Report Overview

Global Smart Factory Market Forecast and Trends

Smart factory global market has reached USD 152.4 Billion in 2019 and forecast above 9.9 % CAGR increase to cross USD 291.4 billion by 2026.

Smart factory market growth is driven by the increasing popularity of intelligent manufacturing techniques to boost productivity across various industry verticals. The Asian countries are a robust automotive & electronics manufacturing sector, and a high focus on the integration of automated technologies owing to supportive government policies will create several opportunities for growth in the industry. For example, by promoting Industry 4.0 and automation technologies, the Government of India has launched the Make in India initiative, which supports the country's factory and manufacturing sector growth. Increasing emphasis on energy consumption and increased manufacturing performance drives demand for the smart factory. Smart factory helps to improve processes by self-optimization and automation, its capacity is not only limited to material production but also assists in several functions such as supply chain, planning, and product development. Increasing emphasis on manufacturing is expected to propel the market growth globally.

The industrial shift to smart manufacturing in which technology-driven approach is growing and machines are connected via the internet to track production processes and ensure zero manufacturing defects without time lag; this is expected to have long-term effects on market growth.

Global Smart Factory Market: Overview

A smart factory signifies the manufacturing and technological development, perfect integration of high-tech machinery, and high-tech tools. It is the advanced factory system, which creates cyber-physical systems allowing active movement of materials across the factory floor. It offers real-time quality and time benefits, which are expected to accentuate the industry growth over the forecast period.

Smart Factory is the use of advanced technology in a factory, a perfect combination of high-tech machinery and high-tech instruments. It is the advanced factory system, which creates cyber-physical systems that allow successful material movement across the factory floor.

The evolution of Industry 4.0 trend and the integration of several digital technologies, including IoT, AI, etc. will propel market growth. The key factor driving the smart factory market is due to the advancement in operations technology; industries are adopting the digitized supply chain management options. These intelligent technologies will enhance product quality and asset efficiency, eliminating human & machine errors.

Growth drivers

Increasing adoption of Industrial Robots

The technological enhancement of robots in smart factories helps to reduce waste of raw materials, reduce manufacturing costs, and increase efficiency, which emphasizes manufacturers to use robots in their production line. The global industrial robot market for heavy-duty applications will see significant growth as a result of such benefits. The use of robotics in manufacturing started in 1961, and with rapid developments in computer technology, big data, machine learning, artificial intelligence, and the Internet of Things (IoT), there has been a significant increase in the use of robots in manufacturing industries in recent years.

Growing sensor technology

Advancement in sensor technology have allowed automated devices to intelligently interpret sounds, images, and other data without excessive powerful processing being present. The result is that lightweight, low-power systems can now be built, which can either allow increased autonomy in machine-to-machine (M2M) interactions or provide increasingly natural perceptual user interfaces for humans and machine interactions.

Often, the data that is being retrieved from sensors can be used to boost the production process. Technology improvements and network technologies mean faster processing of large amounts of fragmented data that can be used to monitor performance over time and increase efficiencies.

New factory equipment comes with smart sensors embedded to control the operating parameters of that equipment. For example, if the motor powered ON, the device will produce a certain amount of heat that is perfectly normal. A defined temperature profile is established. The smart sensors can sense the temperature and will send data to the control center when it exceeds.

Restraint

Cybersecurity and Data loss

In a Smart Factory, the devices can transmit data in real-time via a wireless internet connection. A typical configuration could include many systems that are accessible from many devices. By Disrupting access networks or operating systems, the hackers may take control of manufacturing processes to interfere with development or even manipulate goods. Gaining knowledge for competitive companies, industrial espionage such as hackers steal intellectual property or information is on the rise.

Global Smart Factory Market: By Component

Based on the Component, the Smart Factory market is distributed into Hardware, Software, and Services. The hardware segment is anticipated to dominate the market in the forecast period. Industrial robots in the hardware segment are an essential part of the smart factory. The industrial robots are gaining popularity because of advantages over traditional human workers. In modern factories, these robots are used to eliminate human requirements for several basic & complex tasks and to increase operational efficiency & productivity.

