Pivotal Role of Smart Factory Solutions in the Evolution of the Digitized Intelligent Factory of the Future Drives Strong Market Growth

Robust demand from the developing countries to modernize processes, improve productivity, and achieve operational excellence, and the urgent need to curtail de-industrialization in developed countries characterized by aging workforce & shortage of skilled labor are poised to drive the global market for Smart Factory to exceed US$210 billion by 2024.

Smart factories are set to transform the manufacturing arena and improve efficiency and productivity. The transformation in manufacturing is driven by decline in sensor technology prices, the omnipresent Internet signals and capability to mine earlier hidden data. The advanced and automated manufacturing facility or smart factory offers sophisticated, efficient and safe method for manufacturing goods. Industrial robots, IoT, growing adoption of smart automation systems, and greater importance for regulatory compliances are set to lead smart factory market growth. Myriad benefits of smart factory that are driving its widespread popularity and penetration include connectivity and mobility, connected and intelligent supply chain, intelligent operations, unification of key performance indicators, and predictive maintenance, and proactive diagnosis and management of equipment failures. 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 that hold the potential to transform the manufacturing industry.

Strong growth is projected for the market in the coming years driven by the growing prominence of intelligent factories equipped with smart devices, software and solutions that boost OEM efficiency and transform factories from cost centers to profit and innovation centers. Intelligent factories, or the next-generation factories, are expected to enable manufacturers to not only remain abreast with the connected marketplace, but also drive its future growth. Intelligent factories leverage Industrial IoT (IIoT), artificial intelligence, Big Data, machine learning, cloud computing, and advanced analytics for integrating digitization and automation for driving product individualization with the help of more efficient manufacturing processes. 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/virtual 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 through 3D printing or additive manufacturing and advanced robotics, represent major disruptive forces characterizing the manufacturing industry digitization process. Advent of advanced technology and vehicles such as autonomous vehicles, driverless cars, connected cars, and smart cars, which are under different stages of development are driving robust demand from automotive OEMs to install smart factory tools in the manufacturing arena.

As stated by the new market research report on Smart Factory Solutions, Asia-Pacific represents the largest market worldwide. The region also ranks as the fastest growing market with a CAGR of 9.6% over the analysis period, driven primarily by huge electronics manufacturing activity in Korea, Vietnam and China, and equally strong automotive manufacturing in China and India. Important growth drivers in the developed markets include 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.

Key players in the market include ABB Ltd., Accenture Plc, Autodesk, Inc., Bosch Software Innovations GmbH, CENIT AG, Cisco Systems, Inc., Dassault Systèmes, Emerson Electric Company, FANUC Corporation, Fraunhofer IAO, General Electric Company, Honeywell International, Inc., Huawei Technologies Co., Ltd., IBM Corporation, Infosys Ltd., Intel Corporation, Johnson Controls, Inc., Keyence Corporation, KUKA AG, Microsoft Corporation, Mitsubishi Electric Corporation, OMRON Corporation Industrial Automation Company, Oracle Corporation, Rockwell Automation, Inc., SAP SE, Schneider Electric SE, Siemens AG, Telefonaktiebolaget L. M. Ericsson, Wipro Limited, YASKAWA Electric Corp., and Yokogawa Electric Corporation, among others.

The research report titled “Smart Factory - Market Analysis, Trends, and Forecasts” 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.  End-use sectors analyzed for the global market include Oil & Gas, Industrial Equipment, Automotive, Aerospace & Defense, Electronics, and Others.

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