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

Summary of Advanced Manufacturing

The UK has strong manufacturing capabilities concentrated in sectors like aerospace, pharmaceuticals, specialty chemicals and renewable energy equipment. It is a center for advanced engineering and R&D.

According to our estimates – we can say that the advanced manufacturing industry in United Kingdom is forecasted to be a $ 16.54 Billion industry in 2029 from $ 13.26 Billion in 2023 with a CAGR of 3.75 %.

However— manufacturing’s share of the economy has declined in recent decades. Post-Brexit issues like supply chain disruptions and loss of EU talent are also impacting competitiveness. The UK is seeking to boost output in growth areas like electric vehicles.

The UK has pockets of world-leading excellence in advanced manufacturing, including aerospace, pharmaceuticals, specialty chemicals, and tech hardware. Major players like: Rolls Royce, GlaxoSmithKline and Johnson Matthey drive innovation. However, manufacturing has declined as a share of GDP – now just 10% versus over 30% in the 1970s.

Post-Brexit adjustment is spurring some reshoring as firms seek to shorten supply chains and reduce risks. But trading relationship uncertainty persists. The UK aims to negotiate improved access for goods exporters. Services face less disruption as financial/professional services were largely excluded from the EU single market before.

Recent Trends and Insights

Investments are growing in green tech like wind, solar equipment, battery production and electric vehicles. Niche EV makers and legacy automakers like- Nissan, BMW and Jaguar Land Rover are expanding UK capacities. The government has provided over £1 billion in industry support funds.

However— skills shortages in technical fields like automation, mechatronics and data analytics constrain growth. An aging engineering workforce is retiring faster than replacements can be trained. Immigration policy changes are also restricting talent flows from the EU.

More systematic, large-scale investments in vocational training, apprenticeships, and STEM education aligned to industrial demand are required to build the next generation manufacturing workforce. The UK must also continue attracting foreign direct investment through competitive tax policies.

Reshoring of some manufacturing and diversifying supply chains post-Brexit. Also seeing more investment in green tech and battery production for EVs. However— skills shortages persist along with some continued uncertainty around trading relationships.

While the UK retains elite capabilities in certain manufacturing verticals, broader decline has eroded its historic industrial leadership. Targeted strategies to develop technical talent and facilitate the scale-up of promising sectors will determine future competitiveness.

Product Insights

The UK has significant capabilities in aerospace centered in regions like- the Midlands. Major firms like Rolls Royce produce advanced jet engines, precision components and integrated systems for both civil and defense aerospace. The UK also leads in composite materials and additive manufacturing methods to enable lightweight, high-performance designs.

In pharmaceuticals – clusters in the Golden Triangle area (London, Oxford, Cambridge) drive R&D and production of novel drug formulations and delivery mechanisms. GlaxoSmithKline, AstraZeneca and others are expanding biologics and genomics research. Strengths also exist in specialty industrial chemicals – Johnson Matthey is a global leader in sustainable technologies and battery materials.

The UK has expertise in various precision equipment like- satellite sub-systems, semiconductor production gear, specialty optics and other electronics. Defense contractor BAE Systems produces advanced radar, sensor and communications tech serving aerospace and maritime applications. ARM Holdings designs processor chips used in millions of consumer devices globally.

The UK excels in aerospace composites, pharmaceutical formulations, industrial chemicals, factory automation software, sustainable packaging solutions, microelectronics and satellite communications equipment.

Key companies

Some major players within this vast domain of industry are:

• Jaguar Land Rover UK
• pladis Global
• INEOS
• Bentley Motors
• CNH
• BAE Systems
• Rolls-Royce
• GKN Aerospace:
• Unilever
• GlaxoSmithKline

Country Analysis

The UK has areas of manufacturing excellence – though sector has declined over decades as a share of total GDP. Still quite capable in pharma, aerospace, chemicals, tech hardware, and precision equipment. But grappling with supply chain uncertainty post-Brexit. Requires more workforce training and scaling of technical skills.

However, declining domestic manufacturing reduces related services activity. And Brexit uncertainty still threatens seamless trade, talent flows and access to R&D collaborations with the EU. Reskilling programs and policy incentives for growth sectors are helping counteract negatives. But reversing the decades long manufacturing decline remains a monumental challenge.

The UK retains elite pockets of excellence but must nurture these through supportive innovation ecosystems and development of its technical workforce pipeline if it hopes to regain broader industrial leadership.

These new digital innovations expect manufacturers and their suppliers to team up with research and development bodies that cross the boundaries between sectors and may not be located in close proximity to manufacturing businesses.

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 United Kingdom’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.