Industrial automation equipment

Global Smart Factory Market

March 12, 2022
ID: SR/IAE-11
Format:Pdf
Pages:220

Global Smart Factory Market By Component (Solutions and Services), By Deployment (Cloud and On-Premise), By Enterprise (Small & Medium Enterprise and Large Enterprise), By Industry (Discrete and Process), By Region (North America, Europe, Asia-Pacific, South America and The Middle East & Africa)-Global forecast to 2028.

Description

Global Smart Factory Market size was calculated at USD 74.6 Billion in 2021 and is estimated to reach USD 152.9 Billion by 2028, growing at a CAGR of 10% for the forecast period of 2022 to 2028. Growing demand for IoT and artificial intelligence in industrial environments, a growing focus on energy efficiency, resource optimization, and cost reduction in manufacturing functions, the rising market for industrial robots, and fiscal guidelines to keep manufacturing skills afloat in the face of the COVID-19 emergency are among the factors pushing the expansion of the smart factory market.

What is Smart Factory?

The Smart Factory is a picture describing the highest goal of manufacturing digitization. A Smart Factory is a highly digitized store floor that gathers and transmits data in real-time via interconnected machines, gadgets, and production methods. The data can then be operated by self-optimizing machines or throughout the company to manage problems proactively, optimize production procedures, and react to new demands. AI. Big Data Analytics, Digitally operated machines for solving problems, Cloud Computing, and Industrial IoT technologies have allowed smart manufacturing strategies to be thoroughly integrated. The smart factory does not distribute a single piece of software over the entire shop floor and predicts instant improvements in the manufacturing process.

Growth Drivers

Industry 4.0 Technologies to Move the Market towards Higher Growth

The increasing acceptance of industry 4.0 and IoT allowed smart technologies would propel this market towards increased growth. Improving the significance of the production procedure is the introductory driver of the global smart factory market. With the beginning of 4.0 technologies, growing countries have the prospect to show a strong position in progressive, smart factories. Different variables augmenting the market are the increasing adoption of computer-aided systems, manufacturing tools, the internet of things (IoT), and engineering technologies such as artificial intelligence, machine learning, and cloud computing. Ongoing evolutions in industry 4.0 are anticipated to drive smart factories’ adoption by spreading new possibilities for manufacturers.

Opportunities

Growing Developments of Industrial Internet of Things (IIoT) Technology is a Strong Direction

Industrial IoT is one of the major directions succeeding in the global smart factory market. Industry 4.0 and IIoT promise to lower expenses and increase production by connecting customers with providers, storehouses, and product allocation methods. According to GSMA Intelligence, industrial IoT (IIoT) connections will reach 13.8 billion units globally by 2025. These increasing industrial IoT connections are expected to facilitate digital technologies, such as 3D printing, manufacturing execution systems (MES), and robotic process automation, driving the market growth.

Restraints

High Investment in Smart Factory Solutions to Restrain Market Growth

Increased initial capital investments are the most influential factor in hindering the market growth. Further, lower investment insufficiently experienced accessibility, and inadequate safety knowledge would hinder factory automation development. Globally, across all sectors, the manufacturing paradigm is moving towards digitization. Taxes are affecting many products in several governments in the smart factory.

By the industry professionals, cost, including expenditures in upgrading traditional systems, is one of the restraining aspects of a smart factory’s evolution. It is not feasible for several businesses to boost their existing systems due to increased costs. Furthermore, automation software techniques operated in industries need timely keeping and upgrade. Small businesses can’t bear such expenses.

Pre Covid-19 Impact on Global Smart Factory Market

Before the covid-19 outbreak, the rising demand for industrial robots was driving the market growth. Industrial robots undertake electronic and mechanical assembly, product testing, and material handling activities. Force sensors help industrial robots confirm part insertion, maintain constant force during buffing, polishing, and deburring, gather force data for loT testing and statistical process control (SPC) and perform various other duties. Technological advances in sensing elements such as sensors and actuators within the industrial design are anticipated to improve the market during the forecast period due to their increasing independence with less power consumption and integrated computing capabilities.

Covid-19 Impact on Global Smart Factory Market

During covid-19outbreak, the pandemic had adversely affected the overall smart factory market, provoking a lower shipment of components and solutions of smart factories and their payments. Due to this, kept a decrease in the development movement of the market during the first quarter of 2020. However, this trend had been expected to disrupt in the next half of the year as the market would advance because of the increasing problem for smart automation, energy, and resource efficiency. The covid-19 pandemic has largely influenced the value chain of the smart factory market. The US, China, South Korea, and Japan, which the pandemic has negatively affected, are responsible for a prominent share of the global smart factory market.

Post Covid-19 Impact on Global Smart Factory Market

After the covid-19 period, industrial robots and industrialization have increased exponentially in the manufacturing industry. With more promising production efficiency, protection, and quality assurance at the forefront of enterprises’ problems, it’s not unexpected that there is considerable ongoing investment and adoption of robotics in manufacturing structures all over the world. Industrial robots can conduct operations with high accuracy and repeatability without the requirement for blockages or pauses. Because of their capacity to function constantly without weariness, robots are positively productive and can deliver producers with a rapid return on investment. Robot exactness also suggests fewer errors throughout the manufacturing method, decreasing waste and production.

