Market Size (2018)
2018
$38.72M
ICT
Cloud Manufacturing Market
By Segment, By Region, And Segment Forecasts, 2018 – 2024
Vertical: ICTBase Year: 20199 Sections
Executive Summary
Cloud Manufacturing Market — Snapshot
Projected (2024)
2024
$111.90M
CAGR (2018–2024)
19.3%
19.3%Key Players
108+
The manufacturing industry across the globe is increasingly using the cloud for managing the day to day processes from the designing stage to production and maintenance. Rising adoption of IoT in manufacturing processes has forced manufacturers to move to cloud-based management platforms such as ERP systems. Large enterprises dominate a large portion of the cloud manufacturing market. Development of technologies such as cloud computing, virtualization, and Internet of things (IoT) has positively impacted the growth of cloud manufacturing market. Cloud-based manufacturing offers manufacturers benefits such as increased productivity and reduced costs.
The global cloud manufacturing market generated a revenue of USD 38.72 billion in 2018 and is expected to reach a market value of USD 111.90 billion by 2024 growing at a CAGR of 19.8%. North America has accounted for more than 40% of the market share in the cloud manufacturing market due to the presence of key market players such as Amazon.com, Inc., Google, Oracle, and SalesForce. The growing adoption of cloud across multiple verticals in the manufacturing industry in the US is driving market growth in the region. Manufacturing industries including automotive and aerospace and defense have shown increased demand for cloud-based manufacturing systems which has positively impacted market growth in the region.
The cloud manufacturing market of Europe acquired ~ 28% market share globally in 2018. Europe has witnessed high adoption of cloud-based ERP systems in the booming automotive industry in countries such as Germany, France, and the UK. Germany is currently dominating the Europe cloud manufacturing market with around 34% market share followed by the UK. The country has witnessed rising adoption of cloud-based ERP systems among large enterprises which has driven market growth in Europe. Growing uncertainties over data privacy and security and implementation of GDPR are expected to hamper the growth of Europe cloud manufacturing market in the coming years.
Asia-Pacific cloud manufacturing market acquired around 19% of the market share in terms of revenue generation as China, India, Japan, South Korea, Malaysia, and Australia are experiencing increased adoption of cloud-based platforms among SMEs as well as large enterprises in the manufacturing sector. Additionally, high growth in semiconductor manufacturing and metal manufacturing industries in countries such as China and India are driving market growth in the Asia-Pacific region.
The Middle East and Africa, and South America have witnessed increased adoption of cloud-based services and platforms in manufacturing industries such as oil and gas, automotive and electronics and semiconductor electronics. Rising adoption of cloud-based manufacturing solutions in countries such as Saudi Arabia, Brazil, and Qatar is expected to drive market growth in these regions
Key Insight
The Cloud Manufacturing Market market is projected to grow at a CAGR of 19.3% from 2018 to 2024.
Market Performance Trend
Historical performance and future projections (2020–2030, USD Billion)
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View Subscription PlansMarket Scope & Coverage
What this report covers
- Geographic Coverage: This analysis covers 5 regions: South America, North America, Europe, Asia Pacific, Middle East and Africa.
- Market Segmentation: The market is analyzed across 6 segments: Automotive, Semiconductor Electronics, Metal & Machinery Manufacturing, Others, Aerospace & Defense, Healthcare. Forecasts are provided for each segment from 2018 to 2024.
- Competitive Landscape: 108 leading companies are profiled, covering market positioning, strategies, and recent developments.
Market Size (USD Mn)
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View Subscription PlansMarket Overview
Cloud Manufacturing Market — Growth Trajectory
Cloud manufacturing refers to the process of using established manufacturing resources to gather data and store it over the cloud. Cloud manufacturing helps manufacturers manage entire manufacturing process from the designing stage to production and maintenance. Cloud manufacturing involves the use of cloud-based tools such as Enterprise Resource Planning (ERP) for processes such as inventory management and prototyping. Cloud manufacturing uses multiple technologies including cloud computing, virtualization, and internet of things (IoT). Cloud-based manufacturing reduces the work of IT teams of manufacturing companies by offering services such as technical support, hardware/software maintenance, and security.
Cloud Manufacturing Market — Growth Trajectory
Automotive
Semiconductor Electronics
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View Subscription PlansMarket Size Trend (USD Mn)
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View Subscription PlansMarket Dimensions
How this market is segmented
- Industry Vertical Industry Vertical is broken down into: Aerospace & Defense, Healthcare, Semiconductor Electronics, Automotive, Metal & Machinery Manufacturing, Others.
