The manufacturing sector is poised for a technological revolution as the total industrial cloud platform revenue is projected to exceed $300 billion by 2033, driven by a Compound Annual Growth Rate (CAGR) of 22.57 percent.
This transformation is being fueled by solution providers who are not only enhancing platform operability but also expanding partner ecosystems for application development, according to a recent report by ABI Research, a global technology intelligence firm.
The anticipated growth of the cloud manufacturing market over the next decade is attributed to the adoption of new architectural frameworks. These frameworks are geared towards extracting and managing data more efficiently, allowing manufacturers to fully leverage the utility of their data.
One of the driving factors behind the transition to cloud manufacturing is the substantial upfront costs associated with purchasing, setting up, and maintaining traditional on-premises servers. Cloud manufacturing providers offer an attractive alternative by significantly reducing these costs. In addition, the adoption of cloud-based systems can lead to up to a 60 percent reduction in overhead costs related to data storage. James Iversen, Industrial & Manufacturing Technologies Industry Analyst at ABI Research, highlights this aspect.
External data warehouse providers have become a popular solution for manufacturers looking to outsource their data storage. However, these arrangements often result in data fragmentation, duplication, and siloes, where critical datasets remain isolated, hindering collaboration and insights generation. Cloud manufacturing providers are addressing these concerns by fostering bi-directional communication and interconnection between applications and their data.
ABI Research’s report delves into revenue, market share, application offerings, and recent updates from key players in the cloud manufacturing market, including hyperscalers like AWS, Microsoft, and Google, along with Alibaba, IBM, SAP, Tencent, and Oracle.
Among the hyperscalers, AWS and Microsoft have emerged as dominant players, representing two-thirds of market revenue in 2022. Both offer comparable payment options, data pricing, and application offerings, with AWS holding an edge in this regard. AWS’s reputation as a leading cloud service provider coupled with its comprehensive suite of applications tailored for data ingestion, contextualization, and analysis has contributed to its position.
Recent updates from AWS and Microsoft continue to reinforce this trend, with the introduction of enhanced data connection structures that facilitate better operability and communication between applications. These updates address domains such as data packaging at the edge and low/no code pipelines, effectively reducing latency.
As the cloud manufacturing market advances, other industry giants like Google, Alibaba, IBM, SAP, Tencent, and Oracle are expected to follow suit with similar developments, further advancing their solution offerings in these crucial areas. The future of manufacturing is indeed becoming increasingly cloud-powered, with revenue growth projections reflecting the industry’s determination to embrace transformative technologies.
