- The Artificial Intelligence (AI) market is predicted to grow from $8B in 2016 to $72B in 2021, attaining a 55.1% Compound Annual Growth Rate (CAGR).
- The Blockchain market is predicted to grow at a 61.5% Compound Annual Growth Rate (CAGR) between 2016 and 2021, growing from $.2B to $2.3B in 2021.
- 86% of the top 100 companies in R&D spending worldwide are from the manufacturing industry.
- Top technology investment areas for manufacturers include advanced analytics, cloud computing, modeling and simulation, Internet of Things (IoT) platforms, and optimization and predictive analytics.
These and many other insights are from a recent research study Deloitte in collaboration with the Council on Competitiveness and Singularity University published this month titled Exponential Technologies in Manufacturing(PDF, 64 pp., no opt-in). The study’s goals include discovering the latest opportunities and barriers manufacturers face in evaluating and adopting technologies, and explores how global manufacturing companies can best capitalize on emerging technologies. The study defines exponential technologies as those that enable change at a rapidly accelerating, nonlinear pace facilitated by substantial progress and cost reduction in the areas of computing power, bandwidth, and data storage.
Key takeaways from the study include the following:
- The Blockchain market is predicted to grow at a 61.5% Compound Annual Growth Rate (CAGR) between 2016 and 2021, growing from $.2B to $2.3B in 2021. The largest segments are in business and financial services and technology, media and telecom. The largest protocols include Bitcoin, Ethereum, and Ripple. Deloitte found that banks have reportedly saved between $8B to $12B annually using blockchain technologies to improve operational efficiencies.
- The Artificial Intelligence (AI) market is predicted to grow from $8B in 2016 to $72B in 2021, attaining a 55.1% CAGR. AI is being used today to enable collaborative robotics, automated workflows based on predictive analytics, improving recruitment and retention of manufacturing experts, and optimizing equipment and plant effectiveness. There are hundreds of potential use cases for AI in manufacturing today, making this area one of the most invested-in by the global venture capital community. Technologies that emanate from AI, called cognitive technologies, include machine learning; computer vision; natural language processing; speech recognition; robotics; optimization; rules-based systems; and planning & scheduling. Specifically, machine learning refers to the ability of computer systems to improve their performance by exposure to data, without the need to follow explicitly programmed instructions.
- The 3D Printing market is predicted to grow from $13B in 2016 to $36B in 2021, attaining a 22.3% CAGR. By 2020, 75% of manufacturing operations worldwide could use 3D-printed tools, jigs, and fixtures for the production of finished goods. Deloitte predicts that automotive designs, rapid prototype printing and aerospace and defense parts printing will be the largest manufacturing segments. Fastest growing segments of this technology today include dental printing, medical implant and device printing, and product creation and prototype printing.
- Advanced Robotics spending is predicted to grow from $92B in 2016 to $225B in 2021, attaining a 19.7% CAGR with manufacturing, resource industries, consumer, and healthcare being the largest segments today.The fastest growing market segments for Advanced Robotics include consumer, health care, and retail. Robotics is increasingly being adopted in aerospace manufacturing to increase product quality, yield rates, reduce operating costs and improve time-to-customer production performance.
- Investment in the Internet of Things (IoT) solutions is predicted to grow from $737B in 2016 to $1.521B in 2021, attaining a 15.6% CAGR. IoT is revolutionizing many aspects of manufacturing operations including real-time production monitoring, improving the accuracy of key metrics including Overall Equipment Effectiveness (OEE), production yield rates and production efficiency. IoT’s fastest growing segments include insurance, consumer, healthcare, and retail.
- The Digital design, simulation, and integration (DDSI) market are predicted to grow at a 12.4% CAGR between 2016 and 2021, increasing from $25B in 2016 to $45B in 2021.Deloitte found that the fastest growing segments of this market include design automation, plant design, product design & testing, and drafting & 3D modeling. Automakers switching from 2D to 3D CAD have realized 20% reduction in design time.
- Advanced analytics spending globally is predicted to grow from $136B in 2016 to $232B in 2021, attaining an 11.3% CAGR.Advanced analytics is the foundation of Manufacturing Intelligence, which provides manufacturers with contextual insight and intelligence based on data captured form machinery and processes across the plant floor. Discrete and process manufacturers are accelerating their adoption of advanced analytics to improve product quality, reduce production delays and improve time-to-market for new products.
- The biotechnology market is predicted to grow from $364B in 2016 to $584B in 2021, attaining a 9.9% CAGR. Largest industries using biotechnology today are medical products, healthcare, food & agriculture, and environmental & industrial manufacturing. In the first half of 2017, 22 synthetic bio start-ups raised more than $500M in venture capital, public funding, and grants.
- The High-Performance Computing (HPC) market is projected to grow from $25B in 2016 to $40B in 2021, attaining a 9.3% CAGR. Quantum computing and high-performance data analytics are predicted to be the fastest growing market segments in the forecast period. High-performance Computing (HPC) refers to the practice of aggregating computing power in a way that delivers much higher performance, i.e., systems that typically function above a teraflop or 1012 floating-point operations per second, to solve large highly complex problems in science, engineering, or business
- The Advanced Materials market is predicted to grow from $195B in 2016 to $283B in 2021, attaining a 7.7% CAGR. Advanced materials include a wide spectrum of chemicals and materials like lightweight, high-strength metals and high-performance alloys, advanced ceramics and composites, critical materials, bio-based polymers, and nanomaterials. Popular current applications include reducing the weight of aircraft and automobile components and producing permanent magnets in electric vehicle (EV) motors. Advanced Materials are also essential for producing automotive catalytic converters to filter toxic pollutants
- The Cybersecurity market is predicted to grow from $81B in 2016 to $117B in 2021, attaining a 7.7% CAGR. The role of cybersecurity becomes even more essential today as significant operational risks for connected, smart manufacturing, digital supply networks, and entire manufacturing ecosystems emerge, highlighting risks at the intersection of cyber and physical infrastructure. Deloitte predicts there could be 3.5M cybersecurity jobs unfilled, globally, by 2021.
- The future competitive advantage in manufacturing will tilt back to advanced manufacturing nations with robust innovation ecosystems versus the cost competitive nations of the past. The Global Manufacturing Competitiveness Index (GMCI) study found that nations who invest in exponential manufacturing technologies and innovation ecosystems will emerge more competitive than those who choose to compete on price alone. Higher value, advanced products, and processes that require excellent product quality and deliver greater margins are driving faster, permanent innovation.
Louis Columbus is an enterprise software strategist with expertise in analytics, cloud computing, CPQ, Customer Relationship Management (CRM), e-commerce and Enterprise Resource Planning (ERP).