The smart factory market size is expected to grow by $73.68 billion from 2022 to 2027, according to a Technavio market research report titled Global Smart Factory Market. However, the growth momentum of the market will be progressing at a CAGR of 9.26% during the forecast period.
The need for simplification of complex manufacturing activities is notably driving the growth of the global smart factory market. As the industrial landscape has evolved over time, the primary emphasis for industrial operators has shifted towards the maintenance of plant assets. Ensuring optimal operational efficiency while effectively maintaining critical assets has become a substantial challenge for modern industries. The significance of this challenge lies in the fact that even minor disruptions or failures of crucial assets within operational cycles can result in substantial revenue losses. Consequently, industries are compelled to implement regular asset management practices to avert any potential shutdowns or downtime in their processes. Such factors are expected to drive the expansion of the global smart factory market throughout the forecast period. The market is segmented by component (Industrial sensors, Industrial robots, Industrial 3D printers, and Machine vision systems), solution (SCADA, MES, DCM, PLC, and PLM), and geography (North America, Europe, APAC, South America, and Middle East and Africa). The report analyses the market size and growth and provides accurate predictions on the growth of the market.
Key highlights:
- The report recognises the following as some of the key players in the smart factory market: ABB Ltd., Azbil Corp., Cisco Systems Inc., Dassault Systemes SE, Emerson Electric Co., FANUC Corp., FUJI Corp., General Electric Co., Honeywell International Inc., Johnson Controls International Plc, Microsoft Corp., Mitsubishi Electric Corp., Oracle Corp., Robert Bosch GmbH, Rockwell Automation Inc., SAP SE, Schneider Electric SE, Siemens AG, Yokogawa Electric Corp., and Endress Hauser Group Services AG
- Smart Factory Market is fragmented in nature.
- Market to observe 8.77% YOY growth in 2023.
Trend & challenges
The emergence of IIoT is an emerging trend in the global smart factory market. The integration of smart machines across both industrial and service sectors has been enabled by the advancements in IIoT technology. The surging demand for and utilisation of smart devices, wireless connectivity, and cloud technology are playing a pivotal role in expanding the capabilities and operational modes of smart machines in the foreseeable future. The evolution of IIoT is prompting companies to transform their conventional factories into smart facilities, where equipment can be dynamically adjusted to production requirements and autonomous robots exhibit high adaptability. In response, companies are enhancing their offerings by introducing highly intuitive human-machine interfaces (HMIs), ensuring that operating smart machines doesn’t necessitate advanced technical expertise. As IIoT gains momentum, the smart machines market is witnessing growth, driven by the escalating demand for products like expert systems, autonomous robots, and other intelligent machinery. These factors collectively contribute to the growth of the market during the forecast period.
Data privacy and security concerns are the major challenges hindering the market growth. The report also covers information on upcoming trends and challenges.
Keg segments:
The market share growth by the industrial sensors segment will be significant during the forecast period. Sensors play a crucial role in detecting and quantifying physical phenomena. They form the foundational elements of the IoT ecosystem. The integration of smart sensors into electronic devices enables wireless connectivity and seamless communication among various devices and systems. IoT gateway solutions facilitate the establishment of IoT infrastructures on adaptable operating systems (OS) and platforms. Anticipated advancements in nanotechnologies during the forecast period are poised to revolutionise sensor technology by enabling further miniaturisation, thereby driving down hardware costs. These trends collectively contribute to heightened demand for this segment, consequently propelling the growth of the global smart factory market during the forecast period.
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