Smart Factory Market Forecasts to 2030 – Global Analysis By Component (Hardware, Software, Services, Machine Vision System, Control Devices and Other Components), Connectivity (Wired Connectivity and Wireless Connectivity), Technology, End User and By Ge

Smart Factory Market Forecasts to 2030 – Global Analysis By Component (Hardware, Software, Services, Machine Vision System, Control Devices and Other Components), Connectivity (Wired Connectivity and Wireless Connectivity), Technology, End User and By Geography


According to Stratistics MRC, the Global Smart Factory Market is accounted for $98.17 billion in 2023 and is expected to reach $140.28 billion by 2030 growing at a CAGR of 5.2% during the forecast period. A smart factory is a highly digitized and connected production facility that relies on smart manufacturing. It uses networked gadgets, devices, and production systems to gather and share real-time data. The benefits of smart factories are growing, including better data insights, quicker problem solving, increased plant productivity, improved safety and quality control, seamless data exchange, on-time delivery, and ongoing product improvement.

According to International Federation of Robotics, a nonprofit organization headquartered in Germany, sales of new robots increased somewhat in 2021 by 0.5%, while robot installations are predicted to rebound rapidly and increase by 13%.

Market Dynamics

Driver

Technology advancements and improved supply chain management

The development of technology is a key factor in the market for smart factories. Technological advancements play a crucial role in driving the smart factory market. Innovations such as AI, machine learning, cloud computing, and edge computing enable more sophisticated automation, predictive analytics, and connectivity between machines and systems. These developments increase the availability, scalability, and effectiveness of smart manufacturing solutions. Furthermore, by offering real-time visibility into inventory, logistics, and demand forecasts, smart factories support improved supply chain management. Manufacturers may decrease lead times, improve customer satisfaction, and optimise inventory levels with greater coordination and integration throughout the supply chain.

Restraint

High initial investment

Implementing smart factory technologies requires a significant upfront investment. The cost of deploying advanced automation systems, integrating various technologies, and upgrading infrastructure can be substantial. This can be a barrier for small and medium-sized enterprises (SMEs) or organizations with limited financial resources, limiting their ability to adopt smart factory solutions. These factor can hampered market growth.

Opportunity

Development of 5G technology

Smart factory owners can employ cellular technologies more securely and customise them for particular applications with the help of 5G technology. They can collect data from production networks without connecting to the machines by installing sensors on 5G-enabled equipment, enabling smooth real-time optimisation. For reliable and powerful connections, several firms are implementing 5G networks. By installing a 5G network in factories, wired connectivity is no longer required, allowing for high-speed manufacturing with maximum flexibility and minimal downtime. Having a network that can be supported in terms of speed, coverage, and reliability becomes essential for industries. The advent of the 5G network will provide factories with a single source for solutions and open up huge prospects for smart factories.

Threat

Cybersecurity Risks

Smart factories heavily rely on interconnected systems, IoT devices, and data exchange, making them vulnerable to cybersecurity threats. As more devices and components are connected, the attack surface increases, and the risk of cyber attacks, data breaches, and industrial espionage grows. Protecting sensitive data, intellectual property, and ensuring the integrity of systems and networks is a critical challenge for smart factories.

Covid-19 Impact

The COVID-19 pandemic negatively impacted the smart factory market as lockdown orders were issued worldwide, which hindered production activities and made it harder to maintain industries. A hindrance to the adoption of smart manufacturing technology also contributed to a decline in growth. The epidemic seriously impeded the deployment of Industry 4.0, which ultimately harmed smart industries. The market revealed a significant influence on the supply side. Industries such as automotive, transportation, aerospace & defence, oil & gas, and energy & power witnessed a sharp decline in revenues. However, the COVID-19 pandemic compelled the manufacturing industry to reduce its dependency on manual labour and adopt advanced technologies such as AI, machine learning, and IoT. Thus, there was significant growth in the adoption of smart manufacturing technologies among various industries

