Market Trends of Model-based Enterprise Industry
Automotive Sector to Witness Major Growth
- The automotive industry is one of the first to promote the development of applications of model-based systems technology on a broad scale. The industry has produced some of the most advanced prototypes and products. According to the European Automobile Manufacturers' Association (ACEA), in June 2023, passenger car sales in the European Union increased Y-o-Y at a rate of 17.8%. Customers in the European market purchased around 1.27 million units in total, and all but one of the countries experienced positive growth.
- In terms of the offering, the solutions segment is estimated to grow during the forecast period. With the introduction of computer-aided design (CAD), 3D models have become the industry standard for designing products, tooling, and manufacturing processes. Most OEMs and larger suppliers in the automotive industry are now model-centric, using 3D models, and are transitioning from 2D drawings as the master design authority.
- 3D virtual models allow automakers to improve design efficiency, reduce cost, and improve quality across the extended enterprise. The 3D design of the product, model-based definition (MBD), combined with the use of these models throughout the extended enterprise, or the model-based enterprise (MBE), is expected to transform the global automotive industry significantly.
- There has been a rising adoption of MBE technology in the European automotive sector in recent years. In October 2023, Cheshire-based Autentica Car Parts introduced its platform that allows car designers and manufacturers to sell spare parts designs to dealers, distributors, and repair centers. The Autentica platform will help design owners and original equipment manufacturers (OEMs) sell spare parts produced locally using an on-demand 3D printing service. MBE aims to clarify design during the manufacturing process using the 3D model-based definition (MBD) that includes all the product and manufacturing information (PMI) related to the product's manufacturing.
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North America Holds Largest Market Share
- North America is anticipated to hold a significant share in the global model-based enterprise (MBE) market, owing to prominent players in the region, such as GE, PTC, Autodesk, and Aras. These companies are adopting strategies focusing on strengthening their market position. Institutes such as the Digital Manufacturing and Design Innovation Institute (DMDII) utilize their ability and expertise to transform the North American manufacturing sector by aiding organizations in the digital revolution.
- The automotive end-user industry vertical in North America is witnessing a growing adoption of MBE solutions. The United States is one of the biggest automotive markets in the world. It is home to more than 13 major automotive manufacturers. Automotive manufacturing has been one of the largest revenue generators for the country.
- The National Institute of Standards and Technology (NIST), an agency that promotes US innovation and industrial competitiveness, hosts the model-based enterprise summit to identify challenges in implementation during product and process design, manufacturing, quality assurance, and sustainment. In this context, digital models provide an authoritative source of information for various activities across a product’s lifecycle.
- NIST’s MBE and QIF Summit will be held at the Chicago MxD facility in April 2024. Topics for the MBE Summit include product and manufacturing details from the MBE standards, users, and implementors’ perspectives. QIF Summit is expected to include QIF 4.0 updates, training, certification initiatives, and Model-Based Characteristics (MBC 1.0).
- The solution segment is anticipated to witness robust growth due to its growing adoption in smart city projects and Industry 4.0 initiatives. In the United States, Intel is collaborating with the city of San Jose, California, to implement Intel’s IoT Smart City Demonstration Platform to further the Green Vision initiative. Using model-based enterprise solutions in these platforms is set to boost the market.
- Canada is also taking significant steps toward implementing Industry 4.0 to increase manufacturing sales by 50% and export to USD 540 billion by 2030. This is analyzed to boost the regional manufacturing sector. Therefore, the penetration of model-based enterprises is expected to increase the market's growth rate.
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