Home >> Automotive >> Smart Factory Market

Smart Factory Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

SR496653 | 26-Mar-2021 | 120 Pages | Mordor Intelligence | Automotive


Summary

The Global Smart Factory Market was valued at USD 270.74 Billion in 2020, and it is expected to reach USD 461.82 Billion by 2026, registering a CAGR of 9.33% during the forecast period, 2021-2026.

- The term ‘smart factory’ refers to the various fully integrated automation solutions adopted for manufacturing facilities. Such integration helps in streamlining the material flow during all the processes involved in the manufacturing, thus enabling effective movement of materials across the factory floor.
- The adoption of smart systems can reduce the need for human labor, particularly in challenging environments. Quality control processes have historically relied on human intervention, but a greater availability of these smart factory systems, with more user-friendly controls, is expected to gain popularity in complex manufacturing settings.
- Coupled with the Industrial Internet of Things (IIoT) and smart factories, where industrial devices are connected to each other via the internet, the sheer volume of real-time data (Big Data) would create means for Industry 4.0 to bring about a massive change, in the way modern-day control systems function.
- The Maryville University estimates that by 2025, over 180 trillion gigabytes of data will be created worldwide every year. A large portion of this will be generated by IIoT-enabled industries. A survey by the Industrial IoT (IIoT) giant, Microsoft, found that 85% of companies have at least one IIoT use case project. This number will increase, as 94% of the respondents said they will implement IIoT strategies by 2021.

Key Market Trends

Growing Adoption of IoT across the Value Chain

- IoT is fruitful in applications, where faster development and real-time monitoring of quality are the vital factors ensuring greater benefits to the end user. The manufacturing sector is one such end user where real-time monitoring and feed back is vital for seamless manufacturing operations. IoT has numerous applications in the manufacturing sector. It can facilitate the production course in a plant, as IoT devices can automatically monitor development cycles and manage warehouses and inventories.
- Massive shifts in manufacturing due to industry 4.0 and acceptance of IoT require enterprises to adopt agile, smarter, and innovative ways to advance the production, with technologies that complement and augment human labor with robotics, and reduce industrial accidents caused by a process failure.
- According to Cisco, by 2022, machine-to-machine (M2M) connections that support IoT applications may account for more than half of the world's 28.5 billion connected devices.
- System integrators and ICT consultants are leveraging these trends. For instance, in September 2019, Deloitte launched Smart Factory Fabric, a pre-configured suite of a cloud-based Internet of Things (IoT) applications and integrated services to accelerate smart factory transformations.

Asia-Pacific Occupies the Largest Market Share

- Manufacturing is one of the pillars of China's economy and is undergoing a rapid transformation. As the population ages, along with rising labor costs, the legacy model based on inexpensive migrant workers is no longer sustainable.
- It is reported that low-end manufacturing firms are moving to Southeast Asia to cut costs, which include automotive and electronics manufacturing companies. It is forecast that in the next five years, the automotive industry will expand 6 to 7%, annually.
- India is poised to become the fifth-largest manufacturing country in the world by the end of 2020. Moreover, manufacturing giants, such as GE, Siemens, HTC, Toshiba, and Boeing have either set up or are in process of setting up manufacturing plants in India.
- Japan's supplementary budget for the 2020 fiscal earmarked JPY 23.5 billion for companies that move production to the Southeast Asian countries. By expanding the subsidy program's scope, Japan aims to reduce its dependence on a particular region. It wants to build a system that can provide a stable supply of medical materials and electronic components, even during emergencies. This is expected to drive investment in the smart factory market in the region.

Competitive Landscape

The smart factory market is a highly competitive market and consists of several major players. In terms of market share, few of the major players currently dominate the market, and the market is moving toward a consolidated stage. These major players in the market are focusing on expanding their customer base across foreign countries. These companies are leveraging on strategic initiatives, like mergers and acquisitions, partnerships, and product innovation to increase their market shares and profitability. The major players in the market are Siemens Ag, Schneider Electric SE, Honeywell international, and Robert Bosch GmbH, among others.

- October 2020 - Rockwell Automation, Inc. acquired Oylo, a privately-held industrial cybersecurity services provider based in Barcelona, Spain. Oylo provides a broad range of industrial control system (ICS) cybersecurity services and solutions, including assessments, turnkey implementations, managed services, and incident response.
- June 2020 - Schneider Electric, announced the expansion of its partnerships to address the convergence of IT and OT. Bringing together system integrators with IT solution providers to build integrated industrial edge computing solutions, the expanded partnerships resulted in the immediate release of three programs including: new reference designs, co-developed with AVEVA, and integrating solutions from Lenovo and Stratus; a learning path for system integrators; and a collaborative online community for learning and sharing opportunities within Schneider Electric Exchange.

Reasons to Purchase this report:

- The market estimate (ME) sheet in Excel format
- 3 months of analyst support

Any special requirements about this report, please let us know and we can provide custom report.



Prices
Single User - $4250
EnterPrise User - $7500



Related Reports