Smart Factory Market Report: by Component (Software, Hardware, Service), by Connectivity (Wired Connectivity, Wireless Connectivity), by Industry Vertical (Electronics and Semiconductor, Aerospace & Defense, Automotive, Oil & Gas, Chemicals, Healthcare & Pharmaceuticals and others) Region (North America, Europe, Asia-Pacific and Rest of the World) - Forecast to 2027

Smart Factory Market Overview

According to MRFR analysis, the Smart Factory Market is estimated to grow at a CAGR of 11.7%. The market is estimated to reach around USD 257,485 million during the forecast period 2018-2023. 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 handle 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. With the 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.

COVID-19 Analysis

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.

Market Dynamics

Market Drivers

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.

Restraints

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.

Opportunities

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.

Challenges

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 a steady growth due to a lack of efficient data sharing among machines, systems, and manufacturers.

Cumulative Analysis

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.

Value Chain Analysis

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.

Market Segmentations

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.

Regional Analysis

Geographically, the 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.

Competitive Landscape

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-

• Mitsubishi Electric Corporation


• FANUC Corporation


• Siemens AG


• Honeywell International Inc.


• Schneider Electric


• Yokogawa Electric Corporation


• ABB Ltd


• Johnson Controls International PLC


• Robert Bosch GmbH


• Emerson Electric Co.


• Cognex Corporation


• Atos SE


• General Electric Company (GE)


• Ubisense


• Rockwell Automation

Recent Developments

• Cognex Corporation in 2019 announced a partnership with KT, which is the largest telecom company in South Korea. This partnership is aimed to develop cloud-based systems for factories and business organizations.


• Ubisense Group PLC, a Smart factory company in 2018 launched its new IIoT platform called “SmartSpace IIotT” for several production units around the world.


• Yokogawa Electric Corporation in 2018 launched its product called “Sushi Sensor” which is a compact and wireless device. It can be combined with communicative and wireless devices for monitoring the surface temperature and equipment vibration of power plants.


• Honeywell- a renowned key player in the market launched a new system known as “ControlEdge Programmable Logic Controller (PLC)” along with DCS (Distributed Control System) to control the costs and improve cyber security for the industries.

Report Overview

The report overview of the Smart Factory Market Analysis is as follows-

• Market Overview


• COVID-19 Analysis


• Dynamics of the Market


• Value Chain Analysis


• Market Segmentation


• Regional Analysis


• Competitive Analysis


• Recent Development

Report Score and Segmentation

• Study Period- 2018-2023


• Base Year-2021


• Forecast Period- 2018-2023


• Historical Period-2019-2020

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.

Segmentation

By Connectivity

• Wireless Connectivity


• Wired Connectivity

By Component

• Software


• Distributed Control System (DCS)


• Programmable Automation Controller (PAC)


• Supervisory Control and Data Acquisition (SCADA)


• Enterprise Resource Planning


• Programmable Logic Controller


• Others


• Hardware


• Control Devices


• Machine Vision System


• Sensors


• Robots

By Services

• Professional Services


• Managed Services

By Industry Vertical

• Defense and Aerospace


• Pharmaceutical and Healthcare


• Gas and Oil


• Automotive


• Healthcare


• Semiconductor and Electronics


• Chemicals


• Others

By Services

• Professional Services


• Managed Services

By Region

• Asia-Pacific (Japan, China, India, Rest)


• North America (Canada, US, Mexico)


• Europe (France, UK, Germany, Italy, Rest)


• Rest of the World (South America and the Middle East and Africa)