10 Key Areas That Will Drive Growth For Manufacturers in 2024.

In 2023, the industrial machinery manufacturing sector experienced robust growth driven by heightened consumer demand and the introduction of innovative technologies and products. 

This growth trajectory is anticipated to continue in 2024, fuelled by enhanced collaboration among machinery original equipment manufacturers (OEMs), automation companies, and vendors in the Internet of Things (IoT) sector. With more businesses looking to remain at the forefront of their industries, here are 10 areas we think manufacturers can witness growth in 2024.

1. Customisation in the Machinery Sector

The industrial machinery market was valued at USD 682.7 billion in 2022 and is projected to grow at a CAGR of 6% between 2023 and 2032. Manufacturers strive to meet diverse customer needs, so customised machinery solutions have become key growth drivers. For instance, the rising demand for advanced equipment in sectors like agriculture necessitates tailored solutions. 

As technology growth is expected to drive the need for machinery solutions that meet specific customer needs, manufacturers should monitor their machinery's performance to tailor their offerings, ensuring optimal performance and efficiency for specific applications. The projected growth in this area will be an opportunity for manufacturers to utilise to drive growth.

2. The Shift to the East

According to IMF data, the Asia-Pacific region is projected to grow by 4.5% in 2024 and 4.3% in 2025, accounting for nearly 60% of the global growth. Similarly, the World Bank projects the region will grow by 4.5% in 2024 and 4.4% in 2025. Although growth is expected to slow to 3.9% in the medium term, it is still expected to be above the global average growth of 3.1%, according to IMF. 

The industrial machinery market in the region is expected to exhibit substantial growth. While specific percentage figures vary, particularly in countries like India and China, the region’s infrastructure spending, favourable government policies, and increasing manufacturing activities provide substantial growth potential for companies that strategically expand their operations to Asia-Pacific and tap into this burgeoning market.

3. 3D Printing

Additive manufacturing (3D printing) is revolutionising the production of industrial machinery components. It offers precise and accurate fabrication, minimising material waste and enabling the creation of complex geometries while reducing waste and costs and contributing to sustainability. 

This technology facilitates rapid prototyping, accelerating design iterations and time to market with reported time savings of up to 50%. Additionally, it allows for customisation and on-demand production, minimising inventory costs and ensuring timely availability. With its ability to create robust, lightweight structures with tight tolerances, manufacturing companies that capitalise on this company will benefit from growing demand for such parts from various industries such as aerospace, automotive and medical.

4. Robotics

Robotics and automation are transforming manufacturing processes. Industrial robots optimise workflow, achieving higher output levels in less time. They can perform repetitive tasks consistently, reducing human error and variability.

As robot production has increased, costs have decreased, with the average robot price falling by half in real terms over the past 30 years. With robots increasingly replacing extensive human labour, manufacturing companies that use robots in their workplaces will yield an average savings of 17.71% in labour costs, giving them a competitive edge.

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5. Servitisation

Servitisation diversifies revenue streams through services like maintenance and repairs, stabilising income and reducing reliance solely on product sales. This fosters long-term customer relationships, building trust and loyalty. Satisfied customers enhance the company's competitive edge as a holistic solution provider. 

Manufacturing companies can benefit from the predictable revenue from service contracts, which allows them to plan their finances much better, as the upselling opportunities during maintenance visits further boost revenue.  Besides, adapting services to evolving products mitigates obsolescence and promotes sustainability through repair and reuse, with companies benefitting massively from the data-driven insights from remote monitoring, allowing them to optimise their offerings.

6.  Use of Newer, Advanced Materials 

Materials science innovations are reshaping industry capabilities in machinery manufacturing. Cutting-edge alloys, composites, and polymers yield components with unparalleled strength, enduring heavy loads and extreme conditions. Lightweight materials like high-strength aluminium alloys and carbon fibre composites reduce weight, save energy, and enhance agility. 

Advancements in ceramics, superalloys, and specialised coatings bolster durability, resisting wear, corrosion, and fatigue for prolonged service life. With safety as a priority, which is key for many users, machine manufacturers can utilise the long-term benefits of these materials to reduce maintenance, optimise performance, and underscore their cost-effectiveness to their users. 

7. Alternative Energy

The machinery industry faces increasing pressure to adopt cleaner energy sources amid growing environmental concerns. Initiatives like the European Green Deal and the US Climate Agenda set ambitious targets for emissions reduction and renewable energy adoption, prompting manufacturers to explore alternative pathways such as lower-carbon fuels and electric drives. 

Electrification emerges as a promising solution, potentially replacing nearly 50% of industrial fuel use. Embracing alternative energy sources presents an opportunity to enhance efficiency, reduce environmental impact, and foster sustainable growth in the machinery sector.

8. Carbon Neutrality

Companies increasingly embrace carbon neutrality as a core objective in an era of paramount environmental consciousness. Machinery manufacturers must join the wagon and diligently track emissions from their machinery and energy-intensive processes. They must also make a concerted effort to implement energy-efficient technologies and practices by transitioning to renewable energy sources such as solar and wind.

They must also enhance their machinery design for lower design and promote sustainable supply chains. Besides, those manufacturers that will adopt real-time monitoring will be able to identify inefficiencies, optimise energy usage, and reduce their carbon footprint to achieve carbon neutrality, which aligns with global sustainability goals and attracts environmentally conscious customers.

9. Battery Manufacturing

Battery manufacturing represents a strategic growth avenue for machine manufacturers, driven by the global shift towards electric mobility and renewable energy integration. With the rising demand for electric vehicles (EVs) and energy storage systems (ESS),  machine manufacturers specialising in battery production equipment are poised to capitalise on this trend. 

Moreover, the global market potential for batteries is substantial, with projections indicating a market size of $279 billion by 2030. Manufacturers who strategically position themselves in this lucrative market will gain a competitive edge and contribute to progress, sustainability, and a cleaner future through battery manufacturing innovation.

10. Growth Accelerators

Innovators serve as catalysts for industry growth, driving progress through their relentless pursuit of novel ideas, technologies, and approaches. Their continuous creation of new technologies, solutions, and business models pushes boundaries and disrupts traditional paradigms, expanding market horizons and creating demand for groundbreaking products and services. 

To maintain their edge, manufacturers that invest in innovation and R&D will be able to adapt to changing competitive landscapes, consumer preferences, and global trends and anticipate needs, thus outmanoeuvring rivals. They will also benefit from collaboration with research institutions, startups, and customers looking to fuel further innovation and co-create value.

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