Smart Factory Market Size to Surge 2.7X over 2020-2030
Decreased operational and manufacturing expenses due to less labor requirement for running machinery and process monitoring are a top priority among several industries. Driven by advanced operations technology, industrials are embracing digital supply chain management solutions. Industrial robotics has evolved with numerous tech-enabled developments such as vision recognition, man-machine-collaboration, and failure prediction. It has emerged as a critical element of the manufacturing sector. Supported by these tailwinds, worldwide adoption of smart factory solutions will swell more than 2.7X over 2020-2030. Industry 4.0 and integration of digital technologies such as Internet of Things (IoT), and artificial intelligence (AI) with supply chains will propel market growth.
Smart Factory Market - Key Research Findings
- The global smart factory market will cross its US$ 100 Bn in 2020.
- At-scale adoption of connected technologies in workplaces would underpin market growth.
- Software components continue to shape revenue growth of smart factory market; under the category, distributed control systems hold leading value share.
- Discrete industry accounts for greater revenue share in smart factory; process industry to generate stable returns.
- East Asia would remain at driver’s seat; North America to offer lucrative prospects.
KEY FACTORS SHAPING SMART FACTORY MARKET
Increasing Adoption IIoT
The development of internet of things (IoT) is drastically changing the industrial sector. Industrial Internet of things (IIoT) components are completely transforming physical plants and machine tools among others. By implementing IIoT components, companies capture new growth by increasing production, exploiting intelligent technologies to fuel innovation, transforming their workforce, and creating new hybrid business models.
In today’s highly competitive environment, factories have started adopting advanced and automated systems to improve operational efficiency and business performance. Hence, recent developments in the industrial Internet of Things environment in the coming period can be expected to propel the smart factory market growth, globally. In addition, it has been observed that manufacturing factories have introduced IIoT solutions on the floor for inventory tracking, supply chain management & production systems, and some companies have started increasing the usage of on-board IoT devices.
Increasing Role of Industrial Automation
The Industry 4.0 revolution is rapidly changing industrial production capabilities. The rising adaptation of connected devices, artificial intelligence-based systems, enterprise applications and advanced sensing systems for data collection are completely changing industrial processes. Moreover, several manufacturers are leveraging component technologies of smart factories in different areas such as advanced planning and scheduling, using real-time production, inventory management and augmented reality for maintenance.
By adopting these innovative production methods and technologies, several industries such as automotive, chemical, aerospace, food & beverages, etc., are making their manufacturing processes advanced and automated. In addition, rapid changes in technology and trends have made the shift towards a more flexible and adaptive production system almost an essential for users who wish to either disrupt their competition or remain competitive. These trends and technological changes are projected to propel smart factory market growth during the forecast period.
Drop in Machine Utilization Due to COVID-19 Pandemic
Vision guided robots play an important role to support fight against the COVID-19 outbreak. Leveraging machine vision technology and robotics can be a significant solution to prevent spread of coronavirus and help people to fight against the pandemic. But the pandemic has forced lockdowns across various countries in Asia, such as China, Japan, South Korea, India, Philippines and others. Thus this has brought the manufacturing to a complete halt across different industry vertical and paralyzed the economic activity across the continent. In addition, according to International Monetary Fund (IMF), pandemic is driving the global economy into recession.
For instance, the factory activity in Japan contracted at the fastest pace in about a decade. Moreover, the manufacturing gauges in Vietnam, Philippines and Indonesia also tumbled as Purchasing Managers’ Index survey reported that more than 700,000 people were affected by COVID-19 outbreak, and upended supply chains and led to city lockdowns worldwide.
East Asia to Contribute a Major Market Share; North America Lucrative
In terms of value, the contactless biometrics technology market in East Asia accounted for the largest market share in 2019, with China market dominating the region, owing to the presence of large number of manufacturing industries in this region. High adoption of smart factory solutions in automotive and aerospace & defense industries is anticipated to fuel the market growth of North America.
Smart Factory Market Structure Analysis
- The smart factory market is witnessing an increasing level of competition, with the number of players gradually rising.
- Market players are focusing on mergers & acquisitions of emerging players offering distinct contactless biometric systems.
- In order to maintain competitiveness, key players are adopting data-enabled technologies such as big data analytics, and artificial intelligence (AI).
