Increasing Digitalization in Manufacturing Facilities Drives the Smart Factory Market.
Globally, the smart factory market is expected to grow at a CAGR of 9.5% during the forecast period from 2019 to 2027. The growth of the market is driven by the increasing digitalization of manufacturing facilities. The overall manufacturing industry has gone through a phase of digital disruption over the past decade due to increasing competition among companies and advancements in globalization.
The market dynamics are changing, and the demand for customized products is increasing. As a result, the product lifecycle is getting shorter due to the greater variety of variants. This has led to a shorter planning horizon and smaller batch sizes. Manufacturers are turning to advanced technology solutions such as automation, robotics, additive manufacturing, and the Internet of Things (IoT) to address these challenges.
These solutions assist manufacturers in creating an intelligent and self-controlled production network, which can be optimized with increased flexibility to enhance operational performance. However, there are still some factors that are holding back the growth of the smart factory market.
The primary reasons organizations are hesitant to integrate technology solutions are data safety and security concerns associated with the use of digital products and solutions. Moreover, the capital costs associated with the implementation of new technology and the lack of skilled professionals are also hindering its adoption in the market.
Market Synopsis
During the forecast period, aerospace and defense are expected to grow significantly.
The smart factory market is segmented on its application into the automotive, aerospace & defense, food & beverage, electronics & electrical, pharmaceuticals, chemical, mining, and energy & utility sectors. The aerospace and defense sector is estimated to grow at a CAGR of more than 10.2% during the forecast period.
The growth of the market is driven by the rising need among organizations to reduce the cost of operations and gain business agility. Furthermore, the increasing digitalization across the industry is also augmenting the growth of the market. On the other hand, the food and beverage industry is also estimated to gain significant market share due to the rapid automation within the industry vertical.
Europe Is Leading the Smart Factory Market
Europe dominated the smart factory market with over 37% of the revenue in 2018. The market is driven by the increasing implementation of the Industry 4.0 revolution in the region. The governments of European countries are investing significantly in order to escalate digitalization among the market players. Subsequently, Europe would continue leading the market through the forecast period. Further, Asia Pacific is estimated to demonstrate the highest CAGR during the forecast period.
The prominent players in the smart factory market are ABB Ltd., Emerson Electric, FANUC, General Electric, Honeywell International, Mitsubishi Electric, Robert Bosch, Rockwell Automation, Schneider Electric, Siemens, and Yokogawa Electric.
Periods of History and Forecast
This research report presents the analysis of each segment from 2017 to 2027, considering 2018as the base year for the research. The compound annual growth rate (CAGR) for each respective segment is calculated for the forecast period from 2019 to 2027.
Report Scope by Segments
The smart factory market report provides market size and estimates based on market dynamics and key trends observed in the industry. The report provides a holistic view of the global smart factory market based on components, solutions, applications, and geography. Key segments covered in the report are as follows:
Key questions are answered in this report.
What was the size of the smart factory market in 2018, and what are the projections for 2027?
Which is the largest regional market for smart factory solutions?
What are the major trends followed in the smart factory market across different regions?
Who are the key companies in the smart factory market?
What are the key strategies adopted by the leading smart factory companies on the market?
This report's distinct data points
Statistics on smart factories and spending worldwide
Recent trends across different regions in terms of the adoption of smart factories across industries
Notable developments are going on in the industry.
Attractive investment propositions for segments as well as geography
Comparative scenario for all the segments for years 2018 (actual) and 2027 (forecast)
Frequently Asked Question:
The market for Smart Factory Market is expected to reach USD$ XX in 2027.
The Smart Factory Market is expected to see significant CAGR growth over the coming years, at 9.5%.
The report is forecasted from 2019 -2027.
The base year of this report is 2018.
Emerson Electric, FANUC, General Electric, Honeywell International, Mitsubishi Electric. are some of the major players in the global market.
