Smart Factory Market is Set to Grow USD 164.0 Billion from 2024-2029
Chicago, July 19, 2024 (GLOBE NEWSWIRE) — The global Smart factory market size is expected to grow from USD 100.6 billion in 2024 to USD 164.0 billion by 2029, registering a CAGR of 10.3%. The smart factory market is thriving due to heightened workplace safety awareness, stringent regulatory compliance, and widespread integration of automation technologies across global industries, fostering substantial growth.
To know about the assumptions considered for the study
Major Smart Factory Companies Include:
- ABB (Switzerland),
- Emerson Electric Co. (US),
- Siemens (Germany),
- Schneider Electric (France),
- Mitsubishi Electric Corporation (Japan),
- General Electric (US),
- Rockwell Automation, Inc. (US),
- Honeywell International Inc. (US).
Smart Factory Market Dynamics:
Driver: Rising demand for technologies such as IoT and artificial intelligence in industrial environments
Artificial intelligence (AI) in manufacturing plants constitutes technologies such as deep learning, computer vision, natural language processing (NLP), and context awareness. These technologies not only enable machines to execute activities that are currently being performed by humans but also enhance business processes and overcome challenges that manufacturers face. Big data and computer vision technologies are increasingly being used because of the growing adoption of AI-based solutions in manufacturing industries such as semiconductor & electronics, energy & power, pharmaceuticals, automotive, heavy metals and machinery manufacturing, and food & beverage.
Restraint: Need for significant capital investments.
The evolution of a conventional manufacturing facility into a sophisticated smart manufacturing unit necessitates significant capital investment in advanced machinery, software, and IT infrastructure. This includes crucial elements like smart field devices, industrial robots, and advanced communication technologies for seamless industrial automation. However, this shift poses a financial challenge for industries in price-sensitive regions like Asia Pacific and South America. Industry experts cite overall costs, encompassing expenses for upgrading traditional systems, as a major impediment in transitioning to smart factories. The upfront setup cost for overhauling the entire manufacturing process is often impractical for many companies due to its high magnitude. Additionally, ongoing maintenance and upgrades required for automation software systems pose further financial burdens, particularly for small businesses.
Opportunity: Emergence of 5G technology in smart factory
Smart factories integrate Internet of Things (IoT), sensors, robots, and computerized maintenance management systems (CMMS) to collaborate, generating real-time analytics. This enables automated processes, enhancing productivity and minimizing downtime. Typically linked via Ethernet, Wi-Fi, or 4G LTE, smart factories drive large-scale industrial automation. The emergence of 5G technology, expected to be ten times faster than 4G, promises to expand the accessibility of individual factories. With 5G, factories comprise powerfully connected and continuously updated components. Smart factory owners leverage 5G for secure cellular technology use, tailored to specific use cases. Placing sensors on equipment connected to 5G networks enables seamless real-time optimization by extracting data without connecting to machines.
Challenge: Vulnerability to cyberattacks
Developing a sensor-based network for monitoring and controlling critical infrastructures must address the significant challenge of cyberattacks. SCADA systems, comprising sensors, mainframe computers, and communication and storage systems, are susceptible to such threats. These systems, managing critical infrastructure operations, face the risk of disruption, impacting organizations, communities, and economies. Catastrophes like oil or sewage leaks and electricity grid failures can result in long-term consequences. SCADA systems, with diverse communication systems, are vulnerable to cyberattacks at various nodes, causing malfunctions and potential disasters such as oil spills, radiation leaks, and transportation delays.
Smart Factory Market By Segmentation:
Industrial sensors hold the largest market share among the component of smart factory market in the year 2023.
The industrial sensor market has seen significant worldwide expansion, propelled by a surge in demand for automation and data-driven decision-making. Various industries, including manufacturing, healthcare, and energy, are increasingly embracing sensor technologies to boost efficiency. Technological progress, particularly the incorporation of IoT and AI, is accelerating the adoption of sensors. The growing recognition of the advantages associated with real-time data monitoring and analytics is a key factor driving the widespread growth of the global industrial sensor market.
Medical devices are expected to register highest CAGR during the forecast period
The medical devices sector is experiencing substantial growth in smart factory adoption. Integration of advanced automation, IoT connectivity, and data analytics enhances operational efficiency and precision in manufacturing. Smart factories optimize production processes, minimize errors, and ensure stringent quality control, resulting in heightened production speed and cost reduction. Real-time monitoring capabilities further revolutionize the medical device manufacturing landscape, fostering innovation and boosting competitiveness within the industry.
Smart factory market in Asia Pacific to hold largest market share in the year 2024
The smart factory market in the Asia-Pacific region is experiencing robust growth, driven by increasing industrial automation and adoption of advanced technologies. Factors such as the demand for improved efficiency, rising investments in Industry 4.0, and government initiatives promoting smart manufacturing contribute to the sector’s expansion. The integration of technologies like IoT, AI, and robotics further accelerates the smart factory market’s evolution, positioning the Asia-Pacific region as a key player in the global smart manufacturing landscape.
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