While every year brings changes in the way manufacturers operate, 2023 is no exception. Although some of those transformations are larger & broader others are smaller & more specific but all of these 2023
manufacturing industry trends are worth knowing about since if you fail to keep up with them, you could fall behind in your industry. Therefore, we have taken the time to find the three of the most important manufacturing trends for 2023.
Several manufacturing firms transform in different ways. However, a few changes show up as industry-wide trends & those are the ones enterprises should really know for keeping up with the competition. These trends include:
Products as a Service to optimize value-added services
The
digitalization of almost all
industrialization has changed dramatically & the way customers interact with brands - has shifted their expectations of the customer experience. Product as a Service/Servitization is one of the business models where manufacturers lease the equipment to customers for providing a set of subscription-based value-added services. Through this, the customers get several benefits such not only by paying for what they require, but also gaining additional support from OEMs for accessing a new array of value-added services, that help in
optimizing operations.
Manufacturers stand to gain even more. Product as a service/PaaS shows a shift from selling equipment as a capital expenditure to an ongoing expense model. This means that instead of the process a range of single-time transactions, manufacturers have now started to enjoy recurring revenue. The opportunity to grow aftermarket value streams as well as capture revenue throughout the equipment lifecycle is only half the incentive: It also facilitates manufacturers to gather equipment usage data from customers - data that can be used for better understanding the requirements of the customers, maximize current offerings, and get new products to the market.
Though PaaS has generated a huge buzz in the past years, its underpinning has a way to go until it evolved into a feasible business model. The IoT, Artificial Intelligence, predictive analytics, & other related technologies have reached a level of maturity finally where Product as a Service is not a theoretical possibility any more, however a real opportunity. As the technology matures, it also goes to become even more affordable as well as accessible that means a huge number of manufacturers will be in a position to capitalize on the technology. When these elements are combined together with changes in consumer behavior comprising the need for a better customer experience as well as the demand for less expensive equipment it only means that Product as a Service will have its day in 2023 finally & emerge as one of the biggest manufacturing trends of the year.
IIoT is still the big thing
The Internet of Things or IIoT stays as one of the leading manufacturing trends for 2023 and thanks to the emerging use cases. Industrial Internet of Things that entails the interconnection of unique devices within the current internet infrastructure has facilitated manufacturers to take more informed, as well as strategic decisions by leveraging real-time data & achieve a wide variety of goals. This include cost reduction, improved efficiency, safety, product innovation etc.
In the year 2019, a majority of manufacturers had already implemented Industrial Internet of Things in key areas of their businesses and those that had not yet implemented it stated that they planned to do so in the near future. According to reports, Internet of Things in the manufacturing market will go up to USD 399.08 billion in value by the end of 2026, and through this projection it is clear that the investments made by manufacturers in IoT will only rise in 2023 & beyond.
Enhancing production efficiency through Digital twins
One of the recent advancements or developments in the world of Internet of Things - a digital twin is either an exact replica of a real-world piece of equipment or a specific component that is rendered in a virtual environment. As it is exact, it mirrors the actual asset not just in appearance but also in functionality and how it connects either to other components/machines & even environmental conditions. This simulation facilitates manufacturers to not only run tests, but also model scenarios, conduct trainings & observe how equipment performs under several conditions without ever having to touch the actual asset.
In every aspect of a business, manufacturers can leverage Digital twins - the powerful tools, including optimizing production by modeling several processes & determining potential bottlenecks as well as other hidden inefficiencies. Also, it helps in testing out new production lines & prototyping new products in an efficient & affordable way which augments speed to market & modeling new business opportunities in support of growth strategies.
The road ahead
Despite all of the anticipated challenges, the manufacturing sector is poised for growth & the future of this sector looks brighter than ever. Manufacturers should be adopting particular changes & leverage the right technologies to not just survive but thrive as well.
