Smart Factory Market Research Report - Global Forecast till 2023

Global 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 2023

ID: MRFR/SEM/1702-CR | June 2019 | Region: Global | 117 pages

Market Synopsis

The Global Smart Factory Market is Expected to Expand at 11.7% CAGR During the Forecast Period.

Global smart factory market is expected to witness substantial growth during the forecast period. North America has been anticipated to lead the smart factory market during the forecast period, followed by Europe. Significantly high adoption of robots in industries and the advancement in the sensor technologies are factors contributing to the market growth. Furthermore, smart sensors are also able to track the location of vehicles, assets, inventory, and people; hence the data collected by smart sensors can be used by manufacturers to track shipment and position of fleet trucks. These sensors also enable enterprises to monitor the movement of machinery or goods and the temperature of the final product. However, risks associated with cybersecurity and data loss are restricting the market growth.

Companies Covered

The key players of global smart factory market are 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.

Global Smart Factory Market, by Component, 2017-2023 (USD Million)  Smart Factory Market_Image

Source: MRFR Analysis

Smart factory is an assembled infrastructure of advanced sensing and automation solutions in a manufacturing plant which increases the productivity, provides key insights about the manufacturing process, and significantly reduces labour cost. Its key components include hardware devices such as industrial robots, sensors, machine vision systems and others, software such as SCADA, PLC, DCS, and others, and services. For the purpose of this study, on the basis of component, the global smart factory market has been segmented into hardware, software, and service.

Hardware includes Industrial Robots, Sensors, Machine Vision System, and Control Devices.

Software including Supervisory Control and Data Acquisition (SCADA), Programmable Automation Controller (PAC), Programmable Logic Controller (PLC), Distributed Control System (DCS), Enterprise Resource Planning (ERP) and Others.

Service  includes Managed Services and Professional Services.

The hardware systems accounted for the largest market share and is expected to register the highest CAGR during the forecast period. The services segment was the second-largest market in 2017 and is projected to register the highest CAGR of 13.6%.

Regional Analysis

The smart factory market by region has been segmented into Asia-Pacific, North America, Europe, and the Middle East & Africa, and South America.

North America led the smart factory market in 2017, whereas Asia-Pacific is expected to be the fastest growing region in the smart factory market during the forecast period. Europe is expected to be at the second spot for the smart factory market in terms of market share in 2017.

North America dominates the market owing to the presence of the multinational corporations investing in R&D for industrial automation, industrial Internet of Things (IIoT) as well as cloud technology.

Key Developments  

  • In March 2019, Mitsubishi Electric Corporation announced the launch its new range of factory automation products, which will include programmable controllers, servo amplifiers, robots, GOTs (HMIs), inverters and CNCs that are compatible with the CC-Link IE TSN2 next-generation industrial open network.

  • In February 2019, Cognex Corporation partnered with KT, South Korea's largest telecom company, to co-develop 5G edge cloud-based solutions for businesses such as smart factories.

  • In December 2018, Yokogawa Electric Corporation announced the launch of Sushi Sensor, an OpreX brand wireless solution, which is a compact wireless device with integrated sensing and communication functions that are intended for use in the monitoring of plant equipment vibration and surface temperature.

  • In April 2018, Ubisense Group plc., a global leader in enterprise location intelligence solutions, announced the launch of its SmartSpace IIoT platform for various production sites across the globe.

  • In June 2017, Honeywell announced the launch of ControlEdge Programmable Logic Controller (PLC) combined with Experion distributed control system (DCS), that provides a significant reduction in integration efforts and project costs as well as increased security and availability through enhanced cyber security for industrial facilities

Market Segmentation

  • By Component: Hardware and Software

  • By Connectivity: Wired Connectivity and Wireless Connectivity

  • By Services: Managed Services and Professional Services

  • By Industry Vertical: Electronics and Semiconductor, Aerospace & Defense, Automotive, Oil & Gas, Chemicals, Healthcare and Pharmaceutical and Others

Key questions addressed by the report

  • What was the historic market size (2017)?

  • Which segment (Component / Solution/ Industry) is driving market?

  • What will be the growth rate by 2024?

  • Who are the key players in this market?

  • What are the strategies adopted by key players?

Frequently Asked Questions (FAQ) :

The global market of smart factory is likely to expand at 11.7% CAGR by 2023.

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.