Smart Factory Market Size
| Study Period: | 2018 - 2028 |
| Fastest Growing Market: | Asia Pacific |
| Largest Market: | Asia-Pacific |
| CAGR: | 9.15 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Smart Factory Market Analysis
The smart factory market is expected to register a CAGR of 9.15% during the forecast period. The term ‘smart factory’ refers to the various fully integrated automation solutions adopted for manufacturing facilities. Such integration helps streamline the material flow during all the processes involved in manufacturing, thus enabling the effective movement of materials across the factory floor.
- Some prominent factors driving the market include the growing demand for high-quality products (which need proper end-to-end visibility of the manufacturing process), increased adoption of products across several industries, such as robotics systems, and the rising demand for energy conservation.
- Incremental advancement in technology, coupled with a sustained increase in the development of manufacturing facilities, is expected to impact the market growth rate during the forecast period.
- Semiconductor production is another primary adopter of advanced manufacturing techniques. Rising energy prices, several environmental regulations, and the general trend toward sustainable manufacturing are expected to increase the adoption rate of products like machine vision systems, robots, and others, increasing market demand for smart factories.
- According to the British Automation and Robot Association (BARA), the sales of individual robots to domestic food and beverage manufacturers increased by about 21% in 2021 compared to the year before. With automation and robotics proving to be beneficial for manufacturers, a similar adoption trend is expected to continue during the post-COVID-19 period.
Smart Factory Industry Segmentation
Smart factory refers to the various fully integrated automation solutions adopted for manufacturing facilities. Such integration helps streamline the material flow during all the processes involved in manufacturing. Big Data analytics allows factories to use smart solutions in their processes within its premises to shift from reactionary practices to predictive ones. This change targets improved efficiency of the process and product performance.
- The Smart Factory Market is segmented by Product Type (Machine Vision Systems, Industrial Robotics, Control Devices, Sensors, Communication Technologies, and Other Product Types), Technology (Product Lifecycle Management (PLM), Human Machine Interface (HMI), Enterprise Resource and Planning (ERP), Manufacturing Execution System (MES), Distributed Control System (DCS), Supervisory Controller and Data Acquisition (SCADA), Programmable Logic Controller (PLC)), End-user Industry (Automotive, Semiconductors, Oil and Gas, Chemical and Petrochemical, Pharmaceutical, Aerospace and Defense, Food and Beverage, Mining, and Other End-user Industries), and Geography (North America, Europe, Asia-Pacific, Latin America, and Middle-East and Africa). The market sizes and forecasts are provided in terms of value in USD billion for all the above segments.
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| Sensors | |||||||||
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| Other Product Types |
| By Technology | |
| Product Lifecycle Management (PLM) | |
| Human Machine Interface (HMI) | |
| Enterprise Resource and Planning (ERP) | |
| Manufacturing Execution System (MES) | |
| Distributed Control System (DCS) | |
| Supervisory Controller and Data Acquisition (SCADA) | |
| Programmable Logic Controller (PLC) | |
| Other Technologies |
| By End-user Industry | |
| Automotive | |
| Semiconductors | |
| Oil and Gas | |
| Chemical and Petrochemical | |
| Pharmaceutical | |
| Aerospace and Defense | |
| Food and Beverage | |
| Mining | |
| Other End-user Industries |
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Smart Factory Market Trends
This section covers the major market trends shaping the Smart Factory Market according to our research experts:
Semiconductors to be the Fastest-growing End-user Industry
- Semiconductor manufacturers rely on smart manufacturing processes to produce higher yields and achieve higher margins. By advancing semiconductor innovation and encouraging the further implementation of innovative technologies powered by advanced chips, manufacturers can ensure that production keeps pace with rising demand as factories become more complex and connected.
- Semiconductor fabrication plants, or fabs, cost billions of dollars to build and maintain. The cost goes on equipment, the maintenance of which is vital to ongoing operation. By using smart manufacturing technologies to monitor equipment health and perform predictive maintenance, fabs can reduce unplanned maintenance time significantly.
