The global smart factory market size is expected to grow from USD 86.2 billion in 2022 to USD 140.9 billion by 2027, at a CAGR of 10.3%.
The growth of the smart factory market can be attributed to the growing necessity for reliable data analysis. Smart factory technologies bring a progressive change in manufacturing industries, as automation provides better control, operation, and management of functions. It helps manufacturers track the flow of the operation process from raw materials to finishing. Smart factory technologies deliver significant business benefits and operational efficiency and add tangible cost benefits by eliminating redundant and obsolete processes such as scanning or searching and streamlining processes. These benefits are evident in the form of increased quality and productivity across manufacturing units.
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Components such as industrial sensors, industrial robots, industrial 3D printing, and machine vision are considered crucial in the smart factory market. Similarly, SCADA, PAM, MES, and industrial safety are significant smart factory solutions. Smart factory solutions are significantly adopted across various process and discrete industries.
Based on components, the smart factory market is segregated into industrial sensors, industrial robots, industrial 3D printing, and machine vision system. The industrial sensors segment held the largest market share among all component segments in 2021, and this trend is expected to continue throughout the forecast period. The growth of this segment is driven by the increasing adoption of Industrial 4.0 and IIoT, and the growing wireless sensors market. The industrial 3D printing segment is expected to grow at the highest CAGR during the forecast period. The growth of this segment is attributed to the rising adoption of 3D printing in industries such as aerospace & defense, automotive, semiconductor & electronics, and food & beverages.
Based on Solution, The MES segment is expected to dominate the smart factory market. Manufacturers are adopting the MES technology because it saves costs and enables high performance of their production assets across the supply chain. The plant asset management segment is expected to grow at the highest CAGR during the forecast period. The growth of this segment can be attributed to the increasing deployment of PAM solutions in process and discrete industries to build a comprehensive and complete data repository related to different equipment installed in these plants, right from their uptime performance to their life cycle cost assessment.
Based on industry, the smart factory market is segregated into process industry and discrete industry. Process industries such as food & beverages, chemicals, metals & mining, and energy & power are among high growth industries propelling the process industries market as a whole. The rate of adoption of smart factory solutions is high in process industries owing to the rising cost pressure on manufacturers to optimize the production process. Due to the complex nature of automation in process industries, the number of components and solutions deployed is higher than in discrete industries. In discrete industries, final products are built by assembling numerous components. The automation technologies used in discrete industries provide benefits such as improved uniformity of processes, increased throughput, improved quality, reduced operation and work handling time, and a high degree of safety. Discrete industries include automotive, machine manufacturing, semiconductor & electronics, aerospace & defense, medical devices, and others.
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The smart factory market is segmented into four regions, North America, Europe, Asia Pacific, and Rest of the World (RoW). The APAC smart factory market is projected to grow at the highest rate due to the increasing adoption of automation technologies among industries, especially in China and India. Factory automation is increasing in China to counter the rising labor wages, enhance product quality, decrease turnaround time, and become more competitive in the global environment. In India, it offers huge potential for the suppliers of smart factory solutions. The increased number of manufacturing facilities and refineries in the region is expected to lead the production landscape in the next 5 years. Huge economic growth and the related increasing demand for energy have increased the implementation of smart factory solutions. APAC is home to two-thirds of the world’s population. The economic reforms undertaken by various countries in the region to revive their respective economies are expected to give an impetus to the growth of the smart factory market in APAC.