Smart Factory Market by Technology, Component, Industry

List of Tables

[199 Pages Report] The Smart Factory Market size was estimated at USD 130.63 billion in 2023 and expected to reach USD 152.20 billion in 2024, at a CAGR 17.34% to reach USD 400.13 billion by 2030.

A smart factory represents the evolution of the traditional manufacturing and production environment infused with modern technological advancements. It is a highly digitized and connected production facility that leverages the IoT), artificial intelligence (AI), data analytics, and robotics to create a sophisticated system of production that is both self-optimizing and intercommunicative. The core objective of a smart factory is to significantly improve the efficiency, productivity, and flexibility of manufacturing operations while reducing waste and operational costs. Support for industrial automation from governments worldwide and the shift towards rapid industrial digital transformation and Industry 4.0 initiatives have propelled the growth of smart factories. Rising demand for enhanced productivity and efficiency is promoting businesses to adopt smart factory solutions, and continuous technological advancements in AI/Ml and IoT have created scope for innovation in the field of smart factories. However, complexities in integrating new systems with legacy equipment can impede market growth. Additionally, increased connectivity raises vulnerabilities to cyber-attacks, and the possibility of privacy or data breaches hamper the widespread proliferation of smart factories. However, key players are exploring the integration of blockchain technologies and new encryption algorithms to improve the security and privacy features of smart factories. Smart energy systems in factories can lead to sustainable practices, and virtual representations of physical processes to simulate and optimize factory operations can provide new avenues of growth for smart factories.

KEY MARKET STATISTICS
Base Year [2023]	USD 130.63 billion
Estimated Year [2024]	USD 152.20 billion
Forecast Year [2030]	USD 400.13 billion
CAGR (%)	17.34%

Technology: Ability of distributed control systems to offer efficiency and reliability

A distributed control system (DCS) is an automated control system that distributes control functions across multiple decentralized elements rather than being managed from a single location. In smart factories, DCS is preferentially used for complex, multi-process manufacturing where precise control over multiple production lines is needed. Enterprise resource planning (ERP) systems integrate all parts of an operation, such as product development, planning, manufacturing processes, and sales and marketing. Smart factories adopt ERP to streamline processes and information across the organization, thereby increasing operational efficiency. Human-machine interface is a dashboard that connects a person to a machine, system, or device. In smart factories, HMIs are crucial for operators to interact with automation systems and monitor machine diagnostics. Manufacturing execution systems (MES) manage and monitor work-in-process on a factory floor. An MES is preferred in environments where detailed tracking and control of the manufacturing process is necessary to ensure quality and efficiency. Plant asset management systems help in the monitoring and management of assets in a manufacturing plant. These systems are preferred in smart factories where predictive maintenance and asset optimization lead to reduced downtime and increased reliability. Product life cycle management (PLM) helps manage the lifecycle of a product from the beginning through the engineering design and manufacturing steps to service and disposal. Programmable logic controllers (PLC) are industrial digital computers adapted for the control of manufacturing processes. Supervisory control and data acquisition (SCADA) systems are crucial for industrial organizations looking to control industrial processes locally or at remote locations. In smart factories, SCADA is preferred for high-level process management, real-time data collection, and control of numerous interconnected processes.

Industry: Utilization of smart factory concepts for the mass production or customization of products in the discrete industry

The discrete industry encompasses manufacturers that produce distinct products that can be itemized. The aerospace and defense industry is characterized by lengthy product development cycles, stringent regulatory requirements, and a need for advanced manufacturing techniques to accommodate complex products and systems. In the automotive industry, smart factory concepts enhance traditional manufacturing lines, help optimize production flow, and enhance product quality. Vehicle manufacturers are focusing on flexible manufacturing systems that can adapt quickly to changing consumer demands, including the shift toward electric vehicles (EVs). Machine manufacturing, encompassing a broad range of products from simple tools to complex machinery, is a pivotal sector within the discrete industry. Smart factory implementations in this area focus on customizability and rapid production adjustments. The medical device industry is marked by an imperative for high precision and adherence to strict quality and regulatory standards. Smart factories enable this sector to enhance traceability, from raw materials to finished products, and to ensure compliance with healthcare regulations. Semiconductor and electronics manufacturing demands exacting precision, with production environments often requiring cleanroom conditions. The process industry refers to manufacturing activities where the primary production processes involve the chemical, physical, or biological transformation of materials into new products. The chemical sector encompasses the production of industrial chemicals and the transformation of raw materials into products with different properties. This industry is crucial for producing plastics, agrochemicals, pharmaceuticals, detergents, and paints, among other essentials. Smart factories in the energy and power sector are incorporating renewable energy sources, advanced battery storage systems, and intelligent grid management solutions. In the food and beverage space, smart factory initiatives revolve around optimizing supply chains, improving food safety and quality, and increasing production flexibility. The metals and mining industry is exploring smart factory technologies to improve efficiency in extraction and processing while addressing sustainability concerns. Advanced sensor technologies in the oil and gas sector have helped monitor pipeline integrity, detect leaks, and predict maintenance requirements. The pharmaceutical sector has embraced smart technologies to foster innovation, maintain regulatory compliance, and streamline manufacturing.