- The semiconductor fabrication plants globally are on the rise. Also, the Semiconductor Industry Association reported increased spending on new semiconductor equipment. These factors will also drive the adoption of smart factories in the semiconductor industry. According to Semiconductor Industry Association (SIA), in 2022, semiconductor sales reached USD 580.13 billion worldwide. Semiconductors are crucial components of electronic devices, and the industry is highly competitive. The year-on-year growth rate in 2022 reached 4.4%.
- According to SIA, semiconductor sales in Europe in March 2022 were USD 4.63 billion, up slightly from the previous month's figures, which recorded USD 4.51 billion.
- In addition, in September 2022, Mining conglomerate Vedanta and Taiwanese electronics manufacturing giant Foxconn made one of the largest ever investments of INR 1.54 lakh crore (~USD 1,860 million) to set up India's first semiconductor plant in Gujarat. Such investment may further create significant demand in the studied market.
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Asia-Pacific Expected to be the Fastest-growing Market
- China has led the industrial robot market, which has driven its way to smart factory automation in the region and is one of the leading manufacturing countries in the Asia-Pacific and globally. The increase in the shipment of industrial robots in the country and the adoption of various Industrial Control Systems across the country facilitates factory automation at scale.
- Manufacturing has emerged as one of the high-growth sectors in India. The Make in India program places India on the world map as a manufacturing hub and globally recognizes the Indian economy. The Made in India campaign has bolstered multiple new launches in industrial robots in the country.
- India's industrial automation sector has been revolutionized by the combination of digital and physical aspects of manufacturing to deliver optimum performance. The focus on achieving zero waste production and a shorter time to reach the market has augmented the market's growth.
- Japan has a predominant market share in the robot manufacturing industry and has installed methods where industrial robots are used to assemble robots. The country also houses multiple leading companies like Nippon, responsible for 47% of the global robot production, as per IFR.
- With the launches of new products and solutions by multiple companies in the studied market and Japan's preexisting leadership in the robotics and automation industry, the country is expected to hold a prominent position in the forecasted period.
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Smart Factory Industry Overview
The smart factory market is fragmented, with the presence of major players like ABB Ltd, Cognex Corporation, Siemens AG, Schneider Electric SE, and Yokogawa Electric Corporation. Players in the market are adopting strategies such as partnerships, mergers, innovations, and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
In October 2022, ABB Robotics launched the IRB 1010, the smallest-ever industrial robot. The compact system is developed to help electronics manufacturers improve the production of devices such as smart watches, sensors, earphones, and health trackers.
In September 2022, Shell PLC selected Yokogawa Electric Corporation as a main automation contractor (MAC) for the construction of its Holland Hydrogen I plant in the Dutch port of Rotterdam. The company would optimize Shell PLC’s operation at the plant by closely integrating its equipment and systems.
Smart Factory Market Leaders
ABB Ltd
Cognex Corporation
Siemens AG
Schneider Electric SE
Yokogawa Electric Corporation
*Disclaimer: Major Players sorted in no particular order
Smart Factory Market News
- Feb 2023: Emerson combined its extensive power expertise and renewable energy capabilities into the OvationTM Green portfolio to assist power generation companies in meeting customers' needs transitioning to green energy generation and storage. Emerson has expanded its power-based control architecture by combining recently acquired Mita-Teknik software and technology with its industry-leading Ovation automation platform, extensive renewable energy knowledge base, cybersecurity solutions, and remote management capabilities.
- Jan 2023: Siemens Digital Industries Software announced the opening of eXplore live at The Smart Factory in Wichita. The smart factory includes a fully experiential lab and operational product line for developing and exploring innovative capabilities of smart manufacturing. eXplore Live at Deloitte's The Smart Factory in Wichita helps companies experience the power of digitalization and the future of smart manufacturing using the Siemens Xcelerator portfolio.
- Oct 2022: ABB entered into a strategic partnership with US-based startup Scalable Robotics to improve its portfolio of user-friendly robotic welding techniques. Through 3D vision and implanted process understanding, the Scalable Robotics technology enables users to quickly program welding robots without coding.
