In this article we are going to list the top 5 manufacturing countries in the world. For a detailed coverage of this topic and a more comprehensive list please take a look at the top 20 manufacturing countries in the world.
5. India
Total manufacturing value added in 2021: $443.9
India recently became the most populated country in the world, overtaking China. While income inequality rages unchecked in the country, its economy has continued to grow steadily which includes its manufacturing sectors as many major multinationals moved their operations to take advantage of lax labor laws and relatively significantly lower wages. The Indian government has continued to provide incentives for major companies to establish factories in the country.
4. South Korea
Total manufacturing value added in 2021: $461.1
South Korea recorded incredible development in the last few decades to become one of the biggest countries in the world by GDP. In October 2021, the government introduced ambitious greenhouse gases reduction targets while its also working on passing its own version of the “Chips Act” to improve its own semiconductor industry as tensions between the U.S. and China continue to increase.
3. Germany
Total manufacturing value added in 2021: $803.2
German engineering and manufacturing is famous for its quality and reliability, be it in terms of machines, automobiles or electrical products. It is also home to some of the biggest car companies by revenue, with its brands in car production including BMW, Mercedes-Benz and Volkswagen among others. However, recently, manufacturing in the country has slowed down as the U.S. has started to provide major subsidies to lure major manufacturers to the country.
2. United States of America
Total manufacturing value added in 2021: $2,497.1
The top two manufacturing countries in the world account for around 46% of global manufacturing. According to McKinsey, moving back to “made in America” and increasing growth and competitiveness in American manufacturing could result in a 15% boost in GDP. For the first time in a while, U.S. manufacturing outpaced the rest of the world.
1. China
Total manufacturing value added in 2021: $4,865.8
Blowing the competition out of the water is China, which easily tops the list of the top 20 manufacturing countries in the world. The country alone accounts for 30% of global manufacturing which is why many of the products that are marketed by companies in U.S., Europe and Canada are all manufactured in China, taking advantage of lax labor laws and much lower wages. The country’s zero-Covid policy has impacted its manufacturing activity, with slower factory activity in China challenging its expected economic recovery.
Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out our articles on 14 Best Affordable Tech Stocks to Buy Now and 11 Best Stocks to Buy on Robinhood for Beginners.
