Status : Published | Published On : Jan, 2024 | Report Code : VRSME9022 | Industry : Semiconductor & Electronics | Available Format : | Page : 160 |
The Smart Factory Market is expected to grow progressively at a CAGR of 10.1% during the forecast period from USD 152.0 billion to USD 247.0 billion by 2030.
Smart factories refer to the revolution optimization of the manufacturing process using sophisticated technologies such as AI, IoT, and robotics. These technologies facilitate predictive maintenance with real-time monitoring of the production process and also help in adaptive production. Overall, smart factories improve the efficiency of production and the quality of goods produced, offering more flexibility and digitization. It links every stage of the production process, streamlining the process to reduce delays or downtime and wastage of materials. It also helps businesses to be agile and adapt to ever-changing demands and market trends.
Market Segmentation
Insight by Technology
The Smart Factory market is divided by technologies into distributed control systems (DCS), product lifecycle management (PLM), programmable logic controllers (PLC), manufacturing execution systems (MES), enterprise resource planning (ERP), supervisory control and data acquisition (SCADA), plant asset management (PAM), and human-machine interface (HMI). Out of these segments, MES will dominate the market during the forecast period.
Insight by Component
According to components, the Smart Factory market is divided into sensors, machine vision systems, industrial robots, and industrial 3D printing segments. Out of these segments, the industrial robotics segment is expected to register the highest growth during the forecast period due to the ability to improve smart manufacturing procedures. This will result in higher productivity and lower errors. Other factors like supportive government initiatives, shortage of skilled labor, and collaborative efforts by corporations and the public are also driving growth. Furthermore, the industrial 3D printing market will also grow due to higher adoption in the aerospace, defense, semiconductor, electronics, automotive, and food and beverage sectors.
Insight by Industry Verticals
The Smart Factory market is divided by industry verticals into automotive, electronics, pharmaceuticals, food and beverage segments. Among these segments, the automotive industry will grow more due to higher demand, meticulous manufacturing, and integration of advanced robotics and other technologies like IoT and AI. This enhances the quality, efficiency, and flexibility which drive the market growth.
Insight by Company Size
Divided by size, the Smart Factory market segmentation includes small and medium-sized enterprises (SMEs) and large enterprises, where the latter is expected to dominate due to substantial resources, better infrastructure, higher budget and skilled labor. They are the early adopters of cutting-edge manufacturing technologies, which drives their expansion.
Insight by Production Process
The different production processes divide the Smart Factory market into discrete manufacturing and process manufacturing, where the former dominates the market and is expected to grow in the forecast period due to repetitive and structured production processes, increasing adoption of digital twins, AI-powered predictive maintenance, and collaborative robots that improves agility and productivity.
Insight by Maturity of Adoption
The Smart Factory market is also segregated by maturity of adoption into early adopters and late adopters. Out of the two, the early adopters dominate the market due to the competitive edge awareness of the businesses of the strategic significance of digital transformation for optimization of operations, cost reduction, and better product delivery.
Insight by Integration Levels
The Smart Factory market is categorized by the integration levels into fully integrated systems and modular solutions. Among these, the fully integrated segment dominates the market. It will grow due to higher demand for comprehensive end-to-end solutions to enhance manufacturing operations, interoperability standards developments, adoption of cloud computing and edge computing.
Report Metric |
Details |
Historical Period |
2018 - 2023 |
Base Year Considered |
2024 |
Forecast Period |
2025 - 2030 |
Market Size in 2023 |
U.S.D. 152.0 Billion |
Revenue Forecast in 2030 |
U.S.D. 247.0 Billion |
Growth Rate |
10.1% |
Segments Covered in the Report |
By Technology, By Component, By Industry Verticals, By Company Size, By Production Process, By Maturity of Adoption, and By Integration Levels |
Report Scope |
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling |
Regions Covered in the Report |
North America, Europe, Asia-Pacific, Middle East, and the Rest of the World |
Industry Dynamics
Industry Trends
There is a growing trend for leveraging artificial intelligence (AI) and machine learning algorithms in smart factories. This optimizes production process operations and improves decision-making abilities to meet predicting maintenance requirements. The Internet of Things (IoT) plays a crucial role in allowing smart factories to integrate communication and connectivity seamlessly into different systems and devices, which enhances real-time monitoring and better control over manufacturing processes. The growing emphasis on cybersecurity to protect intellectual property, sensitive information, and data has also been noticed, as has the increase in the measures to protect interconnected production systems from cyber threats and attacks. The growing adoption of additive manufacturing and 3D printing in smart factories is also noticed to facilitate on-demand production, prototyping and customization of parts. This results in cost savings and higher efficiency. Digital twin technology is adopted extensively in these factories to promote optimization, simulation, and predictive maintenance. Furthermore, smart factories are also prioritizing sustainability initiatives to reduce impacts on the environment by applying eco-friendly manufacturing applications, improving energy usage, and lowering waste generation.