These robots are now more innovative than ever before in technology, and its features include skill learning, recognition of the vision, the collaboration between man-machine, the use of artificial intelligence, and prediction of failure. That is expected to boost long-term market demand further. The increasing adoption of robots by the automotive industry worldwide will drive the growth of the market globally.

Global Smart Factory Market: By Industry Vertical

Based on the Industry Vertical, the Smart Factory market is segmented into Electronics and Semiconductor, Aerospace & Defense, Automotive, Oil & Gas, Chemicals, Healthcare and Pharmaceutical, and Others. The automotive sector is estimated to dominate the market during the forecast period. A smart factory plays an essential role in the production and development of the automobile sector.

Vehicle manufacturers welcome innovations in assembly-line methods to enhance quality and increase factory productivity. Also, the adoption of smart factory related technologies and components in the process industry is expected to be the highest in the oil & gas industry due to the increasing need for safety and reliability at oil and gas plants. Oil and gas companies are always eyeing for new ways to meet the rising demand for energy, reduce operating costs, and improve overall plant efficiency.

Global Smart Factory Market: Regional insights

By geography, the Global Smart Factory Market is segregated into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. North America is estimated to dominate the region owing to rising adoption in the automotive sector. Since intelligent manufacturing & supply chain technologies are applied across different industries. The U.S. experienced a high demand for technically advanced production systems, which minimizes employee participation and saved huge labor costs. North America's industrial sector is witnessing the faster adoption of automated & robotic systems to perform various operational tasks at the manufacturing facilities to increase productivity. Automotive manufacturing firms like BMW, Audi, etc. are investing huge amounts in factory automation operations to reduce production cycles and save costs.

APAC market is also expected to grow due to technological advancement, and increasing acceptance of automation technologies in various industries such as Mitsubishi Electric (Japan), Omron (Japan), Yokogawa (Japan), and Fanuc (Japan) are leading players in the market. Through applying automation technology in manufacturing, China has been focusing on a creative industrial activity.

The objective of the Study:

To analyze and forecast the global Smart Factory market size of the market, in terms of value.

To examine the careful market segmentation and forecast the market size, in terms value, based on the region by segmenting the Global Smart Factory market into five regions, namely North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.

To outline, categorized and forecast the global Smart Factory market based on the Component, Connectivity, and Industry Vertical.

To examine competitive developments like technological advancement, services, and regulative framework within the global Smart Factory Market.

To highlight the impact analysis of the factors, affecting the market dynamics such as drivers, restraints, opportunities, and challenges.

To strategically profile the key players and comprehensively analyze their market shares along with detailing the competitive landscape for market leaders.

Scope of the Report

By Component

·         Hardware

o    Industrial Robots

o    Sensors

o    Machine Vision System

o    Control Device

·         Software

o    Supervisory Control and Data Acquisition (SCADA)

o    Programmable Logic Controller (PLC)

o    Distributed Control System (DCS)

o    Enterprise Resource Planning (ERP)

