Cloud Manufacturing Market Forecast till 2027

Cloud Manufacturing Market Forecast till 2027

Market Overview
The market growth in North America is being driven by the increased adoption of cloud-based manufacturing systems across various industries, particularly in the automotive and aerospace & defense sectors. Cloud computing is a service delivery model that enables third-party manufacturers and service providers to offer IT-related resources and software tools over the Internet.

Users only need to pay for the computing devices, storage amount, and bandwidth level they use. Cloud computing offers several advantages related to deployment, cost savings, mobility support, disaster recovery preparedness, and reducing the burden on employees in organizations.

Segment Overview
The market is divided into two primary segments, namely Software-as-a-Service (SaaS) and Infrastructure as a Service (IaaS), with Platform-as-a-Service (PaaS) being the third option. SaaS has dominated the market share in recent years and is expected to continue its growth trajectory in the upcoming years. The market is further divided into three segments, including Private & hybrid cloud, with public cloud being the most dominant segment in 2018 and expected to exhibit a higher CAGR in the forecast period. These segments are classified based on the size of the organizations, including small, medium, and large-scale enterprises. Large-scale enterprises are predicted to secure a significant market share with a CAGR of approximately 19% for the forecasted period. The primary market is diversified and includes sectors such as BFSI, Information Technology, Public Sector, Retail, Energy & Utilities, Media & Entertainment, Health Care, Life Science, and many more.

Regional Analysis
In 2021, North America held the largest share of the cloud manufacturing market, primarily due to the presence of prominent industry players such as Amazon.com, Inc., Google, Oracle, and SalesForce. The adoption of cloud computing has increased significantly in various manufacturing verticals in the United States, driving market expansion in the region. The demand for cloud-based manufacturing solutions has been rising in industries such as automotive, aerospace, and defense, contributing to the regional market's growth. Additionally, the increasing investments in cloud adoption and the Internet of Things by companies are driving the market's development in the United States. Canada is also gaining momentum in terms of cloud expertise for manufacturing procedures due to the growing investment by technology giants such as Oracle Corporation, Sage, and Pronto Solutions. While Eastern Canada is expanding rapidly, Western Canada is growing at a slower pace due to concerns about compliance with regulations.

Major Players
Key players in the market Amazon Web Services Inc. (AWS) (US), VMware Inc. (US), Oracle Corporation (US), Citrix Systems Inc. (US), Salesforce.com Inc. (US), Rootstock Software (US), Google LLC (US), Plex Systems Inc. (US), Jelastic Inc. (US), Cisco Systems Inc. (US), Hewlett Packard Enterprise Company (US), Microsoft Corporation (US), and DXC Technology Company (US).

COVID 19 Impacts
The COVID-19 pandemic has had a significant impact on the Cloud Manufacturing industry. The outbreak of the pandemic has forced many companies to shift towards remote working, which has increased the demand for cloud-based services, including cloud manufacturing. With the help of cloud manufacturing, manufacturers can remotely manage their production processes, ensuring business continuity and maintaining their supply chain operations during the pandemic.

Moreover, due to the pandemic, many companies have faced a shortage of raw materials and labor, causing significant disruptions in their manufacturing operations. To address these challenges, many manufacturers have turned towards cloud manufacturing, which offers flexibility and agility in adapting to changes in demand and supply chain disruptions. The cloud-based platform enables manufacturers to collaborate with suppliers and customers remotely, ensuring timely delivery and optimal resource utilization.

The pandemic has also accelerated the adoption of advanced manufacturing technologies such as automation, artificial intelligence, and the Internet of Things (IoT) to increase productivity and efficiency in manufacturing operations. Cloud manufacturing platforms have played a vital role in facilitating the integration of these technologies into manufacturing processes, enabling manufacturers to leverage the benefits of these technologies remotely.

Companies Mentioned
Amazon Web Services Inc. (AWS) (US)
VMware Inc. (US)
Oracle Corporation (US)
Citrix Systems Inc. (US)
Salesforce.com Inc. (US)
Rootstock Software (US)
Google LLC (US)
Plex Systems Inc. (US)
Jelastic Inc. (US)
Cisco Systems Inc. (US)
Hewlett Packard Enterprise Company (US)
Microsoft Corporation (US)
and DXC Technology Company (US).

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