The phrase "smart factory" refers to adopting various fully integrated automation systems in industrial facilities. This integration facilitates the efficient movement of materials throughout the factory floor by streamlining material flow throughout all manufacturing processes. Growing demand for high-quality products (which requires adequate end-to-end visibility of the production process), increased use of products across several industries, such as robotics systems, and the rising demand for energy conservation are some primary factors driving the market.
Smart industrial technologies and IoT devices have far-reaching implications for manufacturing value chain efficiency, product quality, and safety. The Internet of Things can empower smart manufacturing features such as quality assurance, equipment maintenance, warehouse operations, and inventory management. In addition, market adoption of AI and machine learning skills may improve speed, accuracy, and data analysis, accelerating market growth. The market development for field devices, sensors, and robots may increase the market's size.
In industrialized nations, such as the United States, IoT technologies address the workforce deficit in the manufacturing industry. As a result, the Federal Government and the corporate sector in the United States are investing in Industry 4.0 IoT technologies to rebuild the American industrial base, which China and other nations with low labor costs have taken over. Consequently, IoT technology may primarily drive the global adoption of smart manufacturing systems.
In recent years, the use of articulated robots has increased significantly in various industries, from automobile painting to component assembly. However, the extensive use of articulated robots in aerospace, oil and gas, and other industries that manufacture massive parts with articulated robots have helped the industry grow. For instance, powerful and effective KUKA Titan and 6-axis articulated robots can be utilized to move large steel girders. Consequently, articulated robots are used to yield in bulk with precision and at a considerably faster rate, thereby increasing manufacturing efficiency, minimizing human error and effort, and enhancing product quality.
The market participants are attempting to increase their competitiveness through various means, such as introducing new products. For example, in September 2021, Honeywell presented their most recent robotic technology development, designed to assist warehouses and distribution centers in automating the tedious operation of unloading pallets and reducing the danger of injuries and labor shortages.
By end-user industry, the global smart factory market is divided into automotive, semiconductors, oil and gas, chemical and petrochemical, pharmaceutical, aerospace and defense, food and beverage, mining, and other end-user industries. The oil and gas segment dominated the market and is estimated to register a CAGR of 12.8% during the forecast period.
By region, the global smart factory market is divided into North America, Europe, Asia-Pacific, Latin America and the Middle East, and Africa.
Asia-Pacific accounted for the largest market share and is estimated to register a CAGR of 11.3% during the forecast period. China has one of the highest industrial output rates in the world and is one of the nations with the quickest economic growth. These elements serve as market drivers in the country's automation industry. For the same purpose, investments are planned to improve growth quality, address environmental concerns, and reduce overcapacity. Compared to the large scale of China's manufacturing base and the number of people, the number of enterprises adopting factory and process automation technologies and robotics in the country is relatively small. China's industrial automation sector stands to benefit significantly from this development. In addition to building a massive semiconductor sector, the country plans to invest USD 18 billion to purchase semiconductor technology and firms. As one of the leading adopters of automation, the semiconductor industry is anticipated to influence market growth positively.
Europe is the second largest region. It is estimated to reach an expected value of USD 165 billion by 2030, registering a CAGR of 7.7% during the forecast period. The German automotive sector has dramatically expanded its global position in car manufacturing in recent years. In addition, sustainability in the manufacturing industry is anticipated to be a significant market driver. In addition to being a substantial user of automation equipment, the country is also an important producer of automation equipment in Europe. Several significant automation and control equipment manufacturers, such as Siemens, Schneider Electric, KUKA, etc., are headquartered in Germany, resulting in a substantial investment in R&D. The nation has witnessed a rapid increase in demand for automation solutions. In August 2019, KUKA secured an order from an automobile customer for 22 KMP 1500s. These clever, autonomous vehicles can supply robots and machines, allowing for precise production timing. In addition, a collaboration between India and Germany in Industry 4.0 is anticipated to contribute to the expansion of the market.
North America is the third largest region. Due to the early adoption of factory automation, the United States is a considerable market for vendors supplying solutions for Smart Factories. It is likely to develop at a significant rate throughout the projection period. In addition to being among the most considerable automobile marketplaces in the world, the country is home to over 13 major automakers. Automotive production has been the country's main revenue driver in the manufacturing sector. The country presents a tremendous opportunity as the automotive industry is a significant adopter of ICS and automation technology. Rapidly, manufacturers are implementing robotics on the production line. The increasing use of robots for automation is also among the significant factors propelling the market growth under study.
The key players in the global smart factory market are ABB Ltd., Siemens AG, Yokogawa Electric Corporation, Kuka AG, Rockwell Automation Inc., Cognex Corporation, Schneider Electric SE, Honeywell International Inc., Mitsubishi Electric Corporation, Fanuc Corporation, Emerson Electric Company, Robert Bosch GmbH, FLIR Systems Inc.
By Region