The smart factory market is projected to grow at a CAGR of 11.35% to reach US$206.399 billion by 2026, from US97.247 billion in 2019.
The concept of a smart factory was essentially developed as the idea of interconnected and intelligent manufacturing was gaining ground. The smart factory is developed from the concept of IIoT. The smart factory system ensures a friendly production environment by offering a fully automatized and intelligent network of systems. It enables the exchange of data not only between the tools of production and machines but also between all elements in the production technology chain. In other words, a smart factory is a highly digitized shop floor.
smart factory market, US$billion, 2019 to 2026
Source: Knowledge Sourcing Intelligence Analysis
A major reason for the growth of this market is the rise in the demand for industrial robots.
The demand for industrial robots is increasing significantly. These robots perform various tasks including painting, Welding, packaging, labeling, product inspection, and materials handling. These robots use sensors that allow them to choose paths, make correct judgments and provide the necessary information. The rising demand for industrial robots is expected to increase the demand for industrial sensors and hence augment the growth of the smart factory market.
The integration of smart factories with Wireless Sensor Network is expected to drive the demand for this market in the forecast period.
A large number of developments are taking place in the wireless sensor network. These networks are widely used to monitor and record the physical conditions of the environment and further forward the collected information to a central location. These wireless networks are more cost-efficient when compared with wired technology. The growing adoption of Wireless Sensor Network in smart factories would increase the demand for smart factories globally.
The growth in the demand for Additive manufacturing is anticipated to fuel the growth of this market.
Additive manufacturing is also known as 3D printing refers to a range of manufacturing technologies that incorporates additive processes to construct physical objects. These are often used in defense, pharma, retail, construction, aerospace, automotive industry, and smart manufacturing. Additive manufacturing is rapidly moving into smart factories. With its ability to provide cost-effective products, additive manufacturing is expected to grow, thus leading to the growth of smart factories.
The rising medical devices industry is also projected to positively impact the sales of smart factories.
The medical devices market is facing growing technological advances and innovation. According to the World Economic Forum, “One in three adults worldwide has multiple chronic conditions: cardiovascular disease alongside diabetes, depression as well as cancer, or a combination of three, four, or even five or six diseases at the same time. NCDs represent more than half the global burden of disease.” The number of people suffering from chronic diseases is rising with time. According to the World Health Organisation, 41 million people die every year due to chronic diseases (Non-communicable diseases), which account for 71 percent of deaths worldwide. Cardiovascular diseases alone claim 17.9 million lives globally, followed by cancer, which claims 9 million lives annually. This has lead to an increase in the demand for medical devices. Smart factory solutions are contributing towards improving technology assessment, planning, and remote support. It also provides cost-efficient solutions and helps in reducing wastage. With the growing medical device industry, the smart factory market is expected to grow.
The Asia Pacific region is projected to hold the largest share in the smart factory market. Both China and India are facing an increase in the adoption of automation technology. Moreover, the growing population, rapid urbanization, and change in the standard of living in the developing countries of the APAC region are estimated to drive the demand for smart factories. Moreover, there’s an increase in the need for an efficient and energy-saving manufacturing process. The companies are investing heavily to tap the hidden opportunities. Moreover, the market has attracted many foreign investors.
The threat posed by the surge of coronavirus has drastically affected all the economies. With the imposition of lockdown and strict government restrictions, the market for the smart factory has declined significantly. Restrictions on movement have greatly reduced the need for shop floor employees and thus the need for the smart factory.
|Market size value in 2019||US$97.247 billion|
|Market size value in 2026||US$206.399 billion|
|Growth Rate||CAGR of 11.35% from 2019 to 2026|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Type, Industry, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||FANUC, Siemens AG, ABB Ltd., Honeywell International Inc., Yokogawa Electric Corporation, Schneider Electric, Emerson Electric Co., General Electric Company, Robert Bosch GmbH, Omron Corporation|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the smart factory market size by 2026?
A1. The smart factory market is projected to reach a market size of US$206.399 billion by 2026.
Q2. What are the growth prospects for the smart factory market?
A2. The global smart factory market is projected to grow at a CAGR of 11.35% over the forecast period.
Q3. What is the size of the global smart factory market?
A3. Smart Factory Market was valued at US97.247 billion in 2019.
Q4. What factors are anticipated to drive the smart factory market growth?
A4. The rising demand for industrial robots is expected to increase the demand for industrial sensors and hence augment the growth of the smart factory market.
Q5. Which region holds the maximum market share of the smart factory market?
A5. The Asia Pacific region is projected to hold the largest share in the smart factory market.