Growth Drivers
Ongoing advancements in technology and robotics improve efficiency in production and cost-effectiveness. The growth in consumer demand for personalized products results in higher adoption of flexible production, which enables rapid personalization and lowers time to market, driving market growth. Also, government initiatives support the promotion of Industry 4.0, which in turn brings in larger investments in smart factory technologies fueling growth. It is also attributed to integration of AR and VR in training programs, productivity, maintenance, operations, and management. Furthermore, the rise in environmental awareness among the users results in higher adoption of green practices in smart factories to reduce energy consumption and waste, drives growth. The rapid expansion of IIoT also facilitates growth as it helps in data collection and interpretation in real-time, which guarantees operational optimization.
Challenges
Security due to the use of specific technologies like blockchain is the chief obstacle that hinders the growth of the smart factory market worldwide.
Opportunities
However, growth opportunities are presented by the enduring developments made in 3D printing technology along with the better prospects offered by concerted robotics applications.
Geographic Overview
North America dominates the market in terms of revenue share of the smart factory market mainly due to the higher adoption of supply chain and intelligent manufacturing technologies across several industries in this region. It is also attributed to the significant rise in demand for automated and robotic systems to organize operational activities and meet the ever-rising demand and the growing demand for more technologically advanced manufacturing processes.
In the APAC region, significant growth is expected in the forecast period due to tech developments, rapid industrialization, growth of Industry 4.0 practices, and higher prioritization of smart manufacturing technologies in developing countries like China, Japan, and South Korea. Also, the higher demand for smart factory solutions in the automotive, electronics, and manufacturing sectors, along with supportive government initiatives and growing investments in infrastructure, further promises market growth in this region.
Competitive Insight
Emerson focuses on smart manufacturing technologies, as it grows its industrial IoT ecosystem and it becomes increasingly important for businesses to update their operations in order to improve business outcomes and pay back their investment.
Schneider's Smart Factory Program, which integrates IoT technologies in manufacturing facilities, buildings, and offices, focuses on industrial automation. By using agile management, energy efficiency, asset performance management, and process efficiency, Schneider has adopted digital transformation to make its factories smart.
Some of the major companies competing in the worldwide smart factory market include General Electric, ABB, Honeywell International Inc., Emerson Electric, Schneider Electric, Robert Bosch GmbH, Rockwell Automation, Yokogawa Electric, FANUC, and Siemens.
Recent Development by Key Players
GE Digital improved CIMPLICITY and Tracker software in March 2021. These updates help operators make crucial decisions and increase productivity. To precisely monitor and manage operations, CIMPLICITY HMI/SCADA offers client-server visualization. Tracker, a component of GE Digital's Proficy Manufacturing Execution Systems (MES) offering, automates routing and sequencing to shorten the time to market, lower the risk of a warranty or recall, and support lean operations and building something correctly the first time.
In March 2021, Stratasys unveiled a new 3D printer that enables dental labs the efficiency of 3D printing and the accuracy and realism of PolyJet. The only multi-material dental 3D printer that enables technicians to load mixed trays of dental components is the J5 DentaJet.
As part of ETH's RobotX program, ABB and ETH Zurich increased their collaboration in robotics research in March 2021. The goal of the RobotX program, which was introduced in 2019, is to establish ETH as a pioneer among institutions conducting robotics research. The project will have the assistance of ABB's Robotics and Discrete Automation division.
