Manufacturing - Industry - North America Market, Share and Trends 2023-2028

Summary of Manufacturing

The North American region has considered that the manufacturing sector is an essential part of its economy. And leads to innovation, productivity and displays an increased rate of employment. The United States, Canada and Mexico are among the world’s largest manufacturers– producing a wide range of goods from automobiles and aerospace products to chemicals and food products. Nevertheless – the manufacturing industry in North America faces several challenges and opportunities in the 21st century – such as: global competition, technological change, environmental regulations, trade policies and labor issues. Based on our estimates, we can say that the North America’s regional manufacturing industry is forecasted to be a $4045.39 billion industry in 2029 from $3696 billion in 2023 with a CAGR of 2.50%.

Recent analysis leads us to an estimation that the manufacturing value added (MVA) of North America was $3.4 trillion in 2020 – accounting for 18.5% of the global MVA and 12.2% of the regional GDP. Being a dominant player in the manufacturing sector – The Unites States displays a strong MVA of $2.7 trillion and is followed by Mexico with $249 billion and Canada with $174 billion. The employment rates were also brimming up within this decade. The manufacturing sector employed 18.7 million people in the United States, 4.8 million in Mexico and 1.7 million in Canada in recent times.

The manufacturing industry in North America has undergone significant changes in the past decade, driven by various factors such as– the 2008-2009 global financial crisis, the 2020-2021 COVID-19 pandemic, the 2018-2020 US-China trade war, the 2018-2020 renegotiation of the North American Free Trade Agreement (NAFTA) and the 2021-2026 US infrastructure plan.

Despite these challenges, the manufacturing industry in North America is making a comeback which is driven by strong incentives, consumer demand and impatience with the global supply chain.

Recent Trends and Insights

Federal funds and incentives & a general drive towards a net-zero future have led to an increase in investments in product electrification and decarbonization. Manufactures are implementing a variety of strategies to overcome some of the challenges associated with the transition.

Consumer demand for customized, personalized products is pushing manufacturers to offer more product variants and made-to-order capabilities. This allows better matching of supply to demand but requires flexible production systems and supply chains. Companies are using technologies like 3D printing, robotics and AI to achieve mass personalization affordably.

Growing environmental awareness is driving demand for sustainable, ethically-produced goods. Manufacturers are investing in renewable energy, green chemistry processes, zero-waste initiatives and other eco-friendly innovations. They are also localizing supply chains to reduce emissions from transportation. Sustainable practices are becoming an important competitive advantage and selling point.

Product Insights

Sustainable manufacturing has been a key component of all manufacturing sectors across this region. Sustainable manufacturing entails the production of goods through economically-sound processes that minimize environmental impact. This process will most likely lead to a transformation of the entire manufacturing and industrial system. No matter the reason, be it stakeholder demands, regulatory mandates, a concern for the environment, or plain financial gain, manufacturers can no longer confine sustainability to aspirational targets printed in their annual reports.

The wave of artificial intelligence (AI) hasn’t spared manufacturing from disruption. One of the most significant benefits of AI in manufacturing is its ability to analyze vast amounts of data in real time. Adoption of Industrial internet of Things (IIoT) devices have seen a tremendous increase in recent years across the sector. Analysis of current production processes and optimizing them for increased efficiency is a major use of the technology.

For complex manufacturing processes like– skilled labor is an important component which is a pain point for many manufacturing sectors where precision in labor work is of prime importance. The use of Extended Reality (XR) is proving to be an effective tool to improve employee training and education and address worker skills gaps.

Key Companies

Some major players within this vast domain of industry are

• General Electric Company
• Honeywell International Inc.
• Mitsubishi Electric Corporation
• Robert Bosch GmbH
• Rockwell Automation Inc.
• Schneider Electric SE
• Siemens AG
• ABB Ltd.

Regional Analysis

North America remains one of the largest manufacturing hubs globally – accounting for over 20% of the world’s total manufacturing output. However, the region has faced increased competition from lower-cost producers in Asia over the past few decades. Reshoring – the process of returning the production and manufacturing of goods back to the company’s original country – has seen an active part of the conversation among manufacturers in North America. The Inflation Reduction Act (IRA) of 2022 in the USA is a testament to this sentiment which involved a heavy commitment to setting up manufacturing facilities in the country.

Amongst other initiatives within this region, the labor Cost Arbitrage Has Narrowed. While labor remains cheaper in many Asian countries, wage gaps have narrowed as their economies developed. Higher transportation costs and the need for safety stock have lessened some of the initial cost savings from offshoring.

Both national and state/provincial governments in North America offer tax incentives and subsidies to attract manufacturing investments. For example– the Inflation Reduction Act in the U.S. earmarks $370 billion for energy and climate programs, including domestic manufacturing of solar panels, wind turbines, batteries and electric vehicles.

Market Segmentation

By Production Processes:

• 3D printing
• Rapid prototyping
• Assembly Line manufacturing
• Continuous process manufacturing
• Build-to-order
• Engineer-to-order

By End User:

• Supply chain and industrial equipment
• Components for other industries
• Consumer goods production
• Personal electronics manufacturing

By Industry Verticals:

• Passenger Vehicles
• Commercial vehicles
• Electric vehicles
• Aircraft manufacturing
• Defense equipment
• Space exploration
• Consumer electronics
• Semiconductor manufacturing
• Industrial automation

By Country:

• The Unites States of America
• Canada
• Mexico

Our Methodology

We have offered a well-founded review of the North America’s 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.