Global Market for Smart Factory Projected to Reach a revised size of US$214.2 Billion by 2026
`Smart Factory` or `Smart Manufacturing` or the `Factory of the Future` is a concept that envisages creation of intelligent factories, where the traditional disparate manufacturing processes are linked to generate intelligent data. In the smart manufacturing model, standalone production facilities can communicate with other sites within the factory and facilitate integration of existing industrial infrastructure facilities with IoT and cloud computing.
Growth in the global market is set to be driven by increasing investments in automation systems and advances in manufacturing technologies to achieve mass production and push overall efficiency and productivity. Enterprises in the industrial sector are implementing industrial robots, the Internet of Things (IoT), and connected devices for increased visibility, real-time data analysis and predictive maintenance.
In addition, increasing demand for automated manufacturing platforms in industries like manufacturing, automotive, chemical and medical devices is expected to propel market prospects. The COVID-19 pandemic has created a pressing need for manufacturing factories to ensure worker safety while maintaining their operations. The crisis is fueling the adoption of vision-guided robots for reducing the risk of infection to workers. The scenario is expected to prompt various factories to implement automated solutions and robotics for safeguarding their employees from the infection risk.
Amid the COVID-19 crisis, the global market for Smart Factory estimated at US$140.4 Billion in the year 2020, is projected to reach a revised size of US$214.2 Billion by 2026, growing at a CAGR of 7.4% over the analysis period. Control Equipment & Software, one of the segments analyzed in the report, is projected to record a 7.5% CAGR and reach US$99.5 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Reporting & Analysis Software segment is readjusted to a revised 8.7% CAGR for the next 7-year period.
The Smart Factory market in the U.S. is estimated at US$28.2 Billion in the year 2021. China, the world`s second largest economy, is forecast to reach a projected market size of US$43.2 Billion by the year 2026 trailing a CAGR of 8.6% over the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 6.2% and 5.8% respectively over the analysis period.
Within Europe, Germany is forecast to grow at approximately 7.9% CAGR. North America region dominates market growth owing to increasing penetration of smart supply chain and manufacturing technologies in several industries. Participants in the industrial sector across the region are clustering towards robotic and automatic systems to boost productivity and efficiency of their production and warehousing units.
In addition, leading automobile companies such as Audi and BMW are embracing factory automation technologies to accelerate production cycles and achieve cost savings. Growth in the Asia-Pacific region is slated to be driven by growing investments by manufacturers in smart technologies. The regional market is bound to receive a strong push from an estimated spending of US$127.5 billion by Chinese manufacturing organizations in IoT in 2020.
In the global Measurement Devices segment, USA, Canada, Japan, China and Europe will drive the 6% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$20.1 Billion in the year 2020 will reach a projected size of US$30.2 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$7.1 Billion by the year 2026.
Find out more:
Smart Factory – Global Market Trajectory & Analytics