Smart Factory Market Size was prized at USD 139420.7 Million in 2023. The smart factory market industry is projected to grow from USD 161343.4 Million in 2024 to USD 510017.9 Million by 2032, exhibiting a compound annual growth rate (CAGR) of 15.47% during the forecast period (2024 - 2032). The growing interest in energy efficiency, resource optimization, and cost reduction in manufacturing operations, growing demand for industrial robots, and fiscal policies to keep manufacturing facilities afloat in the face of the COVID-19 crisis are just a few of the trends that are driving up industrial IoT and AI demand are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The rising demand for industrial robots will drive the future market expansion of the "smart factory." A smart factory employs tools like information and smart sensor technologies, robots, the internet of things, or artificial intelligence to optimize and industrially automate its resources. According to International Federation of Robotics, a nonprofit organization headquartered in Germany, sales of new robots increased somewhat in 2021 by 0.5%, while robot installations are predicted to rebound rapidly and increase by 13%. Therefore, the rising sales of robots are the major factor driving the growth of the smart factory market revenue.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Owners of smart factories will be able to employ cellular technologies more securely and customize them for certain use cases thanks to 5G technology. They can collect data off the production networks without connecting to the machines by installing sensors on equipment connected to 5G networks, enabling seamless real-time optimization. During July and September 2022, around 110 million new subscriptions to 5G were added globally, bringing the total to approximately 870 million. Wired communication is no longer necessary thanks to installing 5G networks in factories, which allows for high-speed manufacturing with high flexibility and minimal downtime. The development of the 5G network will provide factories with a one-stop shop for solutions and open up huge prospects for smart manufacturing. Thus, the ease of availability of the 5G network has enhanced the smart factory market CAGR across the globe in recent years.
The Smart Factory Market segmentation, based on connectivity, includes wired connectivity and wireless connectivity. In 2022, wireless connectivity dominated the market with respect to the Smart Factory Market revenue. This trend will likely continue as the shift to virtual work highlights the need for dependable, secure, scalable, and flexible off-premises technology services. Additionally, wired connectivity experienced significant market growth due to the important benefits of automated manufacturing processes, such as effortless monitoring, waste minimization, and output speed.
The Smart Factory Market data has been bifurcated by components into software, hardware, and service. Software is expected to rule the market throughout the forecast period. Robots, drones, and other machinery will be operated by cutting-edge software, decreasing the possibility of any errors.
The second fastest-growing segment in the smart factory industry is the hardware segment. High-level and compatible hardware is needed to operate the sophisticated software. Production facilities use equipment that uses less energy, is agile, and can operate without human intervention. Hence, rising applications of hardware for smart factory positively impact market growth.
Based on industry vertical, the global smart factory industry has been segmented into electronics and semiconductors, aerospace & defense, automotive, oil & gas, chemicals, healthcare & pharmaceuticals and others. In 2022, the automotive sector dominated the market. Many automakers are making pitiful profits, so they are turning to smart manufacturing to cut waste, save costs, and boost margins. The market also assists automakers in keeping a high level of product homogeneity.
July 2022: Audi's Production Lab, or P-Lab for short, is used to identify new and innovative technologies and incorporate them reliably into production sequences. P-Lab director Henning Löser and his team assess the suitability of leading innovative technologies for serial production in Gaimersheim, just a few minutes drives from the Ingolstadt facility. This approval has further broadened the growth opportunity for the smart factory industry.
Furthermore, the aerospace and defense industry segment is anticipated to grow significantly. Several flights are required for testing in space exploration, and this can only be done by building rockets quickly and intelligently. The defense sector invests large industrial automation investments in developing cutting-edge defensive strategies to counter emerging threats.
By region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American smart factory market accounted for USD 43.6 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. The aerospace and defense, manufacturing, automotive, and North American health sectors are undergoing several regional investment programs that are expected to lead to significant future growth. Around 13,000 Community Health Workers will receive training thanks to $225 million in American Rescue Plan funding from the Biden-Harris administration (CHWs). American Rescue Plan made historic investments in response to the urgent need to increase the healthcare workforce and combat pandemic-related burnout.
Further, the major countries studied in the market report are Canada, U.S, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Europe's smart factory market accounts for the second-largest market share. The creation of smart technologies and solutions that allow the European manufacturing sector to capitalize on digital potential fully has received strong support from the research and innovation (R&I) initiatives of the European Union. The "Factories of the Future Public-Private Partnership," which intends to assist EU manufacturing enterprises and SMEs in meeting global competitiveness by creating the necessary core enabling technologies across various end-user industries, provides funding for several projects. Further, the German smart factory market held the largest market share, and the UK smart factory market was the fastest-growing market in the European region.
The Asia-Pacific Smart Factory Market is expected to grow at the fastest CAGR from 2022 to 2030 due to the vibrant ecosystem in nations like Japan, India, and Australia. SMEs are anticipated to lead the adoption of smart manufacturing solutions. The push for cloud adoption across the region is driven by the growing acceptance of disruptive technologies like Industrial 4.0, AI, AR, IoT, and others. In China, 8.8 billion linked devices are anticipated to exist by 2021. Moreover, China's smart factory market held the largest market share, and the Indian smart factory market was the fastest-growing market in the Asia-Pacific region.
Major market players are investing huge amounts of money in R&D to expand their product portfolios, which will spur further market growth for smart factories. With significant market developments like introducing new products, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic initiatives to expand their global footprint. Cost-effective products are a need for competitors in the smart factory industry if they want to grow and thrive in a market that is becoming more and more competitive.
