Iran Advanced Manufacturing - Industry - Market, Share and Trends 2023-2028

Summary of Advanced Manufacturing

Iran has strengths in automotive, aviation, and defense manufacturing. The country has developed domestic capabilities in areas like nanotechnology, biotechnology, and space technology. However, economic sanctions have hampered Iran’s ability to fully capitalize on advanced manufacturing trends. Lifting sanctions could allow Iran to modernize manufacturing infrastructure.

Based on our estimates, we can say that the Iran’s advanced manufacturing industry is forecasted to be a $3.44 billion industry in 2029 from $2.88 billion in 2023 with a CAGR of 3 %.

Lifting sanctions could provide Iran with much-needed access to foreign investment, talent, technology transfers and global supply chains – all of which would accelerate advanced manufacturing adoption. Specifically, access to advanced machinery, software, robotics and critical components could help Iranian factories upgrade to more efficient, higher quality and precision levels of production.

However— the reinstatement of US sanctions in 2018 stalled many of these modernization efforts. Sanctions have made it difficult for Iranian industries to access international financing and import advanced equipment. This has slowed adoption of Industry 4.0 principles in areas like- industrial internet, 3D printing, robotics and predictive maintenance.

Iran possesses a strong base of engineers and technicians who could thrive if given the right resources and opportunities to transform traditional assembly-style plants into “smart” facilities leveraging automation, internet-of-things, big data analytics and more. The potential is there, but realizing it requires major upgrades across the board – from hardware to software to skill-building.

Recent Trends and Insights

Iran does have existing capabilities in areas like automotive, aviation, defense, nanotechnology, biotechnology and space technology. However—years of economic sanctions have severely hampered the country’s ability to modernize its manufacturing infrastructure and adopt advanced techniques.

Since sanctions were lifted in 2016 through the JCPOA nuclear deal, Iran has taken initial steps to modernize its manufacturing sector. The government has launched reforms to attract more foreign investment and technology transfers into industries like automotive, petrochemicals and medical equipment.

Iran has also established technology parks and special economic zones with incentives to draw multinational manufacturers. For example, the Iran Science and Technology Park in Tehran focuses on biotech, nanotech and renewable energy. Such zones provide infrastructure for collaboration between local firms and international partners on R&D.

Domestically, the government continues supporting nanotechnology and biotech research at universities. Startups are also emerging applying technologies like AI and IoT to sectors like smart agriculture. But sanctions constrain the growth of advanced manufacturing on a larger scale across strategic industries until sanctions relief is durable.

Product Insights

Iran Khodro and other carmakers apply robotics, computer-aided design and new materials in facilities. Producing electric vehicles is a focus as gasoline becomes scarce due to sanctions.

Iran Aircraft Manufacturing Industrial Company develops drones, passenger planes and aims to produce jet engine parts domestically. Specialty chemicals, plastics and fertilizers produced through nanotechnology applications, process automation.

Generics, biologics, medical devices manufactured using advanced quality control and purification methods. Smartphones, tablets, industrial equipment, consumer appliances produced with latest semiconductor fabrication techniques.

Rockets, missiles, radar systems, armored vehicles manufactured for self-sufficiency using computer modeling, simulation, composite materials. Solar panels and components, hydrogen fuel cells, energy storage batteries developed leveraging nanotech and materials science.

Despite economic diversification plans, oil and gas remains vital across the region. Adopting advanced manufacturing allows producers to fabricate safer, higher-performance drill bits, valves, pipeline components, monitoring systems and other equipment with better precision and less waste.

Key companies

Some major players within this vast domain of industry are:

• Nestle
• Aviation Industries of Iran (AII)
• Iran Heavy Diesel Engine Mfg Co (DESA)
• BAT
• Unilever
• Siemens
• Renault Group
• Samsung Electronics
• Iran Khodro Company

Country Analysis

Iran possesses domestic capabilities and a skilled workforce to advance manufacturing. However, economic sanctions have severely hampered modernization efforts and technology adoption. Sanctions relief could unleash Iran’s productive potential.

Strengths include established automotive, petrochemicals and construction equipment industries. Iran also has a strong education system producing engineers experienced in sectors like aviation, energy and biotech.

Challenges include outdated infrastructure, lack of specialized manufacturing zones, shortage of capital for facility upgrades. Sanctions cut off access to international financing and latest industrial technologies.

If sanctions are lifted, Iran could attract partners to help rebuild factories with flexible automation, digital integration and smart manufacturing capabilities. This would boost productivity across industries from pharmaceuticals to semiconductors.

Reviving FDI inflows via economic zones would accelerate skills and technology transfers essential for Iran to adopt Industry 4.0 principles. Growing domestic and export markets also incentivize modern production methods.

With sanctions relief, Iran’s existing manufacturing base coupled with its human capital could propel the country to become a regional advanced manufacturing leader within several years, given the right policy support and investment environment.

Market segmentation

By Type:

• Additive manufacturing/3D printing
• Automation/robotics
• Industrial internet of things (IIoT) and industrial analytics
• Plant asset management (PAM)
• Manufacturing execution systems (MES)
• Industrial controls

By End user:

• Manufacturer and Retailer
• Distinct industries like automotive, aerospace, electronics
• Process industries like oil & gas, chemicals, pharmaceuticals
• Energy and utilities
• Food and beverage

By Enterprise Size:

• Large Industries
• Small & Medium Industries

Our Methodology

We have offered a well-founded review of Iran’s advanced manufacturing market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.