On the basis of geographical analysis, the global smart factory market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa. The market in Asia Pacific is estimated to gather the largest market share and witness noteworthy growth over the forecast period on the back of rising factory automation, especially in China, and large number of automobile manufacturing plants in the region. Apart from these, increasing population and growing demand for energy are also expected to drive market growth in the APAC. As per the International Energy Agency, the overall energy demand in Southeast Asia is projected to grow by 60% by the end of 2040. India is evaluated to witness the highest energy demand in the same year, accounting for 925 Mtoe units of energy. Moreover, the market in the Middle East & Africa is assessed to observe the highest CAGR during the forecast period, which can be credited to the growing government investments in smart manufacturing technologies, and the presence of major oil & gas manufacturers in the region.
Get more information on this report: Download Sample PDF
The global smart factory market is further classified on the basis of region as follows:
The never-ending growth in internet accessibility around the world along with numerous technological advancements comprising 5G, blockchain, cloud services, Internet of Things (IoT), and Artificial Intelligence (AI) among others have significantly boosted the economic growth in the last two decades. As of April 2021, there were more than 4.5 billion users that were actively using the internet globally. Moreover, the growth in ICT sector has significantly contributed towards GDP growth, labor productivity, and R&D spending among other transformations of economies in different nations of the globe. Furthermore, the production of goods and services in the ICT sector is also contributing to the economic growth and development. As per the statistics in the United Nations Conference on Trade and Development’s database, the ICT good exports (% of total good exports) globally grew from 10.816 in 2015 to 11.536 in 2019. In 2019, these exports in Hong Kong SAR, China amounted to 56.65%, 25.23% in East Asia & Pacific, 26.50% in China, 25.77% in Korea, Rep., 8.74% in the United States, and 35.01% in Vietnam. These are some of the important factors that are boosting the growth of the market.
Our in-depth analysis of the global smart factory market includes the following segments:
· September 2020: Schneider Electric announced that its smart factory established in Lexington, Kentucky earned the fourth Industrial Revolution (4IR) Advanced Lighthouse Designation. The facility is known for deploying a revolutionizing energy management strategy by using industrial IoT and cloud-based analytics.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: The major factors driving market growth are growing adoption of industrial robots in factories and rising demand for AI and IoT in industrial environments.
Ans: The market is anticipated to attain a CAGR of ~12% over the forecast period, i.e., 2022 – 2030.
Ans: Requirement for high capital investments for deploying smart factory is estimated to hamper the market growth.
Ans: The Middle East & Africa will provide more business opportunities to the market on the back of growing government investments in smart manufacturing technologies in the region.
Ans: The major players in the market are GENERAL ELECTRIC COMPANY, ABB Ltd., Rockwell Automation, Inc., Emerson Electric Co., Schneider Electric SE, 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 component, product, end user, and by region.
Ans: The software segment is anticipated to hold largest market size and is estimated to grow at a robust CAGR over the forecast period and display significant growth opportunities.