Beginning in March 2021, clients of Xometry's worldwide custom manufacturing marketplace will have access to a number of new high-performance nylon material alternatives thanks to a collaboration between Stratasys and Xometry. Customers of Xometry, ranging from small businesses to Fortune 100 corporations, can now take advantage of Stratasys Direct's extensive knowledge and sizable manufacturing capabilities in SLS 3D printing.
Salesforce (NYSE: CRM) and Siemens announced a strategic alliance in June 2020 to create a new workplace technology suite that will assist businesses worldwide in securely reopening and delivering the future of physical workplaces. The collaboration will bring together Siemens' Smart Infrastructure products, such as Comfy and Enlighted, and Salesforce's Work.com, driven by Customer 360, to coordinate the procedures, individuals, and resources necessary to develop secure, connected workplaces in the future.
Forecast Parameters
Data Validation
Research Phases
Primary Research
VynZ Research conducts extensive primary research to understand the market dynamics, validate market data, and have key opinions from industry experts. The key profiles approached within the industry include the CEO, CFO, CTO, President, Vice President, Product Managers, Regional Heads, and Others. Also, end user surveys comprising of consumers are also conducted to understand consumer behavior.
Source: VynZ Research
Source: VynZ Research
The Cyber Security Market report offers a comprehensive market segmentation analysis along with an estimation for the forecast period 2025–2030.
Segments Covered in the Report
Region Covered in the Report
1. Research Overview
1.1. The Report Offers
1.2. Market Coverage
1.2.1. By Technology
1.2.2. By Component
1.2.3. By Industry Verticals
1.2.4. By Company Size
1.2.5. By Production Process
1.2.6. By Maturity of Adoption
1.2.7. By Integration Levels
1.3. Research Phases
1.4. Limitations
1.5. Research Methodology
1.5.1. Data Sources
1.5.1.1. Primary Research
1.5.1.2. Secondary Research
1.5.2. Methodology
1.5.2.1. Data Exploration
1.5.2.2. Forecast Parameters
1.5.2.3. Data Validation
1.5.2.4. Assumptions
1.5.3. Study Period & Data Reporting Unit
2. Executive Summary
3. Industry Overview
3.1. Industry Dynamics
3.1.1. Market Growth Drivers
3.1.2. Market Restraints
3.1.3. Key Market Trends
3.1.4. Major Opportunities
3.2. Industry Ecosystem
3.2.1. Porter’s Five Forces Analysis
3.2.2. Recent Development Analysis
3.2.3. Value Chain Analysis
3.3. Competitive Insight
3.3.1. Competitive Position of Industry Players
3.3.2. Market Attractive Analysis
4. Global Market Estimate and Forecast
4.1. Global Market Overview
4.2. Global Market Estimate and Forecast to 2030
5. Market Segmentation Estimate and Forecast
5.1. By Technology
5.1.1. Distributed Control System (DCS)
5.1.1.1. Market Definition
5.1.1.2. Market Estimation and Forecast to 2030
5.1.2. Programmable Logic Controller (PLC)
5.1.2.1. Market Definition
5.1.2.2. Market Estimation and Forecast to 2030
5.1.3. Manufacturing Execution System (MES)
5.1.3.1. Market Definition
5.1.3.2. Market Estimation and Forecast to 2030
5.1.4. Enterprise Resource Planning (ERP)
5.1.4.1. Market Definition
5.1.4.2. Market Estimation and Forecast to 2030
5.1.5. Supervisory Control and Data Acquisition (SCADA)
5.1.5.1. Market Definition
5.1.5.2. Market Estimation and Forecast to 2030
5.1.6. Plant Asset Management (PAM)
5.1.6.1. Market Definition
5.1.6.2. Market Estimation and Forecast to 2030
5.1.7. Human–Machine Interface (HMI)
5.1.7.1. Market Definition
5.1.7.2. Market Estimation and Forecast to 2030
5.1.8. Product Life Cycle Management (PLM)
5.1.8.1. Market Definition
5.1.8.2. Market Estimation and Forecast to 2030
5.2. By Component
5.2.1. Sensors
