Smart Factory Market

Smart Factory Market - Shift by Manufacturers towards Automated Execution, Demand Orientation and Data Driven Transformation: Global Industry Analysis and Opportunity Assessment 2015-2025

Introduction

A smart factory is an advanced and automated manufacturing facility that facilitates more advanced, efficient and safer approaches to manufacturing or producing various products. In an era of digital manufacturing, the gap between the physical and digital world is fading swiftly, and being replaced with an entirely new manner of manufacturing. On the basis of market structure, the global smart factory market is segmented to collect, to connect, to analyse and to control.  The global market is further segmented on the basis of component, manufacturing vertical and region. A detailed analysis of each segment is provided in the report to deliver an accurate understanding of the market and facilitate crystal clear decision-making.

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Market Value and Forecast

The global smart factory market was valued at US$ 51.9 Bn in 2014, which is expected to expand at a CAGR of 13.3% during the forecast period (2015–2025). Rising focus on advanced manufacturing, high demand from key verticals and shift towards consumer-centric product offerings by manufacturers are some of the major factors propelling growth of the smart factory market. Increased use of information technology, progressive use of collaborative robots, rising investments in manufacturing plants and adoption of industrial internet of things (IIoT) and cyber physical systems are major trends observed in this market.

Segmentation by Market Structure

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The global smart factory market is segmented on the basis of market structure as to connect, to collect, to analyse and to control. The ‘to analyse’ segment was valued at US$ 13.3 Bn in 2014 and is anticipated to register a CAGR of 15.2% during the forecast period. Presently, the ‘to control’ segment leads the global smart factory market in terms of revenue, and is expected to remain dominant throughout the forecast period.

Segmentation by Manufacturing Vertical

On the basis of manufacturing vertical, the smart factory market is segmented into automotive & transportation, food & beverage, electrical & electronics, aerospace & defence, oil & gas, garment & textile, chemical & material and others (healthcare & pharmaceutical). Among these, the automotive & transportation segment dominated the global smart factory market in terms of revenue contribution in 2014, and is anticipated to retain its dominance throughout the forecast period. Growth of this segment is primarily driven by increasing investment in smart factories by leading automobile manufacturers.  In September 2015 for example, German luxury car manufacturer Mercedes-Benz announced an investment of US$ 1.3 Bn to expand and upgrade its SUV manufacturing unit in Alabama, U.S. This expansion would add 300 new jobs and support end-to-end digitalization of the production process as a part of the company’s smart factory initiative.

Key Regions

The global smart factory market includes five major regions North America, Latin America, Europe, Asia Pacific (APAC) and the Middle East & Africa (MEA). Of all the regions, APAC was the contributor in terms of value, and accounted for over 39.0% share of the global smart factory market in 2014. This is mainly attributed to increasing investments in manufacturing units in the region. In April 2015 for example, the South Korean government along with Samsung Electronics announced an investment of US$ 12.6 Mn to promote the smart factory concept in the country. Moreover, MEA is anticipated to emerge as the fastest growing market, followed by Latin America during forecast period.

Key Players

Key players identified in the global smart factory market include ABB Group, Rockwell Automation, Inc., General Electric Co., Siemens AG, Oracle Corporation, IBM Corporation, SAP SE, PTC Inc., Accenture PLC and Atos SE. These players focus on mergers and acquisitions, new product developments and partnerships in order to remain competitive in the market.

Introduction

A smart factory is an advanced and automated manufacturing facility that facilitates rapid, efficient and safer means and approaches to production and manufacturing of various products and equipment. In an era of digital manufacturing, the gap between the physical and digital world is fading swiftly and being replaced with an entirely new way the manufacturing sector functions.

Report Synopsis

Future Market Insights offers a 10-year forecast of the global smart factory market between 2015 and 2025. The report defines 2014 as the base year and provides data for the following 12 months. In terms of revenue, the smart factory market is expected to register a CAGR of 13.3% during the forecast period.

Report Description

This research report provides a detailed analysis that identifies forces driving the rapid growth of the smart factory market across regions. This study delivers insights about market dynamics across five key regions, which are expected to influence the current nature and future status of the smart factory market during the forecast period (2015-2025).