o    Others

·         Services

o    Managed Services

o    Professional Services

o    Integration Services

o    Others

By Connectivity

·         Wired Connectivity

o    Ethernet

o    Fieldbus

·         Wireless Connectivity

o    Wi-Fi

o    Bluetooth

o    Others

By Industry Vertical

·         Electronics and Semiconductor

·         Aerospace & Defense

·         Automotive

·         Oil & Gas

·         Chemicals

·         Healthcare and Pharmaceutical

·         Others

By Region

·         North America

·         Europe

·         Asia Pacific

·         Latin America

·         Middle East & Africa

1.    Research Framework

1.1. Research Objective

1.2. Product Overview

1.3. Market Segmentation

2.    Research Methodology

2.1. Qualitative Research

2.1.1.   Primary & Secondary Sources

2.2. Quantitative Research

2.2.1.   Primary & Secondary Sources

2.3. Breakdown of Primary Research Respondents, By Region

2.3.1.   Secondary Research

2.3.2.   Primary Research

2.4. Breakdown of Primary Research Respondents

2.5. Market Size Estimation

2.6. Assumption for The Study

2.7. Market Breakdown & Data Triangulation

3.    Executive Summary

4.    Global Smart Factory Insights

4.1. DROC Analysis

4.1.1.   Growth Drivers

4.1.2.   Restraints

4.1.3.   Opportunities

4.1.4.   Challenges

4.2. Technological Landscape

4.3. Regulatory Framework

4.4. Company Market Share Analysis,2019

4.5. Porter’s Five forces analysis

4.5.1.   Bargaining Power of Suppliers

4.5.2.   Bargaining Power of Buyers

4.5.3.   Threat of New Entrants

4.5.4.   Threat of Substitutes

4.5.5.   Intensity of Rivalry

5.    Global Smart Factory Market Overview

5.1. Market Size & Forecast by Value, 2016-2026

5.1.1.   By Value (USD Billion)

5.2. Market Share & Forecast 2016-2026

5.2.1.   By Component

5.2.1.1.       Hardware

5.2.1.1.1.          Industrial Robots

5.2.1.1.2.          Sensors

5.2.1.1.3.          Machine Vision System

5.2.1.1.4.          Control Device

5.2.1.2.       Software

5.2.1.2.1.          Supervisory Control and Data Acquisition (SCADA)

5.2.1.2.2.          Programmable Logic Controller (PLC)

5.2.1.2.3.          Distributed Control System (DCS)

5.2.1.2.4.          Enterprise Resource Planning (ERP)

5.2.1.2.5.          Others

5.2.1.3.       Services

5.2.1.3.1.          Managed Services

5.2.1.3.2.          Professional Services

5.2.1.3.3.          Integration Services

5.2.1.3.4.          Others

5.2.1.4.       By Connectivity

5.2.1.4.1.          Wired Connectivity

5.2.1.4.1.1.              Ethernet

5.2.1.4.1.2.              Fieldbus

5.2.1.4.2.          Wireless Connectivity

5.2.1.4.2.1.              Wi-Fi

5.2.1.4.2.2.              Bluetooth

5.2.1.4.2.3.              Others

5.2.2.   By Industry Vertical 

5.2.2.1.       Electronics and Semiconductor

5.2.2.2.       Aerospace & Defense

5.2.2.3.       Automotive

5.2.2.4.       Oil & Gas

5.2.2.5.       Chemicals

5.2.2.6.       Healthcare and Pharmaceutical

5.2.2.7.       Others

5.2.3.   By Region

5.2.3.1.       North America

5.2.3.2.       Europe

5.2.3.3.       Asia Pacific

5.2.3.4.       Latin America

5.2.3.5.       Middle East & Africa

6.    North America Smart Factory Market

6.1. Market Size & Forecast by Value, 2016-2026

6.1.1.   By Value (USD Billion)

6.2. Market Share & Forecast 2016-2026

6.2.1.   By Component

6.2.2.   By Connectivity

6.2.3.   By Industry Vertical

6.2.4.   By Country

6.2.4.1.       U.S

6.2.4.2.       Canada

7.    Europe Smart Factory Market

7.1. Market Size & Forecast by Value, 2016-2026

7.1.1.   By Value (USD Billion)

7.2. Market Share & Forecast 2016-2026

7.2.1.   By Component

7.2.2.   By Connectivity

7.2.3.   By Industry Vertical

7.2.4.   By Country

7.2.4.1.       Germany

7.2.4.2.       U.K

7.2.4.3.       France

7.2.4.4.       Italy

7.2.4.5.       Rest of Europe

