The global smart factory market is expected to be valued at USD 153.7 billion in 2020, expectred to reach USD 293.60 billion in 2027 growing at a CAGR of 9.76% during 2020-2027. Smart factories are affordable and offer fully integrated automation solutions for manufacturing facilities to streamline the flow of materials during the manufacturing process. Smart factories are characterized by increasing the use of technology and field devices to offer complete automation in manufacturing process. By incorporating cyber physical system into the forefront of manufacturing flow, smart factories are able to connect every process and component across the value chain.
This interconnection of information and production has revolutionized the automation industry and thereby, facilitated manufacturing units to perform at an optimum level. Moreover, manufacturing companies are able to achieve shortest time to market and zero waste production through smart factories. Automation in smart factories makes the use of various control devices such as sensors, motors, drives, switches and relays and networks technologies such as wired, wireless and radio frequency identification (RFID).
Integrated systems such as Manufacturing Execution System (MES), Information Technology (IT) system, Programmable Logic Control (PLC), Enterprise Resource Planning (ERP) and Supervisory Control and Data Acquisition (SCADA) are designed to meet the specific requirements of a manufacturing unit. These industrial control systems manage the process and streamline the flow of materials across the manufacturing line. Smart factories also make use of industrial robots such as articulated robots, SCARA (Selective Compliance Assembly Robot Arm or Selective Compliance Articulated Robot Arm) robots, Cartesian robots, cylindrical and other robots for various manufacturing processes such as painting, welding, conveyance, heavy lifting etc.
One of the major factors driving the growth of smart factory market is the increasing need for improving efficiency and energy saving in the manufacturing process. Automation has enabled manufacturing units to utilize every second of production time through efficient streamlining of the manufacturing process. Technological advancements such as machine to machine communication enable smart factories to eliminate wastage of time caused due to the delay in the process change.
Moreover, with rise of Internet of Things (IoT) and services, integration of manufacturing and engineering processes has experienced a tremendous leap forward. However, the growth of smart factory market faces a few restraints due to lack of standardization and interoperability issues. These factors raise concerns in designing integrated solutions using components provided by several automation solution providers. The shortage of trained workers and increasing skill gap further restrains the growth of smart factory market. Other crucial factors such as cyber security threats and associated costs limit the growth of this smart factory market in industries such nuclear, weapons and armaments.
The key players of global smart factory market are Siemens AG, General Electric Company (GE), ABB Ltd, Rockwell Automation, Schneider Electric, Honeywell International Inc., FANUC Corporation, Mitsubishi Electric Corporation, Emerson Electric Co., Johnson Controls International PLC, Yokogawa Electric Corporation, Atos SE, Robert Bosch GmbH, Cognex Corporation and Ubisense.
Among all regions, APAC is expected to account for the largest share of the smart factory market in 2020. APAC is to hold the highest market share in the market due to technological innovation and increasing adoption of automation technologies in various industries. Prominent players in the market are Mitsubishi Electric (Japan), Omron (Japan), Yokogawa (Japan), and Fanuc (Japan). China has been working on an innovative industrial practice by implementing automation technologies in manufacturing. In addition, research institutes and corporates are collaboratively working to improve manufacturing processes in China. Further, in China, industrial intellectualization and information integration remain the main focus of the government industrial policy. This initiative is expected to increase the demand for smart factory solutions in this country. Toyota (Japan), Honda (Japan), and Suzuki (Japan) are developing smart factories for manufacturing robots, sensors, wireless technologies, and machine vision systems. This demand is propelling the growth of the market in Japan.
Report : Smart Factory Market - By Component (Industrial Robots, Machine Vision, Sensors, Industrial 3D Printing), By Industry (Oil & Gas, Food & Beverages, Automotive, Chemicals and Others) and By Region (North America, Asia Pacific, Europe, Middle East & Africa and Latin America) - Industry Analysis, Opportunity and Forecast 2020 To 2027