The global smart factory market is estimated to grow at a significant CAGR of XX% during the forecast period. The market for the smart factory is growing due to the increasing adoption of machine learning and deep learning technologies by the manufacturing sector for smart manufacturing and supply process. The manufacturing industry has been home to substantial activities in the past few years aiming for new advancements based on smart technologies. This includes standardized schemes and establishment of ecosystems that tie together the IT and manufacturing industries, with the introduction of IIC (Industrial Internet Consortium) in the US, led by General Electric Company, as well as the introduction of government-led Industry 4.0 initiative in Germany. Various companies are adopting autonomous decentralized systems. 

 Segmental Outlook  

The global smart factory market is classified on the basis of components and industry. Based on component the market is segregated into hardware and software. The smart factory hardware includes sensors, industrial robots, machine vision, and others. As per IFR, the estimated annual supply of industrial robots in the automotive industry has increased from 103,000 units in 2016 to 116,000 in 2018. Electrical and electronic held the second-largest position in industrial robots with 113,000 units’ installation in 2018.  The rising demand for industrial robots and industry 4.0 further contributes to the growth of the hardware segment. On the basis of industry, the global smart factory market is segregated into automotive, aerospace & defense, electrical & electronics, energy & power, chemical industry, and others. 

Global Smart Factory Market Share by Industry, 2018(%)

Global Smart Factory market to be driven by Automotive Industry

The automotive segment is projected to have a considerable share in the market. The automobile industry constantly uses advanced technologies to bring innovative, efficient and safe vehicles to market, while constantly working to reduce manufacturing costs. Currently, these technologies comprise AI and high-performance computing. Over the decades, the industry has invested significantly in high-performance computing (HPC) systems to power modeling, design and simulation applications. The automotive manufacturers across the globe recognize that smart vehicles are the future where smart solutions are extensively used to increase its capabilities and offer a better driving experience. The automobile manufacturers are using smart systems in the manufacturing processes. These systems are used to manage workflows and create schedules as well as allow robots to work safely together with humans on factory assembly lines and floors.

Regional Outlook 

Geographically, the global smart factory market is further classified into North America, Europe, Asia-Pacific and the Rest of the World. Asia-Pacific is estimated to have considerable market growth in the global market during the forecast period. The market in Asia-Pacific is largely driven by the investment from the private technology company towards smart technology development owing to the availability of economical workforces coupled with large volume and a broad range of data generated by the e-commerce companies and logistics companies. 

Global Smart Factory Market Growth, by Region 2019-2025

North America to hold a considerable share in the global Smart factory market

North America is projected to have a significant market share in the global market owing to R&D, and high expenditure by the government as well as a private organization for smart technology such as AI. The US and Canada are the major economies of North America. The region has well-developed information communication technology (ICT) and employs the adoption of a large number of connected devices. In February 2019, the President signed an Executive order 13859, Maintaining American Leadership in AI. The signing of the order was aimed to launch the American AI initiative in order to promote and protect AI technology in the US. The initiatives implement a whole-of-government strategy in collaboration and engagement with the private sector, academia, and major private manufacturers. 

Market Players Outlook

The key players in the Smart factory market contributing significantly by providing different types of products and increasing their geographical presence across the globe. The key players of the market include ABB Ltd., General Electric Co., Rockwell Automation, Inc., Siemens AG, Schneider Electric SE, and others and others. These market players adopt various strategies such as product launch, partnerships, collaborations, mergers, and acquisitions to sustain a strong position in the market. For instance, In June 2019 Schneider Electric SE launched the first Smart Factory in the US to establish in real-time how its EcoStruxure architecture and related suite of offerings can enable increase operational efficiency and reduce costs for its customers. 

The Report Covers

• Market value data analysis of 2018 and forecast to 2025.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global smart factory market. Based on the availability of data, information related to pipeline products, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.