- Organization Size Organization Size is broken down into: Large Enterprises, Small & Medium Enterprises.
- Deployment Deployment is broken down into: Private Cloud, Public Cloud, Hybrid Cloud.
- Component Component is broken down into: Hardware, Software, Services.
Geographic Analysis
Regional market breakdown
- South America South America market size reached $1.94M in 2018 and is projected to reach $4.24M by 2024, growing at a CAGR of 14.0%.
- North America North America market size reached $15.49M in 2018 and is projected to reach $46.48M by 2024, growing at a CAGR of 20.1%.
- Europe Europe market size reached $10.84M in 2018 and is projected to reach $30.70M by 2024, growing at a CAGR of 18.9%.
- Asia Pacific Asia Pacific market size reached $7.36M in 2018 and is projected to reach $22.88M by 2024, growing at a CAGR of 20.8%.
- Middle East and Africa Middle East and Africa market size reached $3.10M in 2018 and is projected to reach $7.60M by 2024, growing at a CAGR of 16.1%.
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View Subscription PlansResearch Methodology
Cloud Manufacturing Market — How We Researched This Market
Research Process
Market Research Future research is conducted by industry experts who offer insight into industry structure, market segmentations, technology assessment, competitive landscape (CL), penetration, as well as on emerging trends. Besides primary interviews (~ 80%) and secondary research (~ 20%), their analysis is based on their years of professional expertise in respective industries. Our analysts also predict where the market will be headed in the next five to ten years, by analyzing historical trends and current market positions. Furthermore, the varying trends of segments & categories geographically presented are studied and are estimated based on primary & secondary research.
Primary Research
Extensive primary research was conducted to gain a deeper insight of the market and the industry performance. In this report we have conducted primary surveys (interviews) with the key level executives (VP, CEO’s, Marketing Director, Business Development Manager and many more) of the major players who are active in the market. In addition to analyzing the current and historical trends, our analysts predict where the market is headed, over the next five to ten years.
Secondary Research
Secondary research was mainly used to collect and identify information useful for extensive, technical, market-oriented, and commercial study of the Cloud Manufacturing market. It was also used to obtain key information about major players, market classification and segmentation according to the industry trends, geographical markets, & developments related to the market and technology perspectives. For this study, analysts have gathered information from various credible sources, such as annual reports, SEC filings, journals, white papers, corporate presentations, company web sites, some paid databases and many others.
Market Size Estimation
Both, top-down and bottom-up approaches were used to estimate and validate the size of the market and to estimate the size of various other dependent submarkets of the overall Cloud Manufacturing market. The key players in the market were identified through secondary research and their market contributions in the respective geographies were determined through primary and secondary research. This entire procedure included the study of the annual and financial reports of top market players and extensive interviews for key insights with industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources. All the possible parameters that affect the market have been covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. This data has been consolidated and added with detailed inputs and analysis from market research future and has been presented in this report. The following figure shows an illustrative representation of the overall market size estimation process employed for the purpose of this study
Base Year
2019
Historical Period
2018 – 2019
Forecast Period
2019 – 2024
Primary Interviews
150+
Research Process
Historical data (2018–2019) and forecast period (2019–2024)
1
Problem Definition
- Market scoping
- Objective setting
- Framework design
2
Secondary Research
- Literature review
- Data mining
- Trend analysis
3
Primary Research
- Expert interviews
- Field visits
- Surveys
4
Data Analysis
- Quantitative modeling
- Statistical testing
- Validation
5
Insights & Reporting
- Synthesis
- Recommendations
- Visualization
Research Depth
Our research process spans primary interviews with industry stakeholders combined with comprehensive secondary data analysis, validated through triangulation across multiple independent sources.
Historical vs. Forecast Data
Historical (observed)
Forecast (modelled)
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View Subscription PlansCompetitive Landscape & Porter's Five Forces
Cloud Manufacturing Market — Competitive Analysis
Michael Porter’s Five Forces model is a framework to study the global cloud manufacturing market. Strategic business managers trying to gain an edge over competitive firms in the global cloud manufacturing market can utilize this model to better comprehend the industry in which their firm operates. The components of each of the forces and the degree of impact of each component in the context of the global cloud manufacturing market have been broken down and analyzed.
1.1.1 Threat of New Entrants
Moderately capital-intensive market along with the requirement of high technical expertise allows the entry of new vendors in the market to a certain extent. Furthermore, favorable government initiatives are offering opportunities for emerging players to introduce cloud-based manufacturing solutions and services. Therefore, the new entrants present a high threat to the major stakeholders of the market.
