Smart Factory Market Size, Share will grow with a CAGR of 5.23% by 2030 | Rising use of robotics in the industry to boost the market growth

Research Reports

Apr 13, 2023

Smart Factory Market Insights

The Smart Factory Market refers to the use of advanced technologies such as the Internet of Things (IoT), artificial intelligence (AI), machine learning, and robotics to optimize and automate manufacturing processes. The market is driven by the need for improved efficiency, productivity, and cost savings in manufacturing operations.

The global smart factory market size is expected to grow from USD 80.1 billion in 2020 to USD 136.1 billion by 2030, at a CAGR of 5.23% during the forecast period 2023-2030. The Asia-Pacific region is expected to account for the largest share of the market due to the presence of large manufacturing industries in countries such as China, Japan, and South Korea.

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Key Players

Some of the key players in the smart factory market include

  • Siemens AG,
  • ABB Ltd,
  • General Electric Company,
  • Honeywell International Inc.,
  • Schneider Electric SE,
  • Rockwell Automation, Inc., and
  • Mitsubishi Electric Corporation.

These companies are investing heavily in research and development to develop new and innovative products that can help manufacturers improve their operations and stay competitive in the market.

Regional Analysis

The smart factory industry is a global market, and it can be analyzed regionally based on various parameters such as market size, growth rate, and key players. Here is a brief regional analysis of the smart factory market:

North America: The North American smart factory industry is expected to grow at a CAGR of 9.9% during the forecast period. The growth is attributed to the presence of large manufacturing industries and the adoption of advanced technologies. The United States and Canada are the major contributors to the market growth. Key players in the region include General Electric Company, Honeywell International Inc., and Rockwell Automation, Inc.

Europe: The European smart factory industry is expected to grow at a CAGR of 11.8% during the forecast period. The growth is attributed to the adoption of Industry 4.0 standards and the presence of large automotive and aerospace industries in the region. Germany, France, and the United Kingdom are the major contributors to the market growth. Key players in the region include Siemens AG, Schneider Electric SE, and ABB Ltd.

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Asia-Pacific: The Asia-Pacific smart factory market is expected to grow at the highest CAGR of 13.7% during the forecast period. The growth is attributed to the presence of large manufacturing industries, the adoption of advanced technologies, and government initiatives to support Industry 4.0. China, Japan, and South Korea are the major contributors to the market growth. Key players in the region include Mitsubishi Electric Corporation and Fanuc Corporation.

Rest of the World: The Rest of the World smart factory market is expected to grow at a CAGR of 10.5% during the forecast period. The growth is attributed to the increasing adoption of Industry 4.0 standards and the presence of large manufacturing industries in countries such as Brazil and Mexico. Key players in the region include Yokogawa Electric Corporation and Endress+Hauser AG.

Market Segmentation

The smart factory industry can be segmented based on several factors such as type, components, end-users, and geography. Here is a brief overview of each segmentation:

By Type: The smart factory industry can be segmented into two types: process industry and discrete industry. Process industry refers to the manufacturing of products in a continuous process, such as oil and gas, food and beverage, and chemical manufacturing. Discrete industry refers to the manufacturing of products in a batch process, such as automotive, aerospace, and electronics manufacturing.

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By Components: The smart factory market can be segmented into several components such as hardware, software, and services. Hardware includes sensors, controllers, and switches. Software includes manufacturing execution systems (MES), enterprise resource planning (ERP), and supervisory control and data acquisition (SCADA). Services include consulting, maintenance, and training.

By End-Users: The smart factory market can be segmented based on end-users such as automotive, aerospace and defense, food and beverage, chemical, healthcare, and others. Automotive and aerospace and defense are the major end-users of the smart factory market due to the need for precision manufacturing and high-quality production.

By Geography: The smart factory market can be segmented based on geography such as North America, Europe, Asia-Pacific, and the Rest of the World. The Asia-Pacific region is expected to dominate the market due to the presence of large manufacturing industries and the adoption of advanced technologies. Europe and North America are also significant contributors to the market growth due to the adoption of Industry 4.0 standards and the presence of large automotive and aerospace industries.

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