Smart Factory Market Size & Share, by Product Type (Industrial Sensors, Industrial Robots, Industrial 3D Printers, Machine Vision Systems); End User (Automotive, Semiconductors & Electronics, Oil & Gas, Chemicals, Pharmaceutical, Aerospace & Defence, Food & Beverage); Component (Solution, Services) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 3283
  • Published Date: Nov 03, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024- 2036

Smart Factory Market size is expected to cross USD 1258 Billion by the end of 2036, growing at a CAGR of 12% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of smart factory was over USD 323 Billion. The trend of automation is one of the key factors propelling the growth of market.

Increasing Adoption of the Industrial Internet of things is primarily attributed to the industry growth. In the context of industry, the IIoT is a network of connected machines, sensors, and devices that allows for real-time data gathering, processing, and sharing. Traditional manufacturing processes are revolutionized by this connectivity and data interchange, which also advances the creation of smart factories. As per our analysis, the Industrial Internet of things evaluates an industry figure of USD 544 billion in 2023. This is positively impacting the market for smart factory.

Another significant user of smart factory methods is the semiconductor industry. Rising energy costs, several environmental restrictions, and the general trend toward sustainable manufacturing are anticipated to accelerate the use of items like machine vision systems, robotics, and other technologies, driving up market demand for smart factories.


Smart Factory Market
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Smart Factory Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

~ 12%

Base Year Market Size (2023)

~ USD 323 Billion

Forecast Year Market Size (2036)

~ USD 1258 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Smart Factory Sector: Growth Drivers and Challenges

Market-Growth-Drivers

Growth Drivers

  • Penetration in the Automotive Industry- The smart factory market is greatly impacted by the growing use of smart factory technologies for producing complex automobiles. Smart factory solutions may successfully solve the challenging production needs in these industries, which call for high levels of precision, quality, and efficiency. In the automotive sector, it is used for seamless integration of automation and it also ensures the production of intricate automotive components. Currently, 30% of car factories are integrating smart factory automation.
  • Increasing use in Medical devices - Medical equipment, implants, and other complex components need to be made using precision manufacturing techniques. Advanced automation, sophisticated quality control, and real-time analytics are all features of smart manufacturing systems, which guarantee the highest levels of accuracy and quality. Additionally, the incorporation of sophisticated traceability and serialization systems in smart factories aids in meeting medical industry regulatory compliance standards. Adopting smart factory solutions in these sectors also increases production effectiveness and empowers businesses to fulfill regulatory and quality criteria that are very strict. As a result, the demand for smart industrial technologies is increasing quickly, fuelling the growth of the market at a steady pace.
  • Increasing Network Coverage- There will be a significant increase in the deployment of 5G networks in smart factories. This will accelerate the evolution of the industry's outlook. Several smart owners of factories have been around in recent years. With the aid of 5G technology, there has been a rise in usage of cellular technologies. Further, for the specific use cases, they will be personalized. Integration of sensors into 5G enabled devices equipment enables the data collection from manufacturing networks devoid of Connecting to the machines for efficient real-time optimization. Hence, the excessive deployment of 5G networks in smart manufacturing plants helps in the expansion of the global smart factory market.
  • Increased Industrial Robot Adoption - As the need for automation continues to grow in industries, industrial robots are being deployed more and more. As per a survey conducted, there have been an estimated 3 million industrial robots in use across the globe. Growth in Industrial Robots was driven by the expansion of electronics, as well as rising production costs. This is likely to lead to an increase in demand for industrial robots during the study period, while also contributing to market expansion of smart factories.

 Challenges

  • Cybersecurity Concerns – Some of the major cybersecurity concerns associated with smart factories are vulnerability in IoT devices, risk of unauthorized access, risk of data breaches, supply chain security threats and others. The manufacturing industry is frequently targeted by cyber-attacks. With smart factories which include industrial internet of things, automation, and integration of cloud computing in record management of manufacturing process, there is an eminent risk of that data getting hacked. As per reports, nearly 25 % of all attacks in the year 2022 have been against manufacturers. Also, the systems' interconnectedness can have a cascading effect that increases the severity of any cyberattack. In light of this, the cybersecurity concerns can be considered as  a major setback for the smart factory market.
  • Initial high investment costs, restrain the growth of the market.
  • Stringent government Policies, are restricting the industry’s growth.