By Component Segmental Analysis

Based on the component segmental analysis, the market is segmented into Solutions and Services. Smart Manufacturing Solutions Segment to Have Maximum Share in the global smart factory. Participants’ different smart types of manufacturing solutions and services include ABB Ltd., Siemens, Robert Bosch, Honeywell International Inc., Fanuc Corporation, Mitsubishi Electric Corporation, and others worldwide and in different regions.

By Deployment Segmental Analysis

The market is segmented into Cloud and On-Premise based on deployment segmental analysis. Cloud to appear as the Most Preferred Deployment Type in Forthcoming Years. The pandemic has constructed more challenges for IT teams to address remote workforces and help scalable infrastructure for their products and service offerings. As a result, the cloud-based software segment is anticipated to achieve traction in the post-outbreak period of the pandemic.

By Enterprise Segmental Analysis

The market is segmented into Small & Medium Enterprise and Large Enterprise based on enterprise segmental analysis. Large Enterprises to be the Major Customers of Smart Manufacturing Solutions. Large enterprises are predicted to be the most potential buyers of smart manufacturing solutions and services. Small and medium enterprises are foreseen to grow at a higher CAGR during the forecast period.

By Industries Segmental Analysis

Based on industries segmental analysis, the market is segmented into Discrete and Process. Discrete Industry to Monopolize the Manufacturing Sector. The discrete industry is possible to dominate the market during the forecast period. The discrete automation industry is followed to execute smart manufacturing technologies for process-optimization of production lines and customized product solutions.

By Regional Segmental Analysis

Based on the regional segmental analysis, the market is segmented into North America, Europe, Asia-Pacific, South America and The Middle East & Africa. The Asia Pacific regions are predicted to hold the highest revenue share during the forecast period. The market in Asia-Pacific is expected to display an exceptional growth trajectory due to manufacturers’ growing spending and investments in the intelligent smart factory.

Competitors Analysis

The companies include ABB Ltd., Siemens AG, General Electric, Mitsubishi Electric Corporation, Robert Bosch GmBH, Rockwell Automation Inc., Schneider Electric, Honeywell International Inc., Emerson Electric Co., Fanuc Corporation and other prominent players in the global smart factory market.

Key Stakeholders

Recent Developments

In March 2021 GE, Digital presented improvements in CIMPLICITY and Tracker software that delivers crucial judgment support for operators to create them more efficient. CIMPLICITY HMI/SCADA supplies client-server visualization to precisely monitor and control operations. Tracker, part of GE Digital’s Proficy Manufacturing Execution Systems (MES) offering, automates routing and sequencing to accelerate time to market, decrease warranty and recall direction, and support Lean operations and building right the first time.
In March 2021, Stratasys presented a new 3D printer that provides dental labs 3D printing efficiency paired with PolyJet’s realism and precision. The J5 DentaJet 3D printer is the only multi-material dental 3D printer that permits technicians to load mixed trays of dental parts.
In March 2021, ABB and ETH Zurich extended their partnership in robotics research as part of ETH’s RobotX endeavor. The RobotX initiative, established in 2019, is planned to position ETH among robotics research institutions. The measure will be funded by ABB’s Robotics and Discrete Automation business.

Scope of the Report

Report Attribute	Details
Market Size Value in 2021	USD 74.65 Billion
The revenue forecast in 2028	USD 152.94 Billion
Growth Rate	CAGR of 10.00 % from 2022 to 2028.
Historical data	2017 – 2020
Forecast period	2022 – 2028
Region covered	North America, Europe, Asia-Pacific, South America, and Middle East & Africa
Key companies Profiled	The Companies include ABB Ltd., Siemens AG, General Electric, Mitsubishi Electric Corporation, Robert Bosch GmBH, Rockwell Automation Inc., Schneider Electric, Honeywell International Inc., Emerson Electric Co. and Fanuc Corporation key players.

Market Modelling

By Component

Solution
Services

By Deployment

Cloud
On-Premise

By Enterprise Size

Small & Medium Enterprise
Large Enterprise

By Industry

Discrete
Process

By Region

North America
Europe
Asia-Pacific
South America
The Middle East & Africa

Table Of Contents

Methodology

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Frequently Asked Questions (FAQ):

What are the opportunities for new market participants?

There are significant opportunities in the smart factory market for start-up companies. These companies offer cost-effective, efficient and flexible smart factory components and solutions, which can be used in smart factories.

What is the market size of the global smart factory?

Global Smart Factory Market size was calculated at USD 74.65 Billion in 2021 and is estimated to reach USD 152.94 Billion by 2028, growing at a CAGR of 10.00% for the forecast period of 2022 to 2028.

Who are the key players in the global smart factory market?

The Companies include ABB Ltd., Siemens AG, General Electric, Mitsubishi Electric Corporation, Robert Bosch GmBH, Rockwell Automation Inc., Schneider Electric, Honeywell International Inc., Emerson Electric Co. and Fanuc Corporation key players in the global smart factory.

Which segment shows the highest CAGR in the global smart factory market?

Small and Medium Enterprise shows the highest CAGR in the global smart factory market.

What is the latest opportunity in the global smart factory market?

Growing Developments of Industrial Internet of Things (IIoT) Technology is a Strong Direction in the global smart factory.

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