the emergence of digital manufacturing
TRANSCRIPT
The Emergence of Digital Manufacturing The Emergence of Digital Manufacturing
Enabling the Dawn of the Digital FactoryEnabling the Dawn of the Digital Factory
Karthik Sundaram,
Senior Analyst
Industrial Automation & Process Control
4 April 2013
© 2012 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property ofFrost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
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Today’s Presenter
5+ years of comprehensive experience in industrial automation and process
control, both in terms of research and consulting and engineering experience.
Particular expertise in carrying out growth consulting exercises, analysing new
market opportunities and understanding the changing landscape of industrial
technology.
An avid reader of books centred on Indian history and oriental philosophy,
who also likes to occasionally indulge in the the craft of writing and live in the
world of words.
Karthik Sundaram, Senior Research Analyst
Frost & Sullivan, India
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Contents
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Digital Manufacturing – An Overview
A major DM vendor
“In an era of crowded markets with high competition, streamlining and executing new manufacturing processes forms the basis of sustenance and profitability. This makes digital manufacturing an inevitable investment for the discrete manufacturing industry.”
Digital Manufacturing- Bridging the Divide
Note: cPDM stands for Collaborative product data management. Source: Frost & Sullivan Analysis.
• Compress time-to-market
• Promote new product innovation
• Decrease operational expenditure
• Establish lean and flexible manufacturing
• Facilitate integration between multiple enterprise disciplines
Advantages of Digital Manufacturing Applications
Digital Manufacturing
Digital manufacturing (DM) is an enterprise initiative that aims to define and validate
manufacturing process models founded on a collaborative platform involving business
intelligence from multiple enterprise disciplines.
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Geographic Scope
Timeframe Timeframe
Short term:
Medium term:
Long term:
2012–2013
2014–2015
2016
Base year: 2011
Historic Period: 2008–2010
Source: wwww.oanda.com; Frost and Sullivan analysis.
Digital Manufacturing Market: Geographic Scope, Global, 2011North America:
This includes the United States of America, Canada, and
Others (Mexico, Caribbean Islands, etc.).
Europe:
This includes all major countries in western, central, and
eastern Europe.
Asia-Pacific:
This includes Japan, South Korea, China, India and
Others(Singapore, Indonesia, Malaysia, Vietnam, etc.)
Rest of the World:
This includes Latin America, Russia and the
Commonwealth of Independent States, Others (Africa and
the Middle East.)
Exchange Rates: 1 USD = 0.7720 Euro (Average of 2011)
Geographic Scope:
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End-user Scope
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Market Drivers and Restraints
Denotes long-term impact Denotes current impact Source: Frost & Sullivan analysis.
Need for improved manufacturing efficiency
and reduced time-to-market is expected to
spur growth.
The rapid growth of PLM is expected to
boost investments in digital manufacturing.
Emphasis on product quality compliance,
decreased warranty costs, and improved brand
perception is poised to improve adoption.
An uncertain global economic environment
is likely to impede investments and impact
market growth.
Lower demand for digital manufacturing in small
and medium enterprises (SMEs) is poised to limit
market expansion.
Dependence on external enterprise partners for
project executions affects net profitability.
Key Takeaway: The need for cross-discipline collaboration and increased manufacturing efficiency will drive growth over the forecast period.
Key Takeaway: The need for cross-discipline collaboration and increased manufacturing efficiency will drive growth over the forecast period.
Lack of customised solutions for process industries is expected
to limit adoption.
Emphasis on advanced operator training and evaluation is likely to
aid adoption.
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Split Across Geographies
North America,
29.7%
Europe,33.6%
Asia-Pacific,23.9%
Rest of the World, 12.8%
Digital Manufacturing Market: Percent Revenue Share by Region, Global, 2016
Digital Manufacturing: Geo-economic Factors Digital Manufacturing: Geo-economic Factors
Sovereign debt crisis
Poor export demand
High capital cost
Geographic Prospects
From a macro-economic perspective, this market is primarily driven by developed economies. Emerging economies of Asia, such as China and India, are also expected to witness a greater adoption of digital manufacturing over the forecast period.
Uncertainty in global markets
Decline in manufacturing output of emerging markets
End-user reluctance to invest in DM
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End-user Analysis
“Others” include pharmaceuticals, cosmetics, medical devices, and so on. Note: All figures are rounded. The base year is 2011. Source: Frost & Sullivan analysis.
Key Takeaway: Discrete industries are positioned to exhibit greater demand for digital manufacturing applications.
Key Takeaway: Discrete industries are positioned to exhibit greater demand for digital manufacturing applications.
10M3C6-17
Competitive Structure
Digital Manufacturing Market: Competitive Structure Global, 2011
Number of Companies in the Market More than 10 with revenue greater than $1 M
Competitive FactorsCustomisation, integration with major PLM, enterprise
resource platforms (ERP), and brand image
Key End-user GroupsAutomotive & Transportation, Aerospace & Defence,
Machinery & Industrial, and Hi-tech and Electronics
Major Market Participants Siemens AG, Dassault Systemes, and PTC
Market Share of Top 3 Competitors Greater than 50%
Distribution Structure Direct sales, system integrators, and value-added resellers
Notable Acquisitions and MergersDassault Systemes acquired Intercim, a manufacturing
execution systems provider, in 2011
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The Last Word
Source: Frost & Sullivan Analysis.
22Developed economies are likely to dominate growth over the forecast period, with North America likely to experience high growth.
Developed economies are likely to dominate growth over the forecast period, with North America likely to experience high growth.
33The top three major PLM vendors, leveraging on their strong PLM portfolio, are poised to expand their footprint through strategic mergers and acquisitions as well as innovative product strategies.
The top three major PLM vendors, leveraging on their strong PLM portfolio, are poised to expand their footprint through strategic mergers and acquisitions as well as innovative product strategies.
11The need for accelerating lead times and increasing profitability will boost growth for the global digital manufacturing market.
The need for accelerating lead times and increasing profitability will boost growth for the global digital manufacturing market.
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Next Steps
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For Additional Information
Karthik Sundaram
Senior Research Analyst,
Industrial Automation & Process Control -Europe
+91 44 6681 [email protected]
Muthukumar Viswanathan
Practice Director,
Industrial Automation & Process Control -Europe
+44 20 7915 7804
Sivakumar Narayanswamy
Program Manager,
Industrial Automation & Process Control -Europe+91 44 6681 [email protected]
Julia Nikishkina
Corporate Communications Executive,
Industrial Automation & Process Control –Europe
+7 499 918 61 [email protected]