Market Value in 2019
US$ 95.0 Bn
Solution Industry Vertical, End-user
North America, Latin America, Europe, East Asia, South Asia & Pacific and Middle East & Africa
ABB Ltd., Siemens AG, Schneider Electric SE, Rockwell Automation Inc., General Electric Company, Johnson Controls International PLC, Yokogawa Electric Corporation, Honeywell International Inc., SAP SE, Oracle Corporation, IBM Corporation, Cisco Systems Inc., Microsoft Corporation and Kollmorgen.
Software Components Continue to See Strong AdoptionPlayers in smart factory market continue to allocate their capital investments to software components, which will generate over US$ 50 Bn revenue in 2021. Among software components, distributed control systems (DCS) are considered a favored option, owing to their simplicity and flexibility benefits in monitoring, controlling, and reporting processes. In addition, these benefits of DCS compliment system reliability and availability, paving way for further market growth opportunities. Further, this study states that, hardware and services will falter markedly in the coming years.
Investing in East Asia’s Market - A Win-win Situation
East Asia continues to be the hub of investment opportunities in smart factory market, given government policies and initiatives to encourage the adoption of future-ready factory approaches. Industries including, consumer goods, infrastructure & construction, and power & energy, in the region are resorting to end-to-end product lifecycle management (PLM) solutions. Manufacturing sectors in countries - China, and South Korea - are growing rapidly. Further, the East Asian automotive industry is increasingly banking on intelligent solutions such as enterprise resource planning (ERP), and inventory management software in order to ensure better productivity and curb labor costs.
* This data is only a representation. Actual data may vary and will be available in report.
IIoT to Underpin Market Development
Industrial Internet of Things (IIoT) has materially transformed every facet of the industrial sector. The technology is bridging the gap between man and machine. Backed by IIoT components enterprises grab potential opportunities by disrupting their workspaces, boosting production, transforming their workforce, and developing hybrid business models. Substantial rise in market competition is raising implications for factories to embrace automated technologies to enhance operational efficiency and business performance. As such, emergence of IIoT in the coming period will augur well for smart factory market growth. Several manufacturing factories are bringing IIoT to the floor for supply chain management, and inventory tracking.
Software remains highly preferred
Hardware to lose market share
Discrete industry to generate greater revenues
Process industry to offer value-capture opportunities
High adoption in automotive vertical
Adoption in electrical & electronics vertical on rise
How Growth will Unfold
Adoption of smart factory technologies will remain prominent in the automotive industry, owing to transformation of automobile manufacturing units by deploying automated solutions. Automotive manufacturers are reinventing their production plants with industrial robotics that execute manufacturing-associated tasks with greater efficacy compared to human workforce. Moreover, OEMs are teaming up with software & service providers to build future-proof manufacturing facilities and leverage IIoT benefits. Towards the end of projection period, smart factory market players would reap over US$ 100 Bn from automotive vertical.
* This data is only a representation. Actual data may vary and will be available in report.Click Here To Know How The Growth Will Unfold
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A recent market study published by FMI on the smart factory market includes a global industry analysis for 2015-2019 and an opportunity assessment for 2020-2030, and delivers a comprehensive assessment of the most important market dynamics. After conducting thorough research on the historical as well as current growth parameters, growth prospects of this market are obtained with maximum precision.
Smart Factory Market Taxonomy
The global smart factory market is segmented in detail to cover every aspect of the market and present complete market intelligence to the reader.
- Industrial Robots
- Machine Vision Systems
- Industrial 3D Printing
- Human Machine Interface
- Product Life Cycle Management
- Distributed Control System
- Integration & Deployment
- Support & Maintenance
- Discrete Industry
- Process Industry
- Aerospace & Defense
- Electrical & Electronics
- Food & Beverages
- Energy & Utilities
- Healthcare & Pharmaceutical
- North America
- Latin America
- East Asia
- South Asia and Pacific
- Middle East & Africa
The report begin with the executive summary of the smart factory market, which includes key findings and statistics of the market. It also offers demand and supply-side trends pertaining to this market.
Readers can find the definition and a detailed taxonomy of the market in this chapter, which will help them understand the basic information about the market. Along with this, comprehensive information pertaining to smart factory and its properties are provided in this section. This section also highlights the inclusions and exclusions, which helps readers understand the scope of the market report.
