Manufacturing - Industry - Global Market, Share and Trends 2023-2028

Summary of Manufacturing

Global Manufacturing has experienced strong growth in the past decade, reaching an estimated size of $ 16.80 trillion in 2023. However, the outbreak of the COVID-19 pandemic disrupted economic activity and introduced new uncertainties. The dual impact by the significant reduction in global consumer demand and the disruption of the supply chain due to logistical challenges. Based on our estimates, we can say that the global real estate industry is forecasted to be at $ 20150.33 billion industry in 2029 growing with a CAGR of 3.03%.

Governments across the world are combating inflation by dampening the demand through a tight monetary policy. The adverse impact from the covid-19 still affects many of the manufacturers. The short-term decline in revenue or a stagnant revenue growth rate is a common phenomenon across the sector globally, but similarly, optimism about future growth in the sector is also a common sentiment in the sector.

The global economic slowdown is not the only concern for manufacturers, increased geopolitical risks have also worried the manufacturers. Divisions were growing before the war in Ukraine broke out in February, but since then, new global tensions have caused companies to rethink their international strategies. Manufacturing industries are global, which means that onshoring, nearshoring, and offshoring never go away.

Recent Trends and Insights

Digital investment by manufacturers has increased in recent years for the primary purpose of increasing resilience. It was observed that the organizations that had their operation being run digitally found the pivot that they had to make – in terms of raw material suppliers, supply chain and other factors – much easier than those that didn’t.

Addressing the labor concern has been the highlight in the manufacturing sector in recent years. The prevailing workforce shortage, elevated by supply chain limitations, is reducing operational efficiency and margins. The primary challenges that the manufacturers must address are:

1. Talent Retention
2. Talent Exploration
3. Maintaining competitive wages
4. Upskilling/Reskilling
5. Career Opportunities

ESG (environmental, social, and governance) has received major focus from manufacturers and all the stakeholders. Regulators across the globe have been active in addressing the challenges from various facets. This has resulted in a tightening of regulations and increased disclosure from manufacturers. Although many organizations voluntarily comply with a complex network of reporting regulations, ratings, and disclosure frameworks; a majority of these voluntary compliance is expected to be made mandatory by regulators.

Product Insights

Sustainable manufacturing has been a key component of all manufacturing sectors across geographies. 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, 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

• Toyota
• Boeing
• Apple Inc.
• BASF
• PepsiCo
• Pfizer
• Volvo Group
• Nike Inc.
• Siemens Energy
• JCB

Regional Analysis

North America is the second largest hub of the manufacturing sector. With the recent disruption in the supply chain involving the APAC countries, 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.

Europe, the birthplace of industrialization has laggard in comparison to other regions. Germany is the only European country with a substantial contribution when compared on a global scale. For this reason EU has launched The Future of Manufacturing in Europe (FOME) a pilot project proposed by the European Parliament and delegated to the European Foundation for the Improvement of Living and Working Conditions (Eurofound) by the European Commission’s Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs.

Asia Pacific is poised to be the eye-grabber in the manufacturing sector, with the majority of the industries based in this region. China which led the region in the past two decades has lost confidence by leading manufacturers due to their harsh COVID policies and the restriction on trade activities. Also, the once cheap labor that China provides is being diversified to other countries in the region like Vietnam, Indonesia, and India. This is part of the diversification strategy being implemented by all major manufacturers who had their primary base of operation in China.

Middle East & and Africa account for a small part of the manufacturing industry but to diversify from the energy-dependent economy of the majority of MENA countries, investments by major economies in the region are being made particularly in Electronics, Textiles, Automotive, and  Aerospace.

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 Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Our Methodology

We have offered a well-founded review of the Manufacturing Industry 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.