Smart Factory Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competition
4.3 Industry Value Chain Analysis
4.4 Assessment of Impact of COVID-19 on the Industry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing Adoption of Internet of Things (IoT) Technologies Across the Value Chain
5.1.2 Rising Demand for Energy Efficiency
5.2 Market Restraints
5.2.1 Huge Capital Investments for Transformations
5.2.2 Vulnerable to Cyberattacks
6. MARKET SEGMENTATION
6.1 By Product Type
6.1.1 Machine Vision Systems
6.1.1.1 Cameras
6.1.1.2 Processors
6.1.1.3 Software
6.1.1.4 Enclosures
6.1.1.5 Frame Grabbers
6.1.1.6 Integration Services
6.1.1.7 Lighting
6.1.2 Industrial Robotics
6.1.2.1 Articulated Robots
6.1.2.2 Cartesian Robots
6.1.2.3 Cylindrical Robots
6.1.2.4 SCARA Robots
6.1.2.5 Parallel Robots
6.1.2.6 Collaborative Industry Robots
6.1.3 Control Devices
6.1.3.1 Relays and Switches
6.1.3.2 Servo Motors and Drives
6.1.4 Sensors
6.1.5 Communication Technologies
6.1.5.1 Wired
6.1.5.2 Wireless
6.1.6 Other Product Types
6.2 By Technology
6.2.1 Product Lifecycle Management (PLM)
6.2.2 Human Machine Interface (HMI)
6.2.3 Enterprise Resource and Planning (ERP)
6.2.4 Manufacturing Execution System (MES)
6.2.5 Distributed Control System (DCS)
6.2.6 Supervisory Controller and Data Acquisition (SCADA)
6.2.7 Programmable Logic Controller (PLC)
6.2.8 Other Technologies
6.3 By End-user Industry
6.3.1 Automotive
6.3.2 Semiconductors
6.3.3 Oil and Gas
6.3.4 Chemical and Petrochemical
6.3.5 Pharmaceutical
6.3.6 Aerospace and Defense
6.3.7 Food and Beverage
6.3.8 Mining
6.3.9 Other End-user Industries
6.4 By Geography
6.4.1 North America
6.4.1.1 United States
6.4.1.2 Canada
6.4.2 Europe
6.4.2.1 United Kingdom
6.4.2.2 Germany
6.4.2.3 France
6.4.2.4 Rest of Europe
6.4.3 Asia-Pacific
6.4.3.1 China
6.4.3.2 India
6.4.3.3 Japan
6.4.3.4 Rest of Asia-Pacific
6.4.4 Latin America
6.4.4.1 Brazil
6.4.4.2 Argentina
6.4.4.3 Mexico
6.4.4.4 Rest of Latin America
6.4.5 Middle-East and Africa
6.4.5.1 United Arab Emirates
6.4.5.2 Saudi Arabia
6.4.5.3 South Africa
6.4.5.4 Rest of Middle-East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 ABB Ltd
7.1.2 Cognex Corporation
7.1.3 Siemens AG
7.1.4 Schneider Electric SE
7.1.5 Yokogawa Electric Corporation
7.1.6 KUKA AG
7.1.7 Rockwell Automation Inc.
7.1.8 Honeywell International Inc.
7.1.9 Robert Bosch GmbH
7.1.10 Mitsubishi Electric Corporation
7.1.11 Fanuc Corporation
7.1.12 Emerson Electric Co.
7.1.13 FLIR Systems Inc. (Teledyne Technologies Incorporated)
*List Not Exhaustive8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Smart Factory Market Research FAQs
What is the study period of this market?
The Smart Factory Market is studied from 2018 - 2028.
What is the growth rate of Smart Factory Market?
The Smart Factory Market is growing at a CAGR of 9.15% over the next 5 years.
Which region has highest growth rate in Smart Factory Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Smart Factory Market?
Asia-Pacific holds highest share in 2022.
Who are the key players in Smart Factory Market?
ABB Ltd, Cognex Corporation, Siemens AG, Schneider Electric SE, Yokogawa Electric Corporation are the major companies operating in Smart Factory Market.
Smart Factory Industry Report
Statistics for the 2023 Smart Factory market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Smart Factory analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