1.1.2 Bargaining Power of Suppliers
In cloud manufacturing market, the suppliers are usually third-party vendors and software developers supplying hardware equipment and software development kits (SDKs) who work on a contractual basis. The number of hardware suppliers in the market is high and the overall cost of software development is moderate in the market, making it easy for cloud manufacturing solution providers to switch between hardware vendors and software developers. Therefore, the bargaining power of suppliers in the cloud manufacturing market is expected to be moderate.
1.1.3 Bargaining Power of Buyers
The manufacturing industries usually do not have control over the cost of cloud-based manufacturing solutions and services. There has been a rise in the number of buyers of cloud-based manufacturing solutions in the market due to increasing adoption rate of cloud-based solutions by manufacturing industries, which has increased the bargaining power of buyers over the suppliers. Further, the buyers’ ability to opt for substitute technologies such as edge computing-based manufacturing solutions is high. Furthermore, the buyers dictate the specifications and the type of solution required as per the end-use application, which makes their bargaining power high.
1.1.4 Threat of Substitutes
The closest competitor of cloud-based manufacturing solutions is moderately priced edge computing-based manufacturing solutions. Buyers have the option to choose from a wide range of product offerings by edge computing-based manufacturing solution providers which raise challenges for cloud-based manufacturing vendors. Since there exists several edge computing solutions in the market that act as a substitute for cloud computing, the availability of substitute in the market is high. However, buyers choose cloud-based manufacturing solutions according to the business requirement, making it easier for them to process business-critical data over the cloud network, resulting in the buyer’s propensity towards the substitute to be moderate. However, the rising number of edge computing based manufacturing use cases in the market makes the threat of substitutes high for the edge computing market.
1.1.5 Intensity of Rivalry
There is an intense competition among the existing players in the market, with the vendors investing heavily and using extensive research and development to make advancement in the cloud-based manufacturing product offerings, resulting in a high degree of rivalry in the market. Key market players compete to acquire a larger market share and retain their existing customer base by providing world-class cloud-based manufacturing software and services, making the intensity of rivalry high in the overall cloud manufacturing market
Quantitative Analysis
Regional Breakdown
Regional market breakdown for Cloud Manufacturing Market.
Regional Market Size (USD Mn)
Market estimates by geography (2024)
USD Mn
InsightNorth America leads with $46.48M by 2024, while Asia Pacific is projected to grow fastest at a 20.8% CAGR.
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View Subscription PlansRegional Market Data
| REGION | 2018 | 2019 | 2024 | CAGR | SHARE |
|---|---|---|---|---|---|
| South America | $1.94M | $2.78M | $4.24M | 14.0% | 4% |
| North America | $15.49M | $26.10M | $46.48M | 20.1% | 42% |
| Europe | $10.84M | $17.71M | $30.70M | 18.9% | 27% |
| Asia Pacific | $7.36M | $12.59M | $22.88M | 20.8% | 20% |
| Middle East and Africa | $3.10M | $4.71M | $7.60M | 16.1% | 7% |
| Total | $38.72M | $63.90M | $111.90M | 19.3% | 100% |
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View Subscription PlansSegment Revenue (2024)
Automotive
Semiconductor Electronics
Metal & Machinery Manufacturing
Others
Aerospace & Defense
Healthcare
011223243
Segment Market Share
- Automotive34%
- Semiconductor Electronics19%
- Metal & Machinery Manufacturing16%
- Others15%
- Aerospace & Defense12%
- Healthcare5%
Total Market Size
$111.90M
Market by Segment (2024)
| APPLICATION | REVENUE ($B) | GROWTH RATE | MARKET PENETRATION |
|---|---|---|---|
| Automotive | $38.22M | 19.3% | 67% |
| Semiconductor Electronics | $20.81M | 19.3% | 46% |
| Metal & Machinery Manufacturing | $18.14M | 19.3% | 60% |
| Others | $16.38M | 19.3% | 53% |
| Aerospace & Defense | $12.91M | 19.3% | 47% |
| Healthcare | $5.43M | 19.3% | 67% |
* Revenue projections based on 2025 estimates. Growth rates represent CAGR 2024–2030. Market penetration indicates current adoption rate within addressable market segments.
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Analytics
Cloud Manufacturing Market — Key Findings
Analytical insights on Cloud Manufacturing Market covering market dynamics, competitive landscape, and strategic outlook.
Key Analytical Findings
The Cloud Manufacturing Market market is projected to reach $111.90M by 2024, growing at 19.3% CAGR. The Automotive segment holds the largest share.
