Analysis by Solution (SCADA, Product Lifecycle Management [PLM], Human Machine Interface, Industrial Safety, Manufacturing Execution System [MES], and Others); by Component (Industrial Sensors, Industrial 3D Printing, and Others); by Deployment (Cloud, and On Premise); and by Industry Vertical (Automotive, Semiconductor & Electronics, Machine Manufacturing, and Others) – Supply & Demand Analysis & Opportunity Outlook 2021-2031
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The ASEAN and India smart factory market is estimated to garner a revenue of USD 31,813.5 Million and USD 23846.9 Million respectively by the end of 2031 by growing at a CAGR of 12.8% and 14.3% respectively over the forecast period, i.e., 2022 – 2031. Further, the market generated a revenue of USD 9,760.0 Million and USD 6380.0 Million respectively in the year 2021. The growth of the market in both these regions can be attributed to the increasing production of commercial and passenger vehicles. For instance, the motor vehicle, motor vehicle part, and component manufacturing markets make up the three main segments of the Philippine automotive sector. With a total annual production capacity of 150,000 units, the nation has 22 commercial vehicle assembly plants and five passenger car assembly plants. In 2018, the sector produced 79,763 units. Parts exports totaled $3.6 billion in 2017 while imports totaled $6.6 billion. With 416,637 units sold, the sales of brand-new automobiles increased by around 3.7% in 2019. 31% of all vehicle sales in 2019 were for passenger cars.
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Additionally, government initiatives are another major factor to boost the demand for commercial vehicles which is further expected to boost the market growth. For instance, the requirement for commercial cars has expanded with the launch of the government's USD 180 billion "Build! Build! Build! (BBB)" infrastructure project program in Philippines. Further, a significant growth driver for the smart factory market is the rising need for industrial robots across a variety of sectors, including semiconductor & electronics, aerospace & defense, machine manufacturing, medical devices, and food & beverage. Additionally, manufacturers and suppliers are making significant investments in smart factories in the digital age, in order to cut costs while simultaneously improving flexibility and efficiency.
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Base Year |
2021 |
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Forecast Year |
2022-2031 |
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ASEAN CAGR |
12.8% |
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India CAGR |
14.3% |
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ASEAN Base Year Market Size (2021) |
USD 9,760.0 Million |
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India Base Year Market Size (2021) |
USD 6,380.0 Million |
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ASEAN Forecast Year Market Size (2031) |
USD 31,813.5 Million |
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India Forecast Year Market Size (2031) |
USD 23,846.9 Million |
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Regional Scope |
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Growth Drivers
Surge in Demand for Technologies Including IoT and Artificial Intelligence
By 2030, increased productivity brought on by "disruptive technologies" might have an additional economic impact of between USD 220 billion and USD 625 billion in ASEAN. Industrial processes used in many different industries are rapidly requiring the use of technology such IoT and artificial intelligence. As a result of the increasing usage of technologies such as artificial intelligence and the Internet of Things in numerous areas, the market is developing.
Growing Disposable Income
Singapore's disposable income per capita was anticipated to be around USD 30 thousand within the ASEAN area in 2021. Collectively, rising disposable income gives households more money to spend or save, which inevitably fuels rising consumption. Hence, owing to the growing disposable income, large number of people are expected to purchase cars, over the forecast period. Further, expected to boost the growth of the market.
Initiatives Taken by Key Market Players
PT JVC Electronics Indonesia used the Universal Robots UR3 to increase production and performance quality while reducing annual operating costs by USD 80,000. About 400,000 automobile audio visual and navigation devices are produced each month by PT JVC Electronics Indonesia. cited the use of robots, particularly the UR3 collaborative (cobots) from Universal Robots, as their preferred method of automation.
Surge in FDI Investment in Manufacturing Sector
Inflows of foreign direct investment into India reached a record-high USD 6310500 Million in the fiscal year 2021–22. Additionally, FDI equity inflow in the manufacturing sectors surged by 76% to USD 1583320 Million in the financial year 2021–22 from USD 897660 Million in the previous year.
Boost in Ownership of Vehicles
Approximately 60 percent of Malaysian respondents said they had a car, according to the projection.
