Smart Factory Market (By Product: Machine Vision Systems, Industrial Robotics, Control Devices, Sensors, Communication Technologies, Other Products; By Technology: Product Lifecycle Management, Human Machine Interface, Enterprise Resource and Planning, Distributed Control System, Manufacturing Execution System, Programmable Logic Controller, Supervisory Controller and Data Acquisition; By End-user Industry) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2032

The global smart factory market size was exhibited at USD 129.74 billion in 2022 and is projected to hit around USD 321.98 billion by 2032, growing at a CAGR of 9.52% during the forecast period 2023 to 2032.

Key Pointers:

• The North America region currently dominates the market.
• The Asia Pacific region will likely have considerable growth.
• The Oil and gas segment generated an enormous share of the overall market growth.

Growing emphasis on energy efficiency, resource optimization, and cost reduction in production operations; increasing demand for industrial robots; and rising demand for IoT and artificial intelligence in industrial environments are the major factors driving the growth of the smart factory industry.

Smart Factory Market Report Scope

Latest technological Trends in Smart Factory Market

Augmented Reality

Augmented reality enhances the perception and presentation of a real-life situation. It is created using technology to overlay digital information on an image of something that is being viewed through a compatible device, such as a smartphone camera, HMI, or any smart goggle. Usually, these devices are voice-controlled, making the wearer a hands-free user. The alignment of machine learning and physics-based modeling enables engineers to create an entire augmented reality (AR) experience that shows technicians in the factory the process to service the factory floor machine. Companies are increasingly using augmented reality (AR) on the shop floor of the factory to boost production activity and improve production processes.

The incorporation of augmented reality in industrial processes has boosted worker productivity.

Smart Factory Market Dynamics 

DRIVERS: Increasing adoption of Industrial robots

Increasing miniaturization of sensors, growing investments in automation (in automotive, electrical & electronics, and metals & machinery industries), and rising demand for industrial robotics systems in developing countries are the factors driving the growth of the industrial robot market. Rising demand for automation across industries has increased the adoption of industrial robots in various industries. The growth of the industrial robots’ market can be attributed to the growth of the electronics industry and towering labor wages in manufacturing. This is expected to increase the demand for industrial robots and support the growth of the smart factory market during the review period.

RESTRAINT: Security risks associated with cyber-physical systems

The manufacturing sector is the most targeted cyberattack sector, around 47% of the cyberattacks target the manufacturing sector to gain competitive advantages and trade secrets. A cyber-physical system (CPS) is an advanced technology that integrates virtual and physical worlds to build a factory with intelligent equipment. CPS technology has transformed manufacturing processes. Cyber-physical manufacturing facilities use cutting-edge technologies such as robotics, big data, automation, artificial intelligence, virtual reality, sensors, augmented reality, and additive manufacturing to offer extraordinary flexibility, precision, and efficiency to manufacturing processes. However, the security risks associated with the adoption of CPS may restrain the market. A CPS enables connectivity among all plant equipment and stores critical information about the plant. This information might be at risk if the system gets hacked.

OPPORTUNITIES: Emergence of 5G technology in smart factory market

With 5G technology, smart factory owners can use cellular technologies more securely and can tune them to specific use cases. By placing sensors on equipment connected to 5G networks, they can take data off the manufacturing networks without connecting to the machines; this can make optimization seamless in real time. Many manufacturers are adopting 5G network for achieving uninterrupted and strong connection. The installation of 5G network in factories eliminates the need for wired connectivity, enabling a high-speed manufacturing environment with high flexibility and less downtime. It becomes crucial for industries to have a network that can support in terms of speed, coverage, and reliability. The emergence of 5G network is going to provide a one-stop solution for factories and create significant opportunities for smart factories.

CHALLENGES:Interoperability between information technology and operational technology

The biggest challenge for the implementation of a smart factory is the lack of interoperability between informational technology (IT) and operational technology (OT); IT and OT use different protocols and architecture, which significantly increases the complexity and costs associated with the adoption of smart factories. Most OT systems today work in silos. However, a smart factory demands a fully functional digital ecosystem for seamless data sharing between machines and other physical systems of different manufacturers. Companies that master in interoperability of the information and operation technology would have an advantage in manufacturing, which would be reflected in the production yield. Furthermore, most companies have invested heavily in expensive industrial equipment having longevity. The equipment was designed to operate in a standalone manner, which is the main pain point for endusers, as such equipment fail to fit in the IIoT ecosystem.

Some of the prominent players in the Smart Factory Market include:

• ABB Ltd.
• DassaultSystèmes
• General Electric Co.
• Emerson Electric Co.
• Honeywell International Inc.
• Johnson Controls International
• Mitsubishi Electric Corporation
• Microsoft Corporation
• Robert Bosch GmbH
• Schneider Electric SE
• Siemens AG.

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the global Smart Factory market.

By Product

• Machine Vision Systems
  • Cameras
  • Processors
  • Software
  • Enclosures
  • Frame Grabbers
  • Integration Services
  • Lighting
• Industrial Robotics
  • Articulated Robots
  • Cartesian Robots
  • Cylindrical Robots
  • SCARA Robots
  • Parallel Robots
  • Collaborative Industry Robots
• Control Devices
  • Relays and Switches
  • Servo Drives and Motors
• Sensors
• Communication Technologies
  • Wired
  • Wireless
• Other Products

By Technology

• Product Lifecycle Management (PLM)
• Human Machine Interface (HMI)
• Enterprise Resource and Planning (ERP)
• Distributed Control System (DCS)
• Manufacturing Execution System (MES)
• Programmable Logic Controller (PLC)
• Supervisory Controller and Data Acquisition (SCADA)
• Other Technologies

By End-User Industry

• Automotive
• Semiconductors
• Oil and Gas
• Chemical and Petrochemical
• Pharmaceutical
• Aerospace and Defense
• Food and Beverage
• Mining
• Other End-user Industries

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)