The global smart factory market size is expected to reach USD 271.91 billion by 2030, expanding at a CAGR of 9.8% from 2023 to 2030, according to a new study by Grand View Research, Inc. The market for smart factory has experienced remarkable growth in recent years, primarily attributed to several factors. These include the increasing adoption of Industry 4.0 concepts characterized by integrating digital technologies such as the Internet of Things (IoT), AI, Machine Learning (ML), and industrial automation. These technologies enhance operational efficiency and enable real-time data analysis, fostering agile and responsive manufacturing processes.
Moreover, the need for cost optimization and resource efficiency has prompted businesses to invest in smart factory solutions, as they promise reduced downtime, minimized wastage, and improved resource allocation. Besides, the growing emphasis on sustainability and environmental concerns has led manufacturers to gravitate towards the adoption of smart factories to monitor and optimize energy consumption and reduce their carbon footprint.
Additionally, technological advancements such as integrating connected devices with IoT and cloud computing act as development factors. Automated material handling, electronic and mechanical assembly, and product testing are all made easier with these cutting-edge technologies. Force sensors are also used in smart factories to maintain constant force during polishing, buffing, and deburring, collect data for statistical process control (SPC) systems, and ensure proper component insertion. Additional aspects, including the inclusion of the Industrial Internet of Things (IIoT) and the growing usage of smart factory solutions for the production of complex automotive and medical components, are expected to propel the smart factory sector during the forecast period.
Gather more insights about the market drivers, restrains and growth of the Smart Factory Market
Detailed Segmentation:
Technology Insights
The distributed control systems (DCS) technology segment accounted for a significant market share of over 17% in 2022, driven by its pivotal role in enhancing industrial automation and process optimization.DCS technology offers scalability and seamless integration with emerging technologies like IoT and Industry 4.0, and the ability to facilitate remote monitoring and control, which became increasingly important during the COVID-19 pandemic. Moreover, they contribute to safety compliance, energy efficiency, and modernization of legacy control systems, aligning with broader industry trends of efficiency, sustainability, and digital transformation in production operations.
Application Insights
The automotive segment accounted for the largest market share of over 27% in 2022. The automotive industry is increasingly adopting smart factory solutions to meet rising consumer demand for customizations, advanced safety features, and eco-friendly vehicles. Smart factories offer automation, data analytics, and real-time monitoring capabilities that are crucial for streamlining production processes, ensuring high product quality, and meeting stringent regulatory standards. Additionally, the shift towards electric and autonomous vehicles necessitates more advanced manufacturing processes, making smart factories a strategic choice for automotive manufacturers aiming to enhance productivity, reduce costs, and remain competitive in a rapidly evolving market.
Field Devices Insights
The industrial robotics segment accounted for the largest market share of over 41% in 2022. Industrial robots are increasingly preferred by manufacturers due to their ability to enhance production efficiency, reduce human labor costs, and improve product quality. They offer precision, speed, and consistency in tasks such as assembly, welding, and material handling, making them indispensable in smart factories striving for higher productivity, quality, and competitiveness. Additionally, advancements in robotic technology, including collaborative robots (cobots) that can collaborate with human workers, have accelerated their adoption in various industries, fueling segment growth.
Regional Insights
The Asia Pacific regional market captured the highest revenue share of over 35% in 2022. Asia Pacific has emerged as a manufacturing hub, particularly in countries like China, Japan, and South Korea, where there is a strong emphasis on industrial automation and technological advancements. Additionally, the region's growing population has led to increased consumer demand for various products, including automobiles and electronics, driving the need for efficient and high-capacity manufacturing. Moreover, government initiatives and investments in Industry 4.0 and smart factory technologies have further accelerated the adoption of the market in the region.
Browse through Grand View Research's Next Generation Technologies Industry Research Reports.
• The global small drone market size was estimated at USD 12.03 billion in 2023 and is expected to grow at a CAGR of 14.5% from 2024 to 2030.
• The global IoT platform market size was estimated at USD 11.10 billion in 2023 and is projected to grow at a CAGR of 12.7% from 2024 to 2030.
Key Companies & Market Share Insights
The market is classified as highly competitive, with the presence of several smart factory players. The key players operating in the industry are focusing on strategic alliances, product developments, expansions, and mergers & acquisitions to remain competitive. For instance, in March 2023, Schneider Electric SE, a digital transformation provider of energy management and industrial automation, initiated the construction of its upcoming smart factory in Dunavesce, Hungary. This state-of-the-art facility, backed by an investment of USD 42.67 million (€40 million), would cover an area of 25,000 sq. m. and will accommodate a workforce of 500 employees. Such strategies by key players are anticipated to augment market growth over the forecast period.
Following are some of the major players in the global smart factory market:
• ABB, Ltd.
• Dassault Systemes S.E.
• FANUC Corporation
• General Electric Company
• Honeywell International, Inc.
• Johnson Controls, Inc.
• KUKA AG
• Mitsubishi Electric Corporation
• Rockwell Automation, Inc.
• Schneider Electric SE
• Canon Inc.
• Cisco System Inc.
• Emerson Electric Co.
Smart Factory Market Segmentation
Grand View Research has segmented the global smart factory market based on technology, field devices, application, and region:
Smart Factory Technology Outlook (Revenue, USD Billion, 2018 - 2030)
• Distributed Control Systems (DCS)
• Enterprise Resource Planning (ERP)
• Human Machine Interface (HMI)
• Manufacturing Execution System (MES)
• Product Life Cycle Management (PLM)
• Program Logic Controller (PLC)
• Supervisory Controller and Data Acquisition (SCADA)
• Others
Smart Factory Field Devices Outlook (Revenue, USD Billion, 2018 - 2030)
• Sensors
• Industrial Robotics
• Machine Vision Systems
• Others
Smart Factory Application Outlook (Revenue, USD Billion, 2018 - 2030)
• Aerospace & Defense
• Automotive
• Energy & Power
• Food and Beverages
• Healthcare
• Semiconductor & Electronics
• Oil & Gas
• Others
Smart Factory Regional Outlook (Revenue, USD Billion, 2018 - 2030)
• North America
o U.S.
o Canada
• Europe
o U.K.
o Germany
o France
o Italy
o Spain
o Rest of Europe
• Asia Pacific
o China
o India
o Japan
o South Korea
o Rest of Asia Pacific
• Latin America
o Brazil
o Mexico
o Rest of Latin America
• Middle East & Africa (MEA)
o UAE
o Saudi Arabia
o Rest of Middle East & Africa
Order a free sample PDF of the Smart Factory Market Intelligence Study, published by Grand View Research.