Rising focus on advanced manufacturing methods, high demand from key verticals and shift towards consumer-centric product offerings by manufacturers, are some factors contributing to growth of the global smart factory market.

The report includes FMI analysis of key trends, drivers and restraints influencing the global smart factory market. A weighted average model is leveraged to identify the impact of key growth drivers and restraints across various regions in order to help clients in framing accurate business strategies.

The global smart factory market is segmented on the basis of market structure, component, manufacturing vertical and region. On the basis of market structure, the smart factory market is segmented as to collect, to connect, to analyse and to control. The report offers a detailed analysis of each of these segments in terms of market size (US$ Bn). Key regions assessed in the report are North America, Latin America, Europe, Asia Pacific and the Middle East & Africa.

Given the ever-fluctuating global economy, the report not only forecast the market on the basis of CAGR, but also analyses the impact of key parameters during each year of the forecast period. This helps the client to understand the predictability of the market and identify the right opportunities across the global market during the forecast period. Also, a noteworthy feature of this report is the analysis of all vital segments in terms of absolute dollar opportunity, which is critical for assessing the level of revenue opportunity in the market.

In the final section of the report, a competitive landscape of the market is included in order to present the client with a dashboard view based on core business segments, revenue share and key growth strategy. This section is important for gleaning insights about participants in the market’s ecosystem. Additionally, it enables identification and evaluation of key competitors based on in-depth assessment of their capabilities and successes in the marketplace. The report offers comprehensive profiles of the providers in order to evaluate their long- and short-term strategies related to products across various regions, key offerings and recent developments in the smart factory space. Key competitors covered in this report include ABB Group, Rockwell Automation, Inc., General Electric Co., Siemens AG, Oracle Corporation, IBM Corporation, SAP SE, PTC Inc., Accenture PLC and Atos SE.

Research Methodology

In order to evaluate smart factory market size, revenue generated by smart factory manufacturers has been taken into consideration. Market estimates have been analysed keeping in mind various factors such as technological, environmental, economical, legal and social. In order to provide accurate market forecast statistics, the current market was sized as it forms the basis of the smart factory market performance during the forecast period. Given the characteristics of the market, we triangulated the outcome of three different types of processes namely secondary research, primary research and data from paid database. Primary research represents the bulk of our research efforts, supplemented by extensive secondary research. Secondary research includes product literature of key players, annual reports, press releases and relevant documents, recent trade journals, related technical write-ups, Internet sources, trade associations, agencies and statistical data from government websites. This collated data from primary and secondary sources is then analysed by the in-house research panel using market research statistical tools, which equates to the most appropriate methodology to provide a quality market research report.

Key Segments Covered

  • By Market Structure
    • To Connect
      • Wired and Wireless Networking
      • Wide Area Networking (WAN)
      • Local Area Networking (LAN)
      • Machine-to-Machine Network
    • To Collect
      • Sensors
      • Digital Measurement Devices
      • Auto Identification Hardware
    • To Analyse
      • Data Historian
      • Reporting
      • Complex Event Processing
      • Predictive Algorithm
    • To Control
      • Actuators
      • Programmable Logic Controllers
      • Smart Robotics
      • Additive Manufacturing Equipment
      • SCADA
      • DCS
      • Others (MES, HMI)
  • By Component
    • Hardware
    • Software
    • Services
  • By Manufacturing Vertical
    • Automotive & Transportation
    • Food & Beverage
    • Electrical & Electronics
    • Aerospace & Defence
    • Oil & Gas
    • Garment & Textile
    • Chemical & Material
    • Others

Key Regions/Countries Covered

  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • Italy
    • France
    • U.K.
    • Spain
    • Poland
    • Russia
    • Rest of Europe
  • Asia Pacific (APAC)
    • China
    • India
    • Japan
    • ASEAN
    • Australia & New Zealand
    • Rest of APAC
  • Middle East & Africa
    • GCC
    • North Africa
    • South Africa
    • Rest of MEA

Key Companies

  • ABB Group
  • Rockwell Automation, Inc.
  • General Electric Co.
  • Siemens AG
  • Oracle Corporation
  • IBM Corporation
  • SAP SE
  • PTC Inc.
  • Accenture PLC
  • Atos SE