Smart Factory Market, By Component (Hardware, Software, and Services), Connectivity (Wired Connectivity and Wireless Connectivity), Industry Vertical (Electronics and Semiconductor, Aerospace & Defense, Automotive, Oil & Gas, Chemicals, Healthcare and Pharmaceutical and Others), By Region (North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa); Trend Analysis, Competitive Market Share & Forecast, 2016-2026
- Published Date: March 2020
- Report ID: BWC19418
- Available Format: PDF
- Page: 185
Global Smart Factory Market Forecast and Trends
Smart factory global market has reached USD 152.4 Billion in 2019 and forecast above 9.9 % CAGR increase to cross USD 291.4 billion by 2026.
Smart factory market growth is driven by the increasing popularity of intelligent manufacturing techniques to boost productivity across various industry verticals. The Asian countries are a robust automotive & electronics manufacturing sector, and a high focus on the integration of automated technologies owing to supportive government policies will create several opportunities for growth in the industry. For example, by promoting Industry 4.0 and automation technologies, the Government of India has launched the Make in India initiative, which supports the country's factory and manufacturing sector growth. Increasing emphasis on energy consumption and increased manufacturing performance drives demand for the smart factory. 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.
The industrial shift to smart manufacturing in which technology-driven approach is growing and machines are connected via the internet to track production processes and ensure zero manufacturing defects without time lag; this is expected to have long-term effects on market growth.
Global Smart Factory Market: Overview
A smart factory signifies the manufacturing and technological development, perfect integration of high-tech machinery, and high-tech tools. It is the advanced factory system, which creates cyber-physical systems allowing active movement of materials across the factory floor. It offers real-time quality and time benefits, which are expected to accentuate the industry growth over the forecast period.
Smart Factory is the use of advanced technology in a factory, a perfect combination of high-tech machinery and high-tech instruments. It is the advanced factory system, which creates cyber-physical systems that allow successful material movement across the factory floor.
The evolution of Industry 4.0 trend and the integration of several digital technologies, including IoT, AI, etc. will propel market growth. The key factor driving the smart factory market is due to the advancement in operations technology; industries are adopting the digitized supply chain management options. These intelligent technologies will enhance product quality and asset efficiency, eliminating human & machine errors.
Increasing adoption of Industrial Robots
The technological enhancement of robots in smart factories helps to reduce waste of raw materials, reduce manufacturing costs, and increase efficiency, which emphasizes manufacturers to use robots in their production line. The global industrial robot market for heavy-duty applications will see significant growth as a result of such benefits. The use of robotics in manufacturing started in 1961, and with rapid developments in computer technology, big data, machine learning, artificial intelligence, and the Internet of Things (IoT), there has been a significant increase in the use of robots in manufacturing industries in recent years.
Growing sensor technology
Advancement in sensor technology have allowed automated devices to intelligently interpret sounds, images, and other data without excessive powerful processing being present. The result is that lightweight, low-power systems can now be built, which can either allow increased autonomy in machine-to-machine (M2M) interactions or provide increasingly natural perceptual user interfaces for humans and machine interactions.
Often, the data that is being retrieved from sensors can be used to boost the production process. Technology improvements and network technologies mean faster processing of large amounts of fragmented data that can be used to monitor performance over time and increase efficiencies.
New factory equipment comes with smart sensors embedded to control the operating parameters of that equipment. For example, if the motor powered ON, the device will produce a certain amount of heat that is perfectly normal. A defined temperature profile is established. The smart sensors can sense the temperature and will send data to the control center when it exceeds.
Cybersecurity and Data loss
In a Smart Factory, the devices can transmit data in real-time via a wireless internet connection. A typical configuration could include many systems that are accessible from many devices. By Disrupting access networks or operating systems, the hackers may take control of manufacturing processes to interfere with development or even manipulate goods. Gaining knowledge for competitive companies, industrial espionage such as hackers steal intellectual property or information is on the rise.
Global Smart Factory Market: By Component
Based on the Component, the Smart Factory market is distributed into Hardware, Software, and Services. The hardware segment is anticipated to dominate the market in the forecast period. Industrial robots in the hardware segment are an essential part of the smart factory. The industrial robots are gaining popularity because of advantages over traditional human workers. In modern factories, these robots are used to eliminate human requirements for several basic & complex tasks and to increase operational efficiency & productivity.
These robots are now more innovative than ever before in technology, and its features include skill learning, recognition of the vision, the collaboration between man-machine, the use of artificial intelligence, and prediction of failure. That is expected to boost long-term market demand further. The increasing adoption of robots by the automotive industry worldwide will drive the growth of the market globally.
Global Smart Factory Market: By Industry Vertical
Based on the Industry Vertical, the Smart Factory market is segmented into Electronics and Semiconductor, Aerospace & Defense, Automotive, Oil & Gas, Chemicals, Healthcare and Pharmaceutical, and Others. The automotive sector is estimated to dominate the market during the forecast period. A smart factory plays an essential role in the production and development of the automobile sector.
welcome innovations in assembly-line methods to enhance quality and increase
factory productivity. Also, the adoption of smart factory related technologies
and components in the process industry is expected to be the highest in the oil
& gas industry due to the increasing need for safety and reliability at oil
and gas plants. Oil and gas companies are always eyeing for new ways to meet
the rising demand for energy, reduce operating costs, and improve overall plant