Market Drivers
In recent years, technical advancements in cloud computing have compelled manufacturers to implement cloud-based manufacturing solutions for streamlining their manufacturing processes. Growing need to centralize the manufacturing processes and reduce the overall IT costs is also propelling the need for these solutions. Cloud-based manufacturing solutions allows manufacturing enterprises to rapidly deploy manufacturing execution system (MES) applications across different manufacturing locations. Operations managers, with the help of cloud-based manufacturing solutions, are able to monitor systems, standardize processes, relay production demands, and collect critical information regarding scheduling, designing, simulations and testing through cloud-based manufacturing solutions. Also, plant supervisors can pull up the data on their tablets or smartphones to monitor and analyze the manufacturing processes in real time. Cloud-based manufacturing solutions enable efficient collaboration between engineering teams, operations teams, and research & development teams in manufacturing organizations bridging the gap among various departments involved in the manufacturing process. Moreover, with the help of cloud-based manufacturing solutions, the operators have access to real-time and historical data which helps them to perform audit trials, product genealogy, parts traceability, and process control. This further aid the operators in intelligent decision making and accelerate manufacturing cycle times. Cloud-based real-time tracking and traceability applications deliver more flexible and transparent supply chain performance. Cloud-based inventory management systems (IMS) and enterprise resource planning (ERP) systems are capable of optimizing critical manufacturing processes such as inventory, order management, order processing, payments, vendor management, and product shipments. Cloud-based manufacturing solutions provide access to accurate and real-time production and process critical data enabling the operators to visualize operations, perform supervisory control, giving them the ability to precisely monitor and control every aspect of the manufacturing process.
Market Restraints
Manufacturing companies that are committed to offering cloud-based manufacturing services have realized the complexity and high investment costs associated with the infrastructure required to set up cloud solutions. Cloud-based manufacturing systems comprise software and hardware systems and installation of these systems requires qualified experienced cloud engineers. Adding new manufacturing sites to the existing infrastructure systems require setting up data centers, cloud servers, and wired and wireless communication system capable of transmitting and receiving data from various manufacturing plants. This requires purchasing network equipment, configuration, and testing of devices which incurs costs. Moreover, a dedicated technician is required to manage and troubleshoot various cloud devices in case of any technical breakdown during installation. Servers need to be set up, managed, and maintained which requires industrial IT consultants or full-time employees dedicated to monitoring these cloud-based manufacturing solutions. Many organizations are now focused on securing their cloud environment from internal and external threats by adopting proper cloud security solutions that require additional costs. An unsecured cloud server can be easily hacked, exposing the risk of a data breach. Designing and setting up proper security for cloud-based manufacturing solutions is expensive. Moreover, physical security of the cloud environment is also essential considering the location of the server. Ideally, these cloud servers must be hosted in data centers offering cooling, power, bandwidth, backup, and physical security. Multiple cloud servers at various manufacturing locations cause additional maintenance and management of individual servers which adds up to the overall investment costs for a company looking to shift towards cloud-based manufacturing. These investment and installation costs are the factors that are restraining the growth of the cloud-based manufacturing market.
Strategic Outlook and Future Directions
Near-term growth will likely concentrate in modular bioreactor lines and closed-system media workflows that shorten validation cycles while preserving batch traceability.
Partnerships between CDMOs and instrumentation vendors should accelerate standard datasets for comparability across sites, improving forecasting models used in capacity planning.
Longer horizon, organoid and microphysiological adoption may reshape segment mix; teams that invest early in assay interoperability and cloud QC hooks are better positioned to capture upside without fragmenting their analytics stack.
Market Value by Segment (2024)
Value (USD Mn)
Automotive
Semiconductor Electronics
Metal & Machinery Manufacturing
Others
Aerospace & Defense
Healthcare
Companies
Key companies profiled in Cloud Manufacturing Market
Profiles of 108 companies operating in the Cloud Manufacturing Market market, including revenue, employee count, and market positioning where available.
Showing 108 of 108 companies
Rootstock
Rootstock Software
ICT
Company Headquarters: US Founded: 2008 Workforce: ~100 Company Working: Rootstock Software (Rootstock) provides cloud ERP on the Salesforce Cloud Platform. Rootstock Cloud ERP offered by the company is a flexible and digitally connected system which helps the companies to deliver a personalized customer experience, scale operations efficiently, and out-service the competition. The platform includes order management, manufacturing operations, supply chain and financial management suite. The cloud-based ERP offers a single platform to manufacturing, distribution, and supply chain organizations to manage and grow their businesses. Rootstock has its offices in California, Atlanta, Toronto, Sweden, Japan, and India.
