Originally Published on Technavio | Digital Manufacturing Software Market Analysis North America, Europe, APAC, Middle East and Africa, South America – US, Japan, China, Germany, UK – Size and Forecast 2023-2027
The Digital Manufacturing Software Market is poised for substantial growth, with an estimated Compound Annual Growth Rate (CAGR) of 15.9% expected between 2022 and 2027. This growth is projected to result in a market size increase of USD 35.32 billion. The expansion of this market is driven by various factors, including the increased adoption of digital manufacturing software for enhanced traceability, the availability of cloud-based services, and growing awareness about the application of big data, IoT, and analytics in manufacturing. Digital manufacturing software aids manufacturing companies in improving productivity in various aspects of planning and production by allowing for the seamless association, visualization, and modification of product, process, plant, and resource data.
**Digital Manufacturing Software Market Overview:**
*Key Market Driver:*
One of the primary drivers of growth in the digital manufacturing software market is the increased adoption of digital manufacturing software to enhance traceability. Many industries face the challenge of warranty management, where certain aspects, such as product recalls, can have adverse effects. To address this challenge and reduce or eliminate product recalls, manufacturers are increasingly adopting digital manufacturing software to enhance traceability in their manufacturing processes. This software provides benefits by issuing warnings in case of inconsistencies and offering detailed historical data about the operations performed by specific parts and the products manufactured using those parts.
*Trends:*
A significant trend shaping the growth of the digital manufacturing software market is the evolution of direct digital manufacturing (DDM), which involves extensive use of additive fabrication processes for quick and precise product manufacturing. DDM offers advantages such as reduced manufacturing time compared to traditional methods, facilitating same-day manufacturing upon design completion, and enabling short-term and on-demand manufacturing. These trends are having a positive impact on the market’s growth.
*Challenges:*
One of the key challenges hindering the digital manufacturing software market is the threat of pirated software. The market players face issues related to software piracy, which can lead to revenue loss. Pirated software may also introduce malware, resulting in installation problems, data loss, data security breaches, increased costs, and time needed to clean affected systems, as well as the loss of proprietary information. These issues can negatively impact the market’s growth.
**Digital Manufacturing Software Market Segmentation by End-user:**
The aerospace and defense segment is expected to experience significant growth during the forecast period due to rapid technological advancements in the industry. The digitalization of the aerospace and defense sector, including original equipment manufacturers and small suppliers, has been facilitated by Industry 4.0, resulting in increased adoption of digital manufacturing software. This segment offers solutions to recruitment and retention challenges and contributes to the demand for skilled workers in these industries.
**Digital Manufacturing Software Market Segmentation by Deployment:**
The cloud segment is expected to drive market growth during the forecast period, mainly because market players are focused on reducing the adoption costs of product lifecycle management (PLM). The adoption of cloud-based PLM software has increased, with several service providers implementing cloud-based PLM for end-users. Cloud-based PLM services, such as those offered by Wipro for Siemens PLM Software’s Teamcenter solution, are gaining popularity due to their cost-saving potential.
**Regional Overview:**
North America is anticipated to contribute approximately 31% to the growth of the global digital manufacturing software market during the forecast period. This contribution can be attributed to factors such as the adoption of advanced control processes and simulation capabilities, as well as the reshoring of manufacturing from overseas back to the United States and Mexico. The North American region has also witnessed a growing focus on setting up manufacturing facilities to be closer to end-user markets, along with the increasing adoption of IoT and cloud platforms.
**Impact of COVID-19:**
In 2020, the COVID-19 pandemic significantly slowed the growth of the global digital manufacturing software market due to the temporary halt in various industries’ production activities in North America. However, in 2021, the initiation of large-scale vaccination drives led to the lifting of lockdowns and travel restrictions, allowing the resumption of operations in end-user industries and driving market growth.
**Digital Manufacturing Software Market Customer Landscape:**
The report covers the adoption lifecycle of the digital manufacturing software market, ranging from innovators to laggards. It provides insights into adoption rates in different regions based on penetration and includes key purchase criteria and drivers of price sensitivity to assist companies in evaluating and developing growth strategies.
**Major Digital Manufacturing Software Market Companies:**
Companies in the market are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence. Some of the key companies in this market include:
– **ABB Ltd**: Offering smart manufacturing solutions, including optimized factories, innovative production methods, and innovative business models.
– **Amazon.com Inc**: Providing digital manufacturing software using AWS cloud technology to optimize productivity, quality, and sustainability.
– **ANSYS Inc**: Offering digital twin software.
The research report offers detailed analyses of the competitive landscape, covering 20 market companies, including Autodesk Inc., Cadence Design Systems Inc., Dassault Aviation SA, General Electric Co., Intel Corp., International Business Machines Corp., Microsoft Corp., Oracle Corp., Persistent Systems Ltd., Rockwell Automation Inc., SAP SE, Schneider Electric SE, Siemens AG, Symphony Innovation, LLC, Synopsys Inc., Tata Sons Pvt. Ltd., and The MathWorks Inc.
**Segment Overview:**
The report offers revenue-based growth forecasts for the digital manufacturing software market at global, regional, and country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. It includes several key segments, including end-users, deployment, and geography.
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