Smart Factory Market is estimated to grow at CAGR of above 9.90% during Forecast Period, 2020-2026
Published | 10 March 2020
According to BlueWeave Consulting, The Global Smart Factory Market is anticipated to grow at a significant rate during the forecast period. The Smart Factory Market has reached USD 152.4 Billion in 2019 and expected to reach a valuation of USD 291.4 billion by the year 2026 by growing at a CAGR of above 9.90 % during the forecast period 2016-2026.
Due to the increasing adoption of intelligent technologies in various industries, including automotive, mining, manufacturing, and petrochemicals, smart factories have gained tremendous traction in the past couple of years. Increasing use of high-tech tools and high-tech machinery depicts a beautiful mix of production and technological developments. A highly connected and digitized production facility that depends on intelligent manufacturing is known as a smart factory. It also has a cyber-physical system that has built-in programming codes that provide automation solutions. It also helps to provide fast use of data models. The use of these factories increases production and efficiency to reduce operating costs. The industrial change toward the cyber world is another important factor driving the growth of the global smart factory market.
In this, any part of the value chain that is likely to be linked to ensure an informed output with zero defects and no-time lags that will increase demand in this market further. Smart factory helps to improve processes by self-optimization and automation; its capacity is not only limited to material production but also assists in several functions such as supply chain, planning, and product development. Increasing emphasis on manufacturing is expected to propel the market growth globally.
Adoption of analytics, cybersecurity software, and cloud computing in various vertical industries such as manufacturing, chemical & content, and automotive are key factors driving the global market for smart factories. Enterprises are implementing smart factory technologies to improve their manufacturing process, maximize idea creation, product transaction, and development.
The evolution of Industry 4.0 trend and the integration of several digital technologies, including IoT, AI, etc. will propel market growth. Industries are embracing the digitized supply chain management solutions thanks to the advanced operations technology. Such smart technologies will improve the quality of output and asset performance and eliminate human errors.
Increasing adoption of the industrial robot is the driving factor for Global Smart Factory market
In the manufacturing sector, the implementation of automation has changed the need for human resources and the economies of several manufacturing industries. Industrial robots can be programmed with consistent accuracy and precision to perform hazardous and repetitive tasks. The development of robots helps to reduce waste of raw materials, manage manufacturing costs, and increase efficiency, which leads some manufacturers to favor the use of robots in their production line. Due to these factors, the global smart factory will grow.
Innovative sensors to drive the global demand for Smart Factory
With smart sensors, it is possible to streamline operations that involve frequent line changes with products of different sizes. Instead of manual reconfiguration for every product coming down the line, smart sensors can store multiple profiles in the controller, which can then be pushed down to the sensor when required to support the numerous products. The smart sensors can sense the temperature and will send data to the control center when it surpasses the limit. Note that, in this case, the temperature is just one example parameter used. It can be controlled by wind, vibration, and much more.
The Hardware segment is growing the Global Smart Factory market
The rising labor costs of these robots are creating a high demand in North America and European countries and expanding the market. In the intelligent manufacturing & supply chain systems, articulated robots are primarily used to support many activities, including welding, palletizing, pick-up, assembly, etc. The flexibility and quicker functionality of articulated models help their use in numerous industrial use that allows laborers to work on other tasks.
North America is predicted to grow at a remarkable rate in the Global Smart Factory market during the anticipated period.
North America is estimated to dominate the region due to it is home to the largest companies operating in the market. The automotive sector is helping to drive the smart factory market. With increased technologies and R&D in the field of IoT for improved products is the crucial factor for the growth of the smart factory. The growth in demand for innovative product solutions is expected to drive the growth of North America's smart factory market. Also, during the forecast period, APAC is expected to be the largest smart factory market, due to increased investment in manufacturing sector growth and favorable government regulations. By applying automation technology in the manufacturing sector, China has been working on creative industrial practice. Therefore, research institutes and companies work collaboratively to enhance production processes.
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