In the Industry 4.0 era, interconnectivity coupled with digital manufacturing is presenting a variety of benefits to organizations. This includes digital twins, connectivity, industrial automation, OT security, managed services and many more.

NelsonHall defines digital manufacturing services as a subset of industrial (IT) services, including consulting and services required to automate manufacturing plants around applications and systems such as MES, control automation, asset management, process optimization, and other shopfloor automation.

The global digital manufacturing services market stands at $1.7bn, and will reach $3.1bn by 2025, growing at 15% CAGR during the period. The pandemic has made digital manufacturing and its emphasis on remote work more relevant than ever. However, it also slowed down investment in 2020 across sectors and, in particular, in automotive and commercial aeronautics.

Enterprises are currently buying remote monitoring and control and, to a lesser extent, predictive maintenance, inspection, assistance, instructions & training, and connected worker services.

Most contracts are small, ranging from consulting to PoCs leading to relatively small systems integration and deployment contracts. Enterprises award these as independent contracts, with few organizations awarding mega deals. However, the market will shift to a higher number of systems integration and deployment contracts, as buyers look to progress from their PoCs. Mega deals will remain scarce, but mid-sized deals will be more frequent, with buyers structuring their spending with a few preferred partners.

You can find more key insights in NelsonHall’s market analysis report, Digital Manufacturing Services: From Concept to Reality. This report is specially designed for:

• Sourcing managers investigating sourcing developments within industrial IT and digital transformation
• Vendor marketing, sales and business managers developing strategies to target digital manufacturing opportunities
• Financial analysts and investors specializing in the IT services and engineering and R&D (ER&D) services sectors.

Dominique Raviart, NelsonHall’s IT Services Practice Director and author of the report, has many years’ experience as a leading analyst, and is well known for his expertise in software testing/QA, Salesforce services, and digital manufacturing. You can email Dominique or visit our website to explore more.