Global Smart Factory Market is segmented By product type (Industrial robotics, control devices, machine vision system, communication technology, sensors), By technology (Production lifecycle management (PLM), Enterprise resource planning (ERP), Distributed control system (DCS), Programmable logic control (PLC), Manufacturing execution system (MES), Supervisory control and data acquisition (SCADA), Others (HMI, SCARA)), By End-User (Chemical Industry, Oil and Gas Industry, Aerospace industry, Automotive industry, Mining industry, Others (defense, consumer electronics)), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Smart Factory Market Overview
The Global Smart Factory Market is expected to grow at a CAGR of 12.5% during the forecast period (2024-2031).
Smart factories employ the principles of cyber-physical technology, Internet of Things, and cloud computing technologies. The smart factory provides advanced and automated facilities to make the manufacturing process faster, more efficient, and safer. This is helping to minimize the gap between digital world and traditional industrial manufacturing methods.
Smart Factory Market Summary
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Metrics |
Details |
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Market CAGR |
12.5% |
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Segments Covered |
By Product Type, By Technology, By End user, and By Region |
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Report Insights Covered |
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
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Fastest Growing Region |
Asia Pacific |
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Largest Market Share |
North America |
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Smart Factory Market Growth Trends
Increasing industrial automation, demand for productivity, managing challenges in the manufacturing process, complying with quality control policies, and growing application of cloud services are some of the salient factors responsible for the growth of the global smart factory market.
Changes in monetary and social conditions set apart by a significant increase in manufacturing indicate the growing rate of industrialization among the countries of the world. According to the International Yearbook of Industrial Statistics 2018 released by United Nations Industrial Development Organizations (UNIDO), the world manufacturing value added (MVA) rose by 3.5% in 2017, the highest rate in the last seven years. According to the International Federation of Robotics (IFR), over 1.8 million industrial robots were in operation globally at the end of 2016 pacing up the industrial automation growth rate. The automation adoption rate in the manufacturing industry increased by an annual global average of 12% between 2011 and 2016 which is likely to propel the growth of the global smart factory market in the future.
However, the complex linkage of technology, high initial costs, and long installation periods are the critical aspects that might hinder the global smart factory market.
Smart factory technologies are integrated with Product Life-cycle Management (PLM), Enterprise Resource Planning (ERP), and Supply Chain Management (SCM) to optimize production costs and resources, improve productivity and meet the standards of quality. The conventional model is now being replaced with numerous systems harmoniously linked together. Integrating all these components into one single entity is posing a significant challenge for most of the manufacturers adopting smart factory solutions which might impede the growth of this market.
Smart Factory Market Segmentation Analysis
Based on the end-user industry, the market is segmented as Chemical Industry, Oil and Gas Industry, Aerospace industry, Automotive industry, Mining industry, others (defence, consumer electronics).
The Oil and gas industry is expected to drive the global smart factory market at a higher rate owing to the increasing demand for automation in oil and gas industry and high global production of oil and gas. According to the International Energy Agency (IEA), the global oil demand in 2018 is 6.9mb/d and is expected to reach 104.7mb/d by 2023 rising at an average annual rate of 1.2mb/d. The global oil production as per the Global energy statistical yearbook in 2005 was about 88721 thousand barrels per day and reached 92649 thousand barrels in 2017 with a 0.7% annual growth rate. Automation and Instrumentation services in Digital oilfields include SCADA (Supervisory control and data acquisition), smart good sensors, wireless sensors, distributed control systems, and other components which are widely used to monitor industrial operations and real-time process data. These components are crucial for driving the market, and the oil and gas industry is expected to dominate the global smart factory market in the future.
Smart Factory Market Geographical Share
The Global Smart Factory Market is segmented into North America, Europe, Asia Pacific, South America and Middle East, and Africa.
North American region is the primary driving region for the global smart factory market owing to the increasing industrial production and high adoption rates of cloud services in the US and Canada regions. According to the Federal Reserve of the US, the total industrial output in December 2018 moved up at an annual rate of 4% compared to December 2017, and the manufacturing output increased by 1.1%. Moreover, according to the 2018 global BSA cloud computing scorecard, the global report to rank countries preparedness for the adoption of cloud services, the US and Canada scored 82.0 and 80.0 on a scale of 100 standing at second and seventh positions respectively compared to first and fourth positions in 2017. Leading cloud service providers like Amazon AWS, Microsoft Azure Google cloud platform, and IBM cloud operate from the US and contribute significantly to the growth of cloud services in the North American region. Owing to these factors, the North American region is expected to remain as the dominant region in the global smart factory market.
Smart Factory Market Companies
New product launches, expansion of facilities, mergers and acquisitions, and strategic partnerships are vital strategies adopted by most companies to contribute to the growth of the company and improve their market growth rate.
For instance, in January 2019, Dassault systems completed the acquisition of IQMS, a manufacturing ERP software company. With this acquisition, Dassault systems aim to expand its business platform to small and midsized manufacturing companies seeking to transform their business digitally.
Similarly, in April 2018, Schneider Electric has announced the completion of the combination of AVEVA and the Schneider Electric Industrial Software business. This combination will enhance the Schneider's reach in engineering and industrial software with scale and reference in manufacturing operations and optimization areas.
Furthermore, in October 2018, Honeywell International launched the new wireless pressure sensor best suited for specific process automated solutions. This wireless sensor makes it easier and less costly to get data from plant processes. Similarly, in March 2018, Eyelit Inc launched the new IP Shield module the latest release of its new MES suite. This new IP Shield module helps companies control access to confidential information across manufacturing processes.
Key players are Siemens AG, Schneider Electric SE, Honeywell International, Robert Bosch GmbH, Rockwell Automation, ABB Ltd, General Electric, General Dyanamics Corporation, Invensys PLC, Mitsubhishi Electric Co.
