Manufacturing Tech Market Map

Schematic Ventures ' Aditya Raghupathy breaks down the discrete manufacturing technology ecosystem, check out this post for a market map, research and more!

Manufacturing Tech Market Map??????

More than 4,000 US firms comprise a cohort of manufacturing and industrial companies that are redefining the future of US manufacturing. Over the last year, these companies have faced recession fears, continued labor unavailability, global conflict, and political instability leaving them with a multitude of challenges to overcome. As the new year begins these companies will continue to look to technology to transform and address these challenges. The impact? A transformation of the US manufacturing sector could boost US GDP by $275 billion to $460 billion while adding up to 1.5 million jobs!

With the rise of new technologies and techniques, the industry is rapidly changing, and it’s important to understand emerging companies and technologies at the heart of the transformation. Over the next two posts, I will share market maps to highlight unique companies building across both discrete and continuous manufacturing.

Let’s start with discrete manufacturing!

Discrete manufacturing is the process of creating single-item products. This type of manufacturing is used in the production of electronics, medical devices, automotive parts, aerospace parts, and other consumer goods. Previous research found that 95% of discrete manufacturers still use paper-based processes (27% still use paper for more than half of all processes). This % has changed in recent years due to the proliferation of technologies targeting a variety of use cases. With the rise of the Internet of Things (IoT) and next-generation Manufacturing Execution Systems (MES) such as?Fulcrum?( Schematic Ventures portfolio company) and?Amper, manufacturers are now able to quickly and easily gather data from their machines and processes, allowing them to make more informed decisions about their production processes. This has enabled manufacturers to create more efficient and effective production lines, reducing costs and increasing profits. Furthermore, with 77% of manufacturers saying they will have ongoing difficulties in attracting and retaining workers, workforce development has developed into a key focus area. Startups?Gig and Take??( Schematic Ventures portfolio company) and?Parsable?help manufacturers dynamically adjust to labor variability and empower frontline operations by reducing the potential impact of missing jobs. Finally, with the launch of the US government’s Additive Manufacturing Forward (AM Forward) program, 3D printing companies can further entrench themselves as a core part of the product lifecycle and overcome common challenges that have slowed adoption. Companies such as?ProtoLabs,?Fictiv,?and?FormLabs?can further enable manufacturers to bring new products to market faster than ever before. Small to medium size manufacturers can now cost-effectively create prototypes, test new products without having to invest in expensive equipment, and reduce long lead times via rapid iteration of high-performing components.

If you think I missed something,?I would love to hear from you! The future of manufacturing is bright, and I am excited to see the continued transformation in the coming years.