Regional Insights

The Americas region, particularly the U.S. and Canada, is characterized by a robust and highly developed technological architecture with frequent innovations in the realm of data analytics, IoT, AI/Ml, and blockchain technologies, which has favorably shaped the proliferation of smart factories. Consumer needs in the Americas revolve around the demand for customized products, faster delivery times, and cost-effective production without compromising on quality. In response, manufacturers are investing in connected systems that facilitate flexible and efficient operations. The EMEA region, encompassing Europe, the Middle East, and Africa, presents a diverse market for smart factory solutions. European Union countries are leading in the adoption of Industry 4.0 due to their strong manufacturing base and the emphasis on innovation and automation. Initiatives such as Germany's Industrie 4.0 and the EU's Horizon Europe program are reflective of the ongoing commitment to smart manufacturing. Europe's stringent regulations for data privacy, cybersecurity, and security have created a highly standardized environment for the development of regulatory-compliant smart factories. In contrast, the Middle East is leveraging its wealth of natural resources to diversify into manufacturing, with smart factories playing a key role in this transition. In the Asia Pacific region, China, Japan, and India are key players in the smart factory market. China is witnessing a surge in smart manufacturing initiatives, supported by the government's Made in China 2025 plan, aiming to upgrade its manufacturing sector. India is following suit with initiatives such as 'Make in India', catalyzing the modernization of its industrial infrastructure.

FPNV Positioning Matrix

The FPNV Positioning Matrix is pivotal in evaluating the Smart Factory Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Smart Factory Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Key Company Profiles

The report delves into recent significant developments in the Smart Factory Market, highlighting leading vendors and their innovative profiles. These include 3D Systems Corporation, ABB Ltd., Andea sp. z o.o., Cisco Systems, Inc., Cognex Corporation, Emerson Electric Co., Epicor Software Corporation, Fanuc Corporation, Fruitcore Robotics GmbH, Fujitsu Limited, General Electric Company, Hitachi, Ltd., Honeywell International Inc., HP Development Company, L.P., International Business Machines Corporation, KUKA AG by Midea Group, Microsoft Corporation, Mitsubishi Electric Corporation, NVIDIA Corporation, Oracle Corporation, Robert Bosch GmbH, Rockwell Automation, Inc., SAP SE, Schneider Electric SE, Siemens AG, Stratasys Ltd., TE Connectivity Ltd., Telefonaktiebolaget LM Ericsson, Texas Instruments Incorporated, Ubisense Ltd., and Yokogawa Electric Corporation.

Market Segmentation & Coverage

This research report categorizes the Smart Factory Market to forecast the revenues and analyze trends in each of the following sub-markets:

Technology
- Distributed Control System
- Enterprise Resource Planning
- Human-Machine Interface
- Manufacturing Execution System
- Plant Asset Management
- Product Life Cycle Management
- Programmable Logic Controller
- Supervisory Control & Data Acquisition

Component
- Industrial 3D Printing
- Industrial Robots
  - Collaborative Robots
  - Traditional Industrial Robots
    - Articulated Robots
    - Cartesian Robots
    - Cylindrical Robots
    - Selective Compliance Assembly Robot Arm
- Machine Vision
  - Camera
    - Digital Camera
    - Smart Camera

Frame Grabbers, Optics, & LED Lighting
Processor & Software

Sensors

Industry
- Discrete Industry
  - Aerospace & Defense
  - Automotive
  - Machine Manufacturing
  - Medical Devices
  - Semiconductor & Electronics

Process Industry
- Chemicals
- Energy & Power
- Food & Beverages
- Metals & Mining
- Oil & Gas
- Pharmaceuticals
- Pulp & Paper

Region
- Americas
  - Argentina
  - Brazil
  - Canada
  - Mexico
  - United States
    - California
    - Florida
    - Illinois
    - New York
    - Ohio
    - Pennsylvania
    - Texas
- Asia-Pacific
  - Australia
  - China
  - India
  - Indonesia
  - Japan
  - Malaysia
  - Philippines
  - Singapore
  - South Korea
  - Taiwan
  - Thailand
  - Vietnam

Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom

The report offers valuable insights on the following aspects:

1. Market Penetration: It presents comprehensive information on the market provided by key players.

2. Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.

3. Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.

4. Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.

5. Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.

The report addresses key questions such as:

1. What is the market size and forecast of the Smart Factory Market?

2. Which products, segments, applications, and areas should one consider investing in over the forecast period in the Smart Factory Market?

3. What are the technology trends and regulatory frameworks in the Smart Factory Market?

4. What is the market share of the leading vendors in the Smart Factory Market?

5. Which modes and strategic moves are suitable for entering the Smart Factory Market?

Product Code: MRR-43422F546F2E

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Growing Adoption of Industry 4.0 in Economies Worldwide
  - 5.1.1.2. Increasing Government Support Industrial Automation in Smart Factory
  - 5.1.1.3. Introduction of Collaborative Robots in Smart Factory
- 5.1.2. Restraints
  - 5.1.2.1. Complexity Associated with Deployment of Technologies in Smart Factory
- 5.1.3. Opportunities
  - 5.1.3.1. Emerging Technologies and New Product Launches for Managing Smart Factory Operations
  - 5.1.3.2. Surging Investments for Smart Factory Projects
- 5.1.4. Challenges
  - 5.1.4.1. Privacy and Security Concerns in Smart factory
5.2. Market Segmentation Analysis
- 5.2.1. Technology: Ability of distributed control systems to offer efficiency and reliability
- 5.2.2. Industry: Utilization of smart factory concepts for the mass production or customization of products in the discrete industry
5.3. Market Trend Analysis
5.4. Cumulative Impact of High Inflation
5.5. Porter's Five Forces Analysis
- 5.5.1. Threat of New Entrants
- 5.5.2. Threat of Substitutes
- 5.5.3. Bargaining Power of Customers
- 5.5.4. Bargaining Power of Suppliers
- 5.5.5. Industry Rivalry
5.6. Value Chain & Critical Path Analysis
5.7. Regulatory Framework Analysis

6. Smart Factory Market, by Technology

6.1. Introduction
6.2. Distributed Control System
6.3. Enterprise Resource Planning
6.4. Human-Machine Interface
6.5. Manufacturing Execution System
6.6. Plant Asset Management
6.7. Product Life Cycle Management
6.8. Programmable Logic Controller
6.9. Supervisory Control & Data Acquisition

7. Smart Factory Market, by Component

7.1. Introduction
7.2. Industrial 3D Printing
7.3. Industrial Robots
7.4. Machine Vision
7.5. Sensors

8. Smart Factory Market, by Industry

8.1. Introduction
8.2. Discrete Industry
8.3. Process Industry

9. Americas Smart Factory Market

9.1. Introduction
9.2. Argentina
9.3. Brazil
9.4. Canada
9.5. Mexico
9.6. United States

10. Asia-Pacific Smart Factory Market

10.1. Introduction
10.2. Australia
10.3. China
10.4. India
10.5. Indonesia
10.6. Japan
10.7. Malaysia
10.8. Philippines
10.9. Singapore
10.10. South Korea
10.11. Taiwan
10.12. Thailand
10.13. Vietnam

11. Europe, Middle East & Africa Smart Factory Market

11.1. Introduction
11.2. Denmark
11.3. Egypt
11.4. Finland
11.5. France
11.6. Germany
11.7. Israel
11.8. Italy
11.9. Netherlands
11.10. Nigeria
11.11. Norway
11.12. Poland
11.13. Qatar
11.14. Russia
11.15. Saudi Arabia
11.16. South Africa
11.17. Spain
11.18. Sweden
11.19. Switzerland
11.20. Turkey
11.21. United Arab Emirates
11.22. United Kingdom

12. Competitive Landscape

12.1. Market Share Analysis, 2023
12.2. FPNV Positioning Matrix, 2023
12.3. Competitive Scenario Analysis
- 12.3.1. Rheinmetall Presents Mobile Smart Factory For Mobile Production Of Spare Parts For Battle Damage Repair
- 12.3.2. L&T Technology Services and Critical Manufacturing to Support Danfoss' Smart Manufacturing Journey
- 12.3.3. Deloitte Launches Smart Factory And Warehousing Facility In Montreal

13. Competitive Portfolio

13.1. Key Company Profiles
13.2. Key Product Portfolio