Global Smart Factory Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2024-2032)

Global Smart Factory Market Growth

A smart factory is an advanced manufacturing facility that integrates smart technologies like IoT, AI, robotics, and big data to enable automation. These factories are equipped with machinery and systems that collaborate in real time, allowing for faster decision-making, increased efficiency, and minimal downtime. As per the smart factory industry analysis, automation plays a key role in reducing human intervention, while machine-to-machine connectivity enables monitoring and adjustments during production. Flexibility is also crucial, as smart factories can easily adapt to bespoke production demands, enhancing productivity and cost-effectiveness.

Some of the key advantages of smart factories include improved efficiency due to minimised human errors and faster throughput, real-time monitoring through IoT sensors for quicker decision-making, and cost savings through predictive maintenance and energy-efficient technologies. AI helps detect mistakes earlier, enhancing quality control and enabling businesses to respond swiftly to changing demands. These benefits are driving the smart factory demand growth, making them more competitive and market-ready.

Read more about this report - REQUEST FREE SAMPLE COPY IN PDF

Global Smart Factory Market Analysis

The growing interest in Industry 4.0, which focuses on automation, data exchange, and manufacturing technologies to create smart factories is a key driver of smart factory industry growth. Increased use of IoT and connected devices in manufacturing enables continuous monitoring, predictive maintenance, and faster decision-making, all contributing to higher productivity. As the demand for cost-saving measures and productivity improvements rises, companies are increasingly adopting automation systems and AI-based products.

The underlying drivers of smart factory market dynamics and trends can be attributed to advances in AI, along with machine learning capabilities, which make factories smarter by improving product quality and predicting equipment failures in advance. Furthermore, sustainability goals promote energy-efficient solutions and waste reduction systems, making smart factories more environmentally responsible.

The manufacturing industry is changing, and the demand for customised goods requires flexible production lines in smart factories. These facilities boost the smart factory demand by enabling easy alterations to product designs. Unlike traditional manufacturing, which takes longer setup times for changes, smart factories allow immediate small-batch production with frequent design adjustments and minimal downtime. This flexibility increases efficiency and caters to the ever-evolving consumer preference for custom-made products. The automotive, electronics, and consumer goods sectors are rapidly adopting this approach to remain competitive and meet specific customer needs.

Smart Factory Industry Outlook

According to World Robotics, the global number of industrial robot installations increased from 391,000 units in 2019 to 517,000 units in 2021. This rise of 126,000 units translates to a growth rate of approximately 32.2%, demonstrating significant expansion in the adoption of industrial robots over this period. This expansion fuels the smart factory market revenue by enabling greater efficiency, precision, and flexibility in production processes.

The World Robotics reported that from 2019 to 2021, the global operational stock of industrial robots saw a substantial increase. The number of units rose from 2,740,000 in 2019 to 3,477,000 in 2021. This growth of 737,000 units reflects a notable rise of approximately 26.9%, underscoring the rapid expansion in the use of industrial robots worldwide.

According to The International Federation of Robotics, in 2023, U.S. manufacturing companies significantly increased their automation investments, with industrial robot installations rising by 12% to a record 44,303 units. The automotive industry led this surge, followed closely by the electrical and electronics sectors. Over the past decade, robot installations grew steadily from 24,000 units in 2013 to 44,000 units in 2018, then fluctuated around 31,000 to 40,000 units until reaching the current peak.

In 2022, South Korea led global robot density in manufacturing with 1,012 robots per 10,000 employees, far surpassing the world average of 151, according to The International Federation of Robotics. Singapore followed with 730 robots, while Japan and Germany had 397 and 392 robots, respectively. China reached 390 robots, reflecting rapid automation growth. This surge in automation drives the smart factory industry revenue by enabling highly efficient, scalable, and data-driven manufacturing processes, accelerating the global shift toward fully automated, intelligent factories.

China has adopted several strategic initiatives to enhance its robotics industry, including the 14th 5-Year Strategy Plan 2021, the Key Special Program on Intelligent Robots in 2022, and the Robotics+ Application Action Plan 2023. With a significant investment of USD 43.5 million in 2022, these efforts target a variety of sectors such as manufacturing, agriculture, architecture, logistics, energy, healthcare, education, elderly services, commercial community service, and emergency and extreme environment applications. By fostering innovation in intelligent robots and enhancing their application across industries, China is enabling more efficient, flexible, and connected manufacturing processes, which are core components of smart factories.

