Market Definition
Smart factory & manufacturing is when an industry sets up an environment surrounding machines & equipment to enhance processes with automation & self-optimization. Smart factory & manufacturing solutions provide several benefits that extend to functions like supply chains logistics, planning, product development, etc. As a result, several manufacturing companies worldwide are swiftly adopting these solutions.
Market Insights
The Global Smart Factory and Manufacturing Market is projected to grow at a CAGR of around 9.7% during the forecast period, i.e., 2021-26. The market is driven primarily by the mounting demand for high-quality products with better end-to-end visibility of manufacturing processes entwined with the increasing adoption of smart factories & manufacturing solutions across industries associated with robotic systems.
In addition, with the increasing focus of manufacturers on reducing human labor, especially across challenging & risky environments, the demand for smart factories & manufacturing is increasing swiftly. Processes & operations like quality checks are observing an increasing transformation with greater availability of these smart factory systems equipped with more user-friendly controls, i.e., projected to boost the market in the coming years.
Besides, the advent of technologies like the Industrial Internet of Things (IIoT) & Artificial Intelligence (AI) in smart factory devices connected via the internet provides detailed & real-time insights. These insights are making modern-day control systems highly efficient in managing manufacturing units & factories.
Key Trends in the Market
With rapid developments in the industrial sector and increasing inclination toward Industry 4.0 to bring operational & cost efficiency by linking customers with warehouses, providers, supplies, & systems to distribute products, the market is anticipated to observe a significant expansion in the coming years. These connections are projected to surge and facilitate digital technologies like 3D printing, Manufacturing Execution Systems (MES), & robotic automation and, in turn, drive the market during 2021-26.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2016-19 |
| Base Year: 2020 | |
| Forecast Period: 2021-26 | |
| CAGR (2021-2026) | 9.7% |
| Regions Covered | North America: USA, Canada, Mexico |
| Europe: Germany, UK, France, Italy | |
| Asia-Pacific: China, India, Japan, South Korea | |
| South America: Brazil, and Argentina | |
| Middle East & Africa: GCC, South Africa | |
| Key Companies Profiled | IBM, Thales, BAE Systems PLC, Senseye, Oden, Aclima, Neiker-Tecnalia, Festo, Seimens, Upskill, Teska Labs, Sick AG, LMI Technologies, Oracle |
| Unit Denominations | USD Million/Billion |
Impact of Covid-19 on the Global Smart Factory and Manufacturing Market
The Covid-19 pandemic in 2020 had a decelerating effect on most industries across the globe, and the Smart Factory & Manufacturing Market was no exception. The imposition of stringent movement restrictions & lockdowns by the government of different countries worldwide to curb the spread of the dreadful disease resulted in several unprecedented challenges for the market.
These included the reduced shipment of smart factories & manufacturing components & low revenue generation due to disruptions in the supply chain, lack of production materials, shut down of manufacturing units, etc.
However, with the gradual betterment in the Covid-19 situation with reducing cases, the governments of different countries allowed the recommencement of business operations. This revival is anticipated to enable the market to regain its usual pace & recover from financial losses in the coming years since the supply chain is back on track & manufacturing units have resumed their production capabilities.
Market Segmentation:
Based on Components:
Of them all, Industrial Robots are anticipated to gain momentum in the market during the forecast period. It owes to the capabilities of these robots to serve extensively across modern factories while reducing the need for human intervention or assistance for basic & complex tasks and increasing operational efficiency & productivity of the manufacturing facility.
In addition, the soaring demand for these devices owes to their precise & accurate assistance in services that help replace human workers & bring cost-efficiency. Regions like North America & Europe are among the major end-users of these robots & are used primarily in intelligent production & the management of supply chains and tasks like pick-up, assembling, welding, & palletizing, among others.
Moreover, features like flexibility & faster working of multiple industrial robots in different applications that allow humans to focus on other competent tasks are other crucial aspects propelling the demand for these robots and driving the market through 2026.
Based on the Technology:
Of them all, the demand for IIoT is anticipated to display substantial growth during the forecast period, owing to its benefits that enable manufacturing units to maximize their Return of Investments (ROI) using smart factory technologies.
Moreover, another crucial reason behind the surging demand for IIoT is to connect more industrial devices using the internet and gather real-time data (Big Data) like temperature, strain, humidity, pressure, stress, & quality. Big Data technology that handles a vast volume of data generated is shaping the modern manufacturing industry.
Regional Landscape:
Region-wise, the Global Smart Factory & Manufacturing Market expands across:
Of them all, Asia-Pacific dominated the market with the largest share in recent years and is anticipated to prevail the same trend during the forecast period, mainly due to the swiftly expanding manufacturing industry, especially across countries like China & India.
With the exponentially rising population & high labor costs, the demand for automation is surging substantially across factories & manufacturing units in the automotive, consumer electronics, & textile sectors. Besides, several prominent leaders are setting up manufacturing units across Asia-Pacific & infusing the demand for smart factories & manufacturing units.
On the other hand, North America is projected to display substantial market growth during the forecast period, owing principally to rapid technological advancements, extensive availability of alternative solutions, reduced equipment costs, and the broadening printing industry in the region.
Besides, the region is also experiencing increasing investments by several leading players in industries like aerospace & defense, manufacturing, automotive, etc., to escalate the adoption of smart technologies for operational efficiency, thereby driving the regional market.
Market Dynamics:
Key Driver: Escalating Demand for Industrial Robots
Industrial robots are observing an increasing adoption across factories & manufacturing units to perform different electronic & mechanical tasks like assembling, pickups, material handling, gathering force data for the loT testing, Statistical Process Control (SPC), etc. Hence, the soaring demand for these components is anticipated to drive the global market during the forecast period. Moreover, with the increasing miniaturization of sensors and the mounting inclination toward automation, the demand for industrial robots shall further accelerate and benefit the overall market growth through 2026.
Possible Restraint: Growing Need for Greater Capital Investment
Since most industries are increasingly transforming from conventional manufacturing to modern & well-equipped facilities with smart components & robots, it requires massive capital investment for the installation of advanced machinery, software systems, IT infrastructure, & advanced communication technologies. It might introduce a financial burden on industry operators, especially across price-sensitive economies like Asia-Pacific & South America, and, in turn, restrain the market growth during the forecast period.
Growth Opportunity: Increasing Developments in Wireless Sensor Networks for Smart factories to Generate Lucrative Opportunities in the Market
Wireless Network consists of autonomous devices like sensors to monitor physical & environmental conditions. These sensors are used across industries like pharmaceuticals, oil & gas, & wastewater treatments, among others. The active participation of leading players in developing wireless sensor networks to reduce installation costs, coupled with their application in industries enabling real-time data monitoring & process control, shall generate lucrative growth opportunities for the market during 2021-26. Moreover, constant up-gradation in the software for wireless sensor networks is also projected to fuel the adoption of these systems across factories & manufacturing units in the coming years.
According to MarkNtel Advisors, the major leading players in the Global Smart Factory and Manufacturing Market are IBM, Thales, BAE Systems PLC, Senseye, Oden, Aclima, Neiker-Tecnalia, Festo, Seimens, Upskill, Teska Labs, Sick AG, LMI Technologies, Oracle, etc.
Key Questions Answered in the Market Research Report:
Market Outlook, Segmentation, and Statistics
Frequently Asked Questions
A. The historical data has been provided since 2016, while the base year is 2020, and the data forecast is up to 2026
