Manufacturing Analytics Market Statistics - 2026
The global manufacturing analytics market size was valued at $5,950 million in 2018, and is projected to reach $28,443.7 million by 2026, growing at a CAGR of 16.5% from 2019 to 2026. Manufacturing analytics software is an application that helps the manufacturing companies to understand machine data. It performs functions including acquisition of data, filter & contextualizes this data, calculate the manufacturing KPIs, and then generate role-based visualizations & dashboards. It is used to centralize production monitoring, increase process efficiency, turn real time data into just-in-time insights, and better serve the customers. It enables companies to have more cost-effective production through monitoring and analysis; as well as better client experiences. It also enables optimized business operations by better complete-cycle visibility across business data & hardware.
Increase in adoption of Industrial IoT (IIoT), rise in need for process optimization, and surge in investment on big data for manufacturing are expected to positively impact the growth of the global manufacturing analytics market. However, lack of integration with legacy systems and scarcity of skilled workforce are anticipated to hinder the market growth. On the contrary, use of advanced technologies such as AR & VR with manufacturing analytics is expected to offer lucrative opportunities for market expansion.
Depending on deployment model, the on-premise segment dominated the overall manufacturing analytics market in 2018. However, cloud deployment is projected to grow at highest rate during the forecast period. This is attributed to various advantages offered by cloud-based manufacturing analytics solutions such as direct IT control, internal data delivery & handling, faster data processing, efficient resource utilization, and cost-effectiveness.
Cloud segment is projected to show highest growth during the forecasted period.
On the basis of industry vertical, the automobile segment led the global manufacturing analytics market in 2018, and is expected to continue its dominance during the forecast period, as this industry is transforming towards a more data-driven industry to evade the costs related to faulty assembly, extra inventory stocking, and can plan for the maintenance of the assembly lines more precisely. This is possible because of the adoption of predictive analytics in the automobile industry.
By Industry Vertical
Automobile segment dominated the market in 2018.
In 2018, North America garnered the highest manufacturing analytics market share, due to the presence of majority of leading market vendors, and great awareness & adoption about advanced technologies, increase in investment on adopting big data analytics by manufacturing enterprises, and rise in focus on innovation contribute toward the manufacturing analytics market growth in this region.
Services segment is projected to show highest growth during the forecasted period.
The report focuses on the growth prospects, restraints, and global manufacturing analytics market trends. Moreover, the study includes the Porter’s five forces analysis of the industry to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the growth of the manufacturing analytics market.
Predictive Maintenance segment is projected to show highest growth during the forecasted period.
The global manufacturing analytics market is segmented into component, deployment, application, industry vertical, and region. Depending on component, the market is bifurcated into software and service. As per the deployment, it is classified into cloud and on-premise. According to application, it is categorized into predictive maintenance, inventory management, supply chain optimization, and others. On the basis of industry vertical, it is segregated into semiconductor & electronics, energy & power, pharmaceutical, automobile, heavy metal & machine manufacturing, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players operating in the global manufacturing analytics market analysis include SAP SE, Oracle Corp., SAS Institute Inc., Tableau Software Inc., TIBCO Software Inc., IBM Corp., Alteryx, Inc., Sisense, Inc., Wipro Limited, and General Electric Company.
North America region is expected to dominate the market during the forecast period.
Top impacting factors
Increase in investment on big data for manufacturing
Manufacturers are investing heavily on big data technologies owing to the advent of Industry 4.0. The increase in digitization of manufacturing value chains is primarily driving the need to adopt big data technologies. The extensive amount of data generated from the connected equipment in manufacturing processes are needed to be systematically stored, operated, and extracted. This data can be analyzed to gain useful insights about the productivity and efficiency of manufacturing processed and performance & build business strategies accordingly which is driving the growth of the manufacturing analytics market. Manufacturers are opting for investment big data technology as they see it as a means to maximize their revenue. According to a survey by Honeywell, 67% of manufacturers are investing in big data and IIoT for solving business issues. It also represented that big data paired with analytics can help in reducing equipment breakdown, unscheduled downtime, unscheduled maintenance, as well as supply chain management problems.
