Europe Smart Factory Market Outlook, 2029

Europe Smart Factory Market Outlook, 2029

The development of smart factories in Europe is mostly due to innovation, since numerous businesses and academic institutes in the area are attempting to create novel technologies and manufacturing techniques. Today's European factories face challenging macroeconomic challenges. However, in response to these challenges, a growing number of businesses are turning to technology more precisely, to what the technology community refers to as the ""smart factory"" or ""intelligent factory"" to help them become more profitable and efficient. As manufacturers use cutting-edge technologies to enhance their production processes and increase efficiency, smart factories are becoming more and more prevalent in Europe. These factories are fully automated, with machinery and other devices having internet connections and the ability to communicate with one another. This makes it possible to monitor and manage production operations in real time. Data analytics technologies are used by smart factories to gather and examine vast volumes of production process data. Additionally, they use robotics to automate the production process and carry out intricate tasks. Research and innovation (R&I) activities of the European Union have been instrumental in fostering the creation of intelligent technologies and solutions that allow the European industrial sector to fully capitalize on digital potential. The 'Factories of the Future Public-Private Partnership,' which intends to support EU manufacturing enterprises and SMEs in facing global competitiveness by developing the necessary core enabling technologies across a broad variety of end-user industries, finances numerous projects.

According to the research report ""Europe Smart Factory Market Outlook, 2029,"" published by Bonafide Research, the Europe Agriculture Tractor Market is projected to add more than USD 18 billion from 2024 to 2029. The necessity for manufacturers to increase productivity, cut costs, and maintains their competitiveness in the global market is driving the market's rapid growth in Europe. Germany and other large manufacturing economies are the main drivers of the expansion of the European smart manufacturing sector. Manufacturing activity has always been at the forefront in Europe. But a lot of advances are forced by competition. Therefore, Europe needs to serve as a fertile field for innovative industrial technology concepts. With the help of the IT sector, manufacturing will advance to become intelligent and prepared to usher in the fourth industrial revolution with smart factories. Efficiency, productivity, and resource optimization are becoming more and more important to European firms in order for them to compete in the global market. Automation, artificial intelligence, and real-time data analytics enable smart factories, which have several advantages. Predictive maintenance and automation reduce equipment breakdowns and streamline manufacturing procedures. Consistent product quality is guaranteed by exact parameter control and real-time quality monitoring. Reduced energy and material waste is achieved through intelligent systems and optimized operations.

Major Drivers

Industrial robot adoption is rising: The reasons propelling the growth of the industrial robot market include the increasing miniaturization of sensors, the rise in automation investments (particularly in the automotive, electrical and electronics, and metals and machinery industries), and the growing demand for industrial robotics systems in developing nations. Industrial robot usage has increased across a range of industries due to the growing demand for automation. The expansion of the electronics sector and the skyrocketing labour costs in the manufacturing sector are responsible for the industrial robots market's rise. During the study period, this is anticipated to boost the market for smart factories and raise demand for industrial robots.

An increasing focus on cost-cutting, resource management, and energy efficiency in production operations: Recent years have seen a rapid evolution of smart factories, motivated by the desire to leverage technology advancements to enable large volumes of manufacturing. Digitization, automated procedures, and internal data tracking are all used in smart factories to increase output, sustainability, and efficiency. Manufacturers are encouraged to raise production rates by growing product demand and intensifying worldwide rivalry. At production locations, this raises resource consumption and production costs. Automation systems are therefore being installed in manufacturing facilities to boost output while maximizing the use of existing resources.

Major Challenges

Risks to security related to cyber-physical systems : The manufacturing industry is the most frequently targeted by cyberattacks; 47% of all cyberattacks aim to obtain trade secrets and competitive advantages from this industry. An advanced technology called a cyber-physical system (CPS) combines the virtual and physical worlds to create intelligent machinery in a manufacturing. Manufacturing processes have been revolutionized by CPS technology. Cyber-physical manufacturing facilities combine cutting-edge technology such as robotics, big data, automation, artificial intelligence, virtual reality, sensors, augmented reality, and additive manufacturing to bring remarkable flexibility, precision, and efficiency to production operations.

Requirement for a substantial financial outlay: It costs a lot of money to install cutting-edge equipment, software, and IT infrastructure in a typical manufacturing plant in order to convert it into a highly sophisticated smart manufacturing unit. Advanced communication technology, industrial robots, smart field devices, and other pieces of equipment used in industrial automation depend on these technologies to operate properly. For businesses that operate in price-sensitive economies, including those in Asia Pacific and South America, this transition may present a financial hardship.

Based on Component type, the market is divided into Industrial Sensors, Industrial Robots, Industrial 3D printing, and Machine Vision.

In the market for smart factories in Europe, the industrial sensors category is becoming increasingly significant. Automation and Industry 4.0 concepts are being adopted by European industries more frequently in an effort to boost productivity, efficiency, and competitiveness. As they offer real-time data on a variety of manufacturing processes, equipment health, and ambient variables, industrial sensors are essential to this. Automation systems can foresee possible problems, optimize operations, and make well-informed judgments thanks to this data, which improves factory performance overall significantly.

Based on Industry type, the market is divided into Process Industry, Discrete Industry.

In the European smart factory market, the process industry which includes industries like chemicals, pharmaceuticals, food and beverage, and oil and gas is becoming increasingly important. Process industries handle sensitive materials and have complex production chains. Yield, quality, and energy usage can all suffer significantly from even little inefficiencies. AI-driven analytics and industrial sensors power smart factory solutions, enabling real-time process optimization and monitoring. Strict rules pertaining to product quality, safety, and pollution apply to process industries. By helping businesses comply with these rules, smart factory technology like automated safety systems and real-time emissions monitoring can lower the risk of environmental fines and accidents.

