Smart Factory Market is expected to grow from USD 80.1 billion in 2021 to USD 134.9 billion by 2026; it is expected to grow at a CAGR of 11.0% from 2021 to 2026. The key factors driving the growth of the market are fiscal policies to keep manufacturing facilities afloat amidst COVID-19 crisis, resource optimization, and cost reduction in production operations, increasing demand for industrial robots, rising demand for technologies such as IoT and artificial intelligence in industrial environments, and growing emphasis on energy efficiency.
Major players in the market are: Emerson Electric Co. (US), General Electric (US), Rockwell Automation, Inc. (US), Schneider Electric SE (France), ABB Ltd. (Switzerland), Siemens AG (Germany), Mitsubishi Electric Corp. (Japan), Honeywell International Inc. (US), Endress+Hauser AG (Switzerland), Yokogawa Electric Corp. (Japan).
“Industrial sensors segment held the largest market size of the overall component segment of smart factory market in 2020“
The industrial sensors segment is expected to hold the largest share of the smart factory market. The growth of the industrial sensors segment is driven by the growing adoption of Industry 4.0 and IIoT, and the growing wireless sensors market. Predictive maintenance is expected to offer lucrative opportunities to the players in the industrial sensors market in the coming years. Predictive maintenance is enabled by 3 major solution enhancements over a traditional maintenance schedule: capturing sensor data, facilitating data communications, and making predictions. As sensors are an important part of predictive maintenance solutions, the demand for industrial sensors is expected to increase significantly in the coming years.
“PAM solutions to grow at the highest rate from 2021 to 2026”
The PAM segment is expected to grow at the highest CAGR during the forecast period. The growth of this segment can be attributed to the increasing deployment of PAM solutions in process and discrete industries to build a comprehensive data repository related to different equipment installed in these plants, right from their uptime performance to their life cycle cost assessment.
“Food & beverages process industry to grow at the highest rate from 2021 to 2026”
The providers of smart factory solutions are trying to develop solutions that could increase the quality and quantity of products manufactured by the manufacturers of foods and beverages. High-quality standards are important for the food & beverages manufacturing sector, including the companies engaged in the processing, packaging, and distribution of food and beverages. The automation technologies used in the food & beverages industry offer design flexibility, innovative and integrated safety solutions, and advanced software tools for controlling the operations of machines. Food manufacturers are investing significantly in transforming their traditional manufacturing facilities into advanced units. Thus, the adoption of smart factory technologies and advanced manufacturing equipment is increasing significantly in this industry.
“Automotive industry held the largest market size of overall discrete industry market in 2020”
The automotive segment is anticipated to hold the largest share of the smart factory market, by discrete industry, during the forecast period. Advancements in automotive manufacturing technologies and an increase in investments by key automotive manufacturers in smart factory solutions are among the factors expected to drive the smart factory market for the automotive industry.
“APAC to record highest CAGR from 2021 to 2026”
Most of the key manufacturers from different industries have shifted their manufacturing plants in APAC due to the low labor costs and the availability of skilled labor in the region. The increasing number of automation activities in process and discrete industries is one of the major factors driving the growth of the smart factory market in APAC. In addition, countries such as China, Japan, South Korea, and India are contributing to the growth of the smart factory market in the region. These countries account for considerable market size and hold a wide scope for the development of the smart factory market in APAC.