The Automotive segment is expected to be the largest during the forecast period

The Automotive segment is estimated to hold the largest share. Smart factories are revolutionizing automotive manufacturing by leveraging technologies such as robotics, AI, IoT, and big data analytics. These advancements enable streamlined production processes, enhanced quality control, and improved operational efficiency. Smart factories in the automotive sector offer benefits such as flexible production, real-time monitoring, predictive maintenance, and supply chain optimization. Moreover, the integration of automation and digital technologies enables automotive manufacturers to meet increasing demands for customization, reduce production costs, and accelerate time-to-market. As the automotive industry evolves towards electric vehicles, autonomous driving, and connected mobility, smart factories play a crucial role in driving innovation and competitiveness in this sector.

The Industrial Robots segment is expected to have the highest CAGR during the forecast period

The Industrial Robots segment is anticipated to have lucrative growth during the forecast period. Industrial robots are programmable machines capable of performing repetitive tasks with precision and speed. They play a crucial role in smart factories by handling assembly, material handling, and quality control operations. Furthermore, industrial robots enable higher productivity, improved product quality, and reduced labour costs. They can be integrated with other smart factory technologies such as AI, IoT, and machine vision systems to enable intelligent decision-making and adaptability. As the demand for automation increases across industries, the industrial robots segment is expected to witness substantial growth, driving the advancement of smart factory capabilities.

Region with largest share

Europe commanded the largest market share during the extrapolated period. The research and innovation (R&I) programmes of the European Union have provided considerable support for the development of smart technologies and solutions that enable the European manufacturing sector to fully capitalise on digital potential. Several initiatives are funded by the ""Factories of the Future Public-Private Partnership,"" which aims to help EU manufacturing businesses and SMEs meet global competitiveness by developing the essential core enabling technologies across multiple end-user industries. Additionally, the UK's smart factory market grew at the highest rate in the European region, while the German smart factory market held the largest market share.

Region with highest CAGR

Asia-Pacific region is expected to witness profitable growth over the projection period. With rapid industrialization and the adoption of advanced technologies, countries like China, Japan, South Korea, and India are driving the expansion of smart factories in the region. Smart factories integrate automation, artificial intelligence, the Internet of Things (IoT), and data analytics to enhance productivity, efficiency, and flexibility in manufacturing processes. Factors such as government initiatives promoting Industry 4.0, rising labour costs, and the need for improved operational efficiency are fueling the demand for smart factories. The Asia-Pacific region is becoming a hub for manufacturing industries, and the implementation of smart factories is expected to revolutionise traditional manufacturing and contribute significantly to economic growth and competitiveness in the region.

Key players in the market

Some of the key players in the Smart Factory Market include ABB Ltd., Emerson Electric Co., Rockwell Automation Inc, Siemens AG, Honeywell International Inc., Endress+Hauser AG, General Electric Company, Schneider Electric SE, Mitsubishi Electric Corp., Yokogawa Electric Corp., Johnson Controls International PLC, SAP SE, Cisco Systems Inc., Oracle Corporation, Kollmorgen, IBM Corporation, Microsoft Corporation, Fanuc Corporation, Robert Bosch GmbH and Cognex Corporation.

Key Developments

In January 2022, Emerson Electric Co. (U.S.) launched its PACSystems Edge Solutions, a new portfolio of turnkey industrial edge hardware and software solutions. These solutions enable OEMs and end users to rapidly configure and implement advanced edge computing, visualization, and IIoT technology.

In March 2022, Emerson Electric Co. launched MT Connect, an industrial control platform driver for enabling easy integration of computer numerical control (CNC) machines with modern data analysis automation environment. This allows the collection of data from machines, robots, tools, and devices, which were previously inaccessible to be cumulatively analyzed in one platform. The new driver offers reduced downtime, improved efficiency, and increased productivity.

In October 2021, ABB Ltd. (Switzerland) launched its ABB Ability Genix Asset Performance Management Suite. The Genix Asset Performance Management Suite brings next-generation AI-based predictive maintenance, asset reliability, and integrity insights to process and utility industries.

