A wide variety of industries make up the manufacturing sector, which ranges in size from multinational corporations employing thousands to relatively small firms with only a few employees. Besides producing our everyday necessities, it plays a key role in creating jobs and economic growth.
Let’s look at some key examples of manufacturing industries better to understand the manufacturing outlook in the coming decade.
Manufacturing is the process of making products by transforming raw materials. It is often done with machines and skilled labour. Manufacturing is usually done in a systematic way, with different people doing specific tasks. However, the manufacturing process can vary significantly depending on the type of product being made.
The boundaries between manufacturing and service activities are usually blurred in most cases. Modern manufacturing is characterized by the fact that many manufacturing value added service activities are required to keep the manufacturing process running smoothly.
A large number of core manufacturing activities have been integrated into the service industry through technological advancements.
Manufacturing Industry Outlook
Despite some challenges, the manufacturing industry outlook is positive in general. There are a number of issues facing the industry, such as a lack of labour, challenges with supply management, and ongoing risks related to the pandemic and global politics. Even with all the turbulence, the US manufacturing sector is expected to grow by 4.1% in 2022.
To combat a rising China, the US government is building international alliances. Among them are the Indo-Pacific economic framework and a “quad” comprising the United States, Australia, Japan, and India. China has established strategic alliances in most of the continents of Asia, Africa, and even Europe.
In the era of these evolving trade partnerships, companies and governments around the world are continuously re-evaluating their supply chain dependencies and rethinking their global portfolios.
However, manufacturing companies remain optimistic about the future. In order to remain competitive, they are investing in new technologies and processes. It is going through another industrial revolution with Artificial intelligence and Internet of things (IoT) technologies.
In the 21st century, most consider Apple the most successful manufacturing business. Toyota, Samsung and Volkswagen Group are the other top manufacturers today.
As we all know, the aerospace industry is responsible for everything airborne. There are, however, many facets to the industry. The aerospace industry covers a wide range of products and technologies, from commercial and military aircraft to satellites, launch vehicles, and guided missiles.
The product cycle includes the research and development, design, manufacturing, comprehensive testing, maintenance and repair services. The industry has an estimated global value of $700 billion in 2021 and is expected to grow at 7.8% every year.
Aircraft supply chains are very complex. Suppliers that manufacture specialized aerospace components are globally spread out. In a typical aircraft, components are made in factories all over the world before they are assembled at the final assembly plant.
An airplane may have its wings manufactured in France and its engines assembled in Germany, for instance. The fuselage could be assembled in another country, and the plane’s control systems could be manufactured in the United States. These various parts must be shipped to the final assembly plant to create the finished product.
Aerospace companies are operating in many countries around the world. Boeing, Lockheed Martin, United Technology, Northrop Grumman, GE Aviation, and Raytheon are among the major aerospace companies in the United States. As far as European companies are concerned, Airbus, Rolls-Royce, and Safran are the most prominent.
Trends and Innovations
The aerospace industry is full of innovative technologies and production processes. Despite the current level of automation, there is still room for more automation and digitization. Preventive maintenance programs can be implemented using the latest technology to anticipate and determine what needs to be repaired or replaced.
As part of aerospace manufacturing, additive manufacturing technologies are used to build components layer by layer. Composite raw materials have become increasingly popular among aerospace manufacturers in recent years. These advanced materials have improved the efficiency of the production process.
AI has revolutionized manufacturing processes, increased safety, improved customer service, and streamlined process control and monitoring.
The aerospace manufacturing business faces many challenges, from increasing regulations to digital transformation. As a result, these companies always need to be on the lookout for next-generation aircraft.
These are some of the main challenges in the aerospace industry.
- Supply chain issues
- Skills shortage
- Environmental regulations
- Digital transformation
- Shrinking profit margins
- Modernizing existing air crafts
Changing customer tastes are transforming the automotive industry. In response to stricter environmental regulations, manufacturers are developing new technologies. AI is driving changes in manufacturing and design. The interest in electric and autonomous vehicles is growing.
This has resulted in the rise of electric vehicles, new mobility services, and connected and autonomous vehicles. However, not just the vehicles themselves are being affected by these changes but also the infrastructure and ecosystem around them.
The automotive industry uses mass-production techniques to manufacture parts and assemble products. Automation plays a crucial role in this process. Automobile production relies heavily on industrial robots for tasks like machining, welding, and assembly. Millions of manufacturing jobs have been replaced by automation over the last few decades.
Advancements in battery technology and charging infrastructure enable electric vehicles to evolve rapidly. In many developed countries, EV adoption is encouraged through tax incentives. As fossil-fuel-based mass transit fleets are replaced with electric buses, EV market share is expected to grow further. However, electric vehicles must also become more affordable in order to appeal to a wide range of consumers.
Another major trend in the automotive industry is self-driving cars. They’re packed with sensors and computers. Artificial intelligence, light detection and ranging (LiDAR), and other advanced technologies are used for navigation. LIDAR is a laser-based imaging system for mapping land.
A self-driving car has a lot of advantages over conventional cars. For instance, better safety, traffic reduction with coordinated traffic plans, and reduced emissions. Autonomous vehicles will be in high demand as connected infrastructure grows.
On the challenges front, the industry faces a shortage of skilled workers.
Shipbuilding and Marine Engineering
One of the primary manufacturing industries is shipbuilding. An ancient industry, and it dates back thousands of years. Shipbuilding today is very different from what it used to be. The hulls of vessels are created by automated technology, and robots do much of the work.
