In this article, we will look at the Top 25 Manufacturing Countries in the World in 2024.
The manufacturing industry is a key proponent of growth for the global economy. Not only does it contribute heavily to the GDP but also fuels other related industries by creating job opportunities. According to the World Bank, the Value Added Manufacturing industry contributed approximately 15% to the global GDP in 2023. Moreover, there were nearly 13 million workers in the manufacturing sector of the US alone as of May 2024.
Manufacturing Industry Outlook – United States
The United States of America holds the second-largest manufacturing industry in the world after China. The manufacturing value-added output of the United States of America was recorded to be at an all-time high of $2.89 trillion in Q4 of 2023. The industry output increased by 1.16% in a quarterly analysis from Q3 to Q4, and the industry as a whole accounted for approximately 10.3% of the value-added output of the country during the same year. The increased output of the industry is mainly attributed to the momentum gained by 3 legislation that became law in 2021 and 2022. The Infrastructure Investment and Jobs ACT, the Creating Helpful Incentives to Produce Semiconductors and Science Act, and lastly the Inflation Reduction Act. These laws helped prioritize the rebuilding of infrastructure, strengthen the domestic semiconductor industry, and advance clean energy initiatives, thereby fostering job growth, workforce development, and equity in the sector. If you want to read more about manufacturing countries you can look at the 11 Largest Heavy Equipment Manufacturers in the World and 15 Largest Truck Manufacturers in the World.
In terms of investment and economic benefits, these legislations boosted private investment in the manufacturing industry. The investment in the semiconductor industry and clean energy initiatives doubled in 2023 when compared to the investments made in 2021. Moreover, since 2021 more than 200 new clean technology manufacturing facilities worth $200 billion have been established across the country. These new facilities are expected to create around 75,000 new jobs.
However, moving forward to 2024, the industry is expected to face some challenges emerging from economic uncertainty, shortage of skilled labor, supply chain disruptions, and the commitment to reach net-zero emissions. To tackle these challenges industry leaders are focusing on several key initiatives and trends for 2024. To overcome the challenge of talent shortage industry leaders are working on removing obstacles for their employees, according to a survey conducted by the National Association of Manufacturers 46.8% of manufacturing executives are offering flexible work hours to boost worker productivity. Moreover, these executives have also increased worker compensation. According to Deloitte, the average hourly wage of employees in the manufacturing sector increased by around 4% from 2022 to 2023.
In addition, with generative AI and machine learning technologies on the boom, manufacturers are focused on leveraging these technologies to build smart industries. According to the latest survey by Deloitte, 83% of the respondents believe that smart factories will transform the way products are made in 5 years. On the other hand, many industry leaders have already started to adopt data-related technologies into their processes. According to another survey by the same organization, around 70% of the manufacturing executives through their smart factories initiatives have started to incorporate data analytics and cloud computing technologies into their processes.
Companies Contributing to Growth in the Manufacturing Industry
Companies like Caterpillar Inc. (NYSE:CAT) not only contributes heavily to the manufacturing sector of the United States but is also a leader in the global manufacturing market. Caterpillar Inc. (NYSE:CAT) is one of the world’s leading manufacturer of mining, construction, locomotives, and industrial equipment. With its headquarters in Illinois, the company operates in three main business segments including resource industries, construction industries, and energy and transportation. The network of Caterpillar runs through Americas, Asia-Pacific, Europe, and the Middle East.
The company heavily contributes to the manufacturing sector, according to Caterpillar Inc. (NYSE:CAT) annual report 2023, it generated $67.1 billion in sales revenue, $23 billion in services sales, and $2.1 billion through research and development. Moreover, the company employs more than 113,000 manufacturing sector works of the country. The company continues to invest in the manufacturing sector of the United States, on May 16, Caterpillar Inc. (NYSE:CAT) announced to invest $90 million in Texas to prepare its industrial engine facilities in Schertz and Seguin. On the other hand it has grown its global reach as well with approximately 54% of its 2023 sales originating from outside the US.
In addition to this, Caterpillar is also a leader in promoting sustainability in the sector, and has invested more than $30 billion during the past 20 years to deliver innovative and sustainable solutions to the industry. The company has been able to achieve 35% reduction in absolute GHC emissions since 2018 and has reduced landfills intensity by 44% during the same period.
Now that we have discussed the outlook of the manufacturing sector in the US and how companies like Caterpillar Inc are boosting the industry. Let’s now look at the top 25 manufacturing countries in the world in 2024.
A sophisticated manufacturing facility with rows of robotic arms assembling communication equipment.
Our Methodology
To compile the list of the top 25 manufacturing countries in the world in 2024, we relied on the World Bank’s data on Manufacturing value-added (current US$). From this data set, we ranked the countries based on the most recent data available, which is 2023. Please note that for the United States of America and Japan, the latest data available at the World Bank was for 2021, therefore we used government websites of these countries to cite the Manufacturing value-added figures for 2023. For this article, we have hypothesized that a country with a high manufacturing output in 2023 is likely to have high output in 2024 as well. The list is arranged in ascending order of the total manufacturing value added in 2023. Moreover, we have added population figures for 2024 in our list descriptions sourced from the IMF.
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Top 25 Manufacturing Countries in the World in 2024
25. Australia
Total Manufacturing Value Added in 2023: $92.89 billion
First on our list is Australia. It is the 25th biggest manufacturing country in the world in 2024. The manufacturing sector of Australia is diverse with sub-sectors comprising food, beverages, tobacco, petroleum, chemicals, and machinery.
24. Bangladesh
Total Manufacturing Value Added in 2023: $97.73 billion
Bangladesh ranks 24th on our list of top 25 manufacturing countries in the world in 2024. It is a South Asian nation with 172.02 million people as of 2024. The manufacturing sector of the country mainly relies on the textile and the garment industry making approximately 80% of the country’s exports and employing a significant proportion of Bangladesh’s workforce.
