The global smart factory market is projected to grow at a CAGR of 10% from 2024 to 2029 and the global market size is estimated to be worth USD 299.52 billion by 2029 from USD 185.98 billion in 2024.
The smart factory serves manufacturing and technological development, which is an ideal integration of high-tech machinery and high-tech tools. It is the advanced factory system that creates cyber-physical systems permitting the active movement of products across the factory floor. It provides real-time quality and time advantages, which are estimated to intensify the industry growth over the foreseen period. Furthermore, it offers higher intelligence, serves to decentralize manufacturing, and creates an overall cognitive and self-healing system.
The expansion of the global smart factory market is majorly driven by the evolution of the Internet of Things (IoT), increasing use of enabling technologies in manufacturing, rising adoption of commercial robots in the manufacturing sector and connected enterprises alongside production to cater to increasing population.
Increasing the use of high-tech tools and high-tech machinery portrays a gorgeous combination of production and technological developments. The industrial shift towards the cyber world is another major factor driving the smart factory market growth. In this, every useful component chain is likely to be connected to ensure informed manufacturing with zero defects and no-time lags, which will further augment the smart factory market growth.
The growing need for improving efficiency and energy-saving within the manufacturing process is supporting the smart factory market growth. Automation has enabled manufacturing units to utilize every second of production time through efficient streamlining of the manufacturing process. Technological advancements like machine-to-machine communication allow smart factories to eliminate the wastage of time caused by delays in process change. Moreover, with the rise of the Internet of Things (IoT) and services, the integration of producing and engineering processes has experienced an incredible breakthrough.
The growth of the global smart factory market faces a couple of limitations because of the lack of standardization and interoperability issues. These factors raise concerns in designing integrated solutions using components provided by several automation solution providers. The scarcity of trained workers and the increasing skill gap further restrain the expansion of the smart factory market. Other crucial factors like cybersecurity threats and associated costs limit the development of this global smart factory market in industries such as nuclear power, weapons, and armaments.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2029 |
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CAGR |
10% |
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Segments Covered |
By Technology, Field Devices and Region |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
Insights Inc., Invensys PLC, Mitsubishi Electric Corporation, Ubisense Group PLC, CMC Associates, Johnson Controls Inc., Microsoft, General Electric Co., Apriso Corporation, Siemens AG, Rockwell Automation, and ABB Ltd. |
ERP is the most vital revenue-generating segment due to the software usage application for embodying the products and process, relationships between functions, activities, and knowledge flow.
In the process industry, the adoption of smart factory-related technologies and components is predicted to be very high within the oil & gas industry due to the increasing need for safety and reliability in oil and gas plants. Companies operating within the oil and gas industry are always trying to find new ways to satisfy the rising demand for energy, cut operating expenses, and enhance the general efficiency of plants.
North America's smart factory market is projected to be the dominant region due to rising adoption within the automotive segment. Asia Pacific smart factory market is predicted to carry a notable share within the global business in the coming years. The presence of dominant players is mainly driving the Asia Pacific market. Additionally, increasing the use of automotive technologies and technological innovations in various industrious industries also fueled growth in this local market.
Insights Inc., Invensys PLC, Mitsubishi Electric Corporation, Ubisense Group PLC, CMC Associates, Johnson Controls Inc., Microsoft, General Electric Co., Apriso Corporation, Siemens AG, Rockwell Automation, and ABB Ltd are some of the notable companies in the global smart factory market. The prominent strategies applied by the players include product launches, mergers and acquisitions, collaborations, and agreements to expand the industry. These strategies would provide strongly performing and efficient products, which exhibit better customer satisfaction and support the market regulations, which are expected to impel market growth further.
Smart Factory CEO Brendan Sheppard formed a part of an Industry leaders group that welcomed a delegation of California state legislators' visits to Ireland. The tour was coordinated by the Irish Department of Foreign Affairs the IDA. Therefore, the O’Neill Group and the delegation came to Limerick to listen to the region’s recent economic successes, particularly within the area of research and style.
Smart Factory was delighted to be included in the gift bag at the Nimbus Research Centre Beyond IoT event in Páirc Uí Chaoimh.
On June 15th, 2018, SmartFactory, a number one provider of solutions that add intelligence to manufacturing processes to drive continuous improvement, knowledge transfer and data-based deciding, announced a replacement release of software for its Work Area Performance System (WAPS). This is also the first commercial partnership for CONFIRM – the Science Foundation Ireland Research Centre with the NIMBUS Centre at Cork Institute of Technology.
By Technology
Information Technology System
Enterprise Resource Planning (ERP)
Manufacturing Execution System
Industrial Control System
By Field Devices
Industrial Robotics
Articulated Robot
Cylindrical Robot
Scara Robot
Cartesian Robot
Control Devices
Sensors
Relays & Switches
Motors & Drive
Industrial Network
RFID System
Chipless RFID
Chip-Based RFID
Wireless Network
Chipsets
Microprocessor System
Sensors
Wired Network
Ethernet Media Converters
Unmanaged Switches
Managed Switches
By Application
Process Industry
Pharmaceuticals
Food & Beverages
Chemical
Oil & Gas
Discrete Industry
Automotive & Transportation
Packaging
Mining, Minerals & Metals
By Region
North America
The United States
Canada
Rest of North America
Europe
The United Kingdom
Spain
Germany
Italy
France
Rest of Europe
The Asia Pacific
India
Japan
China
Australia
Singapore
Malaysia
South Korea
New Zealand
Southeast Asia
Latin America
Brazil
Argentina
Mexico
Rest of LATAM
Middle East and Africa
Saudi Arabia
UAE
Lebanon
Jordan
Cyprus
Frequently Asked Questions
The growth of the global Smart Factory market is driven by several factors, including the increasing adoption of Industry 4.0, the need for improved manufacturing efficiency, rising labor costs, and advancements in technologies such as IoT, AI, and robotics.
A Smart Factory improves manufacturing efficiency through real-time monitoring and control of production processes, predictive maintenance to reduce downtime, optimized supply chain management, and the use of AI and machine learning to enhance decision-making and process optimization.
Key challenges in implementing Smart Factory solutions include high initial investment costs, the need for skilled workforce, data security concerns, integration of legacy systems with new technologies, and the complexity of managing large amounts of data.
Primary adopters of Smart Factory technologies include the automotive, aerospace, electronics, pharmaceuticals, and consumer goods industries. These sectors benefit significantly from the enhanced efficiency, quality, and flexibility offered by Smart Factory solutions.
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