Components Covered
• Hardware
• Software
• Services
• Machine Vision System
• Control Devices
• Other Components

Connectivities Covered
• Wired Connectivity
• Wireless Connectivity

Technologies Covered
• Cloud Computing & Storage
• Augmented Reality/Virtual Reality (AR/VR)
• Artificial Intelligence
• Industrial Cybersecurity
• Digital Twin
• Blockchain
• Other Technologies

End Users Covered
• Automotive
• Electrical & Electronics
• Energy & Utilities
• Aerospace & Defence
• Food & Beverages
• Healthcare & Pharmaceuticals
• Oil & Gas
• Chemicals
• Machine Manufacturing
• Medical Devices
• Garment & Textile
• Metal & Mining
• Pulp & Paper

Regions Covered
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements


1 Executive Summary
2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions
3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Technology Analysis
3.7 End User Analysis
3.8 Emerging Markets
3.9 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global Smart Factory Market, By Component
5.1 Introduction
5.2 Hardware
5.2.1 Sensors
5.2.1.1 Pressure Sensor
5.2.1.2 Decibel Sensor
5.2.1.3 Fire and Smoke Sensors
5.2.1.4 Vibration Sensor
5.2.1.5 Micro-Sensors
5.2.1.6 Motion Sensors
5.2.2 Machine Vision Systems
5.2.3 Industrial Robots
5.2.3.1 Cartesian
5.2.3.2 Selective Compliance Articulated Robot Arm (SCARA)
5.2.3.3 Articulated
5.2.3.4 Cylindrical
5.2.4 Industrial 3D Printing
5.3 Software
5.3.1 Human Machine Interface
5.3.2 Distributed Control System
5.3.3 Enterprise Resource Planning (ERP)
5.3.4 Product Life Cycle Management
5.3.5 Supervisory Control and Data Acquisition (SCADA)
5.3.6 Programmable automation controller (PAC)
5.3.7 Programmable logic controller (PLC)
5.4 Services
5.4.1 Managed Services
5.4.2 Professional Services
5.4.2.1 Integration & Deployment
5.4.2.2 Support & Maintenance
5.4.3 Consulting
5.4.3.1 Smart Factory Assessment Service
5.4.3.2 Continuous Process Improvement/Calibration Service
5.4.3.3 Infrastructure Management Service
5.5 Machine Vision System
5.5.1 Cameras
5.5.2 Processors
5.5.3 Optics & LED Lighting
5.5.4 Frame Grabbers
5.6 Control Devices
5.6.1 Relays and Switches
5.6.2 Control Valves
5.6.3 Motors & Drives
5.7 Other Components
6 Global Smart Factory Market, By Connectivity
6.1 Introduction
6.2 Wired Connectivity
6.2.1 Fieldbus
6.2.2 Ethernet
6.3 Wireless Connectivity
6.3.1 Wi-Fi
6.3.2 WirelessHART
6.3.3 Bluetooth
7 Global Smart Factory Market, By Technology
7.1 Introduction
7.2 Cloud Computing & Storage
7.3 Augmented Reality/Virtual Reality (AR/VR)
7.4 Artificial Intelligence
7.5 Industrial Cybersecurity
7.6 Digital Twin
7.7 Blockchain
7.8 Other Technologies
8 Global Smart Factory Market, By End User
8.1 Introduction
8.2 Automotive
8.3 Electrical & Electronics
8.4 Energy & Utilities
8.5 Aerospace & Defence
8.6 Food & Beverages
8.7 Healthcare & Pharmaceuticals
8.8 Oil & Gas
8.9 Chemicals
8.10 Machine Manufacturing
8.11 Medical Devices
8.12 Garment & Textile
8.13 Metal & Mining
8.14 Pulp & Paper
9 Global Smart Factory Market, By Geography
9.1 Introduction
9.2 North America
9.2.1 US
9.2.2 Canada
9.2.3 Mexico
9.3 Europe
9.3.1 Germany
