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.
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
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
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
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
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
Global Smart Factory Market:
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.
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
Smart Factory Market: Regional insights
By geography, the Global
Smart Factory Market is segregated into North America, Europe, Asia Pacific,
Middle East & Africa, and Latin America. North America is estimated to
dominate the region owing to rising adoption in the automotive sector. Since
intelligent manufacturing & supply chain technologies are applied across
different industries. The U.S. experienced a high demand for technically
advanced production systems, which minimizes employee participation and saved
huge labor costs. North America's industrial sector is witnessing the faster
adoption of automated & robotic systems to perform various operational
tasks at the manufacturing facilities to increase productivity. Automotive
manufacturing firms like BMW, Audi, etc. are investing huge amounts in factory
automation operations to reduce production cycles and save costs.
APAC market is also
expected to grow due to technological advancement, and increasing acceptance of
automation technologies in various industries such as Mitsubishi Electric
(Japan), Omron (Japan), Yokogawa (Japan), and Fanuc (Japan) are leading players
in the market. Through applying automation technology in manufacturing, China
has been focusing on a creative industrial activity.