Market Size
6.5 lakh crore in FY18
Exports
1.1 lakh crore in FY18
Market Structure
38% Organized, 62% Unorganized
Industry Median EV/EBITDA
19.1x
1. Automation and Robotics in Manufacturing
Role of Robots: Automation, particularly robotics, is a significant feature of smart manufacturing. Robots are being used to perform repetitive and high-precision tasks, such as assembly, welding, painting, and packaging. This reduces human error, increases production speed, and improves quality consistency.
Impact on Jobs: Routine manual jobs are being replaced by robotic systems. For example, traditional assembly line workers may be displaced by robotic systems, while other workers are needed to oversee and maintain these machines. This results in a shift in required skills, from manual labor to technical and maintenance roles.
2. Artificial Intelligence and Machine Learning
Predictive Maintenance: AI-powered systems monitor equipment and predict when maintenance is needed, preventing costly breakdowns and minimizing downtime. Machine learning algorithms help improve decision-making processes in production lines by predicting demand, optimizing schedules, and adjusting processes in real-time.
Impact on Jobs: AI and machine learning reduce the need for human intervention in day-to-day decision-making but create demand for AI specialists, data scientists, and engineers who can develop, maintain, and optimize these intelligent systems.
3. The Internet of Things (IoT)
Connected Devices: The IoT enables machinery, equipment, and tools to communicate and share data, allowing real-time monitoring and improvements in efficiency. This connectivity enhances the flow of information across the factory floor, from raw material supply to final product delivery.
Impact on Jobs: IoT implementation increases demand for data analysts and cybersecurity professionals who are capable of handling the vast amount of data generated. Additionally, workers are needed to interpret the data and make decisions based on insights provided by IoT systems.
4. 3D Printing and Additive Manufacturing
Customization and Rapid Prototyping: 3D printing allows for more flexible manufacturing, enabling customized products and rapid prototyping. Manufacturers can produce complex parts with less waste, and the ability to make smaller batches of products opens new opportunities for businesses.
Impact on Jobs: 3D printing requires specialized knowledge, so there’s an increased need for workers skilled in computer-aided design (CAD), additive manufacturing, and materials science. It also creates roles in quality control and product design.
5. Advanced Analytics and Big Data
Data-Driven Decisions: Advanced analytics, powered by big data, provides insights into every stage of the manufacturing process. This helps manufacturers optimize workflows, reduce waste, improve supply chain management, and boost overall efficiency.
Impact on Jobs: Roles in data analysis, business intelligence, and supply chain management are becoming more prominent. Workers need to be proficient in analyzing data to make informed decisions, leading to the demand for more technologically skilled personnel.
6. Flexible and Agile Manufacturing Systems
Customization and Adaptability: Smart manufacturing enables manufacturers to be more responsive to changing consumer demands and market conditions. Agile production systems can quickly adapt to new products, altering production lines or manufacturing techniques with minimal downtime.
Impact on Jobs: Workers will need to be more adaptable, learning new skills and techniques to operate more flexible systems. There will be a growing need for cross-disciplinary skills, where workers can easily switch between different roles within a smart factory environment.
7. Job Creation in Technology and Maintenance Roles
While automation may lead to job displacement in manual and repetitive tasks, it also creates new jobs that require more advanced technical skills.
Automation Engineers: These professionals design, implement, and maintain automation systems.
Robotics Technicians: They ensure that robots are operating efficiently and troubleshoot any issues.
Data Analysts/Scientists:Data Analysts/Scientists: Responsible for analyzing and interpreting data generated by smart systems to help improve performance.
Cybersecurity Experts: As more devices become connected, there is a need to secure manufacturing systems from cyber threats.
8. Changing Nature of Worker Skill Sets
Reskilling and Upskilling: One of the most significant changes in the workforce due to smart manufacturing is the need for workers to reskill and upskill. Manufacturers will increasingly seek employees who are comfortable with technology and capable of working alongside automated systems.
Focus on Tech-Savvy Workers: The demand for employees with technical expertise, especially in areas like software development, data analysis, and machine learning, is expected to grow.
9. Impact on Job Quality
Safer and Less Physically Demanding Work: With automation handling the most dangerous and physically demanding tasks, human workers can focus on roles that require cognitive skills and problem solving, improving overall job quality.
Workplace Safety: The integration of automated safety systems and predictive maintenance technologies reduces workplace accidents and improves health standards.
10. Global Workforce Implications
Job Distribution: Smart manufacturing can potentially alter global job markets, as companies may choose to adopt automation in countries with higher labor costs, reducing the need for workers in those regions. On the flip side, developing countries may benefit from the opportunity to attract investment in smart factories, leading to job creation in higher-skill manufacturing jobs.
Decentralization of Manufacturing: Automation and smart technologies may also lead to more localized production, as companies can operate smaller, more efficient factories closer to their target markets, creating jobs in new regions.