"Increasing Digitalization across the Manufacturing Facilities Is Driving the Smart Factory Market"

Globally, the smart factory market is expected to grow with a CAGR of 9.5% during the forecast period from 2023 to 2030. The growth of the market is driven by the increasing digitalization across manufacturing facilities. The overall manufacturing industry is going through a phase of digital disruption over the past decade due to the increasing competition among and advancement in globalization. The market dynamics are changing and the demand for customized products are increasing. As a result, the product lifecycle is getting shorter due to greater variety of variants. This has led to shorter planning horizon and falling batch sizes. To address these challenges, the manufacturers are shifting toward advance technology solutions such as automation, robotics, additive manufacturing and Internet of Things (IoT).

These solution assist manufacturers create an intelligent and self controlled production network, which can be optimized with increased flexibility to enhance the operational performance. However, there are still some factors that are holding back the growth of the smart factories market. The data safety and security issues associated with the use of digital production and solutions are the primary factors organizations are hesitant to integrate the technology solutions. Moreover, the capital cost associated with the implementation of new technology and lack skilled professionals is also hindering the adoption among the market.

"Aerospace & Defense Is Estimated To Grow Significantly During The Forecast Period"   

The smart factory market is segmented based on the application into the automotive, aerospace & defense, food & beverages, electronics & electrical, pharmaceuticals, chemical, mining, and energy & utility sector. The aerospace & defense sector is estimated to grow at a CAGR of more than 10.2% during the forecast period. The growth of the market is driven by the rising need among organizations to reduce the cost of operation and gain business agility. Furthermore, the increasing digitalization across the industry is also augmenting the growth of the market. On the other hand, food & beverages industry is also estimated to gain significant market share due to the rapid automation among the industry vertical.

"Europe Is Leading the Smart Factory Market"

Europe dominated the smart factory market with over 37% share in revenue in 2020. The market is driven by the increasing implementation of the industry 4.0 revolution in the region. The governments of European countries are investing significantly in order to escalate digitalization among the market players. Subsequently, Europe would continue leading the market through the forecast period. Further, Asia Pacific is estimated to demonstrate the highest CAGR during the forecast period.

The prominent players in the Smart Factory market are ABB Ltd., Emerson Electric, FANUC, General Electric, Honeywell International, Mitsubishi Electric, Robert Bosch, Rockwell Automation, Schneider Electric, Siemens, and Yokogawa Electric.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Smart Factory market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Smart Factory market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Smart Factory market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Smart Factory market?
• Which is the largest regional market for Smart Factory market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Smart Factory market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Smart Factory market worldwide?