9.3.2 UK
9.3.3 Italy
9.3.4 France
9.3.5 Spain
9.3.6 Rest of Europe
9.4 Asia Pacific
9.4.1 Japan
9.4.2 China
9.4.3 India
9.4.4 Australia
9.4.5 New Zealand
9.4.6 South Korea
9.4.7 Rest of Asia Pacific
9.5 South America
9.5.1 Argentina
9.5.2 Brazil
9.5.3 Chile
9.5.4 Rest of South America
9.6 Middle East & Africa
9.6.1 Saudi Arabia
9.6.2 UAE
9.6.3 Qatar
9.6.4 South Africa
9.6.5 Rest of Middle East & Africa
10 Key Developments
10.1 Agreements, Partnerships, Collaborations and Joint Ventures
10.2 Acquisitions & Mergers
10.3 New Product Launch
10.4 Expansions
10.5 Other Key Strategies
11 Company Profiling
11.1 ABB Ltd.
11.2 Emerson Electric Co.
11.3 Rockwell Automation Inc
11.4 Siemens AG
11.5 Honeywell International Inc.
11.6 Endress+Hauser AG
11.7 General Electric Company
11.8 Schneider Electric SE
11.9 Mitsubishi Electric Corp.
11.10 Yokogawa Electric Corp.
11.11 Johnson Controls International PLC
11.12 SAP SE
11.13 Cisco Systems Inc.
11.14 Oracle Corporation
11.15 Kollmorgen
11.16 IBM Corporation
11.17 Microsoft Corporation
11.18 Fanuc Corporation
11.19 Robert Bosch GmbH
11.20 Cognex Corporation
List of Tables
Table 1 Global Smart Factory Market Outlook, By Region (2021-2030) ($MN)
Table 2 Global Smart Factory Market Outlook, By Component (2021-2030) ($MN)
Table 3 Global Smart Factory Market Outlook, By Hardware (2021-2030) ($MN)
Table 4 Global Smart Factory Market Outlook, By Sensors (2021-2030) ($MN)
Table 5 Global Smart Factory Market Outlook, By Machine Vision Systems (2021-2030) ($MN)
Table 6 Global Smart Factory Market Outlook, By Industrial Robots (2021-2030) ($MN)
Table 7 Global Smart Factory Market Outlook, By Industrial 3D Printing (2021-2030) ($MN)
Table 8 Global Smart Factory Market Outlook, By Software (2021-2030) ($MN)
Table 9 Global Smart Factory Market Outlook, By Human Machine Interface (2021-2030) ($MN)
Table 10 Global Smart Factory Market Outlook, By Distributed Control System (2021-2030) ($MN)
Table 11 Global Smart Factory Market Outlook, By Enterprise Resource Planning (ERP) (2021-2030) ($MN)
Table 12 Global Smart Factory Market Outlook, By Product Life Cycle Management (2021-2030) ($MN)
Table 13 Global Smart Factory Market Outlook, By Supervisory Control and Data Acquisition (SCADA) (2021-2030) ($MN)
Table 14 Global Smart Factory Market Outlook, By Programmable automation controller (PAC) (2021-2030) ($MN)
Table 15 Global Smart Factory Market Outlook, By Programmable logic controller (PLC) (2021-2030) ($MN)
Table 16 Global Smart Factory Market Outlook, By Services (2021-2030) ($MN)
Table 17 Global Smart Factory Market Outlook, By Managed Services (2021-2030) ($MN)
Table 18 Global Smart Factory Market Outlook, By Professional Services (2021-2030) ($MN)
Table 19 Global Smart Factory Market Outlook, By Consulting (2021-2030) ($MN)
Table 20 Global Smart Factory Market Outlook, By Machine Vision System (2021-2030) ($MN)
Table 21 Global Smart Factory Market Outlook, By Cameras (2021-2030) ($MN)
Table 22 Global Smart Factory Market Outlook, By Processors (2021-2030) ($MN)
Table 23 Global Smart Factory Market Outlook, By Optics & LED Lighting (2021-2030) ($MN)
