The Smart Factory Market is estimated to grow at a CAGR of 5.23%. The market is estimated to reach around USD 138 Billion during the forecast period 2022-2030.
Globally, the size of the smart factory market is expected to reach USD 138 Billion by forecast 2030, with a CAGR of 5.23% during the forecast period driven by the smart factory industry's growing use of robots in various sectors. A smart factory is a digital platform that transmits data in real-time through various connected machines, gadgets, and other systems. The transmitted data is transferred through Smart Factory Market by Technology for optimizing devices and handling complications easily.
The vendors in the smart factories are constantly trying to develop new solutions to enhance the quantity and quality of the products in the industry. Automation techniques, it helps to improve the flexibility of the design and safety solutions. Due to this reason, various companies are investing in Smart Factory solutions. Increasing developments in technology mainly machines to reduce time consumption will open new scope for the Smart Factory Market.
However, the lack of trained professionals can be a major hindrance for the smart factory market. Also, the emergence of COVID-19 had a severe impact on the market. But despite several restraints, the market in the upcoming years will regain its growth. Due to positive factors like the rising usage in automotive industries for packaging, transportation, pharmaceuticals, etc. will thrive the smart factory market.
The impact of COVID-19 upon the Smart Factory Market Growth was severe. Governments across the world put social restrictions and lockdowns to prevent the spread of the deadly virus. More emphasis on the healthcare sector was given to improve the situation. Many industries including the Smart Factory Market faced huge losses due to low funds, shortage of labour, and movement restrictions.
The major factor driving the Smart Factory industry is the growing use of robots in various sectors. These robots are used for different electronic and industrial tasks such as product assembling, testing, polishing, etc. Also, the growing preference for components like sensors and electronic items will be efficient for the market. Apart from that, the investments for developing advanced machinery such as software, automation, etc. are also efficient drivers for Smart Factory Market.
The lower investments for advanced systems will hinder Smart Factory Market growth. It is because the sudden change from a traditional system to an advanced system will require significant investments. This transformation can cause an immense financial burden and will increase other costs as well.
Several devices like sensors with wireless networks can help to easily monitor environmental and physical conditions with real-time data. Also, the use of wireless sensor networks helps to reduce costs with enhanced communication systems. These wireless systems are largely used in gas and oil industries, generators, compressors, which are mainly controlled by the SCADA system.
The absence of smart solutions in Smart factories is a huge challenge. Also, the use of several architectures and complicated protocols will increase the costs and complexity which will restrict its adoption among small businesses. Hence, it will be challenging for the market to have steady growth due to a lack of efficient data sharing among machines, systems, and manufacturers.
The Compound Annual Growth Rate (CAGR) of the smart factory industry is projected to grow at 12%. According to MRFR analysis, the Smart Factory Market is expected to reach USD 134.9 Billion during the forecast period 2018-2023. With the growing investments and demand for wireless technology, the market will grow at a significant rate during the forecast period.
The increasing demand for better product quality and networks for wireless sensors is fuelling the Smart Factory Market Trends. Also, the use of smart factory systems can help to reduce human labour and improve the quality with easy controls and real-time data. North America will hold the largest Smart Factory Market Share. Thus, the value of the smart factory market will increase significantly in the forthcoming years.
Smart Factory solutions are divided into components, services, connectivity, and industry verticals. On the basis of connectivity, the Smart factory technology is divided into Wireless Connectivity and Wired Connectivity.
On the basis of services, the Smart factory technology is again bifurcated into Professional Services and Managed Services.
On the basis of components, the Smart Factory Market Size is segmented into hardware and software. The hardware segment is again divided into Control Devices, Machine Vision System, Sensors, and Robots.
On the basis of industry vertical, the Smart Factory Market is divided into Defense and Aerospace, Pharmaceutical and Healthcare, Gas and Oil, Automotive, Healthcare, Semiconductor and Electronics, Chemical and others.
Geographically, Smart Factory and smart manufacturing is divided into North America, Asia-Pacific, Europe, South America, and the Middle East and Africa. North America will hold the largest share in the Smart Factory Market. Even in 2017, the market was predominated by North America as well. Due to the growing investments in research and developments, developments by multinational companies, etc. the region will have the largest share.
However, the Asia-Pacific will experience the fastest growth in the forecast period. The market in this region is primarily driven by the growing use of automation technologies among various industrial sectors of countries like India and China. Also, the affordable services in South-East Asia are attracting major companies like Toshiba, Siemens, GE, HTC, which are aiming to establish manufacturing units. India is projected to become the fifth-largest country for smart manufacturing.
There are various key players in the market that use different strategies to increase their revenue. With strategies such as acquisitions, mergers, partnerships, collaboration, product launches, the key players improve their brand image and geographical foothold. These are the important market players contributing to the growth of smart factory systems-
The report overview of the Smart Factory Market Analysis is as follows-
The report score is to give insight into the Smart Factory Market Forecast. The report highlights opportunities, restraints, and strengths of the market in the upcoming years. In this report, the information is collected from various secondary and primary sources. It provides substantial information about the key players as well.
|Market Size||USD 138 Billion|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Component, Connectivity, Industry Vertical|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Siemens AG, General Electric Company (GE), ABB Ltd, Rockwell Automation, Schneider Electric, Honeywell International Inc., FANUC Corporation, Mitsubishi Electric Corporation, Emerson Electric Co., Johnson Controls International PLC, Yokogawa Electric Corporation, Atos SE, Robert Bosch GmbH, Cognex Corporation and Ubisense|
|Key Market Opportunities||
|Key Market Drivers||
The global market of smart factory is likely to expand at 5.23% CAGR by 2030.
Yokogawa Electric Corporation, Johnson Controls International PLC, Robert Bosch GmbH, and Atos SE are some reputed names in the smart factory market.
The hardware smart factory components are sensors, industrial robots, control devices, and machine vision system. The high sales of sensors can bolster smart factor market growth.
Programmable Automation Controller (PAC), Supervisory Control and Data Acquisition (SCADA), Distributed Control System (DCS), Programmable Logic Controller (PLC), and Enterprise Resource Planning (ERP) are software components of smart factory system. An increased adoption of SCADA to catalyse market growth.
The North America smart factory growth was recorded to secure the largest share in 2017, and as per MRFR findings, it is expected to maintain its hegemony by the end of the forecast period.