5.2.1.1. Market Definition
5.2.1.2. Market Estimation and Forecast to 2030
5.2.2. Industrial Robots
5.2.2.1. Market Definition
5.2.2.2. Market Estimation and Forecast to 2030
5.2.3. Machine Vision Systems
5.2.3.1. Market Definition
5.2.3.2. Market Estimation and Forecast to 2030
5.2.4. Industrial 3D Printing
5.2.4.1. Market Definition
5.2.4.2. Market Estimation and Forecast to 2030
5.3. By Application
5.3.1. Automotive
5.3.1.1. Market Definition
5.3.1.2. Market Estimation and Forecast to 2030
5.3.2. Aerospace & Defense
5.3.2.1. Market Definition
5.3.2.2. Market Estimation and Forecast to 2030
5.3.3. Food & Beverage
5.3.3.1. Market Definition
5.3.3.2. Market Estimation and Forecast to 2030
5.3.4. Electrical & Electronics
5.3.4.1. Market Definition
5.3.4.2. Market Estimation and Forecast to 2030
5.3.5. Energy & Power
5.3.5.1. Market Definition
5.3.5.2. Market Estimation and Forecast to 2030
6. North America Market Estimate and Forecast
6.1. By Technology
6.2. By Component
6.3. By Application
6.4. By Country
6.4.1. U.S. Market Estimate and Forecast
6.4.2. Canada Market Estimate and Forecast
6.4.3. Mexico Market Estimate and Forecast
7. Europe Market Estimate and Forecast
7.1. By Technology
7.2. By Component
7.3. By Application
7.4. By Country
7.4.1. Germany Market Estimate and Forecast
7.4.2. France Market Estimate and Forecast
7.4.3. U.K. Market Estimate and Forecast
7.4.4. Italy Market Estimate and Forecast
7.4.5. Spain Market Estimate and Forecast
7.4.6. Russia Market Estimate and Forecast
7.4.7. Rest of Europe Market Estimate and Forecast
8. Asia-Pacific Market Estimate and Forecast
8.1. By Technology
8.2. By Component
8.3. By Application
8.4. By Country
8.4.1. China Market Estimate and Forecast
8.4.2. Japan Market Estimate and Forecast
8.4.3. India Market Estimate and Forecast
8.4.4. South Korea Market Estimate and Forecast
8.4.5. Rest of Asia-Pacific Market Estimate and Forecast
9. Rest of the World (RoW) Market Estimate and Forecast
9.1. By Technology
9.2. By Component
9.3. By Application
9.4. By Country
9.4.1. Brazil Market Estimate and Forecast
9.4.2. Saudi Arabia Market Estimate and Forecast
9.4.3. South Africa Market Estimate and Forecast
9.4.4. U.A.E. Market Estimate and Forecast
9.4.5. Other Countries Market Estimate and Forecast
10. Company Profiles
10.1. General Electric
10.1.1. Snapshot
10.1.2. Overview
10.1.3. Offerings
10.1.4. Financial Insight
10.1.5. Recent Developments
10.2. Honeywell International Inc.
10.2.1. Snapshot
10.2.2. Overview
10.2.3. Offerings
10.2.4. Financial Insight
10.2.5. Recent Developments
10.3. ABB
10.3.1. Snapshot
10.3.2. Overview
10.3.3. Offerings
10.3.4. Financial Insight
10.3.5. Recent Developments
10.4. Emerson Electric
10.4.1. Snapshot
10.4.2. Overview
10.4.3. Offerings
10.4.4. Financial Insight
10.4.5. Recent Developments
10.5. Robert Bosch GmbH
10.5.1. Snapshot
10.5.2. Overview
10.5.3. Offerings
10.5.4. Financial Insight
10.5.5. Recent Developments
10.6. Schneider Electric
10.6.1. Snapshot
10.6.2. Overview
10.6.3. Offerings
10.6.4. Financial Insight
10.6.5. Recent Developments
10.7. Rockwell Automation
10.7.1. Snapshot
10.7.2. Overview
10.7.3. Offerings
10.7.4. Financial Insight
10.7.5. Recent Developments
10.8. FANUC
10.8.1. Snapshot
10.8.2. Overview
10.8.3. Offerings
10.8.4. Financial Insight
10.8.5. Recent Developments
10.9. Yokogawa Electric
10.9.1. Snapshot
10.9.2. Overview
10.9.3. Offerings
10.9.4. Financial Insight
10.9.5. Recent Developments
10.10. Siemens
10.10.1. Snapshot
10.10.2. Overview
10.10.3. Offerings
10.10.4. Financial Insight
10.10.5. Recent Developments
11. Appendix
11.1. Exchange Rates
11.2. Abbreviations
Note: Financial insight and recent developments of different companies are subject to the availability of information in the secondary domain.
