Smart Factory Global Market Report 2024

Smart factories represent facilities where traditional manufacturing processes merge with digital technology, intelligent computing, and extensive data utilization, forming a more dynamic system tailored for companies emphasizing manufacturing automation and supply chain management.

The primary product categories in the smart factory market encompass machine vision systems, industrial robotics, control devices, sensors, communication technologies, and other related items. Industrial robots are mechanical machines programmed to autonomously execute production-related tasks within industrial settings. The various components include smart factory hardware, smart factory software, and smart factory services, finding applications in diverse industry verticals such as automotive, aerospace and defense, electrical and electronics, food and beverages, healthcare and pharmaceuticals, among others.

The smart factory market research report is one of a series of new reports that provides smart factory market statistics, including global market size, regional shares, competitors with a smart factory market share, detailed smart factory market segments, market trends and opportunities, and any further data you may need to thrive in the smart factory industry. This smart factory market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The smart factory market size has grown rapidly in recent years. It will grow from $76.11 billion in 2023 to $83.95 billion in 2024 at a compound annual growth rate (CAGR) of 10.3%. The expansion observed in the historical period can be credited to the adoption of Industry 4.0 and digital transformation, a growing embrace of data analytics and big data, the integration of automation and robotics, the implementation of cyber-physical systems, and the utilization of cloud computing and edge computing.

The smart factory market size is expected to see rapid growth in the next few years. It will grow to $127.21 billion in 2028 at a compound annual growth rate (CAGR) of 10.9%. The anticipated growth in the forecast period can be ascribed to government support and regulatory initiatives, a heightened emphasis on sustainability, a focus on supply chain resilience and visibility, the adoption of flexible and scalable manufacturing solutions, and an increased emphasis on cybersecurity. Key trends expected in the forecast period involve customization and personalization in production, remote monitoring and management, the implementation of sustainable manufacturing practices, the integration of human-centric design in human-machine collaboration, the utilization of smart sensors and actuators, and the adoption of collaborative robotics (cobots).

The smart factory market is poised for growth, primarily driven by the increasing demand for industrial robots. Industrial robots, automated machines programmed for production tasks, are integral to smart factories that prioritize resource optimization and industrial automation. These factories leverage technologies such as information and smart sensors, robotics, the internet of things (IoT), and artificial intelligence (AI). In 2021, the International Federation of Robotics reported a 0.5% growth in new robot sales, with expectations of a substantial 13% growth in robot installations. Thus, the rising demand for industrial robots is a key factor propelling the growth of the smart factory market.

The smart factory market is also set to expand due to the demand for cost reduction and waste minimization. Cost reduction involves identifying and cutting operational costs, while waste minimization focuses on systematically implementing new techniques to reduce hazardous waste. Operational efficiency in smart factories hinges on these two factors, achieved through process optimization, waste elimination, and efficiency improvements. For example, the National Environment Agency in Singapore reported that in 2022, 4.19 million tons out of 7.39 million tons of solid waste were recycled. The emphasis on cost reduction and waste minimization is a significant driver for the growth of the smart factory market.

A noteworthy trend in the smart factory market is the adoption of technology advancements. Major players in the sector are incorporating advanced technologies to enhance production processes and overall efficiency. Panasonic, a Japan-based company in smart factory solutions, introduced the Miraie Pro factory platform in 2021. This Industrial IoT/smart factory solution employs technologies such as Cloud, IoT, analytics, and mobile apps to manage end-to-end operations, resulting in improved production efficiency. Utilizing such technology can boost manufacturing productivity by 8-15%.

In the smart factory market, major companies are integrating new and innovative technologies like Industry 4.0 solutions to automate production and enhance efficiency during the setup of new production lines or units. Industry 4.0 involves incorporating IoT, cloud computing, analytics, AI, and machine learning into manufacturing facilities. Deloitte, a UK-based professional services network company, opened a 9,000-square-foot smart factory in Montreal in February 2023, showcasing various Industry 4.0 solutions for production and warehousing automation. These solutions include AI, sensors, robots, IoT, big data, and cloud technology.

In December 2021, Inpixon, a US-based indoor intelligence platform company, acquired IntraNav, a German industrial automation startup, for an undisclosed amount. This acquisition is expected to expand Inpixon's location intelligence and contribute to market expansion. It positions Inpixon to embrace the fourth industrial revolution (Industry 4.0), facilitating the digitalization of horizontal and vertical value chains through automation, data exchange, IoT, and cloud computing.

Major companies operating in the in the smart factory market report are ABB India 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.

Asia-Pacific was the largest region in the smart factory market in 2023. 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

The countries covered in the smart factory market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The smart factory market consists of sales of blockchain manufacturing, the industrial internet of things, and asset management. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified)).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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