Challenges
The ASEAN and India smart factory market is segmented and analyzed for demand and supply by industry vertical into automotive, semiconductor & electronics, machine manufacturing, medical devices, and others. In the ASEAN smart factory market, the automotive segment is anticipated to garner the highest revenue of USD 5,985.7 Million by the end of 2031, up from a revenue of USD 1,877.0 Million in the year 2021. Further, in the India smart factory market, the automotive segment is anticipated to garner the highest revenue of USD 3839.3 Million by the end of 2031, up from a revenue of USD 1059.1 Million in the year 2021. Growing automotive sector is expected to influence the growth of this segment in both these regions. Further, rise in key player’s initiatives in the automotive sector is also anticipated to drive the segment growth. For instance, in order to establish dominance in the global battery electric vehicle (BEV) market, LG Energy Solution Ltd. and Hyundai Motor Group (the Group) started building an electric vehicle (EV) battery cell plant in Indonesia in 2021.
The ASEAN and India smart factory market is also segmented and analyzed for demand and supply by solution into SCADA, product lifecycle management (PLM), human machine interface, industrial safety, manufacturing execution system (MES), and others. In the ASEAN smart factory market, the SCADA segment is anticipated to hold the largest market revenue of USD 6,550.7 Million by the end of 2031, up from a revenue of USD 2,083.4 Million in the year 2021. Further, in India smart factory market, the SCADA segment is anticipated to hold the largest market revenue of USD 4840.9 Million by the end of 2031, up from a revenue of USD 1346.2 Million in the year 2021. However, in both these regions, the industrial safety segment is anticipated to grow at a highest CAGR of 13.9% and 15.1% respectively over the forecast period, backed by the growing need for safety of industrial workers from various hazards. Hazardous substances, tiny particles, radiation, heatstroke, and catastrophic falls are constant threats to industrial workers. Hence, the adoption of various emerging technologies which includes advanced sensors, artificial intelligence (AI), augmented reality, and computer vision are extensively growing by various manufacturing industry. These technologies, when used in tandem as a networked IIoT system, give the organization the insight and intelligence needed to identify risks, stop injuries from happening, and lower total risk, enabling them to create a sort of safety net for their workers.
Our in-depth analysis of the ASEAN and India smart factory market includes the following segments:
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By Solution |
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By Component |
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By Deployment |
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By Industry Vertical |
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The Indonesia smart factory market, amongst the market in all the other ASEAN regions, is projected to hold the largest market revenue of USD 9,225.9 Million by the end of 2031, up from a revenue of USD 2,898.7 Million in the year 2021. The growth of the market in this region can be attributed to the increased use of industry 4.0, the expanding demand for automation across the manufacturing sector, and the expanding use of industrial IoT components. Further, manufacturing industry growth has huge contribution over the economy and market growth. Indonesia's 7.07% economic growth in the second quarter of 2021 was mostly driven by the manufacturing sector, which saw growth of 6.91% despite COVID-19 pandemic pressure. The manufacturing sector gained 3.68% and boosted the growth of the overall economy by 0.75% in the third quarter of 2021. Manufacturing contributed the most to the national GDP in the second quarter of 2021, amounting to 17.34%, per data from the Ministry of Industry. The food and beverage business (6.66%) and the industries of chemicals, pharmaceuticals, and traditional medicine were the two largest contributors to the sector. Including clove, citronella, patchouli, vetiver, and eucalyptus, Indonesia produced 8,500 tonnes of essential oils in 2020. The market is growing as a result of the rising industrial activities throughout Indonesia. However, the market in Vietnam is estimated to grow at a highest CAGR of 14.2% over the forecast period.
Ans: The major factors driving the growth of the market are surge in demand for technologies, growing disposable income, initiatives taken by key market players, and others.
Ans: The market is anticipated to attain a CAGR of 12.8% and 14.3% respectively over the forecast period, i.e., 2022 - 2031v
Ans: Growing threat of cyber security, proprietary manufacturing knowledge, and stringent government regulations are some of the major factors estimated to hinder the growth of the market.
Ans: The market in Indonesia is projected to hold the largest market share by the end of 2031 and provide more business opportunities in the future.
Ans: The major players in the market are ABB, Siemens AG, Schneider Electric, Emerson Electric Co., and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by solution, component, deployment, industry vertical, and by region.
Ans: The automotive segment is anticipated to garner the largest market size by the end of 2031 in both these regions and display significant growth opportunities.
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