List of Tables
Table 1 Sources
Table 2 Study Periods
Table 3 Data Reporting Unit
Table 4 Global Smart Factory Market Size, By Technology, 2018-2023 (USD Billion)
Table 5 Global Smart Factory Market Size, By Technology, 2025-2030 (USD Billion)
Table 6 Global Smart Factory Market Size, By Component, 2018-2023 (USD Billion)
Table 7 Global Smart Factory Market Size, By Component, 2025-2030 (USD Billion)
Table 8 Global Smart Factory Market Size, By Application, 2018-2023 (USD Billion)
Table 9 Global Smart Factory Market Size, By Application, 2025-2030 (USD Billion)
Table 10 Global Smart Factory Market Size, By Region, 2018-2023 (USD Billion)
Table 11 Global Smart Factory Market Size, By Region, 2025-2030 (USD Billion)
Table 12 North America Smart Factory Market Size, By Technology, 2018-2023 (USD Billion)
Table 13 North America Smart Factory Market Size, By Technology, 2025-2030 (USD Billion)
Table 14 North America Smart Factory Market Size, By Component, 2018-2023 (USD Billion)
Table 15 North America Smart Factory Market Size, By Component, 2025-2030 (USD Billion)
Table 16 North America Smart Factory Market Size, By Application, 2018-2023 (USD Billion)
Table 17 North America Smart Factory Market Size, By Application, 2025-2030 (USD Billion)
Table 18 North America Smart Factory Market Size, By Country, 2018-2023 (USD Billion)
Table 19 North America Smart Factory Market Size, By Country, 2025-2030 (USD Billion)
Table 20 Europe Smart Factory Market Size, By Technology, 2018-2023 (USD Billion)
Table 21 Europe Smart Factory Market Size, By Technology, 2025-2030 (USD Billion)
Table 22 Europe Smart Factory Market Size, By Component, 2018-2023 (USD Billion)
Table 23 Europe Smart Factory Market Size, By Component, 2025-2030 (USD Billion)
Table 24 Europe Smart Factory Market Size, By Application, 2018-2023 (USD Billion)
Table 25 Europe Smart Factory Market Size, By Application, 2025-2030 (USD Billion)
Table 26 Europe Smart Factory Market Size, By Country, 2018-2023 (USD Billion)
Table 27 Europe Smart Factory Market Size, By Country, 2025-2030 (USD Billion)
Table 28 Asia-Pacific Smart Factory Market Size, By Technology, 2018-2023 (USD Billion)
Table 29 Asia-Pacific Smart Factory Market Size, By Technology, 2025-2030 (USD Billion)
Table 30 Asia-Pacific Smart Factory Market Size, By Component, 2018-2023 (USD Billion)
Table 31 Asia-Pacific Smart Factory Market Size, By Component, 2025-2030 (USD Billion)
Table 32 Asia-Pacific Smart Factory Market Size, By Application, 2018-2023 (USD Billion)
Table 33 Asia-Pacific Smart Factory Market Size, By Application, 2025-2030 (USD Billion)
Table 34 Asia-Pacific Smart Factory Market Size, By Country, 2018-2023 (USD Billion)
Table 35 Asia-Pacific Smart Factory Market Size, By Country, 2025-2030 (USD Billion)
Table 36 RoW Smart Factory Market Size, By Technology, 2018-2023 (USD Billion)
Table 37 RoW Smart Factory Market Size, By Technology, 2025-2030 (USD Billion)
Table 38 RoW Smart Factory Market Size, By Component, 2018-2023 (USD Billion)
Table 39 RoW Smart Factory Market Size, By Component, 2025-2030 (USD Billion)
Table 40 RoW Smart Factory Market Size, By Application, 2018-2023 (USD Billion)
Table 41 RoW Smart Factory Market Size, By Application, 2025-2030 (USD Billion)
Table 42 RoW Smart Factory Market Size, By Country, 2018-2023 (USD Billion)
Table 43 RoW Smart Factory Market Size, By Country, 2025-2030 (USD Billion)
Table 44 Snapshot – General Electric
Table 45 Snapshot – Honeywell International Inc.