8.    Asia Pacific Smart Factory Market

8.1. Market Size & Forecast by Value, 2016-2026

8.1.1.   By Value (USD Billion)

8.2. Market Share & Forecast 2016-2026

8.2.1.   By Component

8.2.2.   By Connectivity

8.2.3.   By Industry Vertical

8.2.4.   By Country

8.2.4.1.       China

8.2.4.2.       India

8.2.4.3.       Japan

8.2.4.4.       Rest of Asia Pacific

9.    Latin America Smart Factory Market

9.1. Market Size & Forecast by Value, 2016-2026

9.1.1.   By Value (USD Billion)

9.2. Market Share & Forecast 2016-2026

9.2.1.   By Component

9.2.2.   By Connectivity

9.2.3.   By Industry Vertical

9.2.4.   By Country

9.2.4.1.       Brazil

9.2.4.2.       Mexico

9.2.4.3.       Argentina

9.2.4.4.       Rest of Latin America

10.Middle East & Africa Smart Factory Market

10.1.             Market Size & Forecast by Value, 2016-2026

10.1.1.                By Value (USD Billion)

10.2.             Market Share & Forecast 2016-2026

10.2.1.                By Component

10.2.2.                By Connectivity

10.2.3.                By Industry Vertical

10.2.4.                By Country

10.2.4.1.    Saudi Arabia

10.2.4.2.    UAE

10.2.4.3.    South Africa

10.2.4.4.    Rest of Middle East & Africa

11.Company Profile (Company Overview, Financial Matrix, Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *

11.1.             Siemens

11.2.             General Electric

11.3.             ABB

11.4.             Rockwell Automation

11.5.             Schneider Electric

11.6.             Honeywell International

11.7.             FANUC

11.8.             Mitsubishi Electric

11.9.             Emerson Electric

11.10.          Yokogawa Electric

11.11.          Robert Bosch

11.12.          Stratasys

11.13.          TE Connectivity

11.14.          Texas Instruments

11.15.          HP

11.16.          KUKA

11.17.          SAP

11.18.          Omron

11.19.          Dassault SysteMES

11.20.          Qualcomm

11.21.          Other Prominent Players

List of Figures

Fig: Global Smart Factory Segmentation

Fig: Global Smart Factory Market Value Chain Analysis

Fig: Company Market Share Analysis, 2019

Fig: Global Smart Factory Market Size, By Value (USD Billion), 2016-2026

Fig: Global Smart Factory Market Share, By Component, By Value, 2016-2026

Fig: Global Smart Factory Market Share, By Connectivity, By Value, 2016-2026

Fig: Global Smart Factory Market Share, By Industry Vertical, By Value, 2016-2026

Fig: Global Smart Factory Market Share, By Region, By Value, 2016-2026

Fig: North America Smart Factory Market Size, By Value (USD Billion), 2016-2026

Fig: North America Smart Factory Market Y-o-Y Growth, By Value, 2017-2026

Fig: North America Smart Factory Market Share, By Component, By Value, 2016-2026

Fig: North America Smart Factory Market Share, By Connectivity, By Value, 2016-2026

Fig: North America Smart Factory Market Share, By Industry Vertical, By Value, 2016-2026

Fig: North America Smart Factory Market Share, By Country, By Value, 2016-2026

Fig: Europe Smart Factory Market Size, By Value (USD Billion), 2016-2026

Fig: Europe Smart Factory Market Y-o-Y Growth, By Value, 2017-2026

Fig: Europe Smart Factory Market Share, By Component, By Value, 2016-2026

Fig: Europe Smart Factory Market Share, By Connectivity, By Value, 2016-2026

Fig: Europe Smart Factory Market Share, By Industry Vertical, By Value, 2016-2026

Fig: Europe Smart Factory Market Share, By Country, By Value, 2016-2026

Fig: Asia-Pacific Smart Factory Market Size, By Value (USD Billion), 2016-2026

Fig: Asia-Pacific Smart Factory Market Y-o-Y Growth, By Value, 2017-2026

Fig: Asia-Pacific Smart Factory Market Share, By Component, By Value, 2016-2026

Fig: Asia-Pacific Smart Factory Market Share, By Connectivity, By Value, 2016-2026

Fig: Asia-Pacific Factory Market Share, By Industry Vertical, By Value, 2016-2026

