How Has the Smart Factory Market Evolved Historically and What is its Current Size?
The smart factory market has seen considerable growth due to a variety of factors.
• In recent times, the scale of the smart factory market has experienced robust growth. It is predicted to expand from $82.07 billion in 2024 to $89.56 billion in 2025, boasting a compound annual growth rate (CAGR) of 9.1%.
This growth during the historic period is primarily due to the embrace of Industry 4.0 and digital transformation, the rising adoption of data analytics and big data, automation and robotics, cyber-physical systems, as well as cloud computing and edge computing.
What is the Forecasted Market Size and CAGR for the Smart FactoryMarket?
The smart factory market is expected to maintain its strong growth trajectory in upcoming years.
• Anticipations hint at a swift expansion in the smart factory market size over the approaching years. The predicted growth suggests an increase to $144.69 billion by 2029, with a compound annual growth rate (CAGR) of 12.7%.
This prospective upswing in the forecast period can be credited to factors such as governmental backing and regulatory endeavours, an intensifying focus on ecological sustainability, the need for robustness and transparency in the supply chain, flexible and expandable manufacturing solutions and amplified emphasis on cybersecurity. Key emerging trends in this forecast period incorporate personalization and customization in the production processes, remote supervision and administration, eco-friendly manufacturing methodologies, human-focused design in the interaction of humans and machines, intelligent sensors and actuators, and combined robotics (cobots).
What Key Factors and Trends are Driving the Growth of the Smart Factory Market?
The burgeoning need for industrial robots is set to drive the expansion of the smart factory market. Industrial robots are mechanical devices designed to perform production tasks automatically in industrial settings. The foundation of a smart factory lies in resource optimization and industrial automation through the use of technology such as information and clever sensory tech, robotics, AI, and the Internet of Things. For example, the International Federation of Robotics, a non-profit entity based in Germany, noted a spike in industrial robot installations in September 2024, bringing the global operational robot count to a record-breaking 3.9 million in 2022. Hence, the increasing demand for industrial robots is spearheading the growth of the smart factory market.
What are the Market Segments in the Smart Factory Market?
The smart factory market covered in this report is segmented –
1) By Product: Machine Vision Systems, Industrial Robotics, Control Devices, Sensors Communication Technologies, Other Products
2) By Component: Smart Factory Hardware, Smart Factory Software, Smart Factory Services
3) By Industry Vertical: Automotive, Aerospace And Defense, Electrical And Electronics, Food And Beverages, Energy And Utilities, Healthcare And Pharmaceuticals, Other Industry Verticals
Subsegments:
1) By Machine Vision Systems: 2D Machine Vision, 3D Machine Vision, Vision Sensors, Frame Grabbers, Vision Software
2) By Industrial Robotics: Articulated Robots, SCARA Robots, Cartesian Robots, Collaborative Robots (Cobots), Gantry Robots
3) By Control Devices: Programmable Logic Controllers (PLCs), Distributed Control Systems (DCS), Supervisory Control And Data Acquisition (SCADA) Systems, Human-Machine Interface (HMI) Devices
4) By Sensor Communication Technologies: Wired Communication, Wireless Communication, Industrial Internet Of Things (IIoT) Protocols
5) By Other Products: Advanced Analytics Software, Artificial Intelligence Solutions, Cloud Computing Services
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What Trends are Shaping the Smart Factory Market?
The emergence of technological advancements is becoming a prevalent trend in the smart factory market. Utilizing cutting-edge technology, major businesses in the smart factory industry are enhancing their production process to maximize efficiency. As an example, in July 2024, Hexagon AB, an industrial technology firm based in Sweden, introduced its Digital Factory solution. This innovation allows manufacturers to generate accurate digital duplicates of their factories to boost production and efficiency. Its implementation could save manufacturers millions each year by reducing costs and averting errors in factory planning and construction. To tackle the unique hurdles in the manufacturing sector, Hexagon capitalizes on its prowess in accurate reality capturing, 3D simulation software, and cloud-based collaboration tools. Although digitalization has been extensively adopted in sectors such as civil infrastructure and public safety, its potential in the manufacturing sector remains mostly untapped, particularly for owners of brownfield sites.
Who Are the Key Players in the Smart Factory Market?
Major companies operating in the smart factory market include:
• ABB Ltd.
• Emerson Electric Co.
• General Electric Company
• Honeywell International Inc.
• International Business Machines Corporation
• Johnson Controls International PLC
• Mitsubishi Electric Corporation
• Robert Bosch GmbH
• Rockwell Automation Inc.
• Schneider Electric SE
• Siemens AG
• Yokogawa Electric Corp.
• Cisco Systems Inc.
• Dassault Systèmes SE
• Endress+Hauser AG
• Kollmorgen Corp.
• Kuka AG
• Omron Corporation
• Oracle Corporation
• Microsoft Corporation
• PTC Inc.
• SAP SE
• Hitachi Ltd.
• Amazon. com Inc.
• Fanuc Corporation
• Cognex Corporation
• FLIR Systems Inc.
• CoreTigo Ltd.
• Airbus Group Inc.
• Cellares Corp.
What are the Regional Insights into the Smart Factory Market?
Asia-Pacific was the largest region in the smart factory market in 2024.Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the smart factory market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
