Smart Manufacturing(Industry 4.0) Market in India 2023

Smart Manufacturing(Industry 4.0) Market in India 2023

Smart manufacturing is a technology-driven approach that monitors the manufacturing processes and responds in real-time to the fluctuating production environment, supply networks, and customer demand by utilizing information technology and operational technologies.

Market insights:

Indian manufacturing is highly diverse with industries such as automobiles, chemicals, textiles, steel, pharmaceuticals, and electronics. The manufacturing industry has been marked by high-labor costs, a lack of standardization, favorable startup culture, and a strong inflow of Foreign Direct Investments (FDI) in the country.

In 2022, the Indian manufacturing output accounted for a share of 3.30% of the global market. The contribution of Asian countries in global manufacturing is projected to increase further acting as a catalyst to technology investments in countries including India. The IoT in the manufacturing market in India was valued at INR 422.57 Bn in FY 2022. It is expected to reach INR 774.90 Bn by FY 2027, expanding at a compounded growth rate of 13.32% during FY 2023 – FY 2027. A strong IoT in the manufacturing market will contribute to the adoption of smart manufacturing in India.

Impact of COVID-19:

Social distancing norms, nationwide lockdown imposed by the government-induced travel restrictions, migration of laborers, and supply chain disruptions. With the change in the Industry 4.0, automation of conventional manufacturing, and industrial practices, COVID-19 boosted digital manufacturing in India. Increased use of robots, Shopfloor automation, use of sensors and data analytics, adopting IIOT technologies gained traction during the period.

Market drivers:

Ministry of Heavy Industry & Public Enterprises launched ‘Smarth Udyog Bharat 4.0’ as an Industry 4.0 initiative. The National Association of Software and Services Companies (NASSCOM) inaugurated centers for AI and data science in Bengaluru and Hyderabad to develop emerging disruptive technologies such as AI/ML and leverage the power of data science. These initiatives have influenced the widespread adoption of digitization in the manufacturing industry of the country.

Key deterrents to the growth of the market:

The capitalization on the opportunities created in the field of smart manufacturing is restrained by the lack of skilled talent in the country. Expectations of the stakeholders and management may sometime create gaps in the implementation of the digital transformation of the factory. Further, the financial burden that comes with the adoption of data-driven software and AI-powered solutions is impeding the penetration of AI in the country’s manufacturing industries.

Key market trends:

The Digital twin technology is gaining traction in India, particularly in the manufacturing sector. 5G in manufacturing is also among the few nascent trends in the market. Manufactures in India are using AI, IoT and big data analytics to gain greater visibility and control over supply chain.