Fig: Asia-Pacific Smart Factory Market Share, By Country, By Value, 2016-2026

Fig: Latin America Smart Factory Market Size, By Value (USD Billion), 2016-2026

Fig: Latin America Smart Factory Market Y-o-Y Growth, By Value, 2017-2026

Fig: Latin America Smart Factory Market Share, By Component, By Value, 2016-2026

Fig: Latin America Smart Factory Market Share, By Connectivity, By Value, 2016-2026

Fig: Latin America Factory Market Share, By Industry Vertical, By Value, 2016-2026

Fig: Latin America Smart Factory Market Share, By Country, By Value, 2016-2026

Fig: Middle-East & Africa Smart Factory Market Size, By Value (USD Billion), 2016-2026

Fig: Middle-East & Africa Smart Factory Market Y-o-Y Growth, By Value, 2017-2026

Fig: Middle-East & Africa Smart Factory Market Share, By Component, By Value, 2016-2026

Fig: Middle-East & Africa Smart Factory Market Share, By Connectivity, By Value, 2016-2026

Fig: Middle-East & Africa Smart Factory Market Share, By Industry Vertical, By Value, 2016-2026

Fig: Middle East & Africa Smart Factory Market Share, By Country, By Value, 2016-2026

List of Tables:

Table: Global Smart Factory Market Size, By Component, By Value, 2016-2026

Table: Global Smart Factory Market Size, By Connectivity, By Value, 2016-2026

Table: Global Smart Factory Market Size, By Industry Vertical, By Value, 2016-2026

Table: Global Smart Factory Market Size, By Region, By Value, 2016-2026

Table: North America Smart Factory Market Size, By Component, By Value, 2016-2026

Table: North America Smart Factory Market Size, By Connectivity, By Value, 2016-2026

Table: North America Smart Factory Market Size, By Industry Vertical, By Value, 2016-2026

Table: North America Smart Factory Market Size, By Country, By Value, 2016-2026

Table: Europe Smart Factory Market Size, By Component, By Value, 2016-2026

Table: Europe Smart Factory Market Size, By Connectivity, By Value, 2016-2026

Table: Europe Smart Factory Market Size, By Industry Vertical, By Value, 2016-2026

Table: Europe Smart Factory Market Size, By Country, By Value, 2016-2026

Table: Asia-Pacific Smart Factory Market Size, By Component, By Value, 2016-2026

Table: Asia-Pacific Smart Factory Market Size, By Connectivity, By Value, 2016-2026

Table: Asia-Pacific Smart Factory Market Size, By Industry Vertical, By Value, 2016-2026

Table: Asia-Pacific Smart Factory Market Size, By Country, By Value, 2016-2026

Table: Latin America Smart Factory Market Size, By Component, By Value, 2016-2026

Table: Latin America Smart Factory Market Size, By Connectivity, By Value, 2016-2026

Table: Latin America Smart Factory Market Size, By Industry Vertical, By Value, 2016-2026

Table: Latin America Smart Factory Market Size, By Country, By Value, 2016-2026

Table: Middle-East & Africa Smart Factory Market Size, By Component, By Value, 2016-2026

Table: Middle-East & Africa Smart Factory Market Size, By Connectivity, By Value, 2016-2026

Table: Middle-East & Africa Smart Factory Market Size, By Industry Vertical, By Value, 2016-2026

Table: Middle East & Africa Smart Factory Market Size, By Country, By Value, 2016-2026

Table: Siemens Financial Analysis

Table: General Electric Financial Analysis

Table: ABB Financial Analysis

Table: Rockwell Automation Financial Analysis

Table: Schneider Electric Financial Analysis

Table: Honeywell International Financial Analysis

Table: FANUC Financial Analysis

Table: Mitsubishi Electric Financial Analysis

Table: Emerson Electric Financial Analysis

Table: Yokogawa Electric Financial Analysis

Table: Robert Bosch Financial Analysis

Table: Other Prominent Players Financial Analysis

*Financial Details Not Be Captured in Case of Unlisted Companies

**The segmentation and the companies are subjected to modifications based on the in-depth secondary for the final deliverable