Europe has managed to outpace the U.S. in the AI, IoT and robotics manufacturing global market, according to a GP Bullhound report.
GP Bullhound’s ‘Smart Manufacturing: The Rise of the Machines’ report contends that Europe now represents 30% of the global market for smart manufacturing and factory automation.
The ‘Smart Enterprise Wave’ has been deftly adding layers of software, AI, and IoT to existing advanced manufacturing robotics, which according to GP Bullhound is heading to the $2.0 trillion range.
Europe’s smart manufacturing market is currently valued at $24 billion – ahead of the U.S’ $20 billion – with companies emerging within Smart Factories, IoT and digital design, simulation and integration.
According to GP Bullhound, Europe had seen growth in the number of funding rounds related to smart manufacturing in recent years, reaching a high of 17 transactions in 2017 – a five-fold growth since 2013.
The report also found that the global smart manufacturing sector is generating an immense volume of investment.
According to the report, the sector received over $6.7 billion of venture and growth funding in 2018 – making it a 14-fold increase on the $0.5 billion invested in 2013.
“Europe’s smart manufacturing capabilities have undergone continuous growth, with an increased number of funding rounds and as an important consolidation target for U.S. and Asian players,” notes GP Bullhound director Dr Nikolas Westphal.
“Smart manufacturing is the future and ultimately, we believe that automating repetitive tasks will enable us to concentrate on those qualities that set us apart from machines and algorithms: being and acting human. Europe is an important global hub in this segment.”
The report also points out that China could soon become a global cluster thanks to its aspirations of catching up on innovation in smart manufacturing.
Data collected from 2016 shows that China spent more on overall research and development ($396 billion) than Europe ($322 billion).
Moreover, China’s spending was almost as much as the U.S. ($403 billion) in absolute terms, translating into the highest percentage of GDP among the four world regions.
Content and image: BusinessCloud Europe/West Virginia University