New York , Feb. 20, 2024 (GLOBE NEWSWIRE) -- The global smart factory market size is poised to grow at a CAGR of over 12% from 2024 to 2036. The market is anticipated to garner a revenue of USD 1258 billion by the end of 2036, up from a revenue of USD 323 billion in the year 2023. The market growth is attributed to the growing automation sector across the world. The implementation of the Internet of Things in the building of automobiles is projected to propel market growth in the coming years. The need for advanced technology to provide a high level of quality, precision, and efficiency in the automobile sector is propagating the market progression. Over 30% of the manufacturing industries, and 33% of the water supply sector, 60% of the transport and storage sector use IoT devices as per 2023 reports.
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Besides, the growing preference for sustainable products across the world is predicted to propel the market trends. The demand for semiconductors is amplifying the application of smart factory setups such as the installation of working robots, machine vision systems, and other automated services that is augmenting the market size during the forecast period. In 2021, nearly 1.2 trillion chips were sold across the world rising from a value of just 930 billion chips in 2020.
Smart Factory Market: Key Takeaways
- Market in North America region to propel the highest growth.
- The Industrial Robots segment to garner the highest growth
- Market in Asia Pacific region to grow at the highest rate
The Accelerating Use of 5G Networks in Factories is Proliferating the Growth of the Smart Factory Market
The factory owners are using 5G technology to speed up production and reduce manufacturing costs which is mounting the size of the market. The surging connectivity of sensors with the 5G networks in smart factories is enabling the systems to collect huge data on the equipment for analysis in very little time. Further, the deployment of a 5G data network is aiding in the globalization of companies in the world market by nurturing productivity and minimizing defects which is boosting the market trends. The use of 5G technology is reckoned to reduce cost by 18% and increase productivity by 23% on average as per the reports in 2021.
Smart Factory Industry: Regional Overview
The global smart factory market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa region.
Presence of a Large Industrial Network and Use of Innovative Technology is Fostering Market Growth in the North American region
The North America region market is anticipated to hold a lion's share of 46% by the end of 2036 owing to the expanding number of competitors in the industries. The multiplying ratio of manufacturers in the region with cutting-edge technology and services enhances the competition among the businesses raising the need for automation. Over 10% of the total output in the United States comes from manufacturers which is approximately 3 trillion contributing to 8.5% of the employment as of 2021. Automation systems are the new trend in industries to adapt to the digitalized world. The intensifying market growth is attributed to the keen focus of the companies in the region to develop an innovative modern automated environment.
High Adoption of Robotics in Various Industries and Hike the Percentage of Manufacturers is Extending the Market Expansion in the Asia Pacific Region
The Asia Pacific region market is estimated to register a market share of 23% in the coming years. The market growth is credited to the spreading number of manufacturers in the region in different industries including automobiles, electronics, consumer goods, and products. Asia is one of the leading manufacturers of electronic goods with the incorporation of robotic systems. Escalating investment in the research and development of smart technology in the industries and automation prevalence in machinery is driving the market size. About 15%-45% of the export value in Asia is attributed to the electronic sector as per 2024 statistical reports. Thailand consists of nearly 2500 companies of electronic goods with 380,000 people working in them.
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Smart Factory Market Segmentation by Product Type
- Industrial Sensors
- Industrial Robots
- Industrial 3D Printers
- Machine Vision Systems
The industrial robots segment of the smart factory industry is envisaged to secure a market share of 42% by the end of 2036 on account of the aggregating utilization of robots in the industries. The machinery in the industries is linked with artificial intelligence and the Internet of Things to promote safety and minimize occupational accidents. The production process is mostly carried through robotics to reduce time, errors, and cost, and improve precision, and quality of end products. All these factors are prophesied to fuel the market trends. As per the 2023 data from World Robotics reports of the International Federation of Robotics, 553,052 industrial robots were installed in 2022 in the factories which was credited to a 5% growth rate over the year.
Smart Factory Market Segmentation by End User
- Automotive
- Semiconductors & Electronics
- Oil & Gas
- Chemicals
- Pharmaceutical
- Aerospace & Defence
- Food & Beverages
The automotive segment of the smart factory industry is expected to propagate the growth of the market owing to the enormous rate of automobile production. The repetitive work in the automobile sector such as producing the same spare parts and engines for numerous vehicles with a very slight variation doesn’t require human intelligence. Hence, human resources are saved for special and unique works such as designing which saves labor costs for the manufacturers. Moreover, the smart factory integration includes the addition of automation services to optimize the business which is determined to strengthen the growth of the market. China already has 770 robot units in the manufacturing sector and now in 2021, it installed new robots in the automotive industry to twice the count of 62,000 units accounting for 50% of the total 120,000 installed factory robots across the globe.
Smart Factory Market Segmentation by Component
- Solution
- Services
A few of the well-known market leaders in the global smart factory market that are profiled by Research Nester Are General Electric Company, ABB Ltd, Rockwell Automation, Emerson Electric Co., Schneider Electric, Endress+Hauser Group Services AG, Honeywell International Inc., Siemens, Roberts Bosch GmbH, and Dassault Systemes.
Recent Development in the Market
- ABB Ltd. was associated with Ericsson for years to introduce a flexible wireless automation service for the use of smart manufacturing industries. The partnership helped to develop a wireless communication technology for effective usage in factory settings with high reliability.
- The Plant Web Optics platform was formed by Emerson Electric Co. to facilitate the Realtime monitoring and improvement of industrial production. The platform connected advanced Analytics, Digital Twin Technology, and the Industrial Internet of Things to enhance the efficiency of the process, asset value, and strategy maintenance of smart plants with the delivery of required insights and estimated Analytics.
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