Global Manufacturing Share Shift: China Overtakes the U.S. in Production Share

Global manufacturing share refers to the percentage of total worldwide manufacturing output contributed by a specific country. This figure indicates a nation’s industrial strength, production capacity, and its role within the international economic system. It is a key metric in assessing economic competitiveness and influence in global trade.

Between 1990 and 2024, global manufacturing dynamics changed dramatically. In 1990, the United States was the dominant manufacturing power, accounting for over one-fifth (22.17%) of the world’s manufacturing output. Japan and Germany followed with 13.46% and 9.59% respectively. Other major contributors included Italy, the U.K., and Russia, reflecting a world order where industrialized Western economies led production.

However, by 2024, China had taken a commanding lead with 32.02% of global manufacturing output. This represents more than an elevenfold increase from its 1990 share of 2.80%, illustrating China's rise from a low-cost production hub to a sophisticated industrial powerhouse. China’s growth reflects decades of investment in infrastructure, manufacturing innovation, supply chain integration, and workforce scaling.

The United States, though still a major player, dropped to second place with 15.03%, indicating both relative decline and the globalization of its manufacturing base. Japan and Germany also saw significant reductions in share, pointing to economic stagnation, demographic shifts, and the relocation of manufacturing to lower-cost regions.

South Korea's growth is especially notable, climbing from 1.53% in 1990 to 3.31% in 2024 and entering the top five. Its advancements in electronics, shipbuilding, and battery technology have helped solidify its position. India also saw impressive growth, increasing its share from 1.17% to 3.27%, signaling its emergence as a critical manufacturing player in the global landscape.

Meanwhile, emerging economies such as Vietnam, Bangladesh, and Malaysia entered the global manufacturing rankings, each surpassing or equaling 0.6%. These countries benefit from rising labor costs in China and are increasingly attractive for foreign direct investment. Traditional Western economies, including France, the U.K., and Canada, experienced a decline in relative share as they transitioned toward service-oriented economies.

Overall, the data demonstrates a profound global realignment in manufacturing power, with Asia increasingly dominating the landscape. This shift has implications for trade policy, global supply chains, and economic development strategies for both developed and developing nations.