Make UK: UK Government’s industrial decarbonisation strategy
A major landmark for the industry, Make UK believes that the UK government’s Industrial Decarbonisation Strategy gives “the confidence that our country is politically ready to take action on the Net Zero by 2050 target. The important role that the manufacturing sector plays is very clearly recognised, to which we can breathe a sigh of relief - the lessons from the Covid-19 crisis have been learnt.”
Make UK was pleased to see that “the report emphasises the Government's crucial role in supporting the manufacturing industry especially during the first decade and the need to incentivise energy efficiency improvements.”
Make UK energy efficiency research
While Make UK has identified in its research that manufacturers are keen to invest in energy efficiency improvements, there are still barriers that need to be addressed.
- Carbon pricing: aligning the UK-ETS with the Net Zero target will be a challenge but something that should be addressed.
- Carbon labelling: while defining low-carbon products is a very good idea, in practice it is a challenging task.
- Energy efficiency: energy costs are often a barrier to electrification for many energy intensive manufacturers.
- Green collar jobs: to realise the net zero ambitions the right people equipped with the right skills is needed.
With these challenges in mind, Make UK emphasises that innovation will be a critical contributor to the Industrial Decarbonisation Strategy, suggesting that a ‘Made Greener’ programme similar to ‘Made Smarter’ should be something the government is considering.
“We must push the message that digital technology is in fact an enabler of the low-carbon economy and that ‘digital and green’ go hand in hand,” said Make UK.
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.”