The global cloud manufacturing market is characterized by the presence of several global, regional, and local players.
According to Wantstats analysis, Microsoft Corporation is currently leading the global cloud manufacturing market in terms of market share. Microsoft Corporation offers various products and solutions for cloud-based manufacturing which includes Azure IoT for Process Manufacturing, Connected Field Services, Predictive Maintenance, Connected Factory, and Azure IoT Edge. Microsoft Corporation focusses on developing its products and solution suite with enhanced features as per the industry needs which increases customer satisfaction. The company also emphasizes on collaborating with major manufacturing giants such as the BMW Group to launch cloud-based platform to share smart factory solutions across the manufacturing and automotive sectors which expands its consumer base and helps to maintain its leading position in the global cloud manufacturing market.
Amazon.com Inc. has currently occupied the second position in the global cloud manufacturing market. Amazon maintains a high focus on technology innovation which augments its ability to design and develop products and solutions supporting cloud platform for the manufacturing sector. The company offers a wide product portfolio to support a variety of applications which aids in increasing its client base. The company also considers strategic alliances which to help its clients transform their business processes by developing client-specific solutions. Volkswagen’s industrial cloud platform developed by Amazon in collaboration with Volkswagen AG, helps the company to optimize its production capability and improve process efficiency. The company also emphasizes on building and improving its distribution capabilities to boost its consumer base and help in strengthening its market position.
Hewlett Packard Enterprise Co. has occupied the third position in the global cloud manufacturing market. The company is highly focused on enhancing its cloud platform by adding new features to it. The wide cloud-based product portfolio offered by the company provides an integrated and configurable suite of solutions which helps its clients to optimize their manufacturing processes. The company aims at offering enhanced user experiences to its clients through its hybrid cloud platform by integrating AI, optimizing the infrastructure, and increasing the choice of cloud offered to improve its capabilities which helps in increasing its consumer base. Furthermore, wide geographic reach helps the company to maintain its market position.
Oracle Corporation has currently occupied the fourth position in the global cloud manufacturing market. The cloud platform supporting products and solutions offered by the company helps its users to automate the entire manufacturing processes increasing the process efficiency. Oracle’s Manufacturing Cloud solution offers new and enhanced tools such as embedded analytics which help the manufacturing and supply chain materials providers to enhance productivity and increase the ROI. The company also emphasizes on enhancing its product suite to cater to the demands of clients across various applications. The company is highly focused on strategic alliance and partnership strategies to offer to expand its presence in the global cloud manufacturing market.
Cisco Systems Inc. has currently occupied the fifth position in the global cloud manufacturing market. The company focuses on strategic and continued investments in innovative technology to develop products and solutions that drive its competitive position and profit dynamics in the market. Furthermore, the company has also emphasized on agreements, partnerships, and collaboration strategies to offer advanced capabilities to its Connected Factory and connected Factory Security suite which drives customer satisfaction and expands its geographical reach. Increased customer satisfaction, strong channel partners network and technically skilled R&D team help the company to maintain its position in the global cloud manufacturing market
Michael Porter’s Five Forces model is a framework to study the global cloud manufacturing market. Strategic business managers trying to gain an edge over competitive firms in the global cloud manufacturing market can utilize this model to better comprehend the industry in which their firm operates. The components of each of the forces and the degree of impact of each component in the context of the global cloud manufacturing market have been broken down and analyzed. Threat of New Entrants
Moderately capital-intensive market along with the requirement of high technical expertise allows the entry of new vendors in the market to a certain extent. Furthermore, favorable government initiatives are offering opportunities for emerging players to introduce cloud-based manufacturing solutions and services. Therefore, the new entrants present a high threat to the major stakeholders of the market. Bargaining Power of Suppliers
In cloud manufacturing market, the suppliers are usually third-party vendors and software developers supplying hardware equipment and software development kits (SDKs) who work on a contractual basis. The number of hardware suppliers in the market is high and the overall cost of software development is moderate in the market, making it easy for cloud manufacturing solution providers to switch between hardware vendors and software developers. Therefore, the bargaining power of suppliers in the cloud manufacturing market is expected to be moderate. Bargaining Power of Buyers
The manufacturing industries usually do not have control over the cost of cloud-based manufacturing solutions and services. There has been a rise in the number of buyers of cloud-based manufacturing solutions in the market due to increasing adoption rate of cloud-based solutions by manufacturing industries, which has increased the bargaining power of buyers over the suppliers. Further, the buyers’ ability to opt for substitute technologies such as edge computing-based manufacturing solutions is high. Furthermore, the buyers dictate the specifications and the type of solution required as per the end-use application, which makes their bargaining power high. Threat of Substitutes
The closest competitor of cloud-based manufacturing solutions is moderately priced edge computing-based manufacturing solutions. Buyers have the option to choose from a wide range of product offerings by edge computing-based manufacturing solution providers which raise challenges for cloud-based manufacturing vendors. Since there exists several edge computing solutions in the market that act as a substitute for cloud computing, the availability of substitute in the market is high. However, buyers choose cloud-based manufacturing solutions according to the business requirement, making it easier for them to process business-critical data over the cloud network, resulting in the buyer’s propensity towards the substitute to be moderate. However, the rising number of edge computing based manufacturing use cases in the market makes the threat of substitutes high for the edge computing market. Intensity of Rivalry
There is an intense competition among the existing players in the market, with the vendors investing heavily and using extensive research and development to make advancement in the cloud-based manufacturing product offerings, resulting in a high degree of rivalry in the market.