Smart factories leverage automation, IoT, and AI to streamline processes, reduce human error, and improve overall production speed which drives the smart factory market demand.

• Advanced technologies enable real-time data collection, allowing for quick decision-making, predictive maintenance, and optimization of production workflows.
• Smart factories can easily adjust to changing demands, enabling faster product customization, scalability, and reduced downtime.

Implementing smart factory technologies requires significant capital investment in automation, robotics, and IT infrastructure, which may deter smaller companies.

• Integrating smart technologies with existing systems and ensuring compatibility across devices and platforms can be challenging and time-consuming.
• As smart factories rely on connected systems, they become more vulnerable to cyber-attacks and data breaches, posing significant risks to operations.

The global shift toward Industry 4.0 is creating strong growth opportunities for smart factory technologies across various industries that boost smart factory industry growth.

• Continued advancements in artificial intelligence and IoT technologies are opening new possibilities for automation, predictive analytics, and improved decision-making.
• Smart factories’ ability to optimize resource use, reduce waste, and enhance energy efficiency aligns with the growing demand for environmentally responsible manufacturing.

Economic downturns or slowdowns can affect capital spending in manufacturing, potentially reducing investments in smart factory technologies.

• Rapid advancements in technology may render existing smart factory systems outdated, requiring continuous upgrades and innovation.
• The shift to automation may lead to job displacement, and companies may face challenges in retraining workers to manage and operate new smart technologies.

Key Players in the Global Smart Factory Market and Their Key Initiatives

ABB Ltd

• Launch of ABB Ability™ Smart Sensor to enhance remote monitoring of factory assets.
• Expanded and upgraded its smart power factory in Nelamangala, Bengaluru

Emerson Electric Co.

• Increased investment in AI-driven analytics for predictive maintenance and operational efficiency.
• Strengthened partnerships for industrial IoT solutions deployment globally to meet the growing demand of the smart factory market.

General Electric Company

• Expanding its Predix platform for industrial IoT to enhance data analytics in manufacturing.
• Collaborating with industry partners to develop AI-driven automation solutions.

Siemens AG

• Launch of the "Xcelerator" platform, a comprehensive digital twin solution for smart manufacturing to capture the smart factory market opportunities.
• Expansion of their Industrial Edge computing solutions to enhance factory automation.

Read more about this report - REQUEST FREE SAMPLE COPY IN PDF

Global Smart Factory Industry Segmentation

“Global Smart Factory Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Component

• Industrial Sensors
  • Level Sensors
  • Temperature Sensors
  • Flow Sensors
  • Position Sensors
  • Pressure Sensors
  • Force Sensors
  • Humidity and Moisture Sensors
  • Image Sensors
  • Gas Sensors
• Industrial Robots
  • Traditional Industrial Robots
  • Collaborative Robots 
• Industrial 3D Printing 
• Machine Vision Systems 
  • Cameras 
  • Frame Grabbers, Optics, and LED lighting
  • Processors and Software

Market Breakup by Solution

• Manufacturing Execution System (MES)
• Supervisory Control and Data Acquisition (SCADA)
• Plant Asset Management (PAM)
• Industrial Safety

Market Breakup by Industry

• Process Industry 
• Discrete Industry

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Read more about this report - REQUEST FREE SAMPLE COPY IN PDF

Smart Factory Market Share

Industrial robots have driven the growth of the smart factory industry as they enhance automation, efficiency, and precision in manufacturing processes. These robots can perform complex, repetitive tasks with high accuracy, reducing human error and increasing production speed. By integrating with IoT and AI systems, robots in smart factories can adapt to real-time data, allowing for quick adjustments to production lines and improving overall flexibility.

SCADA systems play a vital role in smart factories by providing real-time monitoring and control over machinery and processes. They collect critical data from connected devices, offering valuable insights into performance and potential issues. This allows operators to make quick adjustments, ensuring continuous productivity, reducing downtime, and maintaining high-quality standards. SCADA's ability to optimise processes and ensure smooth operations enhances its importance in smart factories, driving smart factory demand growth as manufacturers seek to improve efficiency, minimize costs, and maintain competitive advantages in a rapidly evolving industrial landscape.

Leading Companies in the Smart Factory Market

The company offers advanced automation, control systems, and software solutions essential to industries like oil and gas, power, chemicals, and pharmaceuticals, while also producing and servicing aircraft engines, renewable energy, and power equipment.

• ABB Ltd
• Emerson Electric Co.
• General Electric Company
• Siemens AG
• Honeywell International Inc.
• Others