Market Size of North America Smart Factory Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 9.50 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
North America Smart Factory Market Analysis
The North America Smart Factory Market is expected to witness a CAGR of approximately 9.5% over the forecast period (2021-2026). The outbreak of COVID-19 has forced the manufacturing industries to re-evaluate their traditional production processes, primarily driving the digital transformation and smart manufacturing practices across the production lines. The manufacturers are also collectively being forced to devise and implement multiple new and agile approaches to monitor product and quality control.
- The Maryville University estimates that by 2025, over 180 trillion gigabytes of data will be created worldwide every year. A large portion of this will be generated by IIoT-enabled industries. A survey by the Industrial IoT (IIoT) giant, Microsoft, found that 85% of companies have at least one IIoT use case project. This number will increase, as 94% of the respondents said they will implement IIoT strategies by 2021.
- IoT technologies are overcoming the labor shortage in the manufacturing sector, especially in the developed countries, like the United States. Due to this, the Federal Government and the private sector in the United States are investing in Industry 4.0 IoT technologies, to increase the American industrial base, which was taken over by China and other low labor cost countries. Therefore, IoT technologies may mainly drive the adoption of smart factory solutions, across the world.
- Also, the recent increase in tariffs is likely to force manufacturers of the United States to produce goods at a lower cost, which is to be achieved through automation. Auto companies that invested in automation pre-tariffs are ahead of the game, and they are the cost-saving blueprint for other companies. Companies that produce industrial robots and automation products are set to benefit, as they are the largest producers of the robots and equipment needed for automation.
- Automation technologies, such as collaborative robots, require human intervention/ interaction. Furthermore, industrial control systems (ICS) are laced with security risks. Hence, ICS security solutions must be installed to prevent security threats to the systems, which increases the cost of maintaining ICS. Nevertheless, advancements in cybersecurity solutions are reducing the fear of security issues associated with ICS.
