Smart Factory Market Forecasts to 2028 – Global Analysis By Product (Industrial Robotics, Machine Vision Systems, Industrial 3D Printing, Control Devices, Communication Technologies), Component (Hardware, Software), Industry (Discrete Industry, Process In

Smart Factory Market Forecasts to 2028 – Global Analysis By Product (Industrial Robotics, Machine Vision Systems, Industrial 3D Printing, Control Devices, Communication Technologies), Component (Hardware, Software), Industry (Discrete Industry, Process Industry), Services (Managed Services, Professional Services), Technology, End User and Geography

According to Stratistics MRC, the Global Smart Factory Market is accounted for $86.2 billion in 2022 and is expected to reach $172.8 billion by 2028 growing at a CAGR of 12.3% during the forecast period. Smart factories are industrial facilities that use a variety of fully integrated automation solutions. The material flow throughout all of the manufacturing processes is streamlined with the aid of such integration. Vendors in the smart factories are always looking for innovative ways to improve both the quantity and quality of the goods produced. The flexibility of design and safety solutions is improved with the use of automation techniques. Numerous businesses are investing in Smart Factory technologies as a result.

According to the World Robotics 2021 Industrial Robots report published by the International Federation of Robotics (IFR), in 2021, 3 million industrial robots operated in factories worldwide, with an increase of 10% over 2020. Sales of new robots grew slightly at 0.5% despite the global pandemic, with 384,000 units shipped globally in 2020. According to IMF Blog, in 2018, 1 million robots were in use in Asia, making it a global leader in robotics.

Market Dynamics:

Driver:

Growing Adoption of Articulated Robot

A number of applications for articulated robots have seen significant growth in recent years, from painting automobiles to assembling any component. The market's growth was nonetheless boosted by the widespread use of articulated robots in the aerospace, oil and gas, and numerous other industries that frequently produce massive parts utilising articulated robots. As a result, articulated robots are utilised to produce in large quantities with accuracy and at a much faster rate, enhancing manufacturing efficiency, reducing human error and effort, and improving end product quality.

Restraint:

Lower investments

The expansion of the smart factory market would be hampered by lower investments in cutting-edge systems. The reason for this is that a quick switch from a conventional system to an advanced system will necessitate large expenses. The financial strain that this shift may bring about as well as other costs will rise.

Opportunity:

Emergence of 5G technology

Through 5G technology, smart factory producers and manufacturers can utilise cellular technology more strongly and adjust them according to particular using cases. They can collect data from manufacturing networks without connecting to the machines by installing sensors on equipment that is connected to 5G networks. These enable flawless real-time optimization. For reliable and powerful connection, 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 support in terms of speed, coverage, and reliability becomes essential for industries. The emergence of 5G technology will provide factories a one-stop shop for solutions and open up considerable prospects for the market for smart factories.

Threat:

Interconnection among information technology& operational technology

The lack of interconnection between information technology and operational technology is the main obstacle facing the market for smart factories. The deployment of smart factories is substantially more complicated and expensive since IT and OT employ distinct products and architectural styles. Digital manufacturers must be fully operational for a smart factory. Businesses who are experts in connecting OT and IT will have an advantage in manufacturing, which will show in the output. Additionally, the majority of businesses have made significant investments in pricey, durable industrial equipment. The equipment was created to function independently, which is the primary source of frustration for end users because such equipment does not fit in the IIOT environment.

Covid-19 Impact

The growth of the smart factory market was significantly impacted by COVID-19. In order to stop the spread of the fatal virus, governments around the world have imposed social restrictions and lockdowns. To make things better, the healthcare industry was given more attention. Due to inadequate funding, a labour shortage, and limits on migration, numerous industries, including the Smart Factory Market, experienced significant losses.

