The manufacturing sector is on the brink of a technological revolution, with the projected revenue of the total industrial cloud platform surpassing $300 billion by 2033. This surge is being propelled by a Compound Annual Growth Rate (CAGR) of 22.57 percent.
Driving this paradigm shift are solution providers who are not solely improving platform functionality, but also broadening partner ecosystems to facilitate application development. This insight comes from a recent report by ABI Research, a global technology intelligence firm.
The anticipated expansion of the cloud manufacturing market in the coming decade can be attributed to the uptake of novel architectural frameworks. These frameworks are designed to enhance the efficiency of data extraction and management, enabling manufacturers to fully exploit the value of their data.
A major catalyst propelling the shift toward cloud manufacturing is the significant initial expenses linked with the acquisition, setup, and upkeep of conventional on-premises servers. Cloud manufacturing service providers present an appealing alternative by substantially curtailing these expenses.
Furthermore, embracing cloud-based systems can yield a reduction of up to 60 percent in overhead costs associated with storing data. This viewpoint is underscored by James Iversen, an Industry Analyst specializing in Industrial & Manufacturing Technologies at ABI Research.
For manufacturers seeking to delegate their data storage, external data warehouse providers have gained popularity as a solution.
Nevertheless, such arrangements often result in the division, duplication, and isolation of data, creating silos where crucial datasets remain disconnected, thereby impeding collaboration and the generation of insights. To tackle these concerns, cloud manufacturing providers are tackling the issue by fostering two-way communication and integration between applications and their data.
In-Depth Analysis of Market Players
The report thoroughly examines the revenue, market distribution, array of applications, and recent advancements of prominent participants in the cloud manufacturing arena. This includes major hyperscale entities such as AWS, Microsoft, Google, as well as Alibaba, IBM, SAP, Tencent, and Oracle.
Within the realm of hyperscalers, AWS and Microsoft have emerged as preeminent contenders, jointly constituting two-thirds of the market revenue in 2022. Both offer analogous payment structures, data pricing, and application selections, although AWS maintains a slight advantage in this aspect.
AWS’s standing as a premier cloud service provider, combined with its extensive suite of applications designed for data assimilation, contextualization, and analysis, has played a pivotal role in establishing its current position.
The ongoing strengthening of this trend is evident in the recent updates provided by AWS and Microsoft.
These updates introduce improved data connectivity frameworks that enhance the functionality and interaction among applications. These updates encompass aspects such as optimizing data processing at the edge and establishing low/no code pipelines, thereby effectively minimizing latency.
As the cloud manufacturing sector progresses, other prominent industry leaders like Google, Alibaba, IBM, SAP, Tencent, and Oracle are anticipated to follow suit by introducing comparable advancements.
These developments will further enhance their solution portfolios in these critical domains. Undoubtedly, the future landscape of manufacturing is increasingly being shaped by cloud-based solutions, as demonstrated by the growth projections that underscore the industry’s resolute commitment to embracing transformative technologies.
Conclusion
The manufacturing sector is undergoing a transformative revolution, driven by cloud adoption and reduced costs. ABI Research’s report highlights key players and advancements shaping this shift. Cloud’s potential to lower expenses and improve data handling is evident. As the industry advances, cloud solutions will reshape manufacturing’s future.