Table 24 Global Smart Factory Market Outlook, By Frame Grabbers (2021-2030) ($MN)
Table 25 Global Smart Factory Market Outlook, By Control Devices (2021-2030) ($MN)
Table 26 Global Smart Factory Market Outlook, By Relays and Switches (2021-2030) ($MN)
Table 27 Global Smart Factory Market Outlook, By Control Valves (2021-2030) ($MN)
Table 28 Global Smart Factory Market Outlook, By Motors & Drives (2021-2030) ($MN)
Table 29 Global Smart Factory Market Outlook, By Other Components (2021-2030) ($MN)
Table 30 Global Smart Factory Market Outlook, By Connectivity (2021-2030) ($MN)
Table 31 Global Smart Factory Market Outlook, By Wired Connectivity (2021-2030) ($MN)
Table 32 Global Smart Factory Market Outlook, By Fieldbus (2021-2030) ($MN)
Table 33 Global Smart Factory Market Outlook, By Ethernet (2021-2030) ($MN)
Table 34 Global Smart Factory Market Outlook, By Wireless Connectivity (2021-2030) ($MN)
Table 35 Global Smart Factory Market Outlook, By Wi-Fi (2021-2030) ($MN)
Table 36 Global Smart Factory Market Outlook, By WirelessHART (2021-2030) ($MN)
Table 37 Global Smart Factory Market Outlook, By Bluetooth (2021-2030) ($MN)
Table 38 Global Smart Factory Market Outlook, By Technology (2021-2030) ($MN)
Table 39 Global Smart Factory Market Outlook, By Cloud Computing & Storage (2021-2030) ($MN)
Table 40 Global Smart Factory Market Outlook, By Augmented Reality/Virtual Reality (AR/VR) (2021-2030) ($MN)
Table 41 Global Smart Factory Market Outlook, By Artificial Intelligence (2021-2030) ($MN)
Table 42 Global Smart Factory Market Outlook, By Industrial Cybersecurity (2021-2030) ($MN)
Table 43 Global Smart Factory Market Outlook, By Digital Twin (2021-2030) ($MN)
Table 44 Global Smart Factory Market Outlook, By Blockchain (2021-2030) ($MN)
Table 45 Global Smart Factory Market Outlook, By Other Technologies (2021-2030) ($MN)
Table 46 Global Smart Factory Market Outlook, By End User (2021-2030) ($MN)
Table 47 Global Smart Factory Market Outlook, By Automotive (2021-2030) ($MN)
Table 48 Global Smart Factory Market Outlook, By Electrical & Electronics (2021-2030) ($MN)
Table 49 Global Smart Factory Market Outlook, By Energy & Utilities (2021-2030) ($MN)
Table 50 Global Smart Factory Market Outlook, By Aerospace & Defence (2021-2030) ($MN)
Table 51 Global Smart Factory Market Outlook, By Food & Beverages (2021-2030) ($MN)
Table 52 Global Smart Factory Market Outlook, By Healthcare & Pharmaceuticals (2021-2030) ($MN)
Table 53 Global Smart Factory Market Outlook, By Oil & Gas (2021-2030) ($MN)
Table 54 Global Smart Factory Market Outlook, By Chemicals (2021-2030) ($MN)
Table 55 Global Smart Factory Market Outlook, By Machine Manufacturing (2021-2030) ($MN)
Table 56 Global Smart Factory Market Outlook, By Medical Devices (2021-2030) ($MN)
Table 57 Global Smart Factory Market Outlook, By Garment & Textile (2021-2030) ($MN)
Table 58 Global Smart Factory Market Outlook, By Metal & Mining (2021-2030) ($MN)
Table 59 Global Smart Factory Market Outlook, By Pulp & Paper (2021-2030) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.

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