Through active initiatives to increase energy conservation and reduce carbon emissions, the smart manufacturing market is expected to reach $620 billion by 2026, according to TrendForce.
Automation, remote operations, simulation operations, and a focus on emerging markets will all drive the growth of smart manufacturing. An increase in low-carbon machinery, more sustainable packaging, and circular manufacturing will also contribute to the growth, according to the TrendForce research.
The market is expected to be valued at $347 billion this year.
Additionally, the use of renewable energy, sustainable construction of facilities, and the transition to using green factories will play a role in the market. The improved efficiency is being implemented by the use of digital twin unmanned factories, energy management tools, and operations management provided through artificial intelligence tools, according to the research.
TrendForce says manufacturers are expected to accelerate the transition toward green production in 2023 by introducing automation, which will be the driving force for annual growth in the market. Companies will then be able to obtain data through that automation that will improve efficiency, reduce waste and emissions, and help build a decarbonized business model.
In the United States, manufacturing accounts for nearly a quarter of the country’s direct emissions, according to the EPA. In Europe, manufacturing is responsible for 800 million metric tons of carbon dioxide equivalent each year, according to the World Economic Forum.
Automated systems have been shown to reduce emissions across industries by optimizing when energy is used and monitoring production and equipment for risks. A report by Ericsson Industry Lab last year found that 80% of manufacturing will be automated within the next decade.
Ericsson has a smart facility in Texas that it says has cut nearly all its operational emissions and lowered energy use by 24%. Another example is Schneider Electric, which used digital tools to update a 60-year-old facility in Lexington, Kentucky, which has helped it reduce emissions by 30%, energy by 26%, and water use by 20%.
Schneider Electric and Intel also created a distributed control node software network to improve machine learning and automation process.
The TrendForce report says Western Digital, and Johnson & Johnson Janssen also improved their efficiencies with smart manufacturing, Industrial Internet of Things energy management, and artificial intelligence systems. Another example the report gave was Delta Electronics using a low-carbon industrial automation system to focus on renewable energy generation and energy storage systems.