The smart factory market is expected to be valued at USD 153.7 billion in 2019, growing at a CAGR of 9.76% during 2019–2024. The growth of this market is propelled by the evolution of the Internet of Things (IoT), increasing use of enabling technologies in manufacturing, rising adoption of industrial robots in manufacturing sector driven by collaborative robots, and connected enterprise, along with mass production to cater to rising population.
In terms of components, industrial robots are expected to be the largest contributor to the smart factory market during the forecast period
Market for industrial robots is expected to account for the highest share of the global market during the forecast period. Implementing industrial robotics in smart manufacturing processes can improve productivity, reduce human errors, and increase production volume. However, market for industrial 3D printing is expected to witness the highest CAGR between 2019 and 2024 owing to increasing adoption of 3D printing technology in various processes and discrete industries, such as automotive, aerospace and defense, food & beverages, and semiconductor and electronics.
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Automotive industry likely to account for the highest market share in the smart factory market during the forecast period
Market for automotive industry is expected to account for the highest share of the global smart factory market during the forecast period. Smart factory solutions play a key role in the development and production of quality automobiles. Innovations in assembly line methods are welcomed by vehicle manufacturers to enhance quality and increase factory productivity. Furthermore, in the process industry, the adoption of smart factory related technologies and components is expected to be the highest in the oil & gas industry because of the increasing need for safety and reliability in oil and gas plants. Companies operating in the oil and gas industry are always looking for new ways to meet rising demand for energy, cut operating cost, and enhance the overall efficiency of plants.
APAC is expected to hold the largest market size during the forecast period
Among all regions, APAC is expected to account for the largest share of the smart factory market in 2019. 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.
Key Market Players
Key players that offer solutions related to the smart factory market are ABB (Switzerland), Emerson Electric (US), FANUC (Japan) General Electric (US), Honeywell International (US), Mitsubishi Electric (Japan), Robert Bosch (Germany), Rockwell Automation (US), Schneider Electric (France), Siemens (Germany), and Yokogawa Electric (Japan).