RevenueN/A
Employees100
Market CapN/A
Founded2007
US
Plex Syste
Plex Systems Inc.
ICT
Company Headquarters: US Founded: 1995 Workforce: ~600 Company Working: Plex Systems Inc., (Plex) offers cloud-based manufacturing ERP software. The company offers products related to business management and manufacturing operations and SaaS-based platform. The manufacturing operation products comprises production management, planning and scheduling, products and programs, inventory management, and quality management; and manufacturing execution system. The company also offers professional, customer care, technical and education services to its customers. Plex serves the aerospace, automotive, food and beverages, industrial manufacturing, electronics, and metal forming industries. Plex delivers its ERP and manufacturing automation products and solutions to nearly 600 process and discrete industries across the globe. The company was formerly known as Plexus Systems LLC and changed its name to Plex Systems, Inc. in January 2009.
RevenueN/A
Employees600
Market CapN/A
Founded1994
US
Hewlett Pa
Hewlett Packard Enterprise Company
ICT
Company Headquarters: US Founded: 1939 Workforce: 60,000 Company Working: Hewlett Packard Enterprise Development LP (HPE) is engaged in the provision of information technology (IT) solutions. The company offers a broad product portfolio that includes enterprise IT solutions, including servers, storage, networking, converged systems, software and services, and financial solutions. It operates through three reportable business segments, namely hybrid IT, intelligent edge and financial services, and corporate investments. The hybrid IT segment offers software-enabled and services-led infrastructure solutions under four categories, including compute, storage, and data center networking (DC Networking) services. The intelligent edge segment includes enterprise networking and security solutions under Aruba brand. Its major products include wired and wireless local area network hardware products such as switches, routers, sensors, Wi-Fi access points, and software products, and location services software. The segment also provides professional and support services for the intelligent edge portfolio of products. The financial services segment offers flexible investment solutions, utility programs, asset management services, and others. that facilitate unique technology deployment models, and the acquisition of complete IT solutions, including hardware, software, and services HPE operates globally, with primary operations in the US.
Revenue$0.0B
Employees60,000
Market CapN/A
Founded1938
US
DXC Techno
DXC Technology Company
Healthcare
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Revenue$7.6B
Employees130,000
Market CapN/A
Founded2016
US
Oracle Cor
Oracle Corporation
ICT
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Revenue$39.5B
EmployeesN/A
Market CapN/A
FoundedN/A
United States, North America
Microsoft
Microsoft Corporation
ICT
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Revenue$0.1B
Employees140,000
Market CapN/A
Founded1974
New York, US
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Akif Moroglu
Strategy & Business Development Director, Dogan Holding
We got the report in time, we really thank you for your support in this process. I also thank to all of your team as they did a great job.
Noah Malgeri
Co-Founder, Mojave Rail Fabrication Limited
This is really good guys. Excellent work on a tight deadline. I will continue to use you going forward and recommend you to others. Nice job.
Michael Robert
Manager, JavolVision
Thanks, I am so happy that we worked together. Maybe we still can work together in the future.
Joseph Aguayo
Sales Operations & Pricing Manager, Intel
Thanks. It's been a pleasure working with you, please use me as reference with any other Intel employees.
Bong Lau
Sales Leader, Bamberg
We bought your "2025 report" in 2020. Everything is fine and very good.
Peter Groot Koerkamp
Account and Business Manager, EFS-Holland BV
Thanks for sending the report it gives us a good global view of the Betaïne market.
Younghwan Choi
Senior Retail Manager, LG Chem
We found the report very insightful! we found your research firm very helpful. I'm sending this email to secure our future business.
Mark Irwin
Management Consultant, Level 21
I am very pleased with how market segments have been defined in a relevant way for my purposes (such as "Portable Freezers & refrigerators" and "last-mile"). In general the report is well structured. Thanks very much for your efforts.
Rob Kooiker
Group Product Manager HVAC & Fire Protection GMA, Rockwool
I have been reading the first document or the study, the Global HVAC and FP market report 2021 till 2026. Must say, good info! I have not gone in depth at all parts, but got a good indication of the data inside!
Jason Lee
R&D Director, Seojin
Thanks for your great support. Appreciate it. Well received report. It helps us to understand market well. We're planning other area of survey in the future, let's keep in touch.
Akif Moroglu
Strategy & Business Development Director, Dogan Holding
We got the report in time, we really thank you for your support in this process. I also thank to all of your team as they did a great job.
Cloud Manufacturing Market
Starting from
$4,950