Shipbuilding involves the construction of ships, offshore oil platforms, submarines, and other large maritime structures. There is often confusion between the marine and shipbuilding industries. The marine industry consists of all industries involved in the operation of ships, boats, and vessels.
The field of marine engineering is the manufacturing engineering discipline that deals with designing and building vessels. They are responsible for a vessel’s electrical, mechanical, and structural systems. Also, they develop propulsion systems, ballast systems, and navigation systems. Together, shipbuilders and marine engineers build safe, efficient ships.
The increasing demand for new oil and gas platforms in the last few decades has led to the strong growth of marine engineering companies, especially in Asia. East Asia, South East Asia, and China are home to many major shipyards.
The top 2 shipbuilding companies, Daewoo Shipbuilding and Marine Engineering and Hyundai Heavy Industries, are South Korean companies. Samsung Heavy Industries, a part of the Samsung Group, completes the Big Three players in the industry.
Various challenges and issues are facing the global shipbuilding industry, including the global economy’s health, materials sourcing, and increased competition. In addition, a lack of skilled workers and high construction costs are also expected to affect the industry negatively.
Medical Devices Industry
Among the interesting examples of industrial manufacturing are medical devices. The Global Medical Devices Market is expected to reach USD 557 billion by 2027. The market is growing at a CAGR of 4.75%.
Medical devices are becoming more popular due to global technology trends. The usefulness of smart sensors, smart gadgets, mobility aids, and home healthcare equipment has increased dramatically. These products have also become more popular due to their high safety standards.
Ageing populations are another key factor driving the future growth of the industry. By 2050, there will be 1.5 billion people over the age of 65. Diabetes, cancer, and other infectious diseases are on the rise. The sedentary lifestyle of most people is considered to be the culprit.
By 2045, there will be approximately 0.8 billion diabetics patients. In comparison to 2021, it is an increase of about 30%. Therefore, a growing number of patients will require diagnostic procedures and tests. Globally, heart diseases are also becoming more prevalent. This has increased the demand for advanced heart devices, especially in emerging economies.
However, there are also challenges to overcome. In emerging countries, the high cost of medical devices limits their affordability. The COVID-19 pandemic caused havoc on the medical equipment industry. It needs to rebound and build more resilient supply chains to deal with future disruptions.
A few major players in the industry are DePuy Synthes, Medtronics Plc, Fesenius Medical Care and GE Healthcare.
Emerging technology trends are making waves in the industry. Among them are cloud-based PLM solutions and smart medical wearables. This includes the Internet of Medical Things (IoMT) and 3D printing technologies. Medical device manufacturers have significantly benefited from the increased adoption of 3D printing technologies.
With the introduction of rapid and robust bioprinting systems, it will be possible to implant medical devices in surgery to meet growing demands. Organs and prostheses printed with 3D technology can perform both primary and extended functions.
Likewise, the healthcare industry will be an early adopter of 4D printing. 4D printed materials can change shape based on environmental triggers such as heat, air pressure, water, etc.
Internet of Medical Things (IoMT) and VR
Medical professionals train with virtual reality (VR) and augmented reality devices. Virtual reality is already revolutionizing healthcare, and it will continue to grow. The Internet of Medical Things (IoMT) is emerging due to combining the Internet of Things with telemedicine and telehealth technologies.
Robotic surgery is becoming more popular because it provides a quicker and more accurate diagnosis. A patient’s best treatment options can be determined using Machine Learning (ML).
Electronics and Electronic Products
Over the last few decades, the electronics manufacturing industry has grown tremendously. Electronics manufacturing has an average annual growth rate of 2.8% in the United States. Global revenue is expected to reach $2.8 trillion by 2020.
In the modern world, digital electronics are ubiquitous. Among them are computers, communication devices, robots, and automobiles. In addition, all other industries rely on electronic products for technology applications. Microprocessors, resistors, capacitors, diodes, and transistors make up electronic products.
Consumer, enterprise, and industrial electronics are the three main sectors of the Electronic Products industry. Mobile phones, laptops, and tablets fall into the consumer electronics category, while enterprise electronics include networking equipment and other IT infrastructure.
Industrial electronics include machinery, mass production lines, and industrial automation equipment used in manufacturing processes.
Apple, Samsung, Microsoft, IBM, and Sony are among the most successful companies in the industry. It is a sector that has created a new wave of manufacturing jobs in the 21st century.
The following are some of the current technology trends in the industry.
Advanced materials are new materials that have superior features over traditional materials. For instance, Graphene is a carbon allotrope that is a more robust, flexible, extremely thin heat and light conductor. Graphene can be used to replace existing raw materials in a variety of industrial electronic applications thanks to its unique properties.
The semiconductor industry needs to explore new ways to improve. Technological innovation will be the key to semiconductors’ future growth. AI is creating new demand for semiconductors. With the latest advancements in wireless cellular technology, semiconductors will be used in new ways in the communications industry.
Printed electronics is a novel way to manufacture electronics. As the name suggests, printed electronics refer to various electronic products, such as electronic circuits, sensors, etc., made using printing technology.
Printing uses graphic arts processes on substrates such as paper, glass, or plastic. Printed electronics and silicon integrated circuits can be used to create hybrid systems.
A relatively new class of electronics, organic electronics, has tremendous market potential. The next trend in electronics manufacturing is designing circuits with biodegradable and recyclable materials. Basically, manufacturers can use safer, more readily available raw materials.
Electronic manufacturing could also expand to new regions with organic-based electronics. Some regions aren’t in the sector because raw materials are scarce or expensive.
Read about the service industry here.