Table 46 Snapshot – ABB
Table 47 Snapshot – Emerson Electric
Table 48 Snapshot – Robert Bosch GmbH
Table 49 Snapshot – Schneider Electric
Table 50 Snapshot – Rockwell Automation
Table 51 Snapshot – FANUC
Table 52 Snapshot – Yokogawa Electric
Table 53 Snapshot – Siemens
List of Figures
Figure 1 Market Coverage
Figure 2 Research Phases
Figure 3 Secondary Sources for Different Parameters
Figure 4 Methodology
Figure 5 Data Mining & Exploration
Figure 6 Data Triangulation
Figure 7 Assumptions for Market Estimation and Forecast
Figure 8 Market Synopsis
Figure 9 Global Smart Factory Market - Growth Drivers and Restraints
Figure 10 Competitive Benchmark
Figure 11 Global Smart Factory Market Highlight
Figure 12 Global Smart Factory Market Size, By Technology, 2018 - 2030 (USD Billion)
Figure 13 Global Smart Factory Market Size, By Component, 2018 - 2030 (USD Billion)
Figure 14 Global Smart Factory Market Size, By Application, 2018 - 2030 (USD Billion)
Figure 15 Global Smart Factory Market Size, By Region, 2018 - 2030 (USD Billion)
Figure 16 North America Smart Factory Market Highlight
Figure 17 North America Smart Factory Market Size, By Technology, 2018 - 2030 (USD Billion)
Figure 18 North America Smart Factory Market Size, By Component, 2018 - 2030 (USD Billion)
Figure 19 North America Smart Factory Market Size, By Application, 2018 - 2030 (USD Billion)
Figure 20 North America Smart Factory Market Size, By Country, 2018 - 2030 (USD Billion)
Figure 21 Europe Smart Factory Market Highlight
Figure 22 Europe Smart Factory Market Size, By Technology, 2018 - 2030 (USD Billion)
Figure 23 Europe Smart Factory Market Size, By Component, 2018 - 2030 (USD Billion)
Figure 24 Europe Smart Factory Market Size, By Application, 2018 - 2030 (USD Billion)
Figure 25 Europe Smart Factory Market Size, By Country, 2018 - 2030 (USD Billion)
Figure 26 Asia-Pacific Smart Factory Market Highlight
Figure 27 Asia-Pacific Smart Factory Market Size, By Technology, 2018 - 2030 (USD Billion)
Figure 28 Asia-Pacific Smart Factory Market Size, By Component, 2018 - 2030 (USD Billion)
Figure 29 Asia-Pacific Smart Factory Market Size, By Application, 2018 - 2030 (USD Billion)
Figure 30 Asia-Pacific Smart Factory Market Size, By Country, 2018 - 2030 (USD Billion)
Figure 31 RoW Smart Factory Market Highlight
Figure 32 RoW Smart Factory Market Size, By Technology, 2018 - 2030 (USD Billion)
Figure 33 RoW Smart Factory Market Size, By Component, 2018 - 2030 (USD Billion)
Figure 34 RoW Smart Factory Market Size, By Application, 2018 - 2030 (USD Billion)
Figure 35 RoW Smart Factory Market Size, By Country, 2018 - 2030 (USD Billion)
Global Smart Factory Market Coverage
Technology Insight and Forecast 2025-2030
Component Insight and Forecast 2025-2030
Application Insight and Forecast 2025-2030
Geographical Segmentation
Smart Factory Market by Region
North America
Europe
Asia-Pacific (APAC)
Rest of the World (RoW)
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