Cloud Manufacturing Market Overview
Cloud Manufacturing Market Size was valued at USD 63.1 Billion in 2023. The Cloud Manufacturing market industry is projected to grow from USD 72.2 Billion in 2024 to USD 211.7 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 14.4% during the forecast period (2024 - 2032). Increased data security remains one factor, as many organizations have more faith in internal data centers are the key market drivers enhancing market growth.
Figure 1: Cloud Manufacturing Market Size, 2024-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Cloud Manufacturing Market Trends
Increasing Use of IoT in Manufacturing is driving the market growth
The global manufacturing industry increasingly relies on the cloud to manage day-to-day processes from design to production and maintenance. The increasing use of IoT in manufacturing processes has compelled manufacturers to migrate to cloud-based management platforms, such as ERP systems. Large corporations control a sizable portion of the worldwide cloud manufacturing market. Cloud computing, virtualization, and the Internet of Things (IoT) have all had a favorable impact on the expansion of the cloud manufacturing market. Cloud-based manufacturing provides various advantages to producers, including higher productivity and lower costs. This factor drives market CAGR.
Additionally, as of 2022, ~51% of enterprises are about to acquire, upgrade, or are planning to update ERP systems without delay. Manufacturing companies have been observed to be the leading customers of ERP software, constituting about 48% of all enterprises purchasing the software. In 2019, it was estimated that ERP implementations have been successful for about 68% of manufacturers and distributors. Using a cloud ERP, different manufacturing departments can coordinate the centralized intelligence and data to work under changing demands and work pressure. Thus, driving the Cloud Manufacturing market revenue.
Cloud Manufacturing Market Segment Insights
Cloud Manufacturing Information Insights
Based on the Information, the global Cloud Manufacturing market segmentation includes Hardware, Software, and Services. The software segment dominated the market because it provides robust data management and analytics capabilities for manufacturing companies. It allows them to collect, store, and analyze large volumes of manufacturing data from multiple sources in real time. Advanced analytics tools and machine learning algorithms empower manufacturers with valuable insights to optimize production efficiency, ensure quality control, predict maintenance needs, and optimize the supply chain.
Cloud Manufacturing Deployment Insights
Based on Deployment, the global Cloud Manufacturing market segmentation includes Private Cloud, Public Cloud, and Hybrid Cloud. The hybrid cloud segment dominated the market because it offers a balance between the security and control of private clouds and the scalability and cost-effectiveness of public clouds. Manufacturers can leverage the private cloud for sensitive and critical data and applications while utilizing the public cloud for non-sensitive workloads or to handle peak demand. This flexibility and scalability make hybrid cloud deployment a popular choice for manufacturers.
Figure 2: Global Cloud Manufacturing Market by Deployment, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Cloud Manufacturing Organization Insights
The global Cloud Manufacturing market segmentation, based on Organization, includes Large Enterprises, Small & Medium Enterprises. The Large Enterprises segment dominated the market; due to the capability to invest in and implement cloud manufacturing solutions on a larger scale.
Cloud Manufacturing Industry Insights
The global Cloud Manufacturing market segmentation, based on Industry, includes Aerospace & Defense, Healthcare, Semiconductor Electronics, Automotive, and Metal & Machinery Manufacturing. The Aerospace & Defense segment dominated the market due to the necessary capabilities to streamline operations, manage intricate supply chains, and comply with stringent regulatory requirements. The Industry benefits from the scalability, collaboration, and data management features cloud computing offers.
Cloud Manufacturing Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Cloud Manufacturing market will dominate this market due to the presence of important industry participants such as Amazon.com, Inc., Google, Oracle, and SalesForce.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: GLOBAL CLOUD MANUFACTURING MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe's Cloud Manufacturing accounts for the second-largest market share due to adopting cloud-based manufacturing techniques. Further, the German Cloud Manufacturing market held the largest market share, and the UK Cloud Manufacturing market was the fastest-growing market in the European Region.
The Asia-Pacific Cloud Manufacturing Market is expected to grow fastest from 2023 to 2032. This is due to data security remaining one factor, as many organizations have more faith in internal data centers. Moreover, China’s Cloud Manufacturing market held the largest market share, and the Indian Cloud Manufacturing market was the fastest-growing market in the Asia-Pacific region.