Furthermore, in a production facility, the capability to access, manage, and analyze large amount of data collected from diverse data sources is critical to ensure successful operations. Manufacturing analytics plays a major role in offering applications and platforms that apply statistics and other mathematical tools to operational data to assess and improve business practices.
Increase in adoption of Industrial IoT (IIoT)
Due to implementation of industrial IoT in smart manufacturing, more data will be generated from progressively connected equipment systems and to realize critical & valuable actionable insights from that data the demand for manufacturing analytics solutions is continuously growing. Moreover, manufacturing predictive analytics is used for machine health monitoring and to prevent catastrophic failures in machineries.
Furthermore, key manufacturing vendors are advancing their offerings to be compatible with the IIoT ecosystem and which supports integration with data analytics. The online cloud and analytic companies such as Microsoft and GE are expanding the capabilities of the IIoT with edge computing, using operating systems that will run Docker containers on the IIoT devices. This allows the analytics and data processing to run closer to the machines to provide both near real-time feedback as well as decreasing costs by sending less data to the cloud. This is again expected to boost the demand of manufacturing analytics market.
Scarcity of skilled workforce
The biggest challenge faced by enterprises, especially in manufacturing, is lack of expertise and skilled labor. Due to this, industries are at risk, while integrating diverse datasets and are prone to failures while deploying right analysis techniques. Henceforth, enterprises are collaborating with professional service providers and industry specialists to gain technical advantages coupled with analytics capabilities, which help industries to build efficient operational framework.
Many industries are opting for digital transformation services through Software as a Service (SaaS) to provide diversification in product portfolio and offer all-in-one solutions via technological advancements in their business processes. This will help industrial players to define a sustainable operational process for executing and governing analytics initiatives across different manufacturing facilities. However, shortage of skilled professionals, especially in the field of information technology hinders the potential growth of data analytics adoption across the globe. On a contrary, analytical knowledge gap hampering business models is modified with option to recruit and train people from within the organization on the analytical skill set and reduce the risk of total downfall.
Key Benefits for Manufacturing Analytics Market :
- This study includes the analytical depiction of the global manufacturing analytics market forecast and trends to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities.
- The current manufacturing analytics market size is quantitatively analyzed from 2018 to 2026 to highlight the financial competency of the industry.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the manufacturing analytics industry.
Manufacturing Analytics Market Report Highlights
By Industry Vertical
Key Market Players
Tableau Software, Alteryx, Inc., SAS Institute Inc., International Business Machines Corporation, Oracle Corporation, General Electric, Wipro Limited, Sisense Inc., SAP SE, TIBCO Software Inc.
Manufacturing analytics collects data from multiple geographically distributed resources, using product lifecycles, historians, and offers organized and modeled analysis.
The manufacturing analytics market vendors are offering AI & machine learning integrated solutions to enhance the manufacturing analytics offerings. Furthermore, the increase in awareness about predictive maintenance is expected to create lucrative opportunity for the market in the upcoming years. The need to automate inventory management processes, optimize of supply chain operations, and forecast demand is further driving the growth of the manufacturing analytics market.
North America is expected to dominate the market in the upcoming years, owing to increase in awareness and focus on attaining customer satisfaction by major organizations. Further, automobile industry is dominating the manufacturing analytics market and is expected to continue its dominance during the forecast period, as this industry is transforming toward a more data-driven industry to evade the costs related to faulty assembly, extra inventory stocking, and can plan for the maintenance of the assembly lines more precisely. This is possible because of the adoption of predictive analytics in the automotive industry.
This market comprises several international and regional players. The global players focus on increasing their presence in many regions, which further increases the competition in terms of features, quality, and price for local vendors. In addition, market players are adopting various business strategies strengthen their position in the market and expand their businesses. For instance, in April 2019, Alteryx Inc. declared opening of its new workplace in Tokyo. The new office is expected to support growing demand for its end-to-end analytics platform in the overall Asia-Pacific market.