The smart factory market report provides key market trends that are expected to significantly impact market growth during the forecast period. Detailed industry trends are also provided in this section.
This section includes factors that have emerged as key successful factors and strategies adopted by key market participants.
This section explains the value analysis for the global smart factory market during the forecast period of 2020-2030. This chapter includes a detailed analysis of the historical market, along with an opportunity analysis of the future. Readers can also find the absolute $ opportunity for the current year (2020), and an incremental $ opportunity for the forecast period (2020-2030). Along with this, the pricing analysis of the market at the regional level has also been provided in this section.
This chapter explains the key macroeconomic factors that are expected to influence the growth of the market over the forecast period. Along with macroeconomic factors, this section also highlights the value chain, supply chain, forecast factors, and value chain analysis of the market. Moreover, in-depth information about market dynamics and their impact analysis on the market have been provided in the successive section.
Based on solution, the market is segmented into hardware, software and services. In this chapter, readers can find information about key trends and developments in the market and market attractiveness analysis.
Based on application, the market is segmented into discrete industry and manufacturing industry. In this chapter, readers can find information about developments and key trends in the market.
Based on end-user, the market is segmented into automotive, aerospace & defense, electrical & electronics, food& beverages, energy & utilities, healthcare & pharmaceutical and others. In this chapter, readers can find information about developments and key trends in the market.
This chapter explains how the market is expected to grow across various geographic regions such as North America, Latin America, Europe, East Asia, South Asia and Pacific, and the Middle East and Africa.
This chapter includes a detailed analysis on the growth of the North America market, along with country-wise assessment of the U.S. and Canada. Readers can also find pricing analysis, regional trends, volume analysis, and market growth based on product, Enterprise Size, and countries in North America.
This chapter provides the growth scenario of the market in countries such as Brazil, Mexico, and the Rest of Latin America. Along with this, assessment of the market across target segments has been provided.
Important growth prospects of the market in several countries such as Germany, the U.K., France, Spain, Italy, BENELUX, Russia and the Rest of Europe are included in this chapter.
This chapter provides the growth scenario of the market in Eastern Europe countries such as China, Japan and South Korea.
This chapter highlights the growth of the market in South Asia by focusing on India, Thailand, Indonesia, Malaysia, Oceania and Rest of South Asia. This section also helps readers understand key factors that are responsible for the growth of the market in South Asia.
This chapter provides information about how the smart factory market is expected to grow in major countries of the Middle East & Africa region, such as GCC Countries, South Africa, Turkey, and the Rest of Middle East and Africa, during the forecast period of 2020-2030.
This chapter highlights the growth of the market in key countries. Along with this, assessment of the market across target segments has been provided.
In this chapter, readers can find detailed information about the tier analysis and market concentration of key players in the market, along with their market presence analysis by region and product portfolios.
In this chapter, readers can find a comprehensive list of prominent stakeholders in the smart factory market, along with the detailed information about each company, which include the company overview, revenue shares, strategic overview, and recent developments. Some of the market players featured in the report are ABB Ltd., Siemens AG, Schneider Electric SE, Rockwell Automation Inc., General Electric Company, Johnson Controls International PLC, Yokogawa Electric Corporation, Honeywell International, Inc., SAP SE, Oracle Corporation, IBM Corporation, Cisco Systems, Inc., Microsoft Corporation and Kollmorgen.
This chapter includes a list of acronyms and assumptions that provides a base to the information and statistics included in the market report.
This chapter help readers understand the research methodology followed to obtain various conclusions as well as important qualitative and quantitative information about the smart factory market.
How the research was conducted?
- C - Level Executives
- Marketing Directors
- Sales Heads
- Sales Executives
- Technical Advisor
- Smart Factory Providers
- Industry Experts
- Enterprise Sizes
- Current Market Dynamics and Challenges
- Market Characteristics
- Market Performance and Growth Quadrants
- Competition Structure and Market Structure
- Strategic Growth Initiatives
- Near term and long term market growth prospects
- Market Segment Splits and Authenticity
- Opinions on market projections and validity of assumptions
- Company’s white papers
- Annual Reports and Investor Presentations
- Research Papers
- Company Press Release
- Government Websites and Publications
Primary Interview Splits