Manufacturing locally to cut operational costs is one of the main business methods manufacturers use in the global smart factory industry to benefit customers and develop the market sector. Some of the biggest advantages to medicine in recent years have come from the smart factory industry. The smart factory market major player, including Emerson Electric Co., Rockwell Automation, ABB Ltd, FANUC Corporation, and others, are attempting to increase market demand by funding R&D initiatives.
Teledyne Technologies Incorporated is a multinational industrial company based in the United States. Teledyne Technologies Inc sells industrial technologies. Contracts with the US government account for roughly one-fourth of Teledyne's revenue. The company's business is divided into four divisions: instrumentation, digital imaging, aerospace and defense electronics, and engineered systems. In September 2021, Teledyne FLIR introduced the latest Blackfly S GigE camera line additions, the BFS-PGE-50S4M-C and BFS-PGE-50S4C-C. With a weight of 53 grams and a high pixel density excellent for integration with compact, low-cost lenses, these 5MP models are especially well suited for incorporation into small handheld devices.
Also, DataMetrex AI Ltd is an information technology firm situated in Canada. It employs machine learning and artificial intelligence to collect, analyze, and present organized and unstructured data. Business segments are AI & technology and Health Security. It has two geographic segments: Canada and South Korea. In September 2022, Datametrex AI Ltd. announced the release of Smart Factory AI technology based on artificial intelligence, big data, and server automation operating system technologies. Furthermore, the company claimed to receive purchase orders totaling approximately CAD 200,000 from several global corporations, including Lotte Data Communication Co., Ltd., Kolon Benit, and Woongjin Co. Ltd.
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
March 2024- LS Electric looks out for leading the global smart factory market in partnership with LG Electronics, with both businesses being worldwide distinguished as "lighthouse factories" that have shown guidance in the manufacturing business by enthusiastically initiating digital technologies, the power equipment company said on March 20th. LS Electric said it contracted a note of knowledge with LG Electronics on March 19th to ally to share their technology, market, and partners in the smart factory business. They settled to mutually install smart factory construction solutions and digital solutions for manufacturing and energy efficiency businesses. The term lighthouse factory is a factory that has become a model in the manufacturing sector with prime digital technologies such as the IoT or Internet of Things, cloud computing, and artificial intelligence (AI), evoking comparison to a lighthouse that guides the way for ships. LG Electronics and LS Electric were both selected as lighthouse factories at the World Economic Forum in 2022 and 2021, respectively. With this collaboration, the two will forge widespread partnership collaboration in smart factory business, such as joint promotion of domestic and overseas smart factory markets, capabilities held by both companies for domestic and overseas customers, and technological cooperation and information exchange and active proposals on solutions. LS Electric's Cheongju plant in North Chungcheong Province, which was chosen as a lighthouse factory, is armed with several core technological systems for smart factories, including logistics robots capable of autonomous driving, mass production of various products automatically; AI-based real-time automatic welding and machine learning-based vibration and noise inspection. LG Electronics applied intelligent production systems in its Changwon, Tennessee factories, and South Gyeongsang Province so that the plants can guess the position of production, quality, and facilities in enhancement through real-time monitoring with robots using AI, digital twin, and big data technology.
July 2023- It is with great pleasure that Singapore Finance and Huayuan Food Group jointly announce the building of the first edible fungus smart factory in the United States. The joint venture, which is based in Houston, Texas, will result in daily production of about 50 tons of American Enoki mushrooms, reducing the country's long-term reliance on imported mushrooms as the demand for wholesome edible fungus rises along with better eating patterns. The intelligent factory will employ cutting-edge technological processes for the ecologically benign, chemical-free, and soilless cultivation of edible fungi.
July 2023- Monday marked the formal start of the smart factory development initiative between Samsung Vietnam and the Ministry of Industry & Trade (MoIT), which aims to assist Vietnamese businesses in joining global supply chains.
Accordingly, 12 firms from Bắc Ninh, Hà Nam, Hà Nội, Hưng Yên & Vĩnh Phúc will take part in a three-week training course to learn about smart factories & nine-week practice during the project's first phase. Vietnamese consultants and Samsung experts will assess the companies' operations and aid in the establishment of smart factories.
Wireless Connectivity
Wired Connectivity
Software
Hardware
Service
Electronics and Semiconductor
Aerospace & Defense
Automotive
Oil & Gas
Chemicals
Healthcare & Pharmaceuticals
North America
US
Canada
Europe
Germany
France
UK
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Rest of the World
Middle East
Africa
Latin America
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 139420.7 Million |
| Market Size 2024 | USD 161343.4 Million |
| Market Size 2032 | USD 510017.9 Million |
| Compound Annual Growth Rate (CAGR) | 15.47% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019 - 2021 |
| Market Forecast Units | Value (USD Million) |
| Report Coverage | Market Competitive Landscape, Revenue Forecast, Growth Factors, and Trends |
| Segments Covered | Connectivity, Component, and Industry Verticals |
| Geographies Covered | Europe, Asia Pacific, North America, and Rest of the World |
| Countries Covered | Canada, U.S, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Emerson Electric Co., Rockwell Automation, ABB Ltd, and FANUC Corporation. |
| Key Market Opportunities | The emergence of 5G technology |
| Key Market Dynamics | Growing emphasis on energy efficiency, resource optimization, and cost reduction in production operations. Increasing demand for industrial robots. |
Frequently Asked Questions (FAQ) :
The Smart Factory Market size was prized at USD 139420.7 Million in 2023.
The global market is projected to grow at a CAGR of 15.47% during the forecast period 2024-2032.
North America had the major share of the global market
The key players in the market are Emerson Electric Co., Rockwell Automation, ABB Ltd, and FANUC Corporation.
The software category dominated the market in 2022.
The automotive sector had the largest share of the global market.
Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
Get in Touch
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
