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Market Insight- Global Smart Factory Market

Market Overview

A smart factory is a highly digitized and connected production facility that depends on smart manufacturing. The concept of the smart factory is considered a crucial outcome of the fourth industrial revolution, i.e. Industry 4.0. Manufacturing companies are the major adopters of smart factories where they employ cutting-edge technologies such as artificial intelligence, Internet of Things, big data, analytics, and robotics. These factories can run autonomously on a large scale with the ability to self-correct. A smart factory offers visibility, autonomy, and connectivity. Although companies have already employed automation, smart factories are a step further and run without human intervention. Since modern technologies are incorporated, smart factories can learn and adapt in real-time, making them more flexible than their predecessors.

The global smart factory market is estimated to account for US$ 116.3 Bn in terms of value in 2019 and is expected to grow at a CAGR of 13.3% during the forecasted period 2019-27.

Market Dynamics- Drivers

  1. Growing demand for smart factory from key verticals is expected to drive growth of the global smart factor market during the forecast period

Many industry verticals such as automotive and transportation, electronics, and electrical industries are focused on adoption of smart factory solutions, in order to augment efficiency and increase production capabilities. Furthermore, a number of manufacturing verticals are adopting smart factory solutions, in order to reduce production of defective products, downtime, and wastage. At the same time, they are focused on improving productivity. Apart from automobile and electronics manufacturing, smart factory is being adopted in chemical, oil & gas, textile and food & beverage industries. Hence, these factors are expected to boost growth of the market during the forecast period.

  1. Increasing focus on advanced manufacturing is expected to propel the global smart factory market growth over the forecast period

Increasing demand for advanced manufacturing practices is expected to support the market growth in the near future. Advanced manufacturing involves production of goods with minimum resources while maintaining cost and improving performance. Hence, the demand for smart factories globally is increasing significantly. Therefore, these factors are expected to propel the global smart factor market growth over the forecast period.

Asia Pacific region dominated the global smart factory market in 2019, accounting for 35.6% share in terms of value, followed by Europe and North America, respectively.

Smart Factory  | Coherent Market Insights

Source: Coherent Market Insights

Market Dynamics- Restraints

  1. Low availability of skilled personnel is expected to hamper the global smart factory market growth during the forecast period

There is a severe shortage of skilled personnel and the skill gap of current workforce is creating challenges for the market. In emerging regions such as Africa and Latin America, this problem is severe. However, the situation is expected to change in the near future due to growing awareness regarding automation and smart factories in the region. Thus, these factors are expected to hamper the market growth in the near future.

  1. Concerns regarding data theft information security are expected to restrain growth of the global smart factor market over the forecast period

Smart factories enable intensive digital communication between different machines, across divisions, companies, and industries. Critical information is shared across various channels through internet, which increases concerns related to information and data security. Moreover, this risk is even higher when information is shared across external networks. Hence, these factors are expected to restrain growth of the global smart factory market during the forecast period.

Market Opportunity

  1. Rising adoption of collaborative robots can provide major growth opportunities

Collaborative robots or cobots are intended to interact with humans in a shared space or work safely in close proximity. Since these robots are designed to work autonomously with safety assured by isolation from human contact, they are better than conventional robots. For instance, in September 2014, ABB Limited introduced a collaborative robot named YuMi, which is human-friendly, dual armed and designed for the new era of automation.

  1. Increasing investments in manufacturing plants are expected to present lucrative opportunities for market players

Rising global competition is encouraging manufacturers to adopt technologies that enhance efficiency and productivity at manufacturing units. Across the globe, numerous product manufacturers are investing significantly in incorporating the latest technologies and solutions to enhance manufacturing capabilities. For instance, in April 2015, GE invested over US$ 200 million on its new multi-modal smart factory in India.

Smart Factory  | Coherent Market Insights

Source: Coherent Market Insights

In global smart factory market, by component segment defense, hardware sub-segment dominated the global smart factory market in 2019, accounting for 45.2% share in terms of value, followed by software and services.

Smart Factory  | Coherent Market Insights

Source: Coherent Market Insights

Market Trends

  1. North America Trends

Rising demand for industrial robots in the region

The demand for industrial robots is increasing significantly, owing to rising automation in manufacturing plants, since it accelerates production and enhances the quality of products. For instance, the Robotic Industries Association (RIA) reported that the number of robot units ordered from North American companies increased by 28% between 2013 and 2014. Moreover, during the same period, the number of robots shipped to North American companies increased by 13%.

