Global Smart Factory Market Size to Grow at a CAGR of 9.6% by 2031.

Introduction

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.

Market Dynamics

Increasing Implementation of IoT Technologies across the Value Chain to Drive the Global Smart Factory 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.

Growing Adoption of Articulated Robot Across Various End Users to Provide Opportunities for the Global Smart Factory Market

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.

Regional Insights

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.

Key Highlights

• The global smart factory market size was worth USD 330 billion in 2022, and it is estimated to reach a predicted value of USD 750 billion by 2030, registering a CAGR of 9.6% during the forecast period (2022-2031).
• By product, the global smart factory market is segmented into machine vision systems (cameras, processors, software, enclosures, frame grabbers, integration services, and lighting), industrial robotics (articulated robots, cartesian robots, cylindrical robots, scara robots, parallel robots, collaborative industry robots), control devices (relays and switches and servo motors and drives), sensors, communication technologies (wired and wireless), and other products. The sensor segment dominated the market and is estimated to register a CAGR of 8.2% during the forecast period. 
• By technology, the global smart factory market is segmented into Product Lifecycle Management (PLM), Human Machine Interface (HMI), Enterprise Resource and Planning (ERP), Manufacturing Execution System (MES), Distributed Control System (DCS), Supervisory Controller and Data Acquisition (SCADA), Programmable Logic Controller (PLC), and other technologies. The Product Lifecycle Management (PLM) segment dominated the market and is estimated to register a CAGR of 8.2% during the forecast period.
• 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.

 

Competitive Players

1. ABB Ltd.
2. Siemens AG
3. Schneider Electric SE
4. Yokogawa Electric Corporation
5. Robert Bosch GmbH
6. Kuka AG
7. Rockwell Automation, Inc.
8. Honeywell International, Inc.
9. Mitsubishi Electric Corporation
10. Cognex Corporation
11. Fanuc Corporation
12. Emerson Electric Company
13. FLIR Systems, Inc.

Recent Developments

Recent Developments

Recent Developments

• October 2022: More than 300 new trains and locomotives will be powered by highly energy-efficient traction technologies, thanks to orders worth $170 million that ABB received from Stadler Valencia. They will be employed in various European railway networks to modernize and strengthen train travel in nations like Spain, Portugal, the United Kingdom, Germany, and Austria, as well as in several European rail corridors.
• October 2022: As part of the completion of Accelleron's spin-off from ABB, ABB announces that Acceleron Industries AG (formerly ABB Turbocharging), a world leader in high-power turbochargers for mission-critical applications, has been admitted to start trading on SIX Swiss Exchange in Zurich under the ticker symbol "ACLN."
• September 29, 2022: The latest episode of ABB's technology-focused podcast, ABB Decoded, discusses technologies for greener shipping, this year's theme of World Maritime Day. The theme offers a chance to concentrate on the significance of a sustainable maritime industry and participate in a worldwide discussion on the subject.

Segmentation

1. By Product
   1. Machine Vision Systems
      1. Cameras
      2. Processors
      3. Software
      4. Enclosures
      5. Frame Grabbers
      6. Integration Services
      7. Lighting
   2. Industrial Robotics
      1. Articulated Robots
      2. Cartesian Robots
      3. Cylindrical Robots
      4. SCARA Robots
      5. Parallel Robots
      6. Collaborative Industry Robots
   3. Control Devices
      1. Relays and Switches
      2. Servo Motors and Drives
   4. Sensors
   5. Communication Technologies
      1. Wired
      2. Wireless
   6. Other Products
2. By Solution
   1. SCADA
   2. MES
   3. Industrial Safety
   4. PAM
3. By Technology
   1. Product Lifecycle Management (PLM)
   2. Human Machine Interface (HMI)
   3. Enterprise Resource and Planning (ERP)
   4. Manufacturing Execution System (MES)
   5. Distributed Control System (DCS)
   6. Supervisory Controller and Data Acquisition (SCADA)
   7. Programmable Logic Controller (PLC)
   8. Other Technologies
4. By End-user Industry
   1. Automotive
   2. Semiconductors
   3. Oil and Gas
   4. Chemical and Petrochemical
   5. Pharmaceutical
   6. Aerospace and Defense
   7. Food and Beverage
   8. Mining
   9. Other End-user Industries