Status : Published | Published On : Jan, 2021 | Report Code : VRSME9022 | Industry : Semiconductor & Electronics | Available Format :
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Industry Overview
The global smart factory market was valued at USD 150.0 billion in 2020 and is predicted to reach USD 243.0 billion by 2027, growing at a CAGR of 10.1% during the forecast period. The factors responsible for the growth of smart factory across the globe are growing use of enabling technologies in manufacturing, growing adoption of industrial robots in manufacturing sector driven by collaborative robots, evolution of the Internet of Things (IoT) and connected enterprise, along with large scale production to cater to growing population.
Market Segmentation
Insight by Technology
Based on technology, the global smart factory market is categorized into distributed control system (DCS), programmable logic controller (PLC), manufacturing execution system (MES), enterprise resource planning (ERP), supervisory control and data acquisition (SCADA), plant asset management (PAM), human–machine interface (HMI), and product life cycle management (PLM). In 2019, the MES segment dominated the smart factory market.
Insight by Component
On the basis of component, the smart factory market is categorized into sensors, industrial robots, machine vision systems, and industrial 3D printing. During the forecast period, the industrial robots segment is expected to be largest among all the segments. Implementation of industrial robotics are increases in smart manufacturing process to enhance the productivity, minimizing human errors, and growing volume of production. The major factors responsible for the industrial robotics market growth are dearth in skilled labor, public, private and government collaborations to mitigate the impact of current ongoing pandemic of COVID-19 across the globe. However, market for industrial 3D printing is projected to be fastest growing, over the study period. This is due to growing adoption of 3D printing technology in various processes and discrete industries, such as aerospace and defense, automotive, semiconductor and electronics, and food & beverages.
Scope of the Report
Report Metric |
Details |
Market Size Available for the Years in the Study |
2015–2027 |
Historical Period |
2015-2020 |
Base Year |
2020 |
Forecast Period |
2021–2027 |
Segments Covered in the Study |
Technology, Component, Application, and Region |
Geographies Covered in the Study |
North America (U.S., Canada, Mexico), Europe (Germany, U.K., France, Italy, Spain, Russia), Asia-Pacific (China, Japan, India, South Korea), and Rest of the World (Brazil, Saudi Arabia, South Africa, U.A.E.) |
Companies Covered in the Study |
General Electric, Honeywell International Inc., ABB, Emerson Electric, Robert Bosch GmbH, Schneider Electric, Rockwell Automation, FANUC, Yokogawa Electric, and Siemens |
Industry Dynamics
Growth Drivers
The primary factors driving the growth of the global smart factory market are:
The global pandemic of COVID-19 has sidelined main-stream manual workers, tightening labor industry and increased unemployment rate. In this scenario, automation solutions, including smart factory, which were unthinkable have blossomed, thanks to the development of open source robotic operating systems, machine learning, sensors, and artificial intelligence.
Challenges
Security remains the major cause of concern in the current computing world. This is evident from the fact that, in first half of 2019 alone, more than 100 million attacks were occurred. Armis, the cybersecurity start-up is one of the billion-dollar company, was acquired by the Insight Partners for USD 1.1 billion. Industry speakers also believe that blockchain could play an important role in achieving highest level of security.
Opportunities
Geographic Overview
Geographically, North America is the largest revenue contributor in the smart factory market. This is due to the growing adoption of intelligent manufacturing & supply chain technologies across various industries in the region. The industrial sector in North America is experiencing huge demand for automated and robotic systems for conducting different operational tasks at manufacturing and warehouse units to increase production. The automobile giants such as BMW, and Audi are doing investments in the field of factory automation operations to minimize production cycles and save costs. In North America, the U.S. market is experiencing huge demand for technological advanced production systems, minimizing employee engagement and reducing labor costs.
Competitive Insight
Emerson focus on smart manufacturing technology as it is expanding its industrial IoT ecosystem and is crucial for companies to modernize its ways so as to enhance business results and justify its investment.
Schneider focuses on industrial automation i.e. its Smart Factory Program that uses IoT technologies in the manufacturing plants, facilities and offices. Schneider has adopted digital transformation to make its factories smart via agile management, asset performance management, energy efficiency, and process efficiency.
Key players operating in the global smart factory market include General Electric, Honeywell International Inc., ABB, Emerson Electric, Robert Bosch GmbH, Schneider Electric, Rockwell Automation, FANUC, Yokogawa Electric, and Siemens.
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 the industry experts. The key profiles approached within the industry includes, 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