The Global Market for Smart Factory Solutions in Terms of Spending on Implementation of Smart Factory Solutions is Projected to Exceed US$150 Billion by 2022

Growing Prominence & Proliferation of Industry 4.0 Enabling Technologies Drive Demand for Smart Factory Solutions, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Smart Factory Solutions market. The global market for Smart Factory Solutions in terms of spending on implementation of smart factory solutions is projected to exceed US$150 billion by 2022, driven by aging workforce & shortage of skilled labor, and growing demand for software and solutions that boost OEM efficiency, drive operational excellence, and transform factories from cost centers to profit and innovation centers.

Smart factory or smart manufacturing, a concept introduced by the German government, envisages complete factory automation, huge data volumes, wireless networks, and intelligent and connected sensors working in concert with other types of devices. Myriad benefits of smart factories over traditional manufacturing practices that is expected to drive strong market adoption include greater flexibility, enhanced resource and energy efficiency, transparency, and increased profitability. Mass customized production operations, automation of production processes, use of configurable robots that allow a variety of products to be produced in the same manufacturing facility, use of virtual modeling and digital designs for manufacturing processes for significant reduction in time taken for a product to travel from design to delivery stages, use of data-driven supply chains leading to reduction in the time-to-market for products by up to 70%, among others, represent few of the innumerable attributes of smart factory solutions that hold the potential to transform the manufacturing industry. With smart factory interfacing with smart grids, smart mobility and smart logistics, smart factory solutions are expected to emerge as a critical element of the upcoming smart infrastructures and smart cities.

Future growth in the market will be driven by surging demand for smart factory solutions for digitization of the manufacturing industry. The exponential growth in data volumes, connectivity, and computational power, particularly for low-power wide area networks; emergence of new types of human machine interactions (HMIs) such as augmented reality systems and touch interfaces; advent of business intelligence and analytics capabilities; and sustained advancements in the ability to transfer digital instructions to physical world, e.g. through 3D printing or additive manufacturing and advanced robotics, represent major disruptive forces characterizing the manufacturing industry digitization process. Shrinking workforce and shortage of skilled workers, and increasing investments in industrial IoT, artificial intelligence, machine learning, cloud computing and big data analytics technologies, which represent some of the most critical technologies for industry 4.0 transformation, represent other important growth drivers poised to benefit market adoption in the coming years.

As stated by the new market research report on Smart Factory Solutions, Asia-Pacific represents the largest market worldwide. Smart factory solutions continues to witness steady adoption in developing as well as developed countries as both large- and small-scale sectors accept technological, economical, and spatial benefits offered by these solutions. Escalating investment in automating processes, the urgent need to reverse the negative economic impacts of the previous decade, the growing opposition to strategic outsourcing of manufacturing operations and increasing emphasis being laid on bringing back the manufacturing activity that was lost to low-cost destinations represent important growth drivers in the developed countries. Flourishing markets for food and drinks, automotive, construction, manufacturing, and warehousing, among others is pushing demand for smart factory equipment, software and solutions in the developing countries of Asia-Pacific, the Middle East, and Latin America. The huge electronics manufacturing activity in Korea, Vietnam and China, and equally strong automotive manufacturing in China and India, make Asia-Pacific a lucrative market for smart factory solutions.

Key players covered in the report include ABB Ltd., Accenture Plc, Altizon Systems Pvt. Ltd., Atos SE, ATS International B.V., Bosch Software Innovations GmbH, CENIT AG, Cisco Systems, Inc., Dassault Systèmes, FANUC Corporation, Fraunhofer IAO, General Electric Company, Honeywell International, Inc., Huawei Technologies Co., Ltd., IBM Corporation, Infosys Ltd., Intel Corporation, Johnson Controls, Inc., KUKA Aktiengesellschaft, Mentor Graphics Corporation, Mitsubishi Electric Corporation, Oracle Corporation, Rockwell Automation, Inc., SAP SE, Schneider Electric SE, Siemens AG, and Wipro Limited, among others.

The research report titled “Smart Factory Solutions: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies. The report provides market estimates and projections for all major geographic markets such as the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe) Asia-Pacific (China, and Rest of Asia-Pacific), Middle East & Africa, and Latin America. Major product types analyzed for the global market include Control Equipment & Software, Reporting & Analysis Software, Measurement Devices, and Connectivity Solutions. 

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