Made in China vs Made in India: Who will win the global manufacturing race?
According to reports, Made in China 2025 will be unveiled in the near future and will give Made in India a run for its money as the two nations fight to become the world’s main manufacturing hub.
Made in China 2015 reportedly identified ten sectors as priorities, including:
- New information technology
- High-end numerically controlled machine tools and robotics
- Aerospace equipment
- Ocean engineering equipment and ships with high technology
- Advanced railway traffic equipment
- Energy saving and new energy vehicles
- Power equipment
- New materials
- Biological medicine and high-performance medical devices
- Agricultural production machinery
Made in China 2025 will focus on upgrading of the manufacturing sector to improve innovation, and integrate information technology and industrialization through green manufacturing and manufacturing internationalization.
While many comparisons have been made between India’s Made in India campaign and Germany’s Industrie 4.0, Chinese officials have claimed that its approach is very different, and builds on China’s reputations as a world class manufacturing destination.
Industrie 4.0 — the result of collaboration between the German government, research institutions and businesses — focuses on the development of fully-automated "smart" factories. These factories would make products on the shop floor fully customizable, according to media reports.
Made in India focuses on making India a destination of choice through having an engaged workforce and open trade and business channels.
Made in China 2025, on the other hand, will span the whole manufacturing industry, applying advanced ideas not only from Germany but also from the US and Britain, among others.
It is understood that the aim of the initiative is to push forward the transformation and upgrade of the manufacturing industry, but also push development.
Amid China's "new normal" of economic development, featuring slower but higher quality growth, the government is attempting to steer the economy toward a more sustainable growth mode driven by domestic consumption, the service sector and, most importantly, innovation. To this end, Made in China 2025 will focus on five major projects, including the establishment of a manufacturing innovation centre.
A focus on innovation has resulted in some domestic companies, such as telecommunications giant Huawei, climbing up the value chain. The Shenzhen-based company has spent more than 190 billion yuan (US$30.6 billion) on R&D over the past decade. Of its 150,000 employees, more than 45 percent are in innovation, research and development positions.
In 2014, spending on R&D in China accounted for 2.1 percent of GDP, a record high. The proportion in some regions such as Shanghai was as high as 3.6 percent. Thanks to these efforts, improvements can be seen, such as the industrial value added of the high-tech sector and equipment manufacturing, which jumped by 11.4 percent and 7.7 percent respectively in the first quarter, out-pacing overall industrial growth.
Industrial output grew 6.4 percent year on year in the January-March period, down from 8.7 percent growth a year ago.
By 2025, the plan aims to see the lead time of products shortened by 20 percent of the current average, according to the insider.
Made in China 2025, proposed in this year's government work report, was touted as having the potential to empower the manufacturing sector.
Four Factory of the Future Market Trends to Keep an Eye on
Global Smart Manufacturing Market
Attributed to the rapid growth in the adoption of automated systems in industrial processes, the is predicted to grow from US$$175bn (2020) to US$303bn by 2026 with a compound annual growth rate (CAGR) of 6.4% between 2019 and 2026.
While COVID-19 has somewhat slowed down the market’s growth, it is expected that by the second to third quarter of 2023 there will be a ‘considerable’ rise in growth for the market.
Key players in the industry: Schneider Electric, General Electric, Siemens, Honeywell International Inc., Rockwell Automation Inc., FANUC Corporation, and Emerson Electric Co.
Industrial Automation Market
Making people’s lives easier, and their work more accurate and effective, the global demand for automated technologies such as robotics - especially in science and technology - is driving its increase in global market value.
Key players in the industry: ABB, Siemens, General Electric, Schneider, Endress+Hauser, Yokogawa, Honeywell, WIKA, Azbil, Fuji Electric, 3D Systems, and HP.
Smart Factory Market
Expected to grow from US$80.1bn (2021) to US$134.9bn by 2026, the - with a CAGR of 11% between 2021 and 2026 - is experiencing growth driven by fiscal policies adopted to keep manufacturing facilities afloat during COVID-19.
Other driving factors include resource optimisation, cost reduction in production operations, increased demand for industrial robotics, rising demand for technologies, and the growing significance of energy efficiency.
Key players in the industry: Emerson Electric Co., General Electric, Rockwell Automation, Inc., Schneider Electric SE, ABB Ltd., Siemens AG, Mitsubishi Electric Corp., Honeywell International Inc., Endress+Hauser AG, and Yokogawa Electric Corp.
Artificial Intelligence (AI) in Manufacturing Market
“It is undeniable that the manufacturing industry is at the forefront of artificial intelligence implementation,” says . “Manufacturers are using AI-powered analytics to increase performance, product quality, and employee protection, from substantial reductions in unplanned downtime to better crafted goods.”