Smart Factory Segmentation

Product Type (Industrial Sensors, Industrial Robots, Industrial 3D Printers, Machine Vision Systems)

The industrial robots segment is expected to account for 42% share of the global smart factory market by 2036. In driving the growth of the market, industrial robots play a key role. By combining automation, connectivity, and artificial intelligence, these advanced machines are revolutionizing the manufacturing industry. Further, every year, around 400,000 new robots enter the market.  Many advantages, such as increased productivity, greater precision, reduced costs, and improved safety, are offered by industrial robots.

Businesses may improve workflows, automate processes, and increase productivity by integrating intelligent robotics into their operations. Industrial robots can complete labor-intensive, repetitive jobs quickly and accurately, removing human error and cutting down on production downtime. Productivity is further increased by their capacity to collaborate with human workers.

End User (Automotive, Semiconductors & Electronics, Oil & Gas, Chemicals, Pharmaceutical, Aerospace & Defence, Food & Beverage)

Smart factory market from the automotive segment is anticipated to hold a major revenue share over the forecast period. Numerous manufacturers are continually concentrating on enhancing productivity, cutting expenses, and boosting efficiency as a result of increasing competition in the automotive business. Due to their ability to assist manufacturers in optimizing their production processes while reducing waste and downtime, smart factory technologies are widely favored in this context. Additionally, the preference for automation technologies to satisfy the booming market for high-quality and dependable products will increase market demand.

Our in-depth analysis of the global market includes the following segments:

                            Product Type

  • Industrial Sensors
  •  Industrial Robots
  •  Industrial 3D Printers
  •  Machine Vision Systems

                             End User

  • Automotive
  •  Semiconductors & Electronics
  •  Oil & Gas
  •  Chemicals
  •  Pharmaceutical
  •  Aerospace & Defence
  •  Food & Beverage

                             Component

  • Solution
  • Services

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Smart Factory Industry - Regional Synopsis

North American Market Forecast

North America is anticipated to gain the largest market share of about 46% during the forecast period. The growth of the Smart Manufacturing Market can be attributed to the region's large industry base, advanced technical infrastructure, and a focus on innovation. To improve their effectiveness and competitiveness, North American manufacturers have been pushing for the introduction of automation and digitalization. Market growth has also been driven by the presence of several important automation solution providers and technology companies. In 2021, the manufacturing industry contributed USD 2.3 trillion to the GDP of the United States and accounted for 12.1% of total US GDP.

APAC Market Statistics

Asia Pacific smart factory market is expected to record significant growth during the forecast period. This is primarily due to the presence of a strong manufacturing industry base. It has well-established industries that actively utilize smart manufacturing technologies, including the automotive, electronics, and consumer products sectors. Additionally, the regional governments are aggressively promoting programs to advance digital transformation and industrial automation. To promote the adoption of smart industrial technology, they are making investments in research & development, providing subsidies, and putting supportive regulations in place. The market's growth is further accelerated by the domestic and international investments attracted by this advantageous regulatory environment.

Research Nester
Smart Factory Market size
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Companies Dominating the Smart Factory Landscape

top-features-companies
    • General Electric Company
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • ABB Ltd
    • Rockwell Automation
    •  Emerson Electric Co.
    • Schneider Electric
    •  Endress+Hauser Group Services AG
    • Honeywell International Inc.
    • Siemens
    • Robert Bosch GmbH
    • Dassault Systèmes

In-the-news

In The News

  • ABB Ltd. has been working with Ericsson to develop a flexible wireless automation solution for smart manufacturing plants. This collaboration has been made possible by ABB's industry-leading automation technology with Ericsson's expertise in the field of 5G Wireless, which enables wireless communications to be delivered reliably and effectively within factory settings.
  • The Plant web Optics platform has been set up by Emerson Electric Co. The platform is designed to enable Realtime monitoring and optimization of industrial processes by combining advanced Analytics, Digital Twin Technology as well and the Industrial Internet of Things. To increase the operational efficiency, asset performance, and maintenance strategies of smart plants, Plant Web Optics provides actionable insights and predictive Analytics.

Author Credits:  Mohd Shadab, Yashika Karodiwal


  • Report ID: 3283
  • Published Date: Nov 03, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Increasing Adoption of Industrial IoT, penetration in the Automotive sector, and rising Digitalization are some of the primary growth factors for the market's Growth.

The market size of smart factory is anticipated to attain a CAGR of 12 % over the forecast period, i.e., 2024-2036.

The major players in the market are Rockwell Automation, Emerson Electric Co., Schneider Electric, Endress+Hauser Group Services AG, Inc., Siemens, Robert Bosch GmbH, Dassault Systèmes, Yokogawa Corporation, Mitsubishi Electric Corporation, and others.

The Industrial Robots segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the North American region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Smart Factory Market Report Scope
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