The industrial 3D printing segment is expected to be the largest during the forecast period

The industrial 3D printing segment is estimated to have a lucrative growth, due to expanding end user industry adoption. The creation of moulds for different types of food, such as hard candies, chocolates, and cakes, heavily utilises 3D printing technology. This encourages the growth of the industrial 3D printing market for the food and beverage sector.

The Industrial Internet of Things (IIoT) segment is expected to have the highest CAGR during the forecast period

The Industrial Internet of Things (IIoT) segment is anticipated to witness the fastest CAGR growth during the forecast period, due to growing need to advance the performance and productivity of industrial processes, the steadily falling cost of industrial IoT sensors, the marked improvement in overall equipment effectiveness (OEE) due to industrial IoT usage, and the rising investments in equipment interconnection to transform existing factories into smart factories.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to the expansion of new technologies. Robots with AI capabilities have allowed businesses to automate several tasks, boost productivity, and get rid of mistakes. Businesses are investing in robotic systems due to better production efficiency and workplace safety. Scalable factory automation is made possible by the rise in industrial robot shipments to the nation and the use of several Industrial Control Systems. The market's expansion is accompanied by the use of industrial control systems, which are defined by new advances and are offered by numerous firms. Industrial Version 4.0 is becoming more widely used. The nation has established itself as a hub for the production of factory automation devices, selling them to Asia-Pacific regional.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period, owing to increasing research and development investment, as well as developments by multinational corporations. As an industrial hub, North America is fast becoming more prominent. As a result, there is a huge demand for updating the current infrastructure with cutting-edge technologies. The fourth industrial revolution's intelligent factors may hold the secret to increased maker efficiency. Every maker can adopt the cutting-edge technologies that will boost business value, from those who are already ""running smart"" to those who have not yet invested in smart factory technologies.

Key players in the market

Some of the key players profiled in the Smart Factory Market include Honeywell International Inc., Mitsubishi Electric Corporation, Siemens AG, ABB Ltd, Emerson Electric Co., Microsoft Corporation, IBM Corporation, Cisco Systems Inc., Oracle Corporation, Infosys Ltd., Accenture Plc, Schneider Electric SE, Johnson Control International Plc, Rockwell Automation Inc., Robert Bosch GmbH and Yokogawa Electric Corporation.

Key Developments:

In June 2021, Rockwell Automation and Plex Systems, a cloud-native smart manufacturing platform, announced that Rockwell signed an agreement to acquire Plex for USD 2.22 billion in cash. Plex provides the only single-instance, multi-tenant SaaS manufacturing platform that operates at scale, including advanced manufacturing execution systems, quality, and supply chain management capabilities. This acquisition would enable Rockwell to scale up its cloud offerings for various industries.

Products Covered:
• Industrial Robotics
• Machine Vision Systems
• Industrial 3D Printing
• Control Devices
• Communication Technologies
• Industrial Network
• Industrial Sensors
• Industrial Automation & Control Systems/Plant Level Controls
• Asset Performance Management Solutions
• Industrial Safety Systems
• Enterprise Level Controls
• Other Products

Components Covered:
• Hardware
• Software

Industries Covered:
• Discrete Industry
• Process Industry
• Other Industries

Services Covered:
• Managed Services
• Professional Services
• Other Services

Technologies Covered:
• Robotics & Automation
• Cloud Computing & Storage
• Blockchain
• Industrial Cybersecurity
• Additive Manufacturing
• Digital Twin
• Industrial Internet of Things (IIoT)
• Augmented Reality /Virtual Reality
• Artificial Intelligence
• Other Technologies

End Users Covered:
• Chemical & Petrochemical
• Automotive
• Semiconductor & Electronics
• Oil & Gas
• Pharmaceutical
• Pulp & Paper
• Metals & Mining
• Energy & Power
• Machine Manufacturing
• Aerospace & Defense
• Food & Beverage
• Heavy Machinery & Tools
• Fast-moving Consumer Goods (FMCG)
• Other End Users

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 2020, 2021, 2022, 2025, and 2028
- 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