  1. Latin America Trends

Increasing investments in automobile manufacturing plants

In Latin America, a number of global automobile manufacturing companies have increased investments in the recent past. This trend is expected to grow of smart factories in the near future. For instance, in April 2015, Ford Motor Company announced an investment of US$ 2.2 Bn for a new engine and transmission plants in Mexico. Furthermore, in December 2015, Hyundai Motor Company decided to invest US$ 130 Mn in its new plant in Mexico.

Competitive Section

Key players operating in the global smart factory market are Oracle Corporation, ABB Group, Atos SE, Rockwell Automation, Inc., Accenture PLC, General Electric Co., PTC Inc., Siemens AG, SAP SE, and IBM Corporation.

Key Developments

  1. Key players in the market are focused on partnerships and collaborations, in order to enhance the market presence. For instance, in January 2020, Oracle Corporation partnered with Mitsubishi Electric to develop Internet of Things (IoT)-enabled platform for smart manufacturing.
  2. Major companies in the market are involved in capacity expansion, in order to gain a competitive edge in the market. For instance, in March 2018, ABB Group inaugurated its one of the first smart factories in Bangalore for production of electrical protection and connection solutions.

A smart factory is a highly digitized and connected production facility that depends on smart manufacturing. The concept of the smart factory is considered a crucial outcome of the fourth industrial revolution, i.e. Industry 4.0. Manufacturing companies are the major adopters of smart factories where they employ cutting-edge technologies such as artificial intelligence, Internet of Things, big data, analytics, and robotics.

Market Dynamics

Rising adoption of IIoT and cyber-physical systems is the major factor driving the global smart factory market as adoption of industrial internet of things (IIoT) and cyber-physical systems (CPS) is expected to revolutionize the global smart factory market. Moreover these IIoT devices allows connectivity all along the value chain for better communication among manufacturers, wholesalers, retailers, and consumers. Furthermore, government initiatives and increasing investments in smart manufacturing by the large manufacturing companies is also expected to propel the marketFor instance, The European Commission is investing around US$ 2 Bn on “Factories of The Future 2020” initiative, along with The European Factories of the Future Research Association (EFFRA) in the form of a public-private partnership to develop the blueprint for the smart manufacturing sector in the European Union.

Market Taxonomy

This report segments the global smart factory market on the basis component hardware, software, and services. On the basis of market structure to connect, to collect, to analyze, to control. On the basis of manufacturing verticals automobile & transportation, food & beverages, electrical & electronics, aerospace & defense, oil & gas, garment & textile, chemical & material, others (healthcare & pharmaceuticals), and by Geography North America, Europe, Asia Pacific, and Latin America, Middle East & Africa.

Key features of the study:

  • This report provides an in-depth analysis of the global smart factory market and provides market size (US$ Million) and Compound Annual Growth Rate (CAGR %) for the forecast period (2019 – 2027), considering 2018 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, regional outlook, and competitive strategy adopted by leading players
  • It profiles leading players in the global smart factory market based on the following parameters – regulatory landscape, company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans
  • Key players operating in the global smart factory market are Oracle Corporation, ABB Group, Atos SE, Rockwell Automation, Inc., Accenture PLC, General Electric Co., PTC Inc., Siemens AG, SAP SE, and IBM Corporation.
  • Insights from this report would allow marketers and management authorities of companies to make informed decision regarding future product launches, technology up-gradation, market expansion, and marketing tactics
  • The global smart factory market report caters to various stakeholders in this industry including investors, suppliers, distributors, new entrants, and financial analysts.
  • Stakeholders would have ease in decision-making through the various strategy matrices used in analyzing the global smart factory market.

Detailed Segmentation:

  • Global Smart Factory Market, By Component:
    • Hardware
    • Software
    • Services
  • Global Smart Factory Market, By Market Structure:
    • To Connect
      • Wired and Wireless Networking
      • Wide Area Networking (WAN)
      • Local Area Networking (LAN)
      • Machine-to-Machine Network
    • To Collect
      • Sensors
      • Digital Measurement Devices
      • Auto Identification Hardware
    • To Analyse
      • Data Historian
      • Reporting
      • Complex Event Processing
      • Predictive Algorithm
    • To Control
      • Actuators
      • Programmable Logic Controllers
      • Smart Robotics
      • Additive Manufacturing Equipment
  • Global Smart Factory Market, By Manufacturing Verticle:
    • Automotive & Transportation
    • Food & Beverage
    • Electrical and Electronics
    • Aerospace & Defense
    • Oil & Gas
    • Garment & Textile
    • Chemical & Material
    • Others ( Healthcare & Pharmaceutical)
  • Global Smart Factory Market, By Geography:
    • North America
    • Europe
    • Asia Pacific
    • Latin America
    • Middle East and Africa
  • Company Profiles
    • Oracle Corporation *
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • ABB Group
    • Atos SE
    • Rockwell Automation, Inc.
    • Accenture PLC
    • General Electric Co.
    • PTC Inc.
    • Siemens AG
    • SAP SE
    • IBM Corporation

