Smart Factory Market Size By Component (Hardware [Sensors, Industrial Robots, Machine Vision, Communication Technology Devices], Software [HMI, PLM, SCADA, DCS], PLC, ERP, Service), By Application & Global Forecast, 2023 - 2032

Smart Factory Market Size By Component (Hardware [Sensors, Industrial Robots, Machine Vision, Communication Technology Devices], Software [HMI, PLM, SCADA, DCS], PLC, ERP, Service), By Application & Global Forecast, 2023 - 2032

Global Smart Factory Market size is expected to grow considerably through 2032, owing to rising investments in the Industry 4.0 concept. In February 2023, the governor of Iowa and the Iowa Economic Development Authority announced that the state would invest an additional USD 2 million in Manufacturing 4.0 Technology Investment Program to strengthen its manufacturing capability.

Developing economies such as India are also making heavy investments in the Industry 4.0 concept through Make in India Initiative, thus, boosting market performance. On the other hand, many players operating in the field are investing in product innovations, which is also positively impacting the industry landscape. For instance, in October 2022, Honeywell International Inc., a multinational conglomerate corporation, announced the launch of its manufacturing excellence platform, which provides end-to-end production visualization platforms to multiple users. This launch will ensure interoperability and transparency and maximize efficiency while promoting digitalization in the life sciences industry.

The overall smart factory market is divided on the basis of component, end-use, and region.

Based on components, the smart factory industry size from the hardware segment is anticipated to grow considerably through 2032. Growing product innovations in the hardware segment are contributing to segment expansion. For instance, in September 2022, Mitsubishi Electric India, a leading electronics manufacturer, announced the launch of its M80V and M800V series Computerized Numerical Controllers to accelerate smart manufacturing in India. It is the first-ever computerized numerical controller equipped with a built-in wireless LAN for efficient workflow.

In terms of end-use, the smart factory market share from the healthcare segment is expected to be worth over USD 30 billion by 2032. Smart manufacturing solutions enhance asset utilization and offer shorter time-to-value of medical devices. They also help the medical device sector digitalize its operations which helps ensure product integrity and comply with regulatory standards. Rapid digitalization in the medical device space will favor the adoption of the smart factory concept through 2032.

Regionally speaking, Asia Pacific smart factory industry size is anticipated to see considerable gains through 2032. Growing medical device industry in the region has increased the demand for smart factory solutions. As per IBEF, the medical device sector in India has the potential to attain a valuation of USD 50 billion by 2025. Favorable government initiatives, such as Make in China and Make in India, have advanced the manufacturing capabilities of emerging economies in the region, which will favor the expansion of regional market share.