Based on Process Industry type, the market is divided into Oil & Gas, Chemicals, Pharmaceuticals, Energy & Power, Metal & Mining, Pulp & Paper, Food & Beverages, and Cosmetics & Personal Care.

In reality, there is a noticeable increase taking place in the Oil & Gas sector of the European smart factory industry. The aging infrastructure of Europe's oil and gas industry raises questions regarding efficiency, safety, and dependability. These problems can be solved by smart manufacturing technologies. Predictive maintenance and unplanned downtime can be avoided by using sensors and data analytics to monitor the condition of processing facilities, wells, and pipelines. In addition to increasing safety, this lowers maintenance costs and increases operational efficiency. Europe has strict environmental rules for the oil and gas industry as well as aggressive climate targets. Smart manufacturing solutions minimize environmental effect, optimize resource utilization, and help enterprises comply with these rules.

Based on Discrete Industry type, the market is divided into Automotive, Semiconductor & Electronics, and Aerospace & Defence, Machine Manufacturing, Textiles.

The deployment of smart factories is causing a major upheaval in the European automobile sector. Asian and other regions compete fiercely with European automakers. They must increase their operational agility, cut expenses, and optimize their production processes if they are to be successful. These objectives are made possible by smart factories, which are driven by automation, real-time data analytics, and AI. Robots and automated assembly lines boost consistency and speed of production. By identifying and fixing problems early on, real-time quality control systems driven by AI and sensors may save waste and rework.

Based on Technology, the market is divided into Product Lifecycle Management (PLM), Human Machine Interface (HMI), Enterprise Resource and Planning (ERP),Distributed Control System (DCS), Manufacturing Execution System (MES), Programmable Logic Controller (PLC), Supervisory Controller and Data Acquisition (SCADA), Others (Industrial & PAM)

Product Lifecycle Management (PLM) is becoming an increasingly important part of the smart manufacturing landscape in Europe. PLM systems easily connect with other smart manufacturing technologies, such as IoT, AI, and sensors. This establishes a closed-loop feedback system by facilitating real-time data interchange between the stages of product design, manufacturing, and operations. Product designs can be improved and quality raised by utilizing real-time feedback from field and production operations. PLM data can help reduce waste and downtime by guiding scheduling, resource allocation, and production planning. PLM creates a ""digital thread"" that links the idea to retirement phases of a product's lifecycle. This provides data integrity and accessibility across departments, boosting collaboration and decision-making.

Based on report market is divided into various major countries Germany, UK, France, Italy, Spain, Russia.

German manufacturing companies, notably those in the automotive and engineering sectors, were the first to adopt smart factory technologies. Investing in automation, data sharing, and the Internet of Things helped these organizations become more productive, flexible, and competitive. The ecosystem of Germany's smart factories gave rise to numerous start-ups as well as alliances between established companies and technology providers. Companies that specialized in developing and implementing digital twin, predictive maintenance, and advanced analytics solutions. The objective of harmonizing in order to create a common architecture for Industry 4.0 technologies became popular. Organizations such as the German Electrical and Electronic Manufacturers' Association (VDE) concentrated on creating standards and certifications for smart manufacturing. Germany continues to lead the world in Industry 4.0. The United Kingdom has demonstrated consistent advancement in implementing the principles of the smart manufacturing, as demonstrated by notable milestones and modifications in reaction to worldwide patterns and technological innovations. The UK's factory automation began with the switch from mechanical and relay-based systems to PLC-based systems. The use of digital design tools changed the manufacturing and product development processes, paving the way for data-driven optimization. The UK government launched programs like ""High Value Manufacturing"" and ""Catapult network"" to promote the use of IoT, big data, and artificial intelligence in manufacturing. Sensor networks and connected devices enabled real-time data collecting, which paved the way for data-driven insights, predictive maintenance, and self-optimizing processes. France's smart factory market has expanded dramatically over the past several years, emerging as a thriving and promising sector. Strong government support through programs like ""Industrie du Futur"" and ""France Relance Industrie"" provides funding for research, financial incentives, and opportunities for joint ventures, all of which drive the industry's growth. Automation is becoming a must for French industries to stay efficient and competitive. As a result, smart industrial solutions are being adopted more widely.

The smart factory market is fragmented, with significant players like ABB Ltd, Cognex Corporation, Siemens AG, Schneider Electric SE, and Yokogawa Electric Corporation. Players in the market are adopting strategies such as innovations, partnerships, mergers, and acquisitions to improve their product offerings and achieve sustainable competitive advantage.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Smart Factory market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Component
• Industrial Sensors
• Industrial Robots
• Industrial 3D Printing
• Machine Vision

By Technology
• Product Lifecycle Management (PLM)
• Human Machine Interface (HMI)
• Enterprise Resource and Planning (ERP)
• Distributed Control System (DCS)
• Manufacturing Execution System (MES)
• Programmable Logic Controller (PLC)
• Supervisory Controller and Data Acquisition (SCADA)
• Others (Industrial & PAM)

By Industry
• Process Industry
• Discrete Industry

By Process Industry
• Oil & Gas
• Chemicals
• Pharmaceuticals
• Energy & Power
• Metal & Mining
• Pulp & Paper
• Food & Beverages
• Cosmetics & Personal Care

By Discrete Industry
• Automotive
• Semiconductor & Electronics
• Aerospace & Defense
• Machine Manufacturing
• Textiles

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Smart Factory industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.

***Please Note: It will take 48 hours (2 Business days) for delivery of the report upon order confirmation.