23. Vietnam
Total Manufacturing Value Added in 2023: $102.63 billion
Vietnam is an Asian country that ranks 23rd on our list of top 25 manufacturing countries in the world in 2024. The manufacturing sector of Vietnam contributed approximately 20% to the GDP of the country during the past decade. The government aims to boost the sector and contribute 30% to the GDP in the next decade.
22. Argentina
Total Manufacturing Value Added in 2023: $104.39 billion
Argentina is a South American country that ranks 22nd on our list of top 25 manufacturing countries in the world in 2024. It has a population of approximately 47.16 million in 2024. The country has a diverse manufacturing sector including food processing, beverages, chemicals, motor vehicles, and auto parts.
21. Thailand
Total Manufacturing Value Added in 2023: $128.27 billion
Thailand is an Asian country that ranks 21st on our list of top 25 manufacturing countries in the world in 2024. The country has a population of 70.27 million as of 2024. The total amount of manufacturing sector value added in 2023 was around $128 billion in 2023.
20. Netherlands
Total Manufacturing Value Added in 2023: $130.23 billion
The Netherlands is a European country that ranks 20th on our list of top 25 manufacturing countries in the world. It has a population of approximately 17.92 million as of 2024. The manufacturing sector of the Netherlands is diverse and is a key contributor to the GDP of the country. The Netherlands is recognized as one of the global leaders embracing technology like robotics, Industry 4.0, and 3D printing.
19. Poland
Total Manufacturing Value Added in 2023: $131.71 billion
Poland is another European country that ranks on our list of top 25 manufacturing countries in the world. The manufacturing sector of Poland contributes greatly to the GDP of the country and around 86% of the total industrial production of the country originates from the manufacturing sector. Some of the largest manufacturing sectors of the country include food products, motor vehicles, metal products, etc.
18. Saudi Arabia
Total Manufacturing Value Added in 2023: $157.88 billion
Saudi Arabia is a Middle Eastern country that ranks 18th on our list of top 25 manufacturing countries in the world in 2024. The country has a population of 33.48 million as of 2024. The total amount of manufacturing sector value added in 2023 was around $157 billion in 2023.
17. Switzerland
Total Manufacturing Value Added in 2023: $160.23 billion
Switzerland is a European country that ranks 17th on our list of the top 25 manufacturing countries in the world in 2024. The country has a population of 8.88 million as of 2024. The total amount of manufacturing sector value added in 2023 was around $160 billion in 2023.
16. Spain
Total Manufacturing Value Added in 2023: $181.59 billion
Spain is a European country that ranks 16th on our list of the top 25 manufacturing countries in the world in 2024. The country has a population of 48.38 million as of 2024. The total amount of manufacturing sector value added in 2023 was around $181 billion in 2023.
15. Ireland
Total Manufacturing Value Added in 2023: $186.52 billion
Ireland makes it to the top 15 manufacturing countries in the world in 2024, the country’s total amount of manufacturing sector value added in 2023 was around $186 billion in 2023.
14. Turkiye
Total Manufacturing Value Added in 2023: $215.04 billion
The manufacturing sector is a key driver of Turkey’s economy, accounting for 84% of total production. It ranks 14th on our list of the top 25 manufacturing countries in the world in 2024.
13. Russia
Total Manufacturing Value Added in 2023: $251.58 billion
Russia’s manufacturing sector has been expanding in recent years, with industrial production growing by 5.3% year-over-year in May 2024. It ranks 13th on our list of the top 25 manufacturing countries in the world in 2024. Some of the key sectors contributing growth of the Manufacturing industry of the country include petroleum, chemicals, and machinery.
12. Indonesia
Total Manufacturing Value Added in 2023: $255.96 billion
Indonesia is an Asian country that ranks 12th on our list of the top 25 manufacturing countries in the world in 2024. The country has a population of 279.96 million as of 2024. The total amount of manufacturing sector value added in 2023 was around $255 billion in 2023. The manufacturing sector of Indonesia employs around 21% of the country’s total workforce.
11. United Kingdom
Total Manufacturing Value Added in 2023: $284.06 billion
The United Kingdom ranks 11th on our list of top 25 manufacturing countries in the world in 2024. The country has a population of 68.43 million as of 2024. The total amount of manufacturing sector value added in 2023 was around $284 billion.
10. Brazil
Total Manufacturing Value Added in 2023: $289.79 billion
Brazil makes it to the top 10 manufacturing countries in the world in 2024. It is a South American country with a diverse manufacturing industry comprising automobiles, steel, and petrochemicals. The total amount of manufacturing sector value added in 2023 was around $289 billion in 2023.
9. France
Total Manufacturing Value Added in 2023: $294.47 billion
France is a European country that ranks 9th on our list of the top 25 manufacturing countries in the world in 2024. The country has a population of 66.09 million as of 2024. The total amount of manufacturing sector value added in 2023 was around $294.47 billion in 2023.
8. Italy
Total Manufacturing Value Added in 2023: $354.72 billion
Italy is another European country that ranks 8th on our list of the top 25 manufacturing countries in the world in 2024. The country has a population of 58.82 million as of 2024. The total amount of manufacturing sector value added in 2023 was around $354.72 billion in 2023.
7. Mexico
Total Manufacturing Value Added in 2023: $360.73 billion
The manufacturing sector in Mexico is a significant contributor to the country’s economy, with several prominent industries driving its growth and competitiveness. Mexico ranks 7th on our list of top 25 manufacturing countries in the world in 2024. The country has a population of 132.27 million as of 2024. The total amount of manufacturing sector value added in 2023 was around $360 billion in 2023.