Cloud Manufacturing Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines, which will help the Cloud Manufacturing market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The Cloud Manufacturing industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global Cloud Manufacturing industry to benefit clients and increase the market sector. In recent years, the Cloud Manufacturing industry has offered some of the most significant advantages to medicine. Major players in the Cloud Manufacturing market, including Oracle Corporation (US), Microsoft Corporation (US), Salesforce.com (US), Cisco Systems Inc. (US), Amazon Web Services, Inc. (AWS) (US), VMware Inc. (US), Google LLC (US) Hewlett Packard Enterprise Company (US), Citrix System Inc. (US) Plex Systems Inc. (US)
Plex Systems, Inc. is a Michigan-based software company specializing in developing and offering the Plex Manufacturing Cloud, an ERP solution for manufacturing software as a service (SaaS) or cloud computing. Recently, Plex Systems, Inc. was chosen by ZEVx, Inc. to support the production of its electrification solution. Plex Systems will automate the manufacturing processes for electric vehicle (EV) platforms and Fleet Electrification through this partnership.
Amazon Web Services, Inc., a subsidiary of Amazon, offers on-demand cloud computing platforms and APIs on a pay-as-you-go basis. Recently, Amazon Web Services announced a partnership with Boeing to streamline and enhance Boeing's cloud computing operations. AWS will provide the infrastructure for Boeing's digital applications, enabling improved operational efficiency, product innovation, and customer support.
Key Companies In The Cloud Manufacturing Market Include
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Oracle Corporation (US)
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Rootstock Software (US)
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Google LLC (US)
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Cisco Systems Inc. (US)
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Microsoft Corporation (US)
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Salesforce.com Inc. (US)
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Amazon Web Services Inc. (AWS) (US)
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VMware Inc. (US)
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Hewlett Packard Enterprise Company (US)
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Citrix Systems Inc. (US)
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Plex Systems Inc. (US)
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Jelastic Inc. (US)
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DXC Technology Company (US)
Cloud Manufacturing Industry Developments
Sept 2020: Atlantech Online has recently installed fiber at Anthem Row, providing high-speed Internet access to tenants at 700 K Street, NW, and 800 K Street. This enables them to enjoy fast and affordable bandwidth. Additionally, tenants can take advantage of Atlantech's Hosted PBX Service, further enhancing the company's offerings.
Oct 2020: Vonage has teamed up with Hacktoberfest to promote and honor contributions to the Open Source community. As part of their support, Vonage will provide access to their GitHub repositories, including libraries, code snippets, and demos.
Cloud Manufacturing Market Segmentation
Cloud Manufacturing Information Outlook
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Hardware
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Software
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Services
Cloud Manufacturing Deployment Outlook
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Private Cloud
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Public Cloud
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Hybrid Cloud
Cloud Manufacturing Organization Outlook
Cloud Manufacturing Industry Outlook
Cloud Manufacturing Regional Outlook
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
| Report Attribute/Metric |
Details |
| Market Size 2023 |
USD 63.1 Billion |
| Market Size 2024 |
USD 72.2 Billion |
| Market Size 2032 |
USD 211.7 Billion |
| Compound Annual Growth Rate (CAGR) |
14.4% (2024-2032) |
| Base Year |
2022 |
| Market Forecast Period |
2024-2032 |
| Historical Data |
2018- 2022 |
| Market Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Service, Organization Size, End-user, and Region |
| Geographies Covered |
North America, Europe, AsiaPacific, and the Rest of the World |
| Countries Covered |
The U.S., Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled |
Oracle Corporation (US), Microsoft Corporation (US), Salesforce.com (US), Cisco Systems Inc. (US), Amazon Web Services, Inc. (AWS) (US), VMware Inc. (US), Google LLC (US), Hewlett Packard Enterprise Company (US), Citrix System Inc. (US) Plex Systems Inc. (US) |
| Key Market Opportunities |
Drivers High Demand for Cloud-Based Solutions Across Manufacturing Companies Government Initiatives Across Countries to Modernize the Manufacturing Industry, Restraint, High Investment Cost Opportunity, Increasing Reach of Industry 4.0 In Manufacturing, Challenge. Vulnerability to Cyberattacks, Impact of COVID-19 Impact on Global Manufacturing Sector, Impact on Manufacturing Workflow |
| Key Market Dynamics |
The availability of high-tech encryption solutions can prompt the cloud manufacturing market expansion. |
Frequently Asked Questions (FAQ) :
The global Cloud Manufacturing market size was valued at USD 63.1 billion in 2023.
The global market is projected to grow at a CAGR of 14.4% during the forecast period, 2024-2032.
North America had the largest share of the global market.
The key players in the market areOracle Corporation (US), Microsoft Corporation (US), Salesforce.com (US), Cisco Systems Inc. (US), Amazon Web Services, Inc. (AWS) (US), VMware Inc. (US), Google LLC (US) Hewlett Packard Enterprise Company (US), Citrix System Inc. (US) Plex Systems Inc. (US).
The Hardware Cloud Manufacturing category dominated the market in 2022.
Large Enterprises had the largest share of the global market.
