Smart Factory Market To Hit Value 1.91 Billion By 2030 |Grand View Research, Inc.

Posted by Mrudula Anil Karmarkar on November 20th, 2023

San Francisco, 20 November 2023: The Report Smart Factory Market Size, Share & Trends Analysis Report By Technology (DCS, ERP, HMI, MES, PLM, PLC, SCADA), By Field Devices (Sensors, Industrial Robotics, Machine Vision Systems), By Application, By Region, And Segment Forecasts, 2023 - 2030

The global smart factory market size is expected to reach USD 271.91 billion by 2030, expanding at a CAGR of 9.8% from 2023 to 2030, according to a new study by Grand View Research, Inc. The market for smart factory has experienced remarkable growth in recent years, primarily attributed to several factors. These include the increasing adoption of Industry 4.0 concepts characterized by integrating digital technologies such as the Internet of Things (IoT), AI, Machine Learning (ML), and industrial automation. These technologies enhance operational efficiency and enable real-time data analysis, fostering agile and responsive manufacturing processes.

Moreover, the need for cost optimization and resource efficiency has prompted businesses to invest in smart factory solutions, as they promise reduced downtime, minimized wastage, and improved resource allocation. Besides, the growing emphasis on sustainability and environmental concerns has led manufacturers to gravitate towards the adoption of smart factories to monitor and optimize energy consumption and reduce their carbon footprint.

Additionally, technological advancements such as integrating connected devices with IoT and cloud computing act as development factors. Automated material handling, electronic and mechanical assembly, and product testing are all made easier with these cutting-edge technologies. Force sensors are also used in smart factories to maintain constant force during polishing, buffing, and deburring, collect data for statistical process control (SPC) systems, and ensure proper component insertion. Additional aspects, including the inclusion of the Industrial Internet of Things (IIoT) and the growing usage of smart factory solutions for the production of complex automotive and medical components, are expected to propel the smart factory sector during the forecast period.

Several companies operating in the market for smart factory adopt strategies such as mergers, acquisitions, partnerships, and innovations to enhance their product offerings to cater to the larger customer base and strengthen their foothold in the industry. For instance, in October 2023, ABB Robotics launched the IRB 1010, the smallest-ever industrial robot. The compact system is developed to help electronics manufacturers improve the production of devices such as smart watches, sensors, earphones, and health trackers.

This industrial robot by ABB Robotics also comes with a high payload capacity and accuracy. The compact system is created to assist electronics manufacturers in enhancing their production of devices such as earphones, health trackers, smartwatches, and sensors through automation. Such advancements are poised to fuel the growth of the smart factory industry in the coming years.

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The market for smart factory is expected to expand due to several key factors, including increasing emphasis on energy efficiency, improved manufacturing productivity, and the establishment of advanced manufacturing infrastructures. Additionally, there are promising prospects for the adoption of collaborative robots and ongoing advancements in 3D printing technology, which are set to create lucrative opportunities for the market during the forecast period.

Artificial intelligence (AI) and machine learning (ML) are playing a pivotal role in smart factories. These technologies enable predictive maintenance, quality control, and process optimization. AI-driven analytics can uncover valuable insights from vast datasets, helping manufacturers make data-driven decisions. As AI capabilities continue to evolve, their integration into smart factories is expected to grow.

Smart Factory Market Report Highlights

  • Based on technology, the Distributed Control Systems (DCS) segment accounted for the largest market share in 2023. This is attributed to the growing investments from the industrial sector, such as food & beverage, mining & metal, metallurgy, and electronics, in developing economies
  • Based on field devices, the sensors segment is expected to expand at the highest CAGR by 2030, owing to their increasing self-sufficiency with low power consumption and integrated computing abilities
  • Based on application, the automotive segment accounted for the largest revenue share in 2023 and is expected to continue the same trend over the forecast period. Automotive manufacturers are investing heavily in the development of smart manufacturing and automation to optimize production and reduce operating costs
  • The Asia Pacific regional market accounted for the largest revenue share in 2023. This is attributed to the heavy investments of developing countries in smart technologies to keep abreast of international manufacturing standards and trends

For instance, in September 2023, Datametrex AI Ltd. announced the launch of Smart Factory AI technology based on big data, Artificial Intelligence (AI), and server automation operating system technologies. Additionally, the company claimed to receive purchase orders totaling CAD 200,000 from various multinational corporations, including Woongjin, Co. Ltd., Kolon Benit, and Lotte Data Communication Co., Ltd.

The adoption of Industry 4.0 principles is a prominent trend in smart factories. Industry 4.0 emphasizes the integration of digital technologies such as IoT, big data analytics, and automation into manufacturing processes. Smart factories are leveraging these technologies to optimize production, improve quality, and enhance overall efficiency. This trend is expected to continue as manufacturers seek to remain competitive in a globalized market.

Furthermore, the Internet of Things (IoT) is the backbone of smart factories, facilitating real-time monitoring and control of machines and processes. The growing number of connected devices, sensors, and actuators is enhancing visibility and automation within factories. The increasing deployment of 5G networks and the advancement of edge computing will further strengthen the significance of IoT in the market.

Smart Factory Market Report Scope

Report Attribute

Details

Market size value in 2023

USD 141.59 billion

Revenue forecast in 2030

USD 271.91 billion

Growth rate

CAGR of 9.8% from 2023 to 2030

Base year for estimation

2023

Historical data

2018 - 2021

Forecast period

2023 - 2030

The COVID-19 pandemic had a profound impact on the smart factory industry. While it initially disrupted supply chains and manufacturing operations, it also accelerated the adoption of digital technologies in factories. The need for remote monitoring, predictive maintenance, and agile production processes became apparent during the pandemic, driving increased investment in smart factory solutions. Additionally, the emphasis on worker safety and social distancing led to a greater interest in automation and robotics. The market is anticipated to sustain its growth momentum as the global economy recovers from the pandemic. This is attributed to manufacturers placing greater emphasis on enhancing resilience, efficiency, and operational flexibility in their processes.

List of Key Players in the Smart Factory Market

  • ABB, Ltd.
  • Dassault Systèmes S.E.
  • FANUC Corporation
  • General Electric Company
  • Honeywell International, Inc.
  • Johnson Controls, Inc.
  • KUKA AG
  • Mitsubishi Electric Corporation
  • Rockwell Automation, Inc.
  • Schneider Electric SE

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Mrudula Anil Karmarkar

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Mrudula Anil Karmarkar
Joined: July 2nd, 2020
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