*Browse all the market data tables and figures on "Global Smart Factory Market - Forecast to 2027”

Table of Contents

  1. Research Objective and Assumption
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet, By Component
      • Market Snippet, By Market Structure
      • Market Snippet, By Manufacturing Vertical
      • Market Snippet, By Region
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • Market Opportunities
      • Regulatory Scenario
      • Industry Trend
      • Merger and Acquisitions
      • New system Launch/Approvals
      • Value Chain Analysis
      • Porter’s Analysis
      • PEST Analysis
  4. Global Smart Factory Market, By Component, 2017-2027  (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Hardware
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Software
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Services
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
  5. Global Smart Factory Market, By Market Structure, 2017-2027  (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • To Connect
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
        • Wired And Wireless Networking
        • Wide Area Networking (WAN)
        • Local Area Networking (LAN)
        • Machine-to-Machine Network
    • To Collect
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
        • Sensors
        • Digital Measurement Devices
        • Auto Identification Hardware
    • To Analyze
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
        • Data Historian
        • Reporting
        • Complex Event Processing
        • Predictive Algorithm
    • To Control
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
        • Actuators
        • Programmable Logic Controllers
        • Smart Robotics
        • Additive Manufacturing Equipment
        • SCADA
        • DCS
        • Others (MES, HMI)
  6. Global Smart Factory Market, By Manufacturing Vertical, 2017-2027  (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Automobile & Transportation
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Food & Beverages
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Electrical & Electronics
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Aerospace & Defense
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Oil & Gas
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Garment & Textile
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Chemical & Material
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Others (healthcare & pharmaceuticals)
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
  7. Global Smart Factory Market, By Region, 2017-2027  (US$ Million)
    • Introduction
      • Market Share Analysis, By Region, 2017 and 2027 (%)
    • North America
      • Regional Trends
      • Market Size and Forecast, By Component, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Market Structure, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Manufacturing Vertical, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.S.
        • Canada
    • Europe
      • Regional Trends
      • Market Size and Forecast, By Component, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Market Structure, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Manufacturing Vertical, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.K.
        • Germany
        • Italy
        • France
        • Russia
        • Rest of Europe
    • Asia Pacific
      • Regional Trends
      • Market Size and Forecast, By Component, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Market Structure, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Manufacturing Vertical, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • China
        • India
        • Japan
        • ASEAN
        • Australia
        • South Korea
        • Rest of Asia Pacific
    • Latin America
      • Regional Trends
      • Market Size and Forecast, By Component, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Market Structure, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Manufacturing Vertical, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • Brazil
        • Argentina
        • Mexico
        • Rest of Latin America
    • Middle East and Africa
      • Regional Trends
      • Market Size and Forecast, By Component, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Market Structure, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Manufacturing Vertical, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • Israel
        • GCC Countries
        • South Africa
        • Rest of the Middle East and Africa
  8. Competitive Landscape
    • Company Profiles
      • Oracle Corporation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • ABB Group
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Atos SE
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Rockwell Automation, Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Accenture PLC
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • General Electric Co., PTC Inc
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Siemens AG
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • SAP SE
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • IBM Corporation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
    • Analyst Views
  9. Section
    • References
    • Research Methodology
    • About us and Sales Contact

*Browse market data tables and figures on "Smart Factory Market - Global forecast to 2027”.

Frequently Asked Questions

This market study covers the global and regional market with an in-depth analysis of the overall growth prospects in the market. Furthermore, it sheds light on the comprehensive competitive landscape of the global market. The report further offers a dashboard overview of leading companies encompassing their successful marketing strategies, market contribution, and recent developments in both historic and present contexts.
• By Manufacturing Vertical • By Component • By Market Structure • By Region
The report provides a detailed evaluation of the market by highlighting information on different aspects which include drivers, restraints, opportunities, and threats. This information can help stakeholders to make appropriate decisions before investing.
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