productivity is due to the adoption of new manufacturing technologies, such as automation, cloud computing, and artificial intelligence. Large companies such as Microsoft Corporation and Amazon Inc. in the US provide high-performance computing in the cloud to manufacturers across the country.