Taiwanese Manufacturing Industry's Spending on Smart Factory Expected to See Nearly 10% Year-on-Year Growth in 2022
Thanks to the rapid advances in information and communications technologies, companies in Taiwan have adopted a wide variety of hardware, software, and services to support daily business operations, planning to boost their IT (Information Technology) spending in 2022. They continue to increase IT budgets to integrate existing systems and resources more effectively, thereby reducing operating costs and improving overall productivity.
The publisher conducted surveys in late 2021 with the aim to present estimates of IT spending in five major industries in Taiwan, including manufacturing, construction, finance, retail, and healthcare. The findings are based on data from the publisher's IT Spending Survey conducted in late 2021. Hundreds of IT companies in Taiwan were asked a series of questions about their IT spending patterns, habits, and plans.
This report consolidates survey data on smart factory spending and analyzes such spending across four sub-industries of the manufacturing industry, including livelihood, chemistry, metal & machinery, and information & electronic; provides spending forecasts for 2022 to help the stakeholders gain a better understanding of changes in smart factory spending over the years.
List of Topics:
- Spending on smart factory in the Taiwanese manufacturing industry in 2022 and includes stratification of industry samples by sub-industry, such as the livelihood, chemistry, metal & machinery, and information & electronic.
- Smart factory adoption status, touching on a wide range of applications, and includes the adoption rate in next two years by sub-industry
- Several pain points in adopting smart factory by sub-industry are included and examined.
- Stratification of industry samples by sector and by employment size is also included
Table of Contents
Samples
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Executive Summary
The analyst conducted surveys in late 2021 with the aim to present estimates of IT spending in five major industries in Taiwan, including manufacturing, construction, finance, retail, and healthcare. The findings are based on data from MIC's IT Spending Survey conducted in late 2021. Hundreds of IT companies in Taiwan were asked a series of questions about their spending patterns, habits, and plans.
The average spending on a smart factory in Taiwan’s manufacturing industry reached NT$1.669 million in 2021, with 14.5% of companies reporting a plan to increase their spending in 2022 and 2.5% to decrease. Based on findings, the average spending on the smart factory is estimated to grow by 9.5% year-on-year to NT$1.827 million in 2022. Although average smart factory spending seemed higher in both the metal & machinery sub-industry and the livelihood sub-industry at above NT$2 million in 2021, the spending is estimated to grow by less than 10% in 2022. On the contrary, average spending in the information & electronic sub-industry will see more than 20% of growth in 2022 despite having a growth rate lower than the metal & machinery sub-industry and the livelihood sub-industry in 2021.
Average Spending on Smart Factory in the Taiwanese Manufacturing Industry by Sub-Industry
Huge adoption costs are the crucial factor for companies in determining whether they will implement smart factory as 60% of them in the survey reported such problem. More than 40% of companies reported having difficulty in recruiting and training talent. In addition, more than 50% of companies said having difficulty integrating new smart factory solutions with existing hardware and software.
Methodology
Primary research with a holistic, cross-domain approach
The exhaustive primary research methods are central to the value that the analyst delivers. A combination of questionnaires and on-site visits to the major manufacturers provides a first view of the latest data and trends. Information is subsequently validated by interviews with the manufacturers' suppliers and customers, covering a holistic industry value chain. This process is backed up by a cross-domain team-based approach, creating an interlaced network across numerous interrelated components and system-level devices to ensure statistical integrity and provide in-depth insight.
Complementing primary research is a running database and secondary research of industry and market information. Dedicated research into the macro-environmental trends shaping the ICT industry also allows the analyst to forecast future development trends and generate foresight perspectives. With more than 20 years of experience and endeavors in research, the methods and methodologies include:
Method
- Component supplier interviews
- System supplier interviews
- User interviews
- Channel interviews
- IPO interviews
- Focus groups
- Consumer surveys
- Production databases
- Financial data
- Custom databases
Methodology
- Technology forecasting and assessment
- Product assessment and selection
- Product life cycles
- Added value analysis
- Market trends
- Scenario analysis
- Competitor analysis
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