The structural changes in the global manufacturing market is pushing Australia’s manufacturing market to embrace digital transformation at a rapid pace to remain comparative advantage with high-margin and low-volume models.
The impact of smart manufacturing presents opportunities for technology solutions providers, mainly those involved in areas of Industrial Internet of Things (IIoT), data analytics and cloud technologies.
Frost & Sullivan’s Ivan Fernandez, Senior Fellow and Industry Director, commented on that more manufacturers in Australia are recognizing the benefits of digital transformation, with sectors such as healthcare and food and beverage (F&B) proven to be most prevalent.
The two major drivers towards smart manufacturing are innovation and advanced manufacturing technology adoption. Data analytics, IIoT, and cloud technologies will have the most impact and allow manufacturers to gain competitive advantage.
Industrial Internet of Things (IIoT): IIoT connects multiple smart devices and objects to a single network over the Internet enabling data exchange in a secure manner. The technology allows organizations to gain comprehensive analytical insights and potentially generate new business models and revenue streams. It will also reduce overall operating cost at significant rate through improved asset utilization, process efficiencies, and productivity.
Data Analytics: Correlations between customer data, scheduling, and predictive maintenance of machinery are potential benefits of data analytics. They identify patterns in the ecosystem that could lead to better operational efficiency, followed by shorter manufacturing downtimes and work process decision making. The method of data analytics and technology correlate with cost and operational manufacturing information. This will drastically improve the internal decision-making process.
Cloud Technologies: Implementation of cloud technology can transform and benefit the manufacturing sector in multiple ways:
- Increased Asset Performance: The cloud gives industrial machines the ability to gather, analyze, and continuously monitor machine data. This, in turn, helps manage the performance of industrial assets.
- Decreased Unscheduled Downtime: Cloud provides sufficient visibility into machine performance to minimize the risk of loss of time and resources due to machine and system failures, averting any unplanned downtime mishaps.
Frost & Sullivan predicts that Australia’s manufacturing industry will catalyze the demand for digital solutions in the country in short and medium term.As robotics and Additive Manufacturing (AM) technologies begin to mature, they will contribute to a larger percentage of the market growth in the long term. The growth in AM market is expected due to new establishments in metal-based additive manufacturing machines and services and strong research initiatives in titanium by biomedical, aerospace, and mining industries. These industries are expected to account for nearly 60% of the total AM market.
Frost & Sullivan recently published a report titled Digital Transformation of the Australian Manufacturing Industry, Forecast to 2024, which highlights growth opportunities for market players moving into smart manufacturing. To learn more, visit https://bit.ly/2t0TmON.
Subarna Poudel is a researcher with